1. Best Practices in Gift Administration Deb Cunningham VP of Administration, CAO UConn Foundation July 24, 2015

2. Agenda Do the initials “PCI” make you shudder? Does your institution’s approach to using (or not using) a Lockbox make sense? Evolution of Third Party Giving

3. PCI Compliance

4. Payment Card Industry Standards PCI began as five different programs (credit card based – AMEX, VISA, etc.) 2004: 5 programs aligned – Payment Card Industry Standards Council (PCI SSC)

5. PCI DSS Data Security Standards PCI P2PE Point to Point Encryption Third party vendors (Cybersource, Paypal) PCI PTS Pin Transaction Security Applies to equipment for processing cards

7. Payment Card PCI DSS 12 Firewall DO NOT use vendor supplied passwords Protect Stored Data Encrypt Data Transmission UPDATE anti-virus software

8. Isolate Card Processing Who processes cards in your organization? Can they surf on the same machine? Is any data stored locally? Is data encrypted when processing? Any manual transmission of data? DESTROY UPON COMPLETION!

9. Solid Policies and Procedures Documented breach response procedures Standard confidentiality agreement for vendors, system users, volunteers Document PCI compliance for third party vendors Vendor data security questionnaire MANDATORY TRAINING

10. Lockbox Management

11. Lockboxes – good, bad and ugly? Transaction Volume Timely processing - VIP – same day? Sufficient staff in-house? Cost – benefit analysis? What system do you currently use for scanning? Data retention? In-house imaging and related technology options?

12. Cost Benefit Analysis Staffing Costs Storage Costs Technology (hardware and software) Security Do you carry a large operating account with a bank (potential for deep discounts) Is there a lockbox facility in your state?

13. So….analysis says “Lockbox!” How many do we need – sorting is key! Wholesale, Retail, Wholetail!! OCR capabilities? At what cost? Quality? Redaction? Accessibility to files and at what cost? In State vs. out-of-state? Due Diligence….. Impact on current staff

14. about that ugly…. Credit card processing “unbankables” – its all about terminology “Return to Sender” – mail forwarding not so simple Staying on top of it all

15. Third Party Gifts

16. Third Party Giving – our Future Since 1991, Fidelity Charitable has helped donors support over 190,000 nonprofit organizations with more than $20 billion in grants. Vanguard, 17 years, total charitable impact, $5,321,800,682

18. Tracking Third Party Giving Donor Advised Fund Crowdfunding Text-to-Give Matching Gifts Community Fund Family Foundations The “Buddy” system

19. To be considered….. Donor recognition Reporting Pledges and Payments Receipting and acknowledgement processes

20. Recording DAF Pledge Payments What do you do when donor makes standard pledge and pays with DAF funds? What happens to the pledge? What happens to current year reporting – cash vs. pledge payment

22. A whole new game….. You receive a check for $760 Matching Gifts from 3 Donors: May just provide names – Possible amounts – minus fee (or not minus fee) Fees applied to line items not specified

24. Questions? Discussion?