UCSC University Relations - Gift Fee Procedure

University Relations
Carriage House
University of California
Santa Cruz, CA 95064-1077
Email: urrecept@ucsc.edu
Phone: (831) 459-2501

Gift Fee Policy

Gift Fee Procedure

PROCEDURE ON THE ADMINISTRATIVE FEE ON GIFTS TO THE UNIVERSITY OF CALIFORNIA AT SANTA CRUZ (REGENTS) AND THE UC SANTA CRUZ FOUNDATION

Effective: August 1, 2003
Issued: July 31, 2003
Issuing Office: Vice Chancellor, University Relations

SECTION I. OVERVIEW

Effective August 1, 2003, an administrative fee of 3% from gifts to endowments and 5% from gifts to current use funds (see IV.C. Exemptions), made to either the University of California at Santa Cruz (The Regents) or the UC Santa Cruz Foundation, will be assessed for the purpose of strengthening the development program and partially defraying related administrative costs. New outright gifts and payments on pledges are subject to the fee as of the effective date. The fee percentage may be reviewed and revised periodically. The options for methods of payment of the fee are described below (see IV.A.). Departmental correspondence regarding interpretation of this Policy should be submitted through the originating department's Principal Campus Officer to the Vice Chancellor of University Relations.

Exemptions

Fees will not be assessed on:

Gift agreements, including documented pledges, executed prior to the effective date of this policy;
Gifts made for capital purposes;
Gifts of membership dollars or current use funds raised by Friends groups or officially recognized campus support groups for the first year of this policy;
Non-cash gifts (gifts–in-kind) made to the University that are to become inventoried useable assets of the University;
Grants received from private foundations and administered by the Office of Sponsored Projects.

SECTION II. PROCEDURE DETAILS

A. Methods of Payment

1. Fees of 3% from the gift principal for all gifts to endowments and 5% from the gift principal for all gifts to current use funds will be deducted at the time the gift is received. Donors may elect to provide for the fee by making an additional gift equivalent to the fee.

2. The academic unit benefiting from the gift may pay the fee from another discretionary departmental funding source, rather than the fee being deducted from the gift principal, when the terms of the gift specifically disallow fees or cost recovery. University Relations/Donor Relations Office will hold the gift in an undistributed cash account until notified in writing by the benefiting department of the FOAPAL to be charged the fee.

B. Disclosure to Donors

Disclosure of the fee policy is made to donors on all gift receipts. Additionally, written or oral disclosure of the fee to donors is encouraged at the time of solicitation. Fee information should be included in any proposals or gift documents issued to prospective donors. Appropriate disclosure language for fund raising literature or letters of gift purposes is as follows:

"For the purposes of strengthening the development program and partially defraying related administrative costs, a fee of 3% of endowments gifts and 5% of current use gifts–made either to the University of California, Santa Cruz (The Regents) or the UC Santa Cruz Foundation–is assessed effective August 1, 2003."

Requests to use modified language must be directed to the University Relations/Donor Relations Office for approval.

C. Responsibilities

1. Departments

a) Submit every gift to the University Relations/Donor Relations Office for processing in accordance with University policies and procedures.

b) Communicate in writing to the Donor Relations Office if the fee is to be paid from a source other than the gift itself.

2. Departments and All Campus Fundraising Staff

a) Inform potential donors of the fee via solicitation materials or verbal discussion.

3. University Relations/Donor Relations Office

a) Process all gifts in accordance with University policies and procedures.

b) Issue donation receipts with the statement informing donors of the fee policy.

c) Work in consultation with UC Santa Cruz Foundation or UCSC Extramural Funds to report on and assess gifts and fees.

4. UC Santa Cruz Foundation or UCSC Extramural Funds

a) Deduct the fee from the principal of all gifts unless other written payment instructions have been received from the department.

SECTION III. GETTING HELP

Questions regarding this policy may be directed to the Vice Chancellor of University Relations. [Phone: (831) 459-2501]

Questions regarding gifts or policy procedures may be directed to the Donor Relations Office. [Phone: (831) 427-4773]

Questions regarding grants may be directed to the Office of Sponsored Projects. [Phone: (831) 459-2778]

SECTION IV. APPLICABILITY AND AUTHORITY

The Chancellor has approved this policy and delegates responsibility for administration and adherence to the Vice Chancellor of University Relations. Periodic review and revision of fee percentage or other administrative changes are subject to approval by the Chancellor. Routine procedural changes are subject to review and approval by the Vice Chancellor of University Relations.

SECTION V. RELATED POLICIES & REFERENCES

A. Policy on Administrative Fee on Gifts to the University of California at Santa Cruz (Regents) and the UC Santa Cruz Foundation

B. Letter from Vice President Baker, dated 1987, regarding University of California Policy on Use of General Funds for Development (PDF)

C. UCSC Policy and Procedure Manual (PPM)

D. Contracts and Grants Manual, Section 9: Gifts and Endowments

E. Development Policy Manual, January 1989 (Revised Spring, 1992)

F. Policy and Administrative Guidelines on Support Groups, Campus Foundations, and Alumni Associations