Operating Procedures Manual

Transcription

1 Paul D. Camp Community College Foundation Operating Procedures Manual Paul D. Camp Community College Foundation 100 N. College Drive Franklin, VA Telephone: (757) Website: May 5, 2014 Paul D. Camp Community College Foundation Mission Statement The Paul D. Camp Community College Foundation is a not for profit foundation organized in 1980 to secure resources, which promote the continuing progress of Paul D. Camp Community College. The Foundation is fiscally and organizationally separate from the College. The Paul D. Camp Community College Foundation is authorized to accept various types of gifts, including personal project, security, artwork, real estate, equipment and outright cash, as well as memorials. All donations to the Foundation are tax-deductible in accordance with Section 501(c) (3) of the Internal Revenue Code.

2 Table of Contents Introduction...4 SECTION I: GENERAL INFORMATION...5 Privacy and Confidentiality...6 Guidelines for the Foundation Office...7 SECTION II: FUNDRAISING...8 Fundraising Information...9 Gift Solicitation SECTION III: GIFTS TO THE FOUNDATION Classification of Gifts Matching Gifts Planned Giving Procedures for Establishing New Endowments Endowment Fund Earnings Capital Campaigns Advanced Gifts Phase/Nucleus Fund Phase Fees, Expenses and Gift Acceptance SECTION IV: GRANTS MANAGED THROUGH THE FOUNDATION Grants and Contracts SECTION V: GIFT MANAGEMENT Checks and Cash Non-Cash Gifts Select Gifts (requiring special handling) SECTION VI: SCHOLARSHIP MANAGEMENT Awarding of Scholarships Administration of Scholarships SECTION VII: DONOR AND GIFT ACKNOWLEDGEMENT Donor Relations: Gift Acknowledgement and Stewardship Building Naming SECTION VIII: FINANCIAL REPORT AND CONTROL Annual Financial Report and Audit Record Keeping and Accounting Investment

3 Foundation Funds Management Modifying Gifts and Pledges SECTION IX: FOUNDATION BOARD ADMINISTRATION Emeritus Policy Conflict of Interest Statement Foundation Committees Diversity and Affirmative Action Policy Review and Amendment APPENDIX

4 Introduction The Paul D. Camp Community College Foundation was established in 1982 to cultivate and provide financial and in-kind support for Paul D. Camp Community College. The Foundation is governed by a Board of Directors comprised of representatives from the business, financial, and professional areas in the communities served by the College and of administrative and faculty personnel from the College. The Foundation s Board of Directors has several standing committees to facilitate the accomplishment of its program of work. The standing committees are: Executive, Finance, Investment, Nominating, and Development. In addition, ad hoc committees may be established to undertake projects outside the scope of the standing committees. The Foundation s assets are managed by the Board of Directors through the Investment Committee, and are audited annually by an independent certified public accounting firm. The Foundation is a 501(c) (3) nonprofit organization. Contributions to the Foundation are deductible to the extent permitted by law. 4

5 SECTION I: GENERAL INFORMATION 5

6 Privacy and Confidentiality The Paul D. Camp Community College Foundation understands the importance of maintaining the confidentiality of donors. The Foundation maintains a database of biographical and gift up pledge information about donors and prospective donors. The information contained in this database is intended exclusively for purposes related to the Paul D. Camp Community College Foundation s programs. It is the donor s desire to support the ongoing activities of the Paul D. Camp Community College Foundation by providing assistance for programs, communications and events, which bring together donors and friends of the organization. In order to provide the best possible service to those with legitimate needs for such information, entrusted to us by our donors, the following policies have been developed. These policies have been approved by the Board of Directors and will apply to every request for information. Statement of Information Release Policies The following may request information from the database. All requests must be made in writing. 1. College employees a. Foundation Office b. Office of the President c. Administrative Officers 2. Law enforcement agencies (subpoenas) 3. Agencies that assist the Paul D. Camp Community College Foundation in locating lost donors. d. The agencies must agree, in writing, not to use the information for purposes other than approved, official College and Foundation business All requests from anyone else seeking information about another person will be forwarded to that person so that he/she can decide whether or not to contact the requestor. All requests for information from members of the media must be referred to the Foundation Office. Following is information that may be released from the database for fundraising and legal purposes: 1. Full name 2. Address and telephone number 3. Employer addresses and telephone number 4. address 5. Fax number(s) Available Formats for Distribution of Information Information may be obtained in the form of lists, labels, diskettes and downloads by authorized Paul D. Camp Community College Foundation representatives in support of approved activities. It is the responsibility of the unit requesting information to maintain the absolute confidentiality of that information as specified in this policy statement. Compliance with the Policy Failure to abide by any of the policies stated within this document may result in denial of access to information contained in the database. Request for re-instatement of access to this information must be approved by the Vice President, Institutional Advancement, Foundation Secretary/Executive Director (VP/Director) or his/her designee with concurrence of the Board of Directors and must include written assurance of future compliance with these policies. 6

7 Guidelines for the Foundation Office The purpose of the Foundation Office is to manage all fundraising activities. This office has the responsibility for coordination of all development work and management of office operations to support fundraising. Active Development Work Most fundraising is organized within the annual fund, capital and major gifts campaigns and estate planning activities. Director-led committees, with other volunteers, perform these efforts and are coordinated by the Foundation Office to seek gift income for approved projects of priority throughout the year. Donor Relations and Communications Active contact with all whom support the Paul D. Camp Community College Foundation must be maintained. Communications include information about the Paul D. Camp Community College Foundation and staff activity, in addition to reports on development progress. The Foundation Office should coordinate all communications with donors. Donor Records Management All donor gift-giving records shall be maintained by the Office of Institutional Advancement. All information entered into the Foundation s donor files and database will be backed up a minimum of once monthly. Services to Organization Staff Personnel in the Foundation Office are available to administrative staff and the Board of Directors for professional assistance on projects appropriate for fundraising. The Foundation staff will perform prospect research, proposal writing, prospect clearance, active solicitation, etc. Only College and Paul D. Camp Community College Foundation projects with priority can command use of the Foundation Office budget for fundraising. Reports and Donor Record Files Regular reports of gift income (by source and purpose) will be prepared and circulated. Pledge records and billing will be conducted. Permanent donor records will be maintained and include gift history and all correspondence relating to gifts and pledges. Research information on donors and prospects will be performed. All these activities will be performed with sensitive personal data kept in confidence by the Foundation Office staff. Purchase of Goods and Services Those authorized to use Foundation funds to purchase goods and/or Services should follow the guidelines established by the Commonwealth of Virginia Department of Purchasing and Supply where feasible. Competition should be sought for single purchases exceeding $5,000. All purchases of $100 or more must be signed by the VP/Director and the College s CFO. Purchases which are expected to be over $100 should have a signed credit card request form completed in advance of purchases. Travel Those authorized to use Foundation funds for travel should follow the guidelines established by the Commonwealth of Virginia. 7

8 SECTION II: FUNDRAISING 8

9 Fundraising Information The Foundation may undertake fundraising events from time to time. The VP/Director, in consultation with the College President and the Development Committee, are responsible for preparing a budget and a plan of implementation for all such fundraising events. In accordance with IRS requirements, invitations, replay cards, tickets, letters and other printed materials produced for any fundraising event sponsored by the Paul D. Camp Community College Foundation must clearly reflect the fair market value of any benefit to the donor. This applies to all fundraising events, including those that are underwritten. The following definitions should be kept in mind when reviewing this guideline. 1. Fundraising Event An activity sponsored by the Paul D. Camp Community College Foundation, for the purpose of fundraising to benefit the College. In exchange for the price of admission, the donor generally receives a benefit or privilege. The VP/Director is responsible for preparing or directing the preparation of an income and expense budget and an implementation plan for all fund-raising events. All fundraising and special events should be approved by the Development Committee in advance of execution. A separate line item account will be established for each fund-raising event, with all income and expenses recorded therein. After the event is completed, profit or loss will be posted to the account identified in the fundraising events plan, or where the Board directs. 2. Auction A fundraising event at which guests pay the Paul D. Camp Community College Foundation for goods and services, donated by third parties. 3. Benefit The fair market value of a ticket to any event, of any good or service purchased at an auction, or of consideration associated with membership. In relation to an event, the term benefit applies, but is not limited to, the fair market value of a meal or other food and beverage service, entertainment, performance, or sporting event. The benefit associated with a purchase at an auction is equal to the fair market value of the good or service bought. In relation to memberships, benefit refers to the fair market value of gifts and privileges associated with the level of membership. If the membership results in favorable seating consideration at on-campus athletic events, where no tangible value can be assigned, the IRS requires that donors only claim 80% of the gift as a charitable deduction. 4. Raffle A means of raising funds in which each participant buys a ticket for an article put up as a prize with the winner being determined by random drawing. Amounts paid for chances to participate in raffles or similar drawings, and amounts paid to participate in contests for valued prizes, are not regarded as gifts under IRS regulation and do not qualify as deductible charitable contributions. Finally, only those special events, which reflect and support the mission of the Foundation and College, will be considered. 9

10 Gift Solicitation Procedure for Gift Solicitation Only projects approved by the Paul D. Camp Community College Foundation Board will be assigned to the Foundation Office, thereby authorizing the expenditure of staff time and budget for fundraising purposes. Non-approved items cannot demand fundraising staff time and budget, but in any event all solicitations must be cleared with the Foundation Office before approach to a gift source. This procedure is to help prevent duplication effort with any prospects already assigned to approve projects, which shall have priority. Specific Targeted Fundraising Fundraising targeted at specific donors or specific donor groups shall be conducted, coordinated or otherwise resolved in accordance with the wishes of the donor(s). Thus, a representative of the Paul D. Camp Community College Foundation, who has a prospective donor or donor group, must decide whether the benefits of the fundraising efforts balance institutional needs or donor wishes. General Fundraising With regard to more general fundraising efforts/programs, the following donor categories are reserved for the Paul D. Camp Community College Foundation s general giving program: individuals, board members, corporations, past donors, staff, alumni and current employees. Crossover fundraising or duplicative donor claims between a subsidiary and the Paul D. Camp Community College Foundation, whether directed at individuals or groups shall be resolved by the departments involved, or ultimately by the executive committee. Solicitation of Gifts Development Committee An appointed committee of the Board of Directors charged with leadership in fundraising toward the ultimate objective of increasing needed capital resources for support of the College. Foundation Office Under the VP/Director, responsible to the president for coordination of all fundraising activities for providing assistance to such activities, for acknowledging all gifts received and maintaining records on all gifts received. President In charge of leadership in fundraising toward ultimate objective of increasing needed capital resources for support of the College 10

11 SECTION III: GIFTS TO THE FOUNDATION 11

12 Classification of Gifts An unrestricted gift is a contribution given to the Foundation without any stipulation as to its use. Such a gift is used at the discretion of the Board of Directors. From time to time, the Board may set aside or designate unrestricted monies for restricted projects. However, since the Board may change the designation, the funds remain unrestricted. A permanently restricted gift is a contribution given with the donor s stipulation as to the specific use of the gift. These funds are not expendable, but are to be invested for the purpose of producing income. A temporarily restricted gift is subject to restrictions for a specific period of time and can be expended for functions approved by both the donor and the Foundation. Acceptance of any restricted gift imposes a legal obligation to comply with the terms established by the donor. The terms of each restricted gift must be clearly documented in writing; these guidelines for administering the gift should be followed by the Foundation Board and the VP/Director for administering the gift. Gifts that do not serve the best interest of the College or that obligate the College to undertake responsibilities (financial or otherwise) that it may not be capable of meeting for the period required by the terms of the gift will not be accepted. A gift may be expendable immediately usable for current purposes. Alternatively, it may be retained, perhaps as an endowment gift to be invested and held permanently for the income maintained intact in perpetuity or until the occurrence of a specified event or for a specific period. Only the income earned from the investment may be expended, either for general purposes or for purposes specified by the donor. It is recommended that gifts made to establish specific, discreet endowments be in excess of $5,000. Gifts of $5,000 or less should be held in the unrestricted pooled endowment fund maintained by the Foundation Board or added to other specific, discreet endowments already established. (Presently, the Foundation has no pooled unrestricted endowment fund. This is being considered by the Investment Committee.) Besides monetary gifts, the Paul D. Camp Community College Foundation also receives non-monetary gifts such as: Marketable Property Securities, real property, and saleable personal property. Stocks/Bonds These gifts are transferred directly to the Foundation investment firm, which will cash and invest the funds according to the Foundation investment policy. Gifts-in-Kind Any gifts that are to be used in the form in which they are given; art objects, books, equipment, etc. Rights and Insurance Royalties, copyrights, trademark rights, insurance policies and naming Paul D. Camp Community College Foundation as a beneficiary. 12

13 The Paul D. Camp Community College Foundation may also negotiate gifts-in-trust. The Paul D. Camp Community College Foundation would agree to hold and manage principal resources given by the donor in exchange for the dividend income for life, after which this income will be used by the Paul D. Camp Community College Foundation according to the wishes of the donors. Matching Gifts Many companies may increase, (doubling the gift or more), an individual s gift through a matching gift program at his/her company. Corporate matching gifts will be credited to the individual donor submitting the gift; however, the Matching Gift Company will be listed under Contributing Companies in the Honor Roll. Individual donors will be recognized for obtaining matching gifts through their companies during the Foundation s receipt process and in the Foundation s Honor Roll. Corporate matching gifts are recorded as pledges when the Foundation receives the notification from the employee donor. The Foundation Office will be responsible for submitting the appropriate matching gift request forms to the company and handling any necessary follow-up for securing the gift. Annual Giving Program The Foundation will conduct a program of annual giving. A plan for the annual giving program will be developed in concert with the Development Committee, in consultation with the VP/Director, and is presented to the College President on an annual basis. Upon review and approval of the plan by the Development Committee, the Chair of the Development Associate will present the plan to the Board of Directors. The annual giving plan shall contain a statement of goals, quantitative objectives, and a delineation of strategies, a plan for incorporation of volunteers, and other statements to explicate the plan. Planned Giving Planned or deferred giving is a term used to refer to those gifts of money, securities, or other property made for future or sometimes, present use. The formulation of a planned gift requires the advice of a trained professional. Major types of planned gifts include bequests, property, life insurance, trusts, and gift annuities. The Foundation may accept planned gifts including, but not limited to, the following: a. Bequests - A donor may give all or part of what he/she owns to the Foundation through a will. The donor may give a specific dollar amount, a percentage of the entire estate, a gift in trust, or specific items. The gift itself is a bequest. All amounts received by the Paul D. Camp Community College Foundation by bequest or pursuant to other revocable testamentary plans shall be credited at the value received, provided that if such amount was previously credited for campaign purposes as an expectancy, only such amount received in excess of the previously credited for campaign purposes as an expectancy, only such amount received in excess of the previously credited expectancy amount shall be counted. b. Life Insurance A donor may name Paul D. Camp Community College as one of the beneficiaries or as the sole beneficiary of an insurance policy. If Paul D. Camp Community College is the sole beneficiary, then the College may also be named owner of the insurance policy so as to enable the donor to deduct the annual premium as a charitable gift. To count gifts of life insurance, the Paul D. Camp Community College Foundation must be the owner and irrevocable beneficiary of the policies. 13

14 Life Income Plan Life income gifts usually provide for the payment of the income to the Foundation for a designated period (usually the life of the beneficiary). Paid-up Life Insurance Policies Paid-up life insurance policies will be counted at the cash surrender value, and reported as a current outright gift. Existing Policies Not Fully Paid Up A life insurance policy that is not fully paid up on the date of contribution, which is given during the period of the campaign, will be counted at the existing cash surrender value and recorded as an outright gift. A pledge of continuing premium payments will be counted at the aggregate of the remaining projected premiums over said five-year pledge period at full value. New Policies A pledge of premium payments for a new policy over a five-year pledge period will be counted at the aggregate of the projected premiums over said five-year pledge period at full value. Realized Death Benefits The insurance company s cash settlement amount for an insurance policy whose death benefit is realized during the campaign period, whether the policy is owned by the institution or not, will be counted in campaign totals, provided that gift amounts are not in connection with said policy (cash value of gifted policy or cash premiums received) were previously counted in the campaign totals. To the extent any cash value or premium amounts were previously counted in the campaign period, appropriate adjustments will be made so that only the excess of the settlement amount over the previously counted amounts will be counted c. Annuity Gifts A donor makes a gift to the Foundation for future use, and receives a periodic fixed amount of lifetime income. d. Charitable Remainder Trust A donor makes a gift of cash, check, securities, or possibly real estate in trust to the Foundation. The gift entitles the donor and/or another named person to income for life or for a stated period of years. At the end of the period, the Foundation may use what is left in the trust (the remainder ). e. Charitable Lead Trust The Foundation may use income from a trust for a stated period of time; what is left after that period of time reverts to the donor or someone named by the donor. f. Gift of Personal Residence A donor gives his/her home to the Foundation, but keeps the right to live there for the remainder of his/her life. This is called a gift of real estate with retained life interest. Gifts of personal residence may be accepted by the Paul D. Camp Community College Foundation. Planned gifts must be reviewed by the Investment Committee and approved by the Board of Directors. Planned gifts will be included in the Foundation s financial statements. The Foundation advises donors to consult with their financial advisor as to the tax consequences of a donation or planned gift. 14

15 Procedures for Establishing New Endowments An endowment is set up by investing money for the purpose of generating income off the principal. Income is distributed in accordance with the donor s intent. The Foundation Office assumes the responsibility for communication with the donor. The VP/Director will work with the donor to assure that the terms of the endowment are reasonable and to assure ease in program administration. Endowment Requirements Income from an endowment fund may not be distributed until the endowment reaches an amount established by the Paul D. Camp Community College Foundation Board. In order to qualify as an endowment, the minimum initial contribution must be an amount established by the Paul D. Camp Community College Foundation Board, and the remainder of the value must be pledged for payment within five years. If the endowment does not reach the established valuation within five years, the fund will be transferred to a general endowment fund, in keeping with the written agreement with the grantor. Endowment Design Endowments established shall be designated as restricted or unrestricted. An unrestricted endowment is a gift to the Paul D. Camp Community College Foundation as a whole, rather than to a specific program or use at the College. It allows flexibility in using earnings to meet changing needs. A restricted endowment stipulates the endowment for a specific purpose or program. Naming the Endowment Endowments established, either for restricted or unrestricted purposes, may be named in memory or in honor of a loved one, relative, or in more than one individual s names. The endowment must meet the criteria outlined above. Endowment Agreement Following the final planning session with the donor, a letter of understanding will be sent from the Foundation Office to the donor outlining all details of the endowment. When the principal reaches the minimum established by the Paul D. Camp Community College Foundation Board, an endowment agreement will be prepared by the Foundation Office and signed by the VP/Director for presentation and signature by the donor. This will create a permanent record for the College and Foundation. Endowment Fund Earnings Endowment investment earnings are defined as interest income, dividend income, realized, and unrealized gain or loss investments of each fiscal year. Annual Administrative Assessment Endowment accounts will be assessed an annual administration assessment by the investment company. Only the individual percentage of the total of the corpus invested will be assessed. The percent assessment will be made against the endowment fund earnings prior to any distribution of earnings being added to the principal balance. (Presently the Foundation does not assess administrative fees. This is being considered by the Investment Committee.) Donors Objectives After the administrative assessment is disbursed, the remainder of the endowment s income will be used to support the donor s stated objectives for the endowment. 15

16 Releasing Endowment Funds To request a release of endowment funds from the Paul D. Camp Community College Foundation s investment manager, the President of the College and the VP/Director of the Foundation must write and sign a letter to the investment manager. The letter should specify the amount of endowment funds to be released and specify that the check be made payable to the Paul D. Camp Community College Foundation and mailed to the VP/Director. In addition, the letter should specify the account number from which the funds should be released, as issued by the investment manager. Endowment Donor Relations Charitable gift reports are prepared within two months of the end of the calendar year. These reports will be given personally or mailed to certain living donors and relatives or company officials. The purpose is to report results of the past year and to solicit continued support in either increasing the endowment principal or making additional donations. Capital Campaigns For purposes of these standards, the campaign period refers to the total time encompassed by the active solicitation period for the campaign, including the advance gifts phase. The pledge payment period should not exceed five years. The principles for counting campaign gifts are: 1. Only those gifts and pledges actually received or committed during the specific period of time identified for the campaign should be counted in campaign totals. 2. Exceptions to subsection (1) above may be made and gifts and pledges made prior to the start of the campaign may be grandfathered only if they meet one of the following three criteria: a. The gift or pledge was made with the explicit understanding that it would be counted in campaign totals. b. The gift or pledge was a challenge grant, which will be met during the campaign period. c. The gift or pledge was in support of a capital project, which will be a fundraising priority in the campaign period. 3. The value of any canceled or unfulfilled pledges must be subtracted from campaign totals when it is determined they will not be realized. Advanced Gifts Phase/Nucleus Fund Phase The advance gifts or nucleus fund phase is that period of time prior to public announcement of the campaign, or the campaign s official goal during which place-selling gifts are sought from individuals and organizations. As indicated above, the advance gifts phase is part of the campaign period. Credit for gifts received in the advance gifts phase of a campaign shall be given for all gifts and pledges made during the advance gifts phase. The campaign is a broad-based comprehensive campaign which will include, but not limited to, gifts of cash, marketable securities, closely held stock, real property, tangible and intangible personal property, deferred life income plan and charitable lead trust gifts, remainder interests in residence and farms, life insurance, bequest, and other testamentary gift intentions, gifts-in-kind, and private grants. 16

17 The Gift Acceptance and Disposition Policy shall remain in full force and effect during the campaign period and thus gifts of real property, certain tangible personal property, non-publicly traded securities, and other types of non-liquid assets, may require the approval by the Paul D. Camp Community College Foundation Board prior to acceptance. Outright gifts should be reported only when assets are transferred irrevocably to the Paul D. Camp Community College Foundation. Deferred gifts should be reported only when assets are transferred or in cases where no assets are transferred, when a legally binding deferred pledge agreement or other irrevocable document is consummated with the institution. Pledges Oral pledges should not be reported in campaign totals. On the rare occasion when special circumstances may warrant making an exception, the VP/Director should write the individual making an oral pledge to document the commitment and place a copy of the written commitment in the donor s file. Pledges of Cash Pledges of cash should be written and should commit to a specific dollar amount that will be paid according to a fixed line schedule. The pledge payment period, regardless of when the pledge is made, should not exceed five years. Therefore, a pledge received even on the last day of the campaign is counted in campaign totals and may be paid over a five-year period. Exclusions The following types of funds should be excluded from campaign report totals: Gifts of pledges, outright and deferred, that has already been counted in previous campaigns, even if realized during the campaign-reporting period; Investment earnings on gifts, even if accrued during the campaign-reporting period and even if required within the terms specified by a donor; Earned income, including transfer payments from medical or analogous practice plans; Surplus income transfer from ticket-based operations, except for any amount equal to that permitted as a charitable deduction by the IRS and contract revenues. Fees, Expenses and Gift Acceptance 1. Finder s Fees The Paul D. Camp Community College Foundation DOES NOT accept finder s fees. 2. Commission Fundraising The Paul D. Camp Community College Foundation DOES NOT pay a commission for fundraising. 3. Gift Acceptance All cash and gift-in-kind donations to Paul D. Camp Community College Foundation should be directed to the Foundation Office. The Foundation will act in good faith when accepting donations on behalf of Paul D. Camp Community College. 4. Donor Designation Donors may designate gifts to the Paul D. Camp Community College Foundation. Acceptable designations are for academic programs, equipment, scholarships, professional development, administrative services or other designations in support of the College and its mission. The Paul D. Camp Community College Foundation does maintain the right to refuse a gift, which, in the eyes of the administration and Board of Directors, is not keeping with the Foundation s or College s mission or purpose. 5. Solicitations by Fundraising Consultants It is our policy that fundraising consultants will be selected, retained and funded by the Paul D. Camp Community College Foundation. 17

18 SECTION IV: GRANTS MANAGED THROUGH THE FOUNDATION 18

19 Grants and Contracts Grant Income from private, non-government sources will be reported; all contract revenue will be excluded. The difference between a private grant and a contract is judged on the basis of the intention of the awarding agency and the legal obligation incurred by the Paul D. Camp Community College Foundation in accepting the award. Some grants, like gifts, are bestowed voluntarily and without expectation of any tangible benefit in return. It is donative in nature. Others are actual contracts. A contract carries an explicit quid pro quo relationship between the source and the institution. When such grants are awarded to the Foundation, the Foundation should confer with the College regarding the administrative procedures. The College will prepare any financial reports required by the donor and will provide a full accounting to the granting foundation of the expenditures under the grant. Grants Solicited/Received The Foundation may apply for and receive grants from private foundations and corporations. All such grant applications are to be approved by the College President, or his/her designee. Monies received from grants solicited/received will be used for purposes identified in the grant application. In those cases, in which the grant application does not designate a specific use for the monies received the monies, at the discretion of the College President, may be distributed in accordance with the Foundation s policy on Grant Administration. The College, on behalf of the Foundation, will prepare any financial reports required by the donor and will provide the donor a report of expenditures under the grant. The College will provide to the Foundation periodic reports on the use of all grant monies that have been received. The Foundation may also award grants to faculty and staff of the College on the basis of a proposal and a competitive review of the proposal. A Request for Proposals will be issued by the Office of Institutional Advancement and proposals will receive an internal review in accordance with the procedures set forth in the Foundation s Funds Management Policy. Proposals, in amounts not exceeding $2,000, passing the College s internal review process shall, with approval of the College President, be referred to the Foundation s Grants Committee. The Grants Committee will evaluate the proposals and make a recommendation to the Foundation s Board of Directors. Individuals receiving grants from the Foundation are expected to complete their proposed projects and/or research studies within an agreed upon time period, and to submit the completed project and/or research study to the President of the College. The completed project/study should carry the following statement on its title page: Funding for this project was provided by the Paul D. Camp Community College Foundation. Copyright 20xx by the Paul D. Camp Community College Foundation. All rights reserved. The College President may elect to forward the completed project and/or research study to the Foundation s Board of Directors, or request that the project/research study s author(s) make a presentation to the Board. The College President shall place the completed project or research study in the permanent collection of the College library in a section identified prominently as: Projects/Research Studies Funded by the Paul D. Camp Community College Foundation. Grants monies shall be dispensed in accordance with College policy, only upon completion of a project or research study funded by the Foundation. This policy shall be acknowledged in writing by a grant recipient at the time that the grant is awarded. 19

20 SECTION V: GIFT MANAGEMENT 20

21 Checks and Cash The standard method of making a contribution is by mailing a check or delivering cash. However, these are not the only forms of payment mechanisms. On this, and following pages, other payment mechanisms will be described. Any gift in the form of cash or check is receipted, recorded and deposited within 3 to 5 business days by the Paul D. Camp Community College Office of Institutional Advancement, where a record of each gift is kept. This record includes the donor s name, date received, amount, purpose and any restriction. Any information attached to the check when sent (letters, enclosures, forms) will be kept in the donor s file. The date of gift is the date that the check was received in the Foundation Office or date on the check for end of the year donations. For cash/check donations and securities sent through the U.S. mail, this is the date that the gift was received in the Foundation Office. For hand-delivered and non-u.s. mail (e.g. FedEx or UPS), the credit date is the date received. For securities held in an account, it is the day it was transferred from the donor account to the gift account. Payroll Deduction Paul D. Camp Community College employees are eligible to make charitable contributions via payroll deduction. If they are interested, the employee should contact the Foundation Office to set up a recurring deduction. The deductions occur every pay period for a pre-determined static amount. The amount can be changed, and the deduction can be stopped at any time by contacting the Foundation Office. Gifts can be established for any duration, but not less than six months. Contributions will be deducted via payroll deduction on an annual basis; donors may elect to continue their donations during the open campaign period. If the donor ever wants to decrease, increase or discontinue their contribution, they will contact the Foundation Office, and the staff will proceed according to the donor s wishes. Wire Transfers A donor may wish to initiate a wire transfer to facilitate a gift. This can be expected for large sums of money and particularly at the end of the calendar and fiscal years. Pledges A pledge is a promise to contribute a specified amount to the Foundation. Documentation from the donor must include the following: 1. Date of the pledge 2. Total amount of the pledge 3. Purpose of the pledge 4. Payment schedule 5. How the pledge will be made 6. How the donor wants to be billed Non-Cash Gifts Gifts of non-monetary items generally can be regarded in one of four ways with only the gift-in-kind category being eligible for counting in fundraising totals: Gifts-In-Kind Any equipment or other tangible items that will enhance the college curriculum. Prospective donors of gifts-in-kind often first contact a faculty member or administrator. Such inquiries must be referred to the VP/Director, who will discuss gift procedures with the donor. The gift should be assessed by the appropriate College department as to its usefulness prior to acceptance. 21

22 1. Donative Sales of Gifts-in-Kind When someone offers a donation sale of art objects, books, equipment, etc., for use, the offer must be referred to the Foundation Office for legal counsel on the transaction. a. Delivery of Gifts-in-Kind Arrangements will be made during preliminary discussions or correspondence about delivery of gifts-in-kind directly to the Paul D. Camp Community College Foundation. Arrangements also include agreement with the donor regarding costs of packing, freight charges, etc., usually the responsibility of the donor. The VP/Director will inform the Bookkeeper if there are any donated services that seem to qualify for inclusion in the financial statements. Supporting documents are required to record donated services as a financial contribution. The VP/Director informs the donors of the acceptance or rejection of the gift. If the gift is accepted, a thank you letter and receipt for tax purposes is sent. If the gift is not accepted, a thank you letter is still sent. All gifts-in-kind are included on the Foundation s financial statements. Charitable Value of Gifts-in-Kind Paul D. Camp Community College Foundation cannot establish monetary value for gifts-in-kind according to the IRS. The donor, if a value is needed for income tax purposes, must provide in writing the commercial value of the object(s) given. All gifts-in-kind are regularly reported to the College Business Office and are officially acknowledged in the same manner as cash or other contributions. Out of Pocket Expenses Payments made by a donor to a vendor for material or services. This includes un-reimbursed expenses paid by a person while volunteering. For example, the expenses incurred by a donor sponsoring a dinner party to promote Paul D. Camp Community College comprise such a gift. These gifts must be documented with written and official receipts. Services Examples can range from the participation of volunteers in fundraising drives to ongoing participation programs of the Foundation. The following conditions must be met if the donated service is to be reported as revenue on the Foundation s financial statement: 1. The services are a significant and integral part of the efforts of the organization and would have to be performed by salaried personnel if the services had not been donated. 2. The Foundation controls the time, location, nature, and performance of the donated services. Limited Use of Private Property The right to rent-free use of a home, office, piece of equipment or commercial property owned by a donor for a specific event for a specified period of time. Such gifts are only occasionally recognized by the Paul D. Camp Community College Foundation, but are generally not recognized by the IRS as being tax deductible. Examples include the rent-free use of office space, or the rent-free use of a vacation home to host an event. Typically, the only non-monetary gift considered for gift recognition purposes is the above referenced gift-in-kind. Gifts-in-kind must be reviewed with special care to ensure that acceptance will not involve financial commitments in excess of budgeted items or other obligations disproportionate to the usefulness of the gift. 22

23 Consideration should be given to the cost of maintenance, cataloging, delivery, insurance display, and any space requirements for exhibiting or storage. All gifts of real estate or unusual items of questionable value must be presented to and approved by the Board of Directors prior to acceptance. Select Gifts (requiring special handling) Memorial Gifts The families of clients and other individuals make gifts in memory of or in honor of persons by name. When received by the Paul D. Camp Community College Foundation, these funds will be used as unrestricted income unless otherwise indicated. Temporary Funds A donor may turn over funds or property as a gift specified with conditioned use over time. These funds may be held for a fixed period and invested, with only the income usable by the Paul D. Camp Community College Foundation until conditions of time or maturation are achieved and the principle becomes available. In other cases, the use of the principle may be permitted at a fixed rate of use over a period of time, as specified by the donor. Legacies and Bequests A donor may arrange under legal contract expressed in his will that the Paul D. Camp Community College Foundation is a designated beneficiary to receive a direct gift from the estate. A donor may also arrange, after the death of a named beneficiary, that the principle or some of the surviving estate will become the property of the organization. 23

24 SECTION VI: SCHOLARSHIP MANAGEMENT 24

25 Awarding of Scholarships When the Institutional Advancement Office is approached about the awarding of student scholarships, the following steps should be taken: 1. Determine whether the donor has a specific recipient in mind. If the donor is giving the scholarship money directly to a student already identified, the money goes into a Local Fund Account. The Foundation does not handle this type of scholarship. Questions concerning such scholarships should be referred to the College s Financial Aid Office. 2. Donors who want to give scholarship money, but have not identified a student should be referred. 3. To the VP/Director of the Foundation. 4. If the scholarship has been given criteria, the VP/Director will review these criteria with the donor to make sure it meets his/her outlined expectations and legal requirements. 5. Once the recipient is named, the Office of Institutional Advancement will keep an electronic record. 6. On the recipient. This file will include the following: Recipient s name and home address Terms of award Criteria that were met Amount of award How the scholarship monies will be used 7. The Campus Financial Aid Office notifies recipients of their selection and how the funds will be disbursed. The Campus Financial Aid Office also notifies the VP/Director of the recipients by memo providing a copy of the selected student s scholarship application form. 8. If requested, the Office of Institutional Advancement will notify the donor of the scholarship when funds are awarded. Administration of Scholarships Following are the Foundation s responsibilities concerning scholarships: 1. To promote the development of new scholarships through donor awareness. 2. To be the point of contact for the donor when establishing a scholarship. 3. To maintain contact with the donor, announcing the recipients as they are awarded. 4. To work with the donor when questions and/or issues arise concerning criteria for awarding the scholarship. 5. To send thank you letters to donors for scholarship funds. 25

26 Scholarship Categories 1. High School scholarships given to students graduating from public and private high schools in the College s service area. 2. Restricted Scholarships scholarships for special programs or curricula or in memory of a student or other individual. 3. Unrestricted Scholarships scholarships given without restrictions attached. Scholarship Award Process The scholarship Committee, which consists of administrators, faculty, and staff from Paul D. Camp Community College, screens the scholarship applications based on the established criteria. In addition to providing a completed application form, students may be required to write essays, provide letters of recommendation, and submit a FAFSA form. Committee members review and evaluate the essays using a scale of 1 to 5, with a 5 being the highest rating. GPA, total essay score, total recommendation score, and financial need are all weighed equally. Scholarship awards will be made in the summer preceding the start of the fall semester, in the winter preceding the start of the spring semester, and in the spring preceding the start of the summer session. No retroactive awards will be made once the deadline for tuition payment has passed. Exceptions to this policy will be made only in extenuating circumstances, when there is a mutual agreement that an exception is warranted between the VP/Director and the Financial Aid Office responsible for the award. Disbursement of Funds Scholarships are disbursed from the amount available for a scholarship award and disbursed in accordance with the criteria of the most current Memorandum of Understanding (MOU) governing the scholarship fund. The amount awarded from an endowed scholarship that is not set at a defined limit by its MOU may vary from time to time depending on income allocations to the fund. When a scholarship award amount exceeds the balance due for an awardee s tuition and fees, the award disbursement from the Foundation scholarship fund shall be adjusted to not exceed the actual balance due. This process shall be followed to ensure that refund checks are not provided directly to a student. The VP/Director and the Campus Financial Aid Office will collaborate to decide what scholarships are available to be awarded and the amount of each scholarship. Before any scholarship checks are awarded from the Foundation, a list of the following items must be submitted to the Financial Aid Office from the VP/Director: 1. Student names 2. Amounts awarded 3. Foundation scholarship accounts being charged Once the Campus Financial Aid Office has applied the approved listing and the amounts of the scholarships, he/she requests a check be written from the Foundation to the College Business Office. Funds not used by a student who has left the College and not re-enrolled within one year may be transferred to the unrestricted scholarship account or returned to the donor, based on donor instructions. 26

27 Scholarship Gifts a. A NAMED SCHOLARSHIP ENDOWMENT may be created with a minimum gift of at least $15,000, which may be paid over three to five years. The amount of the scholarship awarded from the endowment income from time to time will vary depending on the amount of the gift and prevailing interest rates and tuition costs. b. A NAMED SCHOLARSHIP may be created with a minimum annual gift of at least $500. These scholarships may also be named, but are not retained as permanent funds. c. A GENERAL PDCCC SCHOLARSHIP ENDOWMENT FUND shall be established and which may be added to. Income from the Fund will be disbursed for scholarship purposes at the discretion of the Foundation Investment Committee. Creation of Accounts A Foundation account may be created with a gift of at least $500. Gifts of less than $500 will be directed to an already established account. Any balance in an account that has not been active for 12 months will be transferred to a related account. Such consolidation of small accounts shall take place at least once a year. 27

28 SECTION VII: DONOR AND GIFT ACKNOWLEDGEMENT 28

29 Donor Relations: Gift Acknowledgement and Stewardship All gifts of monies, securities, equipment, services, in-kind support, and other such gifts will be acknowledged immediately and appropriately by the Foundation. Acknowledgement instruments may include the following: 1. Thank You Letters All donors will receive a letter of acknowledgment from the President and/or the VP/Director 2. Secretary/Executive Director In certain instance, letters also may be written by Foundation Board members. 3. News Releases News items will be released as appropriate by the Office of Institutional Advancement. 4. The Board of Directors of the Foundation may establish societies to recognize support of donors of their generosity. The VP/Director is charged with the responsibility for donor relations policies, including gift acknowledgment and stewardship. He/she, in consultation with Donor Relations Committee, will develop and maintain a donor relations plan and will annually present the plan to the College President for review and approval, and through the College President, the Foundation s Board of Directors. Building Naming This policy is in accordance with the State Board of Community College s Building Naming Policy and addresses the naming of campus buildings in honor of persons, groups of people, or organizations that have made significant contributions to Paul D. Camp Community College and its mission. The naming of any buildings or grounds owned by the College either on or off the campuses must be approved in writing by the President and subsequently by the College Board. The recommendation for naming is then made to the Chancellor of the Virginia Community College System and to the State Board prior to the building being named. When naming physical spaces, care should be taken to assure that the individual, corporation, or organization to provide funding matches the integrity, vision, and mission of the College. The size, design, and wording of any signs acknowledging any individual, corporations, or organizations generosity should be consistent with existing Paul D. Camp Community College signage, and should exclude logos to avoid the appearance of advertising. Recognition should typically occur after the gift has been received rather than on a prospective basis. Guidelines for Building Naming Retention A named building will retain that name as long as the building exists. However, if a name is designated for a facility associated with a specific activity and that activity is subsequently changed, the name may be applied to a similarly used facility if possible and, if not, to another facility. This does not assure that the name will remain beyond the useful life of the building. When a corporation or foundation donor makes the naming gift, the designation will remain in place until the corporation or foundation is no longer in existence or as long as the facility remains in use and serves its original function unless otherwise stipulated at the time of the gift acceptance. 29