Policies and Procedures

III. WAYS OF GIVING
   H. RESTRICTIONS ON GIFTS


POLICY: III.H.
Effective Date: 07/01/05
Last Modified: 10/17/05

1. Clauses in proposals, gift agreements, or solicitations that discriminate in favor of or against race, color, religion, nationality, or national origin are prohibited.  The only exception is if such a restrictive clause is consistent with University Affirmative Action policies, which currently permit some race- and nationality-based restrictions.  Provisions that discriminate on age, disability, or sex are discouraged.

2. Preferences for relatives or descendants in the awarding of scholarships or in the use of donated funds are unacceptable.

3. Gifts from any donor for a fellowship or scholarship made on the condition or with the understanding that the award will be made to a student of the donor's choice will not be accepted.  Money received subject to such restrictions may be credited to a depository account within the University's Bursar's Office, but it will not be recorded as a gift to UGA or Arch.

4. The terms of any gift should be as flexible as possible to permit the most productive use of the funds, consistent with the original intent of the donor.

5. Gifts that restrict or impede the work or scholarly activity of a faculty member, fellowship holder, or student will not be accepted.

6.  No fellowship or scholarship gift will be accepted if the terms of the gift in any way include a commitment for the future employment of the student recipient.

7. Donors may not select the recipient(s) of scholarships, awards or any benefits to be derived from their gift.

8. In certain limited circumstances, the donor of a gift may serve on a selection, evaluation, or advisory committee involved in the selection or evaluation of students or faculty members who would benefit from the gift.  These are limited in number and must meet very specific criteria.

9. Gifts or pledges contingent on an action the institution would not have otherwise taken, are not acceptable.

Changing Restrictions

The use of donated funds for a purpose other than that stipulated by the donor is prohibited.  If another use is deemed necessary, consent for using the funds in a different manner may be sought from the donor or may be altered in accordance with the terms of the gift agreement.  If the use becomes impossible or unlawful, court approval may be sought to alter the use.  Similarly, for a donor to change the originally stated use of donated funds, the change must first be agreed upon by appropriate University officials.

Rescinding Gifts

As stated previously, a gift is by definition an irrevocable transfer of property or money and Arch routinely issues a Gift Receipt for all contributions.  These receipts represent the documentation required by the IRS to   claim a charitable deduction for income tax purposes.  Therefore, in those rare instances in which a donor's gift is returned, Arch will do one of the following:

a. Request that the donor return the original gift receipt (this would generally be most appropriate when the gift is returned within the same calendar/tax year).

b. Issue a 1099 identifying the payment as a source of income (this action would be taken only if the donor failed to return the original gift receipt or if the contribution(s) were made in previous calendar/tax years during which the donor would have already claimed the charitable deduction).


This page was last updated on Thursday, February 8, 2007 06:27 PM EST