Gift Acceptance, Counting and Reporting Policy

Index

I. Introduction
II. What Is a Gift?
III. Qualification, Registration, and Reporting Requirements
IV. Gift Acceptance
V. Gift Review Committee
VI. Gift Designation, Restrictions, and Administration
VII. Gift Documentation
VIII. Transferring Assets and Specific Types of Gift Assets
IX. Employer-sponsored Matching Gifts
X. Gifts from Charities Administering Donor-advised Funds
XI. Planned Gifts
XII. Gift Entry Receipts
XIII. Gifts from CMU Faculty and Staff
XIV. Anonymous Gifts
XV. Future Considerations
XVI. Providing Legal or Financial Advice
XVII. Gift Counting and Reporting

Policy Statement

1. Introduction
   1. The responsibilities for fundraising are shared among Carnegie Mellon University administrators, deans, and University Advancement staff. All fundraising and constituent engagement activities on behalf of the university must be aligned with strategic priorities and comply with local, state, and federal laws and with university policies.
   2. The university is committed to ethical engagement. All solicitations on behalf of the university or any unit or program will be in accordance with the standards in the Donor Bill of Rights, as developed by the Council for Advancement and Support of Education (CASE) and other national organizations. A copy of the Donor Bill of Rights is available on the university website.
2. What Is a Gift?
   1. A gift is a voluntary transfer of assets from a person or an organization to the university where no goods or services are expected, implied, or forthcoming in return to the donor. Gifts usually take the form of cash, securities, real property, or tangible personal property. The following criteria generally identify a gift:
      1. Gifts are motivated by philanthropic intent.
      2. Gifts are transfers of assets to the university’s full control. The university cannot be obliged to return unexpended funds.
      3. Gifts are not generally subject to an exchange of consideration or other contractual duties between the university and the donor or any individual, except for incidental benefits or certain contractual obligations within planned gifts as outlined in this policy, although objectives may be stated and funds may be restricted to specific purposes.
      4. The donor may make a restricted-use gift by designating a specific purpose. The donor may also designate a gift for unrestricted use by the university or a particular college, school, department, or unit. Beyond those possible designations, the donor has no direct control over the use of a gift (for example, determining the recipient of a scholarship, fellowship, or professorship) once accepted and received by the university.
      5. Generally, funds received from individuals, charities that administer donor-advised fund programs, and family foundations will be classified as gifts. Funds received from foundations, corporations, and corporate foundations will be classified as gifts unless they require performance or contain other requirements that may result in their being designated as sponsored research or other form of service contract.
   2. The university is guided by standards set forth by the Council for Advancement and Support of Education (CASE) when questions of whether or not a particular transfer of assets counts as a gift.
   3. Donors are encouraged to seek their own independent financial and legal counsel in all matters related to charitable giving.
3. Qualification, Registration, and Reporting Requirements
   1. The university is a Pennsylvania nonprofit corporation and a public charity as described in section 501(c)(3) of the Internal Revenue Code. Thus, the university qualifies under both federal and state law as a tax-exempt non-profit organization in which charitable contributions are deductible to the full extent of the law.
   2. The university's federal tax identification number is 25-0969449.
   3. The university may be required by applicable federal and/or state laws and/or regulations to report information about gifts, including disclosing copies of gift agreements and other documentation. Nothing in a gift agreement or other documentation shall preclude the university from complying with such reporting and disclosure requirements.
4. Gift Acceptance
   1. The university will not accept gifts that, in the judgment of the university:
      1. Violate the terms of this policy;
      2. Violate a federal, state, or other law;
      3. Are too difficult or expensive to prudently accept and/or administer;
      4. Were acquired by other than legal means, or that clear title to the donated asset does not flow directly from the donor to the university;
      5. Are too restrictive in purpose, or compromise the academic freedom of the university community;
      6. Could create unacceptable liability or cause the university to incur future unanticipated or anticipated expenses;
      7. Are for purposes that do not further the university’s mission;
      8. Could damage the reputation of the university, or are contrary to the university's values;
      9. Could jeopardize the university's tax-exempt status; or
      10. Provide a donor with goods or services of financial value in exchange for the donor’s gift, unless such value is fully disclosed in the time and manner as required under federal and state law and regulations.
   2. The acceptance of a gift does not imply nor mean that the university endorses or approves of the donor's views, opinions, businesses, or other activities.
5. Gift Review Committee
   1. As necessary, the Gift Review Committee (“Committee”) will assist the Vice President for University Advancement in making the final decision as to whether the university will accept or decline a gift. This includes but is not limited to gifts of real estate, unique gifts, and gifts that may fall into a category described in Section IV. A. of this policy, as determined by the Vice President for University Advancement.
   2. The Committee is composed of at least the following members:

      1. Vice President for University Advancement (chair)

      2. Vice President and General Counsel

      3. Vice President for Finance and Chief Financial Officer

   3. At the discretion of the Vice President for University Advancement, the Committee may also include other university leaders and other internal or external experts, depending upon the circumstances of the proposed gift.

6. Gift Designation, Restrictions, and Administration
   1. All gifts are directed to a specific gift fund in the university's chart of accounts. The choice of fund will be consistent with the written directions of the donor, which will be archived as substantiation. See Section VII below for information about gift documentation.
   2. A donor may designate the university recipient (e.g., a specific school, department, or program) as the beneficiary(ies) of a gift; a purpose (e.g., scholarship, fellowship, professorship, etc.) for which the gift is to be used; and a fund type (e.g., spendable or endowed).
      1. If the donor does not designate a specific university recipient or purpose of a gift, the gift will be designated as “undesignated.” As necessary, the Vice President for University Advancement will consult with the President and decide how the gift will be used by the university.
      2. If the donor designates a specific university recipient but not a specific purpose, the gift will be added to the university recipient’s general gift fund, or such other fund as directed by the person responsible for spending gifts to the university recipient.
      3. If the donor designates a specific purpose for a gift, the university will either add this restricted gift to a currently existing fund with the same purpose or establish a new fund for the specified purpose, as appropriate. Such decisions will align with the university’s Naming Gifts Policy (as applicable), based upon the donor’s intent and the amount of the gift with respect to required minimums for new funds at that time.
      4. Gifts with an endowed spending restriction shall adhere to all policies regarding endowed funds.
   3. Once a fund has been established, the university may in its discretion accept additional contributions to the fund. Any such additional contributions will, however, be subject to the terms under which the fund was established.
   4. Gifted spendable funds, as received, may be invested by the university as it shall determine, pending distribution to the purpose for which the spendable fund was established.
   5. Gifted endowed funds shall be held by the university in perpetuity, and distributions from such endowed funds will support the purpose for which the fund was established.
      1. The assets of endowed funds may be merged or pooled with other funds of the university for investment and investment management purposes, provided that a separate accounting is maintained.
      2. The university’s Board of Trustees oversees the management of the endowment, including its investment strategy and its distribution rate. The university is solely responsible for the administration of its endowment and funds, including the determination of expenditures and beneficiaries.
      3. The university operates in alignment with the laws of the Commonwealth of Pennsylvania governing endowed funds, which limit amendments that alter or further restrict the use of a fund or reduce its pool of beneficiaries. All amendments to existing endowed funds, whether requested by the fund’s establishing donor or any other party, must be approved by the university’s Office of the General Counsel and may require the consent of the Attorney General of the Commonwealth of Pennsylvania.
   6. The university assesses an administrative fee on certain spendable gifts and the distributions from certain endowed funds. The administrative fee supports the university’s infrastructure that makes the fulfillment of these gifts possible. Currently, gifts supporting certain undergraduate scholarships and capital projects are exempt from the administrative fee.
   7. Donors may not exercise undue control over the university’s use of their gifted funds. Such undue control includes, but is not limited to:
      1. Selection of the recipients of support from gifted funds;
      2. Participation in awarding decisions related to gifted funds;
      3. Determination of the expenditures from gifted funds; or
      4. Participation in the management of endowed fund
7. Gift Documentation
   1. General Information
      1. A gift agreement or statement of intent (the “gift documentation”) documents the mutual understanding between a donor and the university in relation to the donor’s charitable contribution. Gift documentation signed by both the donor and an authorized representative of the university is generally required for new obligations entered into by the university, both for multi-year commitments and outright gifts of $20,000 or more. Examples include, but are not limited to: new endowed funds; new and/or newly named physical spaces (e.g., building, facility, or portion thereof); and new and/or newly named academic units, programs, or centers. In general, the terms of any gift should be as flexible as possible to permit the most productive use of the funds over time, while clearly stating the intent of the donor.
      2. All gifts that include a spending restriction (e.g., endowed funds) need to be documented with such an agreement.
      3. Information appearing in gift documentation includes, but is not limited to: the dollar amount of the charitable gift/pledge; the purpose and use of the fund if new and any restrictions; pledge payment schedule; and recognition, as well as any other requirements or obligations agreed upon by the donor and the university.
      4. To ensure that gifts are used in accordance with the donor’s philanthropic intent, gifts/pledges not documented by gift documentation signed by both the donor and an authorized representative of the university, including gifts of less than $20,000, generally need to be documented in some other way. For gifts of less than $20,000 to currently existing funds, a signed letter of intent, university gift/pledge form, or similar written or electronic communication from the donor is generally sufficient documentation. The university will provide donors with a letter of intent template or gift/pledge form, as appropriate, in those cases. When adding to an existing fund, no additional specifications on how the money will be spent can be made.
      5. The Vice President for University Advancement, in consultation with the Committee, as necessary, will make final decisions on all questions related to university gift documentation.
      6. A signed award letter from a foundation or corporation is an acceptable form of gift documentation if it accepts the terms of the original award proposal in total and/or documents restrictions on the gift’s designation, use, reporting requirements, giving vehicle, contribution schedule, recognition, and/or other obligations agreed upon by the foundation or corporation and the university. If available, the gift award proposal and other documentation submitted to the foundation or corporation clarifying the use of the gift must also be attached to the gift record.
      7. Language within wills, trusts, or other estate planning documents can be used to make and place restrictions on future gifts. However, to help ensure the donor’s philanthropic intentions are realized and to avoid potential ambiguity, the university’s Office of Gift Planning strongly recommends that the donor also have gift documentation on file with the university that carefully reflects the donor’s philanthropic intentions and aligns with any restrictions within the corresponding estate planning documents.
      8. Upon approval of a collective fundraising initiative by the Vice President for University Advancement, an internal fund memorandum will be used to describe the purpose of the initiative, fundraising requirements and deadlines, alternative uses if the overall fundraising goal is not reached, restrictions on gift designation and/or use, and recognition, as well as any other requirements or obligations. Examples of such initiatives include class gifts and university crowdfunding efforts, among others. Gifts to a collective fundraising initiative are typically documented as described in paragraphs 1-4 above.
      9. Gift restrictions must align with the university’s Statement of Assurance.
   2. Pledge Payments
      1. Pledge payment periods may be up to five consecutive years, with the first payment scheduled within one year of the date of the gift documentation’s execution.
      2. Pledges from individual donors that may be paid in full or part through a donor-advised fund or similar third-party giving vehicle will be written in the form of a non-binding statement of intent.
      3. Corporate matching gifts cannot be applied as pledge payments to an individual’s personal pledge commitment.
   3. Approvals and Storage of Fully Executed Gift Documentation
      1. Gift documentation signing authority for the university is granted by the university’s Board of Trustees to authorized university officials by resolution or as otherwise authorized by and in accordance with the university policy on Signature Authority for Legally Binding Commitments and Documents.
      2. Gift documentation is stored in accordance with the university's Financial Records Retention Policy.
8. Transferring Assets and Specific Types of Gift Assets
   1. For appropriate methods or instructions to transfer different types of assets, please reference Ways to Make Your Gift.
   2. The university will accept gifts of cash; publicly traded securities; non-marketable, thinly traded, or closely held securities; gifts of tangible or intangible personal property (gifts-in-kind); real estate; and certain types of virtual currency, among other types of assets.
      1. Cash Gifts
         1. Outright cash gifts can take the form of checks, credit cards, wire transfers, or payroll deductions.
         2. Cash gifts are credited to the donor’s giving record at actual cash value.
         3. Cash may be delivered in person, by mail, by electronic funds transfer (EFT), or by wire transfer.
         4. Cash gifts are complete on the date the cash is physically transferred to a representative of the university, and will be reported by University Advancement on the date the cash is processed by the Office of Gift Administration.
         5. Gifts of foreign currency will be valued at the U.S. dollar equivalent on the date the gift is received.
         6. Prior authorization must be sought through the Office of Gift Administration before any gift or pledge payment in excess of $100,000 will be made by credit card. The donor will be required to make up the difference in the cost of the fees.
      2. Publicly Traded Securities (Stocks and Bonds)
         1. The value of a gift of publicly traded securities will be determined using an average of the high and low trading price on the date the university receives the gift. The Office of Gift Administration will issue a gift acknowledgment reflecting the average value of the shares on the date that the stock was transferred, as well as a description of the securities received.
         2. Gifts of mutual fund shares are also acceptable. The date of the gift and the daily value of the mutual fund shares will be based upon the date of receipt by the university.
         3. In cases where a stock gift is submitted to pay off a documented commitment, realized funds in excess of that commitment will be allocated to the same purpose and booked as an outright gift.
      3. Non-marketable, Thinly Traded, or Closely Held Securities
         1. These securities include: partnerships, limited partnerships, limited liability companies, closely held companies, stock of entities that fall under SEC Rule 144, legend stock or bonds of entities that are thinly traded, and stock of entities held for sale at the request of a donor.
         2. The Office of Gift Planning, in consultation with the Treasurer’s Office, Chief Investment Officer, and Office of the General Counsel, shall coordinate the due diligence review process prior to the acceptance of any gifts of non-marketable, thinly traded, or closely held securities. The ultimate acceptance of closely held business interests shall be approved by the Vice President for University Advancement, in consultation with the Committee as necessary.
         3. The donor will likely need to independently obtain a qualified appraisal, as defined by IRS regulations, of the donated non-publicly traded asset in order to sufficiently substantiate the gift value for their individual tax returns (see paragraph 6.d., below). The value of the gift credited by University Advancement to the donor will be determined based on the fair market value of the securities received by the university on the date of gift, using an appraisal or alternative method of valuation acceptable to the Vice President for University Advancement.
      4. Virtual Currencies
         1. The university may accept gifts of virtual currencies, including cryptocurrencies, subject to the conditions outlined below and the ability of its agent to accept and liquidate the asset. Potential gifts of virtual currencies are evaluated on a case-by-case basis.
         2. Prior authorization must be sought through the Office of Gift Administration before any gift or pledge payment in excess of $100,000 may be made by virtual currency. The donor may be asked to make up the difference in the cost of the fees.
         3. For gifts of cryptocurrency in excess of $100,000, the donor may be asked to provide confirmation of the donor’s identity (e.g., by providing a copy of valid government-issued identification) and/or information about when, how, and through what means the donor obtained the donated cryptocurrency.
      5. Bargain Purchases
         1. In limited circumstances, the university may purchase an asset for less than its fair market value. This bargain purchase results in a gift from the owner of the property in an amount equal to the difference between the fair market value and the purchase price by the university.
         2. The Office of Gift Planning will coordinate the due diligence review process on bargain purchases along with the appropriate university offices. Final approval of the bargain purchase shall be granted by the Vice President for University Advancement, in consultation with the Committee as necessary.
      6. Gifts of Tangible and Intangible Personal Property (Gifts-in-Kind)
         1. The university may accept gifts of many types of tangible and intangible personal property. Examples of gifts of tangible personal property include, but are not limited to: automobiles, boats, art, jewelry, furniture, antiques, rare books, manuscripts, and lab equipment. Examples of gifts of intangible personal property include, but are not limited to: computer software, royalties, patents, copyrights, and other intellectual property.
         2. The Office of Gift Administration, in consultation with the Office of Gift Planning as necessary, and the Office of Property Accounting, are responsible for conducting due diligence review on, and approving the acceptance of, all gifts of tangible and intangible personal property.
         3. Before recording a gift-in-kind that the university has agreed to accept, the university is required to obtain documentation from the donor stating that the gift has been given to the university and will not be required to be returned. Typical documentation includes a signed and dated letter from the donor acknowledging the gift and providing its fair market value (FMV). In some cases, the university may determine that a deed of gift, signed by both the donor and the university, is required to clearly transfer legal ownership of the gift.
         4. It is the responsibility of the donor to determine the value of a gift of personal property for tax purposes. For donors seeking to claim full fair market valuation on their gift, the university will verify and sign Internal Revenue Service (IRS) Form 8283 (for gifts with an FMV of $500 or more; a completed appraisal from a qualified outside appraiser is also required if the value of the gift is $5,000 or more). Gifts valued at $500 or more that are disposed of within three years of the date of the gift are subject to university reporting to the IRS on Form 8282.
         5. The gift acknowledgement issued to the donor for a gift of personal property will not show a value for the property. The receipt will describe the property received, and the donor’s giving record will be credited with the estimated fair market value of the item, if appropriate.
         6. Gifts of artwork are the subject of separate university policies on Artistic Properties Collection and Public Art.
         7. Though useful and appreciated, generally gifts of software licenses are not countable as charitable donations as they are considered partial interests by the IRS. To be considered a charitable donation, software must be irrevocably transferred to the university (not licensed) with no restrictions, no expiration nor requirement of renewal, no implicit or explicit exchange or purchase of services, nor any provisions to share exclusive information.
         8. Gifts of time and services include such activities as printing of materials, appraisals, design work, medical and dental services to students, and volunteering, among others. These services provide valuable support to the university. However, the contribution of services, no matter how valuable, is not tax deductible according to the IRS. Therefore, University Advancement does not record gift credit on the donor’s giving record.
      7. Real Estate
         1. The university may accept gifts of many types of real estate, such as residential, commercial, apartment buildings, vacation properties, and undeveloped land.
         2. The Office of Gift Planning will coordinate all due diligence efforts on proposed gifts of real estate prior to gift acceptance. Upon completion of a prudent due diligence process, the Office of Gift Planning will present recommendations to the Vice President for University Advancement, who will consult with the Committee as necessary, for a final decision.
         3. In general, a donor will be asked to be responsible for all expenses related to protecting their individual interests in gifts of real estate (such as obtaining a qualified appraisal, retaining legal counsel, etc.). As appropriate, the donor may be asked to assume some or all of the related expenses associated with the university’s process to accept and retain the gift prior to re-sale. Examples could be transfer costs, carrying costs, property taxes, or other one-time or ongoing expenses.
         4. In certain cases, the university may elect to bear the cost of conducting the due diligence necessary to accept a gift of real estate, and to provide resources for any ongoing carrying costs of the property. Budget approval for these costs must be obtained from the college or the unit receiving the proceeds of the gift. Proceeds from the sale of a gift of real estate may be used to reimburse expenses incurred by the college or unit receiving the gift.
         5. A gift of real property with a retained life interest is subject both to the general conditions and to the guidelines for acceptance of outright gifts of real estate as set forth in this policy. The agreement creating the life interest must provide, at a minimum, that the donor and/or life tenant will remain responsible for the payment of all mortgages, taxes, insurance (property insurance with university as loss payee; general liability insurance with the university as additional insured; and other appropriate insurance as determined by the university); utilities; maintenance, repairs, and general upkeep; and all other costs associated with the property, unless other alternative provisions are made for the payment of these expenses.
   3. For gifts other than cash, it is the general practice of the university to liquidate non-cash donated assets as soon as prudently possible. The sale of such assets is at the sole discretion of the university.
      1. Donor restrictions impacting the university’s ability to sell an asset are generally not acceptable.
      2. At the discretion of the Vice President for University Advancement, in consultation with the Committee as necessary, accepting a gift with restrictions on the ability of the university to sell a donated asset may be considered.
      3. This practice does not include certain in-kind gifts or certain gifts of real estate (e.g., artwork intended for display, real estate intended for university occupancy, etc.) where the university determines that the retention of the asset would better serve the mission of the university.
9. Employer-sponsored Matching Gifts
   1. A matching gift may be received from a company or a company funded foundation, matching a gift given to the university by an employee, retired employee, a director of the company, or sometimes the spouse of the employed individual.
   2. Matching gifts will be credited to the same account(s) in University Advancement’s database of record as the original gift unless restricted by the matching company.
   3. Matching gifts cannot be entered as a payment on a personal pledge made by an individual, as the funds are not under direct control of the donor.
10. Gifts from Charities Administering Donor-advised Funds
    1. Donor-advised funds (DAFs) are agreements established with public charities sponsoring such programs that allow donors to make charitable contributions, receive immediate tax benefits, and then recommend grants from the funds over time. The university does not sponsor such a program.
    2. Gifts to the university from DAF-sponsoring charities are typically accepted in the form of checks or electronic fund transfers and processed accordingly.
    3. The gift receipt will be issued to the DAF-sponsoring charity. Grateful acknowledgment of the gift will be provided to the DAF advisor, and recognition credit will be included on that individual’s giving record.
11. Planned Gifts
    The university’s Office of Gift Planning oversees the creation, acceptance and, in certain instances, the management of split interest gifts, in consultation with the Investment Office, the Treasurer’s Office, and the Office of the General Counsel as needed. The Office of Gift Planning is also responsible for due diligence review with respect to all planned gifts, and for developing guidelines on how planned gifts will be counted and recognized in University Advancement’s database of record.
    1. Charitable Gift Annuities
       1. The university may accept charitable gifts in exchange for an immediate payment, deferred payment, or flexible deferred payment annuity arrangement, in compliance with certain legal requirements and other considerations.
       2. The university sets required gift minimums to establish gift annuities.
       3. The university follows annuity rates recommended by the American Council on Gift Annuities (ACGA), which can change from time to time. However, there may be instances when a rate lower than those recommended by ACGA is preferred by the donor and the university.
       4. Upon the death of the annuitant(s), the residuum (if any) of the annuity will be used by the university as directed within the annuity contract or corresponding gift agreement/statement of intent, as allowed.
       5. A Gift Annuity Disclosure Statement is available to all prospective donors and can be requested through the Office of Gift Planning.
    2. Charitable Remainder Trusts
       1. A charitable remainder trust provides payments for either the life of the beneficiary(ies) or for a set period of time. When the trust term ends, its remaining assets are transferred to qualified charitable organizations for use as directed within the trust agreement. The university may accept gifts of a remainder interest in charitable remainder trusts.
       2. The university may serve as trustee of a charitable remainder trust, provided it is named as a beneficiary of at least 50% of the remainder, and that the university’s required minimum valuation of the trust is met.
    3. Charitable Lead Trusts
       1. A charitable lead trust provides annual payments to the university over a set period of time. The remaining trust assets are transferred at the end of the trust term to the donor or other individuals. The university may accept designation as the beneficiary of a charitable lead trust.
       2. Due to the complexity and tax implications of serving as trustee of a charitable lead trust, the university may only accept appointment as trustee of a charitable lead trust upon review and approval by the Vice President for University Advancement, the university Treasurer, the Chief Investment Officer, and the Office of the General Counsel.
    4. Life Insurance
       1. The university may accept death benefit proceeds from a life insurance policy, or designation as beneficiary ownership of an active life insurance policy. For other than fully paid policies, the university will not accept an obligation to make any future premium payments other than those covered by the policy’s existing cash value, unless the donor commits to further gift support to cover all ongoing premium payment obligations.
       2. The university may unilaterally exercise its right to surrender a policy for its current cash surrender value.
    5. Bequest Intentions
       The university will accept and retain documentation of bequest intentions from wills and trusts, beneficiary arrangements from financial instruments (IRAs, 401(k)s, 403(b)s, transfer on death accounts, etc.), or other arrangements regardless of revocability or the age of the donor.
12. Gift Entry Receipts
    1. All philanthropic commitments to the university must be processed by and credited to the donor through the University Advancement gift processing and data management system.
    2. IRS regulations require the university to issue a written receipt to every individual who makes a gift valued at $250 or more. The Office of Gift Administration in University Advancement will provide donors to the university a gift receipt that is prepared in accordance with applicable government requirements. No other university department/unit should issue a gift receipt.
    3. Gift Administration must have, at a minimum, the following information to record a gift and issue a receipt:
       1. Name of the donor(s)
       2. Official address of the donor(s)
       3. Date of the gift
       4. Description of the gift property
    4. The university does not record unreimbursed expenses incurred by volunteers as gifts. University Advancement will provide a letter acknowledging a person’s volunteer role, with dates of service, and with a statement that expenses might have been incurred that were not reimbursed and might be tax deductible.
13. Gifts from CMU Faculty and Staff
    Carnegie Mellon is grateful for gifts from members of its faculty and staff. The university recognizes that employees may wish to make gifts in support of programs they oversee or are responsible for administering. Due to IRS regulations, in order for a gift to qualify for a charitable deduction, the CMU faculty or staff member may not personally benefit from nor control these gifts. Therefore, faculty and staff who make a gift to such a program (the "donor") may not authorize use of those gifts for personal benefits or uses such as support for:
    1. The donor's salary;
    2. Consumer goods to be used by the donor;
    3. The donor's research, or other professional activities;
    4. Personal travel by the donor; or
    5. To provide scholarship or fellowship assistance to the donor, or to a close relative.
14. Anonymous Gifts
    As a general rule, the university does not accept anonymous gifts. However, a donor's record may be marked anonymous upon approval of the Vice President for University Advancement. Anonymity of a gift might be granted for a donor who wishes to protect their privacy; however, these donors are not anonymous to university leadership. In addition, a gift might be marked temporarily anonymous until such time as it is publicly announced or recognized.
    
    Upon approval, the Vice President for University Advancement will inform the Vice President and General Counsel of the decision and the rationale for anonymity.
    
    Information about anonymous gifts is disclosed as required by law.
15. Future Considerations
    1. The university is committed to fulfilling the charitable intentions of donors as reflected in the gift documentation. On occasion, however, particularly after the lapse of time, circumstances may arise that require the university to identify one or more alternate purposes for a gift and/or fund at the university and to use that gift and/or fund for the alternate purpose or purposes, as outlined below. In doing so, the university seeks to both honor the donor’s original charitable intentions and to ensure the gift and/or fund can continue to benefit the university community.
    2. In the unlikely event that a gift is not provided in the amount or within the timeframe specified in the gift documentation, the university shall use any payments received from the donor toward the amount of the gift as follows:
       1. If the purpose of the gift was to establish a new fund, and the amount received for the new fund meets the university’s associated fund minimum, the university will use any payments received from the donor for the purpose indicated in the gift documentation.
       2. If the gift was to be applied to an existing fund, and no minimum gift amount applies, then the university will use any payments received from the donor for the purpose indicated in the gift documentation.
       3. Otherwise, the payments received will be used for one or more alternate purposes as further described in paragraph D below.
    3. As the university continues to advance and evolve in the future, it may become impossible or impractical for a certain gift and/or fund to serve the specific purpose identified in the gift documentation, as determined by the university’s President or their designee. In that unlikely event, the gift and/or fund will be devoted to one or more alternate purposes as further described in paragraph D below.
    4. To identify one or more alternate purpose or purposes for a gift and/or fund at the university and use that gift and/or fund for such alternate purpose or purposes in the circumstances outlined above:
       1. The university will first consult with the donor(s) of the gift or fund (or the fund’s establishing donor, as applicable) regarding the potential alternate purpose or purposes for the gift and/or fund at the university, when practicable and possible as determined by the university.  While donors may provide such input on such alternative purpose or purposes, the final decision on using the gift and/or fund for one or more alternate purposes at the university shall be made by the university’s President or their designee.
       2. In determining the alternative purpose or purposes for use of a gift or fund, the university’s President or their designee shall select such alternative purpose or purposes at the university that the President or their designee determines to be consistent with the original charitable intent of the establishing donor(s) and beneficial to the university community. For example, in general:
          1. If a program ceases to exist, the gift and/or fund for that program will be used for a successor program or similar program in the school/college/department or administrative unit at the university that was the original beneficiary.
          2. If an academic department ceases to exist, the gift and/or fund for that department will be used for a similar purpose in the school/college at the university that was the original beneficiary (e.g., gifts for departmental scholarships continue to support scholarships or other means of student support at the college).
          3. If a school/college/unit ceases to exist, the gift and/or fund for that school/college/unit will be used for a similar purpose at another school/college/unit at the university (e.g., gifts for college professorships continue to support professorships or other means of faculty support at the successor college or similar college).
       3. Appropriate recognition of the amount gifted by the donor(s) will be maintained.
    5. While an unlikely event, the university’s President or their designee may in the future determine that distributions from an endowed fund have grown beyond what is needed to support the specific purpose identified in the gift documentation. In such cases, the excess distributions of an endowed fund may be used for a purpose or purposes determined by the university’s President or their designee (in consultation with the establishing donor(s), when possible and practicable as determined by the university) to be consistent with the original charitable intent of the establishing donor(s) and to benefit the same academic/administrative unit that is the subject of the establishing donor’s gift or fund.
16. Providing Legal or Financial Advice
    1. Neither the university nor any of its employees acting on behalf of the university may agree to serve as the trustee or successor trustee of a non-charitable trust, or the personal representative of any estate, in which the university is named as a beneficiary, or as power of attorney for a university donor, without the approval of the Vice President for University Advancement and the Vice President and General Counsel.
    2. University employees acting on behalf of the university shall not draft wills or living trusts, regardless of whether such employee is licensed to practice law or if the university is named (or not named) as a beneficiary. (This provision does not apply to employees drafting their own will or wills for family members, naming the university as a beneficiary.)
    3. University employees may provide donors with suggested bequest language or assistance with other language pertaining to gift designation within the university.
    4. The Office of Gift Planning may draft and finalize charitable gift annuity contracts, provided the contract does not substantially deviate from approved templates.
    5. The Office of Gift Planning may provide donors and their counsel with approved form documents for planned gifts such as charitable remainder trusts, charitable lead trusts, and life estates.
    6. No employee of the university shall provide financial planning services for any donor. Prospective donors are encouraged to seek the assistance of their own independent financial advisors and legal counsel in matters relating to their gifts and the resulting financial, tax, and estate planning consequences. Further, to avoid conflicts of interest or the appearance of improper influence, the university shall not pay legal or other fees for the preparation or review of a donor’s will or living trust or other arrangement that names the university as a beneficiary.
17. Gift Counting and Reporting
    1. Federal and State Reporting Requirements
       Carnegie Mellon University complies with all federal and state requirements on the reporting of gift activity, including gifts from foreign sources.
    2. Adherence to Industry Standards
       To ensure the highest possible gift crediting and campaign counting integrity, all charitable contributions to the university will be counted and recorded in the University Advancement database of record in accordance with the standards set forth by the Council for Advancement and Support of Education (CASE).
    3. Types of Gift Reporting
       1. Fiscal Year Cash and New Fundraising Commitments Reporting
          1. These reports display year-to-date cash and/or new fundraising (commitments) for a specific fiscal year only (July 1 to June 30).
          2. Fiscal year cash reports reflect tangible asset transfers to the university (e.g., outright cash gifts, pledge payments, and realized bequests).
          3. New fundraising commitment reports reflect outright cash gifts and new pledges to the university, including planned gifts. These reports highlight the impact of donor commitments to the university, including those that will be realized in the future.
       2. Campaign Reporting

          Campaign reporting differs from fiscal year reporting in that fundraising totals span more than one fiscal year. Campaign gift counting periods and other gift valuation considerations are recommended by the Vice President for University Advancement and approved by the university’s Board of Trustees. The principles for counting gifts during a campaign include, but are not limited to, the following:

          1. Gifts and pledges received or committed to during the campaign period are counted in campaign totals.
          2. Certain gifts or pledges received or committed prior to the start of the campaign period may be counted only if the gift or pledge was not counted in a previous campaign, and has been approved for campaign counting by the Vice President for University Advancement.
          3. The following guidelines apply to the campaign counting of documented bequest intention (BQI) commitments during the campaign:
             1. If the donor is age 60 or older, the BQI will be counted at face value.
             2. If the donor is under age 60, but will be age 60 or older by the end of the campaign period, the BQI will be counted at face value.
             3. If the donor will not be age 60 or older by the end of the campaign, then the BQI will be discounted based on the donor’s age at the end of the campaign period.
          4. The value of any canceled or unfulfilled gift or pledge will be subtracted from campaign totals in the time period the original gift or pledge was recorded.
       3. Gift Recognition Reporting

          University Advancement also produces reports demonstrating the impact donors have beyond the legal credit assigned based on IRS regulations. These reports may include all of a donor’s cash gifts, as well as pledges and soft credit (e.g., donations though donor-advised funds, matching gift companies, and related private foundations). In addition, the face value of documented bequest intentions may be included regardless of the donor’s age. These reports may be used to help determine donor eligibility for various forms of recognition (e.g., giving societies), among other purposes.

    4. Clarification on Differences between Financial Accounting and Reporting and Advancement Reporting

       1. It is important to clarify the distinction between financial accounting, which underlies the financial reporting of gifts following accounting principles generally accepted in the United States of America (“US GAAP”) established by the Financial Accounting Standards Board (FASB), and Advancement reporting, which is a measure of fundraising activity in accordance with standards set forth by the Council for Advancement and Support of Education (CASE) and approved by the Vice President for University Advancement. This policy focuses on Advancement reporting, not financial accounting and reporting.
       2. The intent of Advancement reporting is to reflect the comprehensive impact that alumni and other supporters create at the university by representing all gifts, including the value of pledges and planned gifts, at both face and present values. To accomplish this, University Advancement tracks all outright gifts, pledges, and planned gift intentions and receipts.
       3. Gift revenue accounted for in the university’s financial accounting system and presented in the university’s audited consolidated financial statements is in accordance with US GAAP and may differ from gifts included in Advancement reporting for a number of reasons, including but not limited to: transfers of assets not recognized as gifts in the university’s financial accounting system; gifts recognized in different periods than in Advancement reporting; pledges not considered to be receivables; and gifts reported at different amounts based on differing methodologies used to value gifts in the university’s financial accounting system and Advancement reporting.

Exceptions to the university's Gift Acceptance, Counting and Reporting Policy may be granted by the Vice President for University Advancement or their designee(s), in consultation with the President and other members of the Executive Management Team, as necessary.