2.11 Acceptance of Private Gifts

Last Revised: 13 May 2020

Refer Questions to: Vice President, Development and Alumni Relations

Scope

This policy applies to all offices and divisions of Gallaudet University.

Policy

Acceptance of Gifts

Gifts of $1 million or more made to the University are formally accepted by the President or the President’s administrative designee. The President will bring to the Board of Trustees for consideration, any gifts of $1 million or more made to the University that could injure the reputation or standing of the University, or generate such controversy as to substantially frustrate and defeat the educational purpose to be served. Gifts or grants of $100,000 or more to a University donation account will be promptly reported to the President for consideration of its purpose and use in collaboration with the applicable division administrator and the fund manager, if different.

Establishment of Endowed Fund

To create a named endowment fund, a donor must initially contribute a minimum of $5,000 and has 5 years to reach the minimum endowment level of $25,000. If the minimum level cannot be met within that timeframe, the funds will be combined into an endowment fund whose purpose is provide general scholarship support to Gallaudet students.

If at any time it becomes impractical or impossible to fulfill the articles and provisions of this agreement, the donor consents to allow Gallaudet to apply Fund monies for any purpose that, on the basis of a judgment made in good faith, most closely fulfills the Founding Donor’s original intentions and furthers Gallaudet’s educational mission. If necessary Gallaudet may also utilize other provisions of the Uniform Prudent Management of Institutional Funds Act of 2008, to successfully use the Fund monies if Gallaudet is unable to fulfill the original donor purpose.

The University’s Board of Trustees has interpreted the District of Columbia Uniform Prudent Management of Institutional Funds Act (“UPMIFA”) as requiring the University, absent explicit donor stipulations to the contrary, to act in good faith and with the care that an ordinarily prudent person in a like position would exercise under similar circumstances in making determinations to appropriate or accumulate endowment funds, taking into account both its obligation to preserve the value of the endowment and its obligation to use the endowment to achieve the purposes for which it was donated. The University classifies as net assets with donor restrictions the sum of: (a) the original value of gifts donated to its donor-restricted endowment; (b) the original value of subsequent gifts to its donor-restricted endowment; (c) additions to its donor restricted endowment made in accordance with the applicable donor gift instrument at the time the accumulation is added to the fund; and (d) the appreciation on donor-restricted endowment funds until those amounts are appropriated for expenditure by the University’s Board of Trustees.

The University defines the appropriation of endowment net assets for expenditure as the authorization of its investment spending rate as approved annually by its Board of Trustees. In making a determination to appropriate or accumulate, the University adheres to the standard of prudence prescribed by UPMIFA and considers the following factors: (1) The duration and preservation of the endowment fund; (2) The purposes of the University and its endowment fund; (3) General economic conditions; (4) The possible effect of inflation or deflation; (5) The expected total return from endowment investments; (6) Other resources of the institution; and (7) The investment policy of the University.

Approved by: Gallaudet University Board of Trustees