Why Create a Gift Acceptance Policy

During an alumni giving campaign, a former student wants to donate a parcel of land near your school. The catch is that there’s an abandoned warehouse on the property. Should you accept the gift? This question can be difficult to answer without a Gift Acceptance Policy to guide your decisions.

A robust policy addresses many areas of risk that could lead to unintended consequences for your school and the donor. It also helps your school plan for how to handle various types of gifts that could require additional effort to convert into cash, such as real estate or personal property.

In addition to outlining how cash gifts will be handled, a Gift Acceptance Policy helps schools and colleges navigate complex and sometimes risky donor gifts. A policy helps you consider gifts that may or may not align with your mission, vision, and values. It can also help you avoid receiving non-monetary gifts that could be costly to maintain or difficult to dispose. Finally, a policy can help you avoid potential public relations issues, and it helps staff understand how to graciously turn down offers that could carry an unacceptable amount of risk.

It especially helps when gifts fall outside what is typical for your school. For example, would your school accept lottery winnings? Would you accept donations from someone with a tarnished reputation, or property that was used to store hazardous chemicals? Your policy helps address potential issues before the gift is accepted.

A gift acceptance policy also addresses IRS and SEC laws, making sure your school complies with Federal Law and files the appropriate forms.

A baseline policy addresses how your school will handle the following types of gifts:

• Cash, securities, digital currencies
• Real estate, land
• Annuities, trusts, life insurance
• Personal property
• Alternative assets
• Deferred gifts

 
To get started drafting a policy, or to strengthen an existing policy, check out the Sample Gift Acceptance Policy. 

Related Resources

• Sample Gift Acceptance Policy - Schools and Colleges
• Sample Website Wording for Gift Acceptance Guidelines

Posted August 31, 2022.

The information provided in this article is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. We strongly encourage you to regularly consult with a local attorney as part of your risk management program. Your organization is responsible for compliance with all applicable laws.