Fundamentals of Gifts at UCLA March 9, 2010

Fundamentals of Gifts at UCLA March 9, 2010
10/2/08

 Get the Gift  Process the Gift  Acknowledge the Gift
Program Syllabus  Get the Gift  Process the Gift  Acknowledge the Gift  Administer the Gift

Program Syllabus  Get the Gift

Program Syllabus Donor Relations and Development Services
4/16/2017 Program Syllabus Donor Relations and Development Services Claudia Aguilar Distinguishing between a Gift, Grant or Contract Ann Pollack Directing Gifts Bill Kinsella Mass Solicitations Stephanie Bradford Welcome Introductions Dennis Slon- Associate Vice Chancellor for Development Paul Kraft-Executive Director of Information Services Rose Dalba- Director of Donor Stewardship Programs Ann Pollack- Assistant Vice Chancellor- Research- Campus Compliance Coordinator Judith Tuch/ Executive Director of Data Services Nancy Varat- Manager, Data Services Dean Lombardi David Channaia Truc Bui- Fund Management Sheena Ricchio- Director of Support Group Services Review handout evaluation at the end Review Objectives of gift training course Introduce Rose Dalba as our first speaker 10/2/08

Program Syllabus BREAK Gift Agreements, Chairs and Namings
4/16/2017 Program Syllabus BREAK Gift Agreements, Chairs and Namings Bill Kinsella Gifts of Securities and Gifts-in-Kind Welcome Introductions Dennis Slon- Associate Vice Chancellor for Development Paul Kraft-Executive Director of Information Services Rose Dalba- Director of Donor Stewardship Programs Ann Pollack- Assistant Vice Chancellor- Research- Campus Compliance Coordinator Judith Tuch/ Executive Director of Data Services Nancy Varat- Manager, Data Services Dean Lombardi David Channaia Truc Bui- Fund Management Sheena Ricchio- Director of Support Group Services Review handout evaluation at the end Review Objectives of gift training course Introduce Rose Dalba as our first speaker 10/2/08

Program Syllabus  Process the Gift

Program Syllabus Gift Processing Overview Sona Mahboobani 4/16/2017
Welcome Introductions Dennis Slon- Associate Vice Chancellor for Development Paul Kraft-Executive Director of Information Services Rose Dalba- Director of Donor Stewardship Programs Ann Pollack- Assistant Vice Chancellor- Research- Campus Compliance Coordinator Judith Tuch/ Executive Director of Data Services Nancy Varat- Manager, Data Services Dean Lombardi David Channaia Truc Bui- Fund Management Sheena Ricchio- Director of Support Group Services Review handout evaluation at the end Review Objectives of gift training course Introduce Rose Dalba as our first speaker 10/2/08

 Acknowledging the Gift
Program Syllabus  Acknowledging the Gift

Program Syllabus Gift Acknowledgements Claudia Aguilar 4/16/2017
Welcome Introductions Dennis Slon- Associate Vice Chancellor for Development Paul Kraft-Executive Director of Information Services Rose Dalba- Director of Donor Stewardship Programs Ann Pollack- Assistant Vice Chancellor- Research- Campus Compliance Coordinator Judith Tuch/ Executive Director of Data Services Nancy Varat- Manager, Data Services Dean Lombardi David Channaia Truc Bui- Fund Management Sheena Ricchio- Director of Support Group Services Review handout evaluation at the end Review Objectives of gift training course Introduce Rose Dalba as our first speaker 10/2/08

 Administer the Gift

Program Syllabus Managements of Gift Funds – The UCLA Foundation
4/16/2017 Program Syllabus Managements of Gift Funds – The UCLA Foundation Truc Bui The Regents Stephanie Bradford Welcome Introductions Dennis Slon- Associate Vice Chancellor for Development Paul Kraft-Executive Director of Information Services Rose Dalba- Director of Donor Stewardship Programs Ann Pollack- Assistant Vice Chancellor- Research- Campus Compliance Coordinator Judith Tuch/ Executive Director of Data Services Nancy Varat- Manager, Data Services Dean Lombardi David Channaia Truc Bui- Fund Management Sheena Ricchio- Director of Support Group Services Review handout evaluation at the end Review Objectives of gift training course Introduce Rose Dalba as our first speaker 10/2/08

Follow Up Workshops Mass Solicitations Policy Workshop Gift Submission
4/16/2017 Follow Up Workshops Mass Solicitations Policy Workshop March 16 Wilshire 9th Fl Gift Submission and Processing April 6 Gift Fund Management and Reports April 20 Welcome Introductions Dennis Slon- Associate Vice Chancellor for Development Paul Kraft-Executive Director of Information Services Rose Dalba- Director of Donor Stewardship Programs Ann Pollack- Assistant Vice Chancellor- Research- Campus Compliance Coordinator Judith Tuch/ Executive Director of Data Services Nancy Varat- Manager, Data Services Dean Lombardi David Channaia Truc Bui- Fund Management Sheena Ricchio- Director of Support Group Services Review handout evaluation at the end Review Objectives of gift training course Introduce Rose Dalba as our first speaker 10/2/08

 Get the Gift

DONOR RELATIONS and DEVELOPMENT SERVICES
Claudia Aguilar

Development Events Development Research Donor Relations
DR&DS Areas of Service Development Events Development Research Donor Relations 10/2/08

Chancellor’s Pre Game Events Parent’s Weekend
4/16/2017 DR&DS Areas of Service Development Events Chancellor’s Pre Game Events Parent’s Weekend UCLA Day (Alumni Reunions) UCLA Fund Events Events Database Tool Available 10/2/08

Prospect Identification Donor Profiles
DR&DS Areas of Service Development Research Prospect Identification Donor Profiles Research on Individuals, Corporations and Foundations Research Library and Donor Files 10/2/08

Establish & Distribute Information on Best Practices
DR&DS Areas of Service Donor Relations Establish & Distribute Information on Best Practices Create Donor Gift Impact Reports Customer Service Endowed Chair Tracking & Reporting 10/2/08

Donor Relations (cont.)
DR&DS Areas of Service Donor Relations (cont.) Delinquent Pledge Tracking Primary & Associated Gift Credit Honor Rolls & Recognition Projects Chancellor’s Acknowledgments Online Giving Websites Management 10/2/08

Donor Acknowledgment – Donor Gift Impact Reports
Donor Relations can assist you with creating personalized reports for your donors. Work with your Development Office when creating recognition reports. Keep it simple! Do not include detailed financial information. 10/2/08

Donor Acknowledgment – Donor Gift Impact Reports
10/2/08

DR&DS Contacts Donor Relations & Development Services
4/16/2017 DR&DS Contacts Donor Relations & Development Services Carol Buge, Executive Director Ext Development Events Debbie Dandona, Director Ext Development Research Karen Howard, Director Ext Donor Relations Sonya Bjork, Director Ext 10/2/08

Research GRANT, CONTRACT, GIFT, or Material Transfer Agreement: How to tell the difference
Ann Pollack 1/26/10

Topics Sources of Research Support Research Support Spectrum
How to Differentiate Among Gifts, Grants and Contracts, and Material Transfer Agreements 1/26/10

Sources of Research Support
4/16/2017 Sources of Research Support Inside the University = INTRAMURAL FUNDING Outside the University = EXTRAMURAL FUNDING There are two kinds of support for Research: Intramural and Extramural 1/26/10

Includes such things as: Academic Senate Grants
Intramural Funding 4/16/2017 Includes such things as: Academic Senate Grants Special programs sponsored by Academic Units Research projects supported by the faculty member using departmental funding, start up funds, etc. Intramural research support comes from a source within UCLA 1/26/10

Contracts or subcontracts ($ or in kind)
Extramural Support 4/16/2017 Includes: Gifts ($ or in kind) Contracts or subcontracts ($ or in kind) Grants or subgrants ($ or in kind) Material Transfer Agreements (no $) Extramural research support comes from a source outside UCLA 1/26/10

Research Funding Spectrum
4/16/2017 CONTRACTS GIFTS Research funding falls across a spectrum of award types. There are those that clearly fit onto the spectrum with distinct definition. However, there are many that fall “in between” the definitions and are not absolutely defined. Whether a particular award is a gift, a grant or a contract, can often depend upon the awarding organization. Awards from private sources may not fall clearly in one category or another. Sometimes, the distinctions are blurred. Whether funds are treated as a gift, a grant, or a contract is important for a number of reasons. A faculty member generally has more flexibility in determining how gift funds are used. In addition, gifts are not subject to indirect costs. However, at UCLA gifts are charged a 5% administrative fee by the Chancellor’s Office. Material Transfer Agreements GRANTS 1/26/10

Research Funding Spectrum
4/16/2017 Research Funding Spectrum Sometimes subtle distinctions GIFTS CONTRACTS Research funding falls across a spectrum of award types. There are those that clearly fit onto the spectrum with distinct definition. However, there are many that fall “in between” the definitions and are not absolutely defined. Whether a particular award is a gift, a grant or a contract, can often depend upon the awarding organization. Awards from private sources may not fall clearly in one category or another. Sometimes, the distinctions are blurred. Whether funds are treated as a gift, a grant, or a contract is important for a number of reasons. A faculty member generally has more flexibility in determining how gift funds are used. In addition, gifts are not subject to indirect costs. However, at UCLA gifts are charged a 5% administrative fee by the Chancellor’s Office. GRANTS 1/26/10

Characteristics of Gifts
4/16/2017 Characteristics of Gifts “Disinterested Generosity” No contractual obligations or deliverables No intellectual property rights Awarded irrevocably Permit only general sharing of results May be directed or undirected but no specific scope of work There are some commonalities between gifts and grants Under IRS regulations, donors cannot expect to receive subst 1/26/10

Characteristics of Grants and Contracts
4/16/2017 Specified performance period Generally have to return unobligated balance Specific scope of work Auditable financial reports Detailed technical/progress report or other work product Other contractual obligations (e.g. deliverables, determination of how intellectual property will be handled, specification of allowable etc.) Differentiating between a Gift and a Grant often is dependent upon subtle distinctions and requires judgment on the part of the recipient. UCLA has guidelines for determining when funds should be treated as a gift or a grant or contract. This determination is made on a case-by-case basis. 1/26/10

Characteristics of MTAs
A written agreement entered into by a provider and a recipient of research material for research. Typically includes intellectual property and ownership rights. The material being transferred is not to be administered to humans. Reasonable costs incurred in preparing and shipping materials may be reimbursed. No money for support of research. 1/26/10

Why is it so Difficult to Tell The Difference?
Award documents may not always use clear, consistent language. Recipients expectations may not match award makers intentions. Award makers may think that if they are using funds budgeted for philanthropic purposes that they are giving gifts regardless of the restrictions. 1/26/10

Making Distinctions Must look at the award “in toto” Requires judgment
Often subtle distinctions Rarely based on the existence or absence of a single characteristic 1/26/10

Making Determinations
4/16/2017 Making Determinations UCLA Policy 921 UC Guidance documents Judgment Consultation Gather as much documentation as possible The words used by the sponsor or the document terminology do not always define the award type Policy and other UC guidance will be used as the primary guideline for making determination Campus gift policy will not be overlooked in the analysis phase Time is always of the essence, as there should not be a need to hold up funding for an indeterminate amount of time 1/26/10

Letter from UC President David Saxon
UC POLICY July 8, 1980: Letter from UC President David Saxon Provides guidance for making distinctions Defines characteristics of gifts vs. grants Indicates that decisions require judgment 1/26/10

UC POLICY UC Contract and Grant Manual
Chapter 9-500: Distinguishing between Private Gifts and Grants for Research Defines characteristics of gifts and grants States need for judgment Provides guidelines for administration of gifts and grants for research 1/26/10

UC POLICY July 28, 1993: Letter from UC Budget Director Hershman
and University Controller Pastrone Defines characteristics of gifts, grants and contracts based on scope of research work Defines characteristics of sales and service activities 1/26/10

Recommendations of the Research Investment Committee (April 2004)
“Establish concrete guidelines and policies for the definition of gifts and grants. There are clear examples of gifts intended for research that escape overhead, draining resources for departmental administration from the receiving school and department. Establishing these guidelines and implementing them consistently are important to minimize friction that develops between the recipient and the School.” 1/26/10

Gift/Grant Committee Examined existing guidance and policy
Found existing guidance adequate for making most distinctions Found that more guidance was needed for handling private monies that don’t fit cleanly into the gift or grant categories

Gift/Grant Committee Recommended that all proposals for specific research studies be treated by the campus as a contract or grant proposal with appropriate overhead Recommended that in general, awards to support specific research studies be accepted as grants

UCLA POLICY Policy 921: Accepting Private Funds in Support of Specific Research Projects References UC policies for review of gifts/grants for research Outlines criteria for making distinctions Defines responsibilities for campus units 1/26/10

Gift, Grant & Contract Processing
4/16/2017 Gift, Grant & Contract Processing Gifts are accepted by Gift Services within External Affairs after receipt of Gift Tender from the academic unit Accounting for Regental gifts are handled by Corporate Accounting Material Transfer Agreements are negotiated by the Office of Intellectual Property Administration Grants and Contracts: From Government and Non-Profits - handled by the Office of Contract and Grant Administration (OCGA) From Industry Sponsors – handled by the Office of Intellectual Property & Industry Sponsored Research (OIP-ISR) For Industry-Sponsored Clinical Trials – handled by the School of Medicine Clinical Trial Contract Unit (CTCU) Contract and Grant account/funds are established and managed by Extramural Fund Management (EFM) Each kind of support is processed through the appropriate administrative unit 1/26/10

Campus Resources Office of the Vice Chancellor - Designated Reviewer
4/16/2017 Campus Resources Office of the Vice Chancellor - Designated Reviewer Claudia Modlin at x42642 or OCGA Contract and Grant Officers OIPA Industry Contract Officers CTCU Contract Officers OIPA MTA Negotiators Gift Services Staff 1/26/10

Summary 4/16/2017 1/26/10

DIRECTING GIFTS: UCLA Foundation or Regents
Bill Kinsella

What is the total amount of Gifts and Pledges made to UCLA in FY 09?
$ 360,875,104

FY 09 Giving by Source FY 2009 Total: $360,875,104 10/2/08

FY 09 Giving by Purpose FY 2009 Total: $360,875,104 10/2/08

FY 09 Giving by Fund Type FY 2009 Total: $360,875,104 10/2/08

Gift Recognition System

2 choices

REMEMBER – Don’t rely on just the label!
Directing Gifts 4/16/2017 REMEMBER – Don’t rely on just the label! PROPOSAL GIFT GRANT CONTRACT There are various donor relations and administrative advantages to be considered when directing gifts to the Regents or the Foundation, including donor preference. Our informal policy is try to direct as many gifts as possible to the The Foundation because of the scope of operations and flexibility to respond to campus, development and programmatic needs. Many times it is easier to process through the Foundation for several reasons: The 5% is most often taken off the top so the money is released earlier Fund is paid out on a monthly vs yearly basis. Easier to report to donors and families Easier to steward the gift as the development The Foundation has a legal responsibility to process only those contributions that clearly demonstrate a donor’s intention. Donors need to be informed and I think you heard from both Rose about the importance of knowing where their gift is going. If a gift is made payable to UCLA, the University of California, or The Regents it must be handled through the The Regents unless there is supporting documentation that the gift was solicited on behalf of The Foundation. Any ambiguities will be resolved in favor of The Regents These next slides are broken into 3 categories Type of Fundraising Type of fund Type of Gift We’ll go into more detail as we move through the presentation 10/2/08

Directing Gifts Recorded as a gift in ADVANCE Donor tax receipt
4/16/2017 GIFT GRANT CONTRACT Recorded as a gift in ADVANCE Donor tax receipt Gift Fee “Private Support” in ADVANCE No donor receipt Facilities & Administration Rate Not recorded in ADVANCE No donor receipt Facilities & Administration Rate There are various donor relations and administrative advantages to be considered when directing gifts to the Regents or the Foundation, including donor preference. Our informal policy is try to direct as many gifts as possible to the The Foundation because of the scope of operations and flexibility to respond to campus, development and programmatic needs. Many times it is easier to process through the Foundation for several reasons: The 5% is most often taken off the top so the money is released earlier Fund is paid out on a monthly vs yearly basis. Easier to report to donors and families Easier to steward the gift as the development The Foundation has a legal responsibility to process only those contributions that clearly demonstrate a donor’s intention. Donors need to be informed and I think you heard from both Rose about the importance of knowing where their gift is going. If a gift is made payable to UCLA, the University of California, or The Regents it must be handled through the The Regents unless there is supporting documentation that the gift was solicited on behalf of The Foundation. Any ambiguities will be resolved in favor of The Regents These next slides are broken into 3 categories Type of Fundraising Type of fund Type of Gift We’ll go into more detail as we move through the presentation Gift Services 10/2/08

Chancellor’s Greatest Needs Fund
UCLA Gift Fee 4/16/2017 GIFT 6.5% Chancellor’s Greatest Needs Fund 93.5% There are various donor relations and administrative advantages to be considered when directing gifts to the Regents or the Foundation, including donor preference. Our informal policy is try to direct as many gifts as possible to the The Foundation because of the scope of operations and flexibility to respond to campus, development and programmatic needs. Many times it is easier to process through the Foundation for several reasons: The 5% is most often taken off the top so the money is released earlier Fund is paid out on a monthly vs yearly basis. Easier to report to donors and families Easier to steward the gift as the development The Foundation has a legal responsibility to process only those contributions that clearly demonstrate a donor’s intention. Donors need to be informed and I think you heard from both Rose about the importance of knowing where their gift is going. If a gift is made payable to UCLA, the University of California, or The Regents it must be handled through the The Regents unless there is supporting documentation that the gift was solicited on behalf of The Foundation. Any ambiguities will be resolved in favor of The Regents These next slides are broken into 3 categories Type of Fundraising Type of fund Type of Gift We’ll go into more detail as we move through the presentation Donor’s Purpose Fund 10/2/08

Chancellor’s Greatest Needs Fund
UCLA Gift Fee 4/16/2017 GIFT 6.5% Chancellor’s Greatest Needs Fund There are various donor relations and administrative advantages to be considered when directing gifts to the Regents or the Foundation, including donor preference. Our informal policy is try to direct as many gifts as possible to the The Foundation because of the scope of operations and flexibility to respond to campus, development and programmatic needs. Many times it is easier to process through the Foundation for several reasons: The 5% is most often taken off the top so the money is released earlier Fund is paid out on a monthly vs yearly basis. Easier to report to donors and families Easier to steward the gift as the development The Foundation has a legal responsibility to process only those contributions that clearly demonstrate a donor’s intention. Donors need to be informed and I think you heard from both Rose about the importance of knowing where their gift is going. If a gift is made payable to UCLA, the University of California, or The Regents it must be handled through the The Regents unless there is supporting documentation that the gift was solicited on behalf of The Foundation. Any ambiguities will be resolved in favor of The Regents These next slides are broken into 3 categories Type of Fundraising Type of fund Type of Gift We’ll go into more detail as we move through the presentation 10/2/08

Endowment Spending Rate
4/16/2017 GIFT % Paid Monthly 36-month average market value % Paid Annually 60-month average market value There are various donor relations and administrative advantages to be considered when directing gifts to the Regents or the Foundation, including donor preference. Our informal policy is try to direct as many gifts as possible to the The Foundation because of the scope of operations and flexibility to respond to campus, development and programmatic needs. Many times it is easier to process through the Foundation for several reasons: The 5% is most often taken off the top so the money is released earlier Fund is paid out on a monthly vs yearly basis. Easier to report to donors and families Easier to steward the gift as the development The Foundation has a legal responsibility to process only those contributions that clearly demonstrate a donor’s intention. Donors need to be informed and I think you heard from both Rose about the importance of knowing where their gift is going. If a gift is made payable to UCLA, the University of California, or The Regents it must be handled through the The Regents unless there is supporting documentation that the gift was solicited on behalf of The Foundation. Any ambiguities will be resolved in favor of The Regents These next slides are broken into 3 categories Type of Fundraising Type of fund Type of Gift We’ll go into more detail as we move through the presentation 10/2/08

Began as The UCLA Progress Fund - 1954 Mission Statement -
“… actively promote philanthropy and manage donated resources for the advancement of UCLA.” Major Responsibilities Solicit and receive gifts to support UCLA Administer the gifts according to donor wishes Management and investment of donated funds Make decisions regarding the disposition of gifts 10/2/08

Directing Gifts GIFT Almost any type of gift asset can be accepted by, or any type of gift fund held by, either: The UCLA Foundation is the preferred recipient of gifts for the UCLA campus. 10/2/08

Directing Gifts – Special Cases
Planned gifts – Gift annuities Charitable trusts Pooled income fund Life insurance & life estates Real Estate – to sell In-kind gifts – to sell Inventions Mineral Rights Student Loans Real Estate – to hold In-kind gifts – to use Small, 1-time only gifts 10/2/08

Directing Gifts – Type of Fundraising
4/16/2017 GIFT The UCLA Foundation is also the preferred recipient for these types of fundraising activities: Annual Memberships Fundraising events Mass solicitations and campaigns There are various donor relations and administrative advantages to be considered when directing gifts to the Regents or the Foundation, including donor preference. Our informal policy is try to direct as many gifts as possible to the The Foundation because of the scope of operations and flexibility to respond to campus, development and programmatic needs. Many times it is easier to process through the Foundation for several reasons: The 5% is most often taken off the top so the money is released earlier Fund is paid out on a monthly vs yearly basis. Easier to report to donors and families Easier to steward the gift as the development The Foundation has a legal responsibility to process only those contributions that clearly demonstrate a donor’s intention. Donors need to be informed and I think you heard from both Rose about the importance of knowing where their gift is going. If a gift is made payable to UCLA, the University of California, or The Regents it must be handled through the The Regents unless there is supporting documentation that the gift was solicited on behalf of The Foundation. Any ambiguities will be resolved in favor of The Regents These next slides are broken into 3 categories Type of Fundraising Type of fund Type of Gift We’ll go into more detail as we move through the presentation 10/2/08

MASS SOLICITATIONS Minolie Jayamaha

Purpose of the Policy Maintain consistency of mass solicitation communications Provide timely acknowledgment to donors/members Ensure accurate donor remittance processing

Mass Solicitations

Sample Remit A Sample Remit is in the Fundamentals of Gifts manual
which is located on Island

Required Disclosures Privacy Notice
Donor’s Consent to Use Personal Information Fiduciary Responsibility of The UCLA Foundation Recovery of Operating Costs From Gifts Fundraising Permit (if applicable) Endowed Funds (if applicable) CAN-SPAM (electronic solicitations only) HIPAA (Health Sciences solicitations only)

Required Disclosures www.uclafoundation.org/finances
All these disclosures are now located on the UCLA website at –

BREAK !! 10 MINUTES

GIFT AGREEMENTS, CHAIRS and NAMINGS
Bill Kinsella

Gift Agreements Which gifts need an agreement? What should be in the agreement? Who accepts gifts at UCLA? What’s the special process for “major gifts”?

Required Items - ALL Gift Agreements
Amount of Gift Which entity receives the gift - UCLA Foundation or The Regents Which unit benefits from the gift School, Division, Department, etc. Purpose scholarship, research, etc. 10/2/08

Fund Type endowment, quasi-endowment (FFE) or current use Administrative Gift Fee “As is customary with universities and other non-profit organizations across the country, a one-time gift fee is applied to all gifts to provide essential support to UCLA’s overall operation. The fee is currently 6.5%.” 10/2/08

Pledges (promise to make a gift) In general, need not be legally binding on donor This enables the use of Donor Advised Funds and private foundations, and can be counted under CASE guidelines. Payment schedule - Maximum 5 years Payment schedule must not exceed 5 years in order to count entire pledge in the year it is made Otherwise, will just count each pledge payment as it is received. 10/2/08

Non-binding “I will use best efforts to, and fully intend to, satisfy the terms of this pledge as written. Payments on this pledge may be made by a donor advised fund or a private foundation.” (If the known, insert the name of the donor advised fund or private foundation in the preceding sentence). 10/2/08

Pledges (promise to make a gift) In general, need not be legally binding on donor EXCEPTION: Pledges for capital construction must be Irrevocable and/or “detrimental reliance” Payment schedule – Maximum 5 years 10/2/08

Detrimental Reliance (required for construction only – optional for all others) “(I/we) have agreed to give the above sum with the understanding that the (School/ Department) may make commitments in reliance on this pledge and that the existence of this pledge may be made known to the public in the course of soliciting contributions from others.” 10/2/08

Required Language- ENDOWMENT Gift Agreements
Alternate Use “Although the Endowment is intended to exist in perpetuity, (I/we) recognize that unforeseen circumstances may alter or remove the subject area from UCLA’s academic plan. In such an event, the Chancellor is authorized to re-designate the purpose of this endowment, after taking into consideration the designated purposes described in this Gift Agreement”. 10/2/08

Required Language - ENDOWMENT Gift Agreements
Return of payout to principal “The total return earned in excess of the amount approved annually for payout will be retained in the Endowment principal to protect from the effects of inflation and to allow for growth. Furthermore, I authorize the return of payout to the endowment fund principal at the Chancellor’s discretion when the payout is not needed for purposes of the fund.” 10/2/08

Gift Agreements Which gifts need an agreement? What should be in the agreement? Who accepts gifts at UCLA? What’s the special process for “major gifts”?

Who accepts Gifts?

Gifts to Regents Vice Chancellor, External Affairs √
Return gifts* to a Donor Accept gifts in an amount not to exceed $ 1,000,000 Accept gifts in an amount not to exceed $ 500,000 Solicit gifts in an amount not to exceed $1,000,000 Vice Chancellor, External Affairs √ Associate Vice Chancellor, External Affairs Development Assistant Vice Chancellor, UCLA College Development n/a Assistant Vice Chancellor, Health Sciences Development Assistant Vice Chancellor, Finance & Information Management (F&IM) Executive Director, F&IM, Gift Services Director, F&IM, Gift Acceptance Directors of Development, as approved by Associate Vice Chancellor, Development Deans and other faculty members in conjunction with one of the Officials above with the same delegated authority

Gifts to Foundation Return gifts* to donors Accept gifts in an amount not to exceed $ 1,000,000 Solicit gifts in an amount not to exceed $1,000,000 Executive Vice President, The UCLA Foundation (Vice Chancellor, External Affairs) √ Vice President, Development, The UCLA Foundation (Associate Vice Chancellor, External Affairs Development) Vice President, Finance & Treasurer, the UCLA Foundation (Assistant Vice Chancellor, Finance & Information Management) n/a Assistant Vice Chancellors, Development, as approved by the Associate Vice Chancellor, Development Directors of Development, as approved by the Associate Vice Chancellor, Development Deans and other faculty members in conjunction with one of the Officials above with the same delegated authority

Gift Agreements Which gifts need an agreement? What should be in the agreement? Who accepts gifts at UCLA? What’s the special process for $500K + “major gifts”?

Endowed Chairs Intended for Distinguished scholars Teachers Academic administrators Conform to the mission of the university and the academic plan of the campus. 10/2/08

Endowed Chairs The Chair provides funds to the chair holder in support of his/her teaching, research and service. Chair funds come from the payout of an endowment, an FFE or annual allocation. Unless prohibited by the gift instrument, the payout may be used to support the base salary and/or other salary components of the chair holder. 10/2/08

Types of Chairs (Pre July 2009)
UCOP UCLA Term chair $350 K $500 K Endowed chair Administrative chair $1 M Executive chair $1.5 M University Professorship $2.5 M 10/2/08

Types of Chairs (July 1, 2009) UCOP UCLA Term chair I (Recruitment, Service, Teaching) $350K $500K Term chair II (Prof Dev; Administrative Chair) $1 M Endowed chair I (no salary support) $2 M Executive Chair (Medicine only) $3 M Endowed chair II (salary support) $5 M Dean’s Chair $10 M 10/2/08

What does “Term” mean? UCOP UCLA 10/2/08

Required Language - CHAIR Gift Agreements
Agree to UC Chair Policy “(I/we) understand that the amount approved for distribution annually by UCLA will support the work of the Chair holder, who will be selected in accordance with University Policy and Procedure. (I am/we are) aware that establishment of this Chair must comply with current Policy and Administrative Guidelines of the University of California with approval by the University of California President as recommended by both the Academic Senate and the Chancellor.” 10/2/08

Required Language - CHAIR Gift Agreements
Additional Chair payout language “In addition, during periods when the Chair is vacant, the Chancellor is authorized to utilize the payout amount for purposes closely related to the academic field represented by the Chair.” 10/2/08

Required Language - ALL Gift Agreements
ISLand website gift agreement templates GIFT AGRREMENT TEMPLATES 10/2/08

ISLand website gift agreement templates 10/2/08

10/2/08

ISLand website gift agreement templates 10/2/08

10/2/08

25% Funding 10/2/08

Namings UC and UCLA Policy on Naming of Facilities, Programs, Centers, etc. UC Policy dated December 19, 2002 UCLA Policy 112 Naming must be pre-approved by Chancellor Capital Naming Opportunities categories by Chancellor’s Executive Committee. 10/2/08

What is NOT a “Naming” Namings The name of a fund
Scholarships/fellowships Donor recognition walls 10/2/08

GIFTS OF SECURITIES and GIFTS-in-KIND
Bill Kinsella

Gifts of Securities 10/2/08

Gifts-in-Kind Paperwork Necessary to Accept Gift:
Deed of Gift (by donor and Department Official) Description of gift, Value, Estimated Value Source, Signature of Donor(s), Dep’t Official Regents /Foundation Transmittal Fair Market Value Appraisal from donor (if donor is claiming gift is valued over $5,000) IRS Form 8283 Ability to Accept Gift: The actual gift is on campus Clear title on gift All tangible personal property can be sold in the future Proceeds from Tangible Personal Property Donation: Deposited in the fund designated by the donor. If no designation specified, the general department fund will receive the deposit. Please call Claudia Macieira at x44111 with questions you may have regarding tangible personal property 10/2/08

 Process the Gift

GIFT PROCESSING OVERVIEW
Sona Mahboobani Claudia Aguilar

How many Gifts and Pledge Payments were processed by Gift Processing in FY 09?
118,371

Of those transactions, how many were:
Manual 69,512 59% Automated 48,859 41%

Keep a complete copy of all the paperwork!
Gift Flow Overview Fund Management establishes new fund Complete gift transmittal Send gift transmittal and check to Gift Processing Gift Processing deposits the check Recorded into ADVANCE Dept deposits check with campus cashier Submit on-line gift transmittal Send gift paperwork to Gift Processing UCLA Corporate Accounting establishes new fund Recorded into ADVANCE Keep a complete copy of all the paperwork! 10/2/08

Keep a complete copy of all the paperwork!
Gift Flow Overview Fund Management establishes new fund Complete gift transmittal Send gift transmittal and check to Gift Processing Gift Processing deposits the check Recorded into ADVANCE Dept deposits check with campus cashier Submit on-line gift transmittal Send gift paperwork to Gift Processing UCLA Corporate Accounting establishes new funds Recorded into ADVANCE Keep a complete copy of all the paperwork! 10/2/08

Facilitating the Gift Process Minimizing Cycle Time
Gift or Grant Regents or Foundation – Online transmittals Establish Foundation Fund 10/2/08

Correct Payee on the Check (exchange check) Associated Donors/Joint Credit 700 U Form completed (research gifts from corp or foundation) 10/2/08

Sending cash Contact Jocelyn Brooks to schedule a Dunbar armored truck pick-up Complete paperwork including donor’s address Use correct Gift Processing address 10920 Wilshire Center, 11th Floor 10/2/08

Lockbox Process 4/16/2017 Mass solicitations & pledge reminders will be sent directly to the lockbox. Bank captures required data elements generating a daily interface file to update: Donor ADVANCE profile The UCLA Foundation accounting records Processing gifts through the lockbox will significantly reduce the time required to generate a donor receipt. 10/2/08

Gift Processing Contacts
4/16/2017 Gift Processing Contacts Executive Director Sona Mahboobani Ext Senior Supervisor Shalonda Martin Ext Supervisor – Bio and Membership Joyce Rangen Ext 10/2/08

 Acknowledging the Gift

ACKNOWLEDGING the GIFT
Claudia Aguilar

Donor Acknowledgment Gift Receipts
Gift receipts are generated for gifts of any level. Typically mailed within one week of being received by data processing. Receipts for gifts-in-kind do not include a dollar value. Gift fee has increased from 5% to 6.5% (info. on reverse side of receipt) 10/2/08

Donor Acknowledgment – Gift Receipt
10/2/08

Donor Acknowledgment Pledge Reminders
Reminders are automatically generated each month by Gift Processing. Pledge Reminder Review Window available on Advance. Reminders can be suppressed as needed. 10/2/08

Donor Acknowledgment Pledge Reminders 10/2/08

Acknowledgment Letters
Chancellor’s Acknowledgments Donors of $20,000+ Foundation Board Members of $5,000+ Initial Pledge & Final Pledge Payment Mailed within one week of booking. Exclude gifts received more than 2 months old. 10/2/08

Acknowledgment Letters
Unit Acknowledgment Letters Recommend units send acknowledgment letters for gifts of $1,000 and above. Letters should be mailed within one week of receipt. Sample acknowledgments are available through Donor Relations. 10/2/08

Primary & Associated Gift Credit
Primary Gift Credit Assigned only to the legal donor (donor of record). Also known as “hard” credit. Usually the person listed on the check, credit card, etc. 10/2/08

Primary & Associated Gift Credit
Associated credit assigns gift credit beyond the donor of record. Also known as “soft” credit. Used for tracking recognition totals. Examples include: Spouse of primary donor, group gifts, matching gifts, and in-honor / in-memory. See Associated Credit Guidelines in Training Manual 10/2/08

Recognition Window Tracks donors with cumulative lifetime giving of $5,000+ Tracks the pool of entities that make up the donors recognition total Donor-friendly reports available 10/2/08

Recognition Window 10/2/08

 Administer the Gift

MANAGEMENT OF GIFT FUNDS – THE UCLA FOUNDATION
Truc Bui

Overview of Fund Management
Establish and administer all funds in The UCLA Foundation Approve all fund expenditures and transfers Produce and distribute monthly, quarterly, and annual reports 10/2/08

Construction/Plant Funds Planned Giving Endowment Funds
Types of Funds Current Expenditure Student Support Construction/Plant Funds Planned Giving Endowment Funds Quasi-Endowment 10/2/08

Establishing a UCLA Foundation Fund
Complete on-line Foundation Gift Fund Application form Send a copy of the Fund Application and with any gift documentation to Fund Management Once the fund is established, we will provide you with a copy of the Fund Fact Sheet 10/2/08

Monetary Transfer of Funds (MTF)
The MTF System is a web-based process designed to streamline and automate transfers from The UCLA Foundation to the University. Uses existing ISIS and DACSS security Has tracking and reporting capabilities 10/2/08

Monetary Transfer of Funds (MTF)
Has automated verifications Automated authorization via Department Security Administrators (DSA) Cut off date for submission of MTF to Fund Management is 20th of each month 10/2/08

MANAGEMENT OF GIFT FUNDS – THE REGENTS
Stephanie Bradford

Overview The administration of Regental gifts is handled by UCLA Corporate Financial Services. 10/2/08 155

Current Expenditure Funds Plant (Construction) Funds
Types of Regents Funds Endowment Funds Current Expenditure Funds Plant (Construction) Funds Loan Funds (Students, Faculty, etc.) 10/2/08 156

Endowment Gifts Fund Range: to 09799, to and to 39799, to 13999 Number of Funds: Over 900 Book Value: $ ,305,609 Market Value: $ ,354,893 Income FY 09: $ ,838,070 Contact: Eric Newlove Ext 10/2/08 157

Current Expenditure Gifts
Fund Range: to (unrestricted) 40000 to (restricted) Number of Funds: Over 5,600 Gift Income FY 09: $183,405,307 (includes Foundation transfers) Contact: Michelle Gonzalez Ext 10/2/08 158

Depositing Donations Donor’s Name and check no.
Loc Account CC Fund Project Fin Class Source Description Reference Amount 4 116030 54805 Donor’s name-Check No. AXXXXX 1,000.00 Reference No.: Letter corresponding month of gift deposit followed by the fund number 10/2/08 159

Gift Deposit Alpha Codes
Depositing Donations for Current Expenditures (cont’d) Gift Deposit Alpha Codes July A August B September C October D November E December F January G February H March I April J May K June L 10/2/08 160

Depositing Donations for Current Expenditures (cont’d)
Do NOT deposit donations to the Gift Fund expense account(s)!! 10/2/08 161

Plant Gifts Fund Ranges: 00300 to 00699 Number of funds: Over 100
Gift Income FY 09: $15,420,427 Contact: Robert Crawford Ext 10/2/08 162

Loan Gifts Fund Range: 02000 to 03999 Number of Funds: Over 260
Income FY 09: $ 26,000 Contact: Julie Keller (Student Loans) Ext Kitty Huang (Faculty Loans) Ext 10/2/08 163

Gifts for Loan Programs
Gifts for Loan Funds are for student and/or faculty loan programs Gifts are processed in the same manner as other Regents gifts. Detail General Ledger and Fund Summary reports are updated daily and are available to campus departments. 10/2/08 164

References: Policies UCLA Administrative Policies and Procedures Manual UCLA Financial Policy UC Accounting Manual UC Business and Finance Bulletin Development Policy and Administration Manual 10/2/08 165

References (cont’d) Training: UCLA (University) Accounting class
On-Line Transfer of Funds On-Line Non-PEAR Interdepartmental Recharges FSQDB Gift Fund Management (includes Consolidated Gift Fund Reports) ADVANCE system training 10/2/08 166

PLEASE COMPLETE YOUR COURSE EVALUATIONS HAND THEM IN AS YOU LEAVE.
4/16/2017 Evaluations PLEASE COMPLETE YOUR COURSE EVALUATIONS HAND THEM IN AS YOU LEAVE. THANK YOU Welcome Introductions Dennis Slon- Associate Vice Chancellor for Development Paul Kraft-Executive Director of Information Services Rose Dalba- Director of Donor Stewardship Programs Ann Pollack- Assistant Vice Chancellor- Research- Campus Compliance Coordinator Judith Tuch/ Executive Director of Data Services Nancy Varat- Manager, Data Services Dean Lombardi David Channaia Truc Bui- Fund Management Sheena Ricchio- Director of Support Group Services Review handout evaluation at the end Review Objectives of gift training course Introduce Rose Dalba as our first speaker 10/2/08

Fundamentals of Gifts at UCLA March 9, 2010

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Fundamentals of Gifts at UCLA March 9, 2010

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