Gift Acceptance Crediting and Counting Guidelines

(as of October 19, 2023)

This document defines how outright and deferred gift commitments will be recorded for gift counting purposes in order to measure Rhodes’ success in achieving its fundraising goals and to ensure that donors are recognized appropriately for their contributions. The policies will be effective as of October 2023 and will supersede previous gift crediting policies.

General Gift Policies:

  • Cash gifts will include pledges and outright gifts for the Annual Fund, Lynx Club, capital, endowment, and any annual priority of the college.
  • In order for pledges to Rhodes to be credited they must be received in writing and processed by the college. This will ensure that the donor receives proper acknowledgement, recognition, and credit. No pledge without written confirmation by the donor will be recorded.
  • Deferred gift commitments will be counted as follows: 
    • Bequest 
      • Bequest intentions will be counted at face value.
    • Life Income Plans 
      • Life Income Plans will be counted at face value if the beneficiary is of the donor’s generation.
      • Life Income Plans will be counted at present value if the beneficiary is of a younger generation than the donor such as a child or grandchild.
    • Life Insurance 
      • Life Insurance gifts will be counted at face value if the insured is of the donor’s generation.
      • Life Insurance gifts will be counted at cash value if the insured is of a younger generation than the donor such as a child or grandchild.
      • Term life insurance will not be accepted.
  • The college may accept gifts of real estate, including houses, condominiums, commercial properties, farm land, rental property, and undeveloped land after a thorough review is made by Rhodes in accordance with Gift Handling Policies. These same guidelines will be followed for deferred gifts of remainder interest in a residence or farm.
  • Pledges will be counted in the full amount of the pledge commitment as soon as the donor has signed a pledge agreement. Pledges will ordinarily be expected to be paid within five years, although a schedule of payments extending beyond that point can be arranged in special circumstances.
  • Consistent with the Principles for the Process of Discernment Related to Contested Names adopted by the Rhodes College Board of Trustees on April 13, 2018, in the event that the donor engages in conduct that is determined to be morally reprehensible, including but not limited to being convicted of a state or federal crime, engaging in conduct that directly contradicts the fundamental values and mission of Rhodes College, or tarnishing the reputation of the organization through actions deemed by Rhodes College to be materially detrimental, Rhodes College reserves the sole right to remove the name of the donor from any form of recognition or honor that may have been promised or bestowed upon the donor as a result of the gift made to Rhodes College. Such determination shall be made at the sole discretion of the Board of Trustees in consultation with the President of Rhodes College and shall be considered final.

Gift Crediting Guidelines:

The following gifts and pledges will be counted towards the campaign. IRS rules and regulations will apply in all instances. Accordingly, qualified appraisals must be obtained by the donor and provided to the college where a qualified appraisal is required by the IRS in order to substantiate a charitable tax deduction.

  • Cash: Cash is credited at full value the day it is received. 
  • Marketable Securities: Securities are credited at the average of the high and low of the fair market value on the date of delivery or the date the donor relinquishes control of the assets.
  • Closely Held Stock: Gifts of closely held stock will be credited at the fair market value placed on it by a qualified independent appraiser as required by the IRS.
  • Real Property: Gifts of real property will be credited on the date of transfer at the fair market value as determined by a qualified appraisal.
  • Tangible Personal Property: Tangible personal property including works of art, jewelry, antiques, coins, stamps and other collections, automobiles, manuscripts, and books which are accepted by Rhodes College will be credited at the fair market value on the date of transfer as determined by a qualified appraisal. 
  • Gifts in Kind: Non-cash donations will be credited at fair market value on the date of transfer as determined by a qualified appraisal.
  • Bequests: Bequests are counted as cash only after the bequest matures and is received by Rhodes College.   Bequest intentions will be included in the campaign deferred commitment total only where the college has received signed documentation.  After the bequest matures and is received by Rhodes, the amount will be subtracted from the Deferred Commitment total and added to the Cash Commitment total. 
  • Charitable Gift Annuities: Charitable gift annuities will be credited at face value.
  • Charitable Remainder Trusts: Charitable remainder trusts will be credited at face value if the beneficiary is of the donor’s generation.  Charitable remainder trusts will be credited at present value if the beneficiary is of a younger generation than the donor such as a child or grandchild.
  • Charitable Lead Trusts: A charitable lead trust will be treated as a cash pledge, and credited at full value of all anticipated payments as stipulated in the trust document which will be received by five years after the close of the campaign. For example, a charitable lead trust created June 30, 2024, with an annual payment to Rhodes of $10,000 for ten years will be credited as a $100,000 cash pledge. 
  • Life Insurance: Rhodes College must be the owner and beneficiary of any whole or universal life insurance policy given to the college. (Term life insurance will not be accepted and will not be credited in the campaign.) At the time the policy ownership is transferred to the college, all donors must confirm in writing that  they will pay in a timely manner all future premium payments, whether known or unknown at the time the gift is made. Life insurance gifts will be credited at face value if the insured is of the donor’s generation.  Life insurance gifts will be credited at present value if the insured is of a younger generation than the donor such as a child or grandchild.

Gift Handling Policy

GIFTS OF CASH OR SECURITIES     

A. Designated for Annual Purposes:     

1. Budget-relieving annual gifts go into the appropriate designation of the Annual Fund.

  • Financial Aid/Fellowships (Scholarships) (Fund 111000, Account 520041)
  • Faculty Support (Fund 111000, Account 520042)
  • Campus Life (Fund 111000, Account 520043)
  • Library/Technology (Fund 111000, Account 520044)
  • Campus Preservation (Fund 111000, Account 520045)
  • Where most needed (Fund 111000, Account 520011)

These funds are either immediately expended or invested through the college’s cash management policy. Any interest income is credited to interest income (Fund 111000, Organization 80001, Account 530011, Program 00).

2. Budget-relieving athletic gifts go into the appropriate designation of the Lynx Club (Fund 111000, Account 520011). For gifts directed to specific sports, ninety percent (90%) of the gift is directed to the designated sport, and ten percent (10%) of the gift is directed to Lynx Club.

  • Lynx Club
  • Baseball
  • Basketball (Men)
  • Basketball (Women)
  • Field Hockey
  • Football
  • Golf (Men)
  • Golf (Women)
  • Lacrosse (Men)
  • Lacrosse (Women)
  • Soccer (Men)
  • Soccer (Women)
  • Softball
  • Swimming
  • Tennis (Men)
  • Tennis (Women)
  • Track and Cross Country
  • Volleyball

These funds are either immediately expended or invested through the college’s cash management policy. Any interest income is credited to interest income (Fund 111000, Organization 80001, Account 530011, Program 00).

3. Restricted annual gifts go into the designation supporting the purpose specified by the donor.  

B. Designated for Capital Purposes:     

1. Unrestricted capital gifts are recorded in Capital Funds Unrestricted (Fund 214019-60001-520116-40) and will remain in that account until a purpose is determined by the President or Vice President for Finance & Business Affairs.     

2. Restricted Capital Gifts   

a. For an item in the “Capital Needs List”:   

Gifts designated “for endowment” are deposited immediately in Quasi Endowment (Fund 510006-200031-520116-40).

Gifts for professorships, fellowships, or other named Funds are set up in the Endowed Funds. Each year an allocation determined by a formula mandated by the Board of Trustees is used for the endowment purpose; excess earnings and appreciation are added to principal.  

Gifts for equipment or plant improvement or other projects are expended for the project or invested until the project can begin. Interest earned is credited to interest income (Fund 111000, Organization 80001, Account 530011, Program 00) or towards the project as decided by the Vice President for Finance & Business Affairs.   

No interest income will be accumulated in a particular fund account unless: 1) the gift is $10,000 or more, 2) there is a request from the donor or donors for the interest to be credited to the account, and 3) granting the request may encourage additional future gifts.   

b. For an item not designated as an institutional priority or listed in “The Gift Opportunities List,” the President, upon recommendation of the Vice President for Development or the Vice President for Finance & Business Affairs, determines whether to accept or not accept. Accepted gifts are treated as in B.2.a.   

C. Undesignated Gifts:   

1. Undesignated gifts of $10,000 or under are treated as a gift “Designated for Annual Purposes”: follow A.1, unless otherwise deemed appropriate by the Vice President for Development.   

2. Use of undesignated gifts over $10,000 is determined as appropriate by the President, Vice President for Finance & Business Affairs, and the Vice President for Development.      

GIFTS OF REAL ESTATE  

When gifts of real estate are offered to Rhodes, there must be an on-site inspection and environmental survey prepared (when appropriate) before the gift can be accepted by the Vice President for Finance & Business Affairs.

If the gift of real estate is accompanied by a valid appraisal, it is entered on the college books at that value (in the case of multiple valuations, the average). Absent a valid valuation, it is entered at a value of $1.00. A development officer works with the donor to determine the purpose of the gift.   

If the value of the gift is to be added to the endowment as a restricted designation, the designation is set up, and the gift is acknowledged at the time the gift is made, but the income to the college does not begin until the property is sold and converted to cash. While the sale price does effect the size of the account and the cash flow, it does not change the amount credited to the donor by Rhodes. The amount credited to the donor is determined by a valid appraisal at the time of the gift. According to IRS regulations, the gift acknowledgment to the donor describes the property, but does not include a dollar amount. 

The President upon the recommendation of the Vice President for Finance & Business Affairs determines whether to sell or hold gifts of real estate.
If the real estate is sold the income flows through the “Gifts of Cash or Securities” and expenses are deducted from the gross proceeds. 

If the real estate is held the property is booked at appraised value in the assets of the Current, Restricted, or Endowment fund. 

If the rental, lease or other income is undesignated the funds are credited to the appropriate current fund account: Fund 111000, Organization 80001, Account 560020, Program 00 Royalties or Fund 111000, Organization 80001, Account 560016, Program 00 Miscellaneous Income. 

If the rental, lease or other income is designated the funds flow to the appropriate account or project. 

GIFTS OF TANGIBLE PROPERTY 

The President upon the recommendation of the Vice President for Finance & Business Affairs determines whether to hold or sell all individual gifts of tangible property (furniture, jewelry, artwork, equipment, books, etc.).

If the property is sold the income flows through the “gifts of cash or securities” and expenses are deducted from the gross proceeds. 

If the property is held the item will be appropriately booked at appraised value in and added to the college’s inventory system. 

GIFTS OF LIFE INSURANCE 

Rhodes College must be the owner and beneficiary of any whole or universal life insurance policy given to the college. (Term life insurance will not be accepted and will not be credited in the campaign.) At the time the policy ownership is transferred to the college, all donors must confirm in writing that they will pay in a timely manner all future premium payments, whether known or unknown at the time the gift is made. 

The President upon the recommendation of the Vice President for Development determines whether to keep the policy in force or to surrender the policy. 

If the policy is surrendered, proceeds are treated as “Gifts of Cash or Securities.” 

If the policy is kept in force, and the donor does not make gifts to support premium payments, the President, upon the recommendation of the Vice President for Finance & Business Affairs or Vice President for Development, should decide if the premiums should be paid and if so, how they should be paid. (Note: see section below on “Accepting Gift” about the expenditure for purpose of gift). At termination of the policy, proceeds are treated as a gift “Designated for Capital Purposes.” 

GIFTS OF STOCK IN CLOSELY HELD CORPORATIONS, THE VALUE OF WHICH CANNOT BE DETERMINED, OR FOR WHICH THERE IS NOT A READY MARKET 

The college is grateful for such gifts and shall acknowledge receipt immediately and thank the donor. The college will record these at $1.00 until such time as the stock is sold or a professional appraisal is received. 

The valuation of such gifts on the books of the college shall normally occur only in the fiscal year in which the gift is sold, except in the case of an acceptable professional appraisal. 

A member of the Finance & Business Affairs team will prepare a list of all closely held securities to include in the annual report of securities on hand. This report will list the changing value of the security and the asset account into which it has been booked. 

A member of the Finance & Business Affairs team shall seek at least twice a year to find a market for such stocks and dispose of them. 

A member of the Finance & Business Affairs team shall consult with the Vice President for Development about donor sensitivity before attempting to sell the stock. 

ACCEPTANCE AND VALUATION OF NON-CASH GIFTS 

The date of acceptance and valuation of any non-cash gift to the college shall be the date the donor has unconditionally parted with dominion and control over the property; delivery directly to Rhodes is not required as long as the donor has relinquished all control over the property. Thus, delivery to a third party who agrees to act as Rhodes’ agent in accepting the property is effective when delivery is made to the agent, but delivery to a third party acting as the donor’s agent is not effective until that agent delivers the property to Rhodes or Rhodes’ agent. 

ACCEPTANCE OF GIFT ANNUITIES AND CHARITABLE REMAINDER TRUSTS 

The minimum acceptable principal amount accepted for a gift annuity is $25,000. The minimum for a charitable remainder trust for which the college will act as trustee is $50,000.

For gift annuities, the rates offered the annuitant will not exceed the most recently published rates of the American Council on Gift Annuities. Gift annuities that involve immediate commencement of annuity payments will be accepted only when the annuitant is 65 years or older. Deferred gift annuities will be accepted for annuitants younger than 65 provided the beginning date of the annuity payment is not prior to the annuitant attaining age 65. 

Payout rates offered on charitable remainder trusts will be based on negotiated rates acceptable to the donor, the Vice President for Development and the Vice President for Finance & Business Affairs. There is no minimum age requirement on charitable remainder trusts. 

Payment of annuities will be scheduled to be made quarterly, semi-annually, or annually. 

INTERNAL HANDLING OF GIFTS 

All cash or checks are processed by the Development Office. Gifts of securities, real estate, other tangible property, life insurance, etc. will be received by the Development or Finance offices. These offices will notify other interested offices and will complete the appropriate Gift Receipt form (Securities, Real Estate, Personal Property). In the case of securities, the Finance office will follow the Policy for Handling Contributed Securities and as required the Policy Regarding Gifts of Stock in Closely Held Corporations. 

IRS FORMS RELATED TO GIFTS 

If Rhodes receives from a donor a contribution of property other than cash or publicly-traded securities and the deduction associated with the property is more than $5,000, the donor will need to present Internal Revenue Service Form 8283 to Rhodes for its signature. If Rhodes disposes of this “charitable deduction property” within three years of the date of the donor’s contribution, the Finance office will report, in a timely manner, such disposition to the Internal Revenue Service on IRS Form 8282. Rhodes will furnish the donor with a copy of the completed IRS Form 8282. 

ACCEPTING GIFTS 

In the event there is a question about whether to accept a gift, the final determination shall be made by the Board of Trustees, in consultation with the President. 


GIFTS TO THE COLLEGE OF A NON-PERMANENT NATURE 

While Rhodes makes every effort to maintain its campus and furnishings to the highest standard, donors of gifts that will deteriorate in time should be told that the college does not guarantee the replacement of such items. These may include garden benches, rugs, and other materials, the durability and appearance of which may erode with passing years. When deterioration sets in, gifts may be replaced by the original donor or by others who wish to make such a contribution to the college. 

 

GIFTS TO ANNUAL BUDGET AND DESIGNATED CAPITAL GIFTS 

To minimize the likelihood of donors dictating the budget priorities of the college, to retain budgeting responsibilities with the administration, and to maintain flexibility in budgeting among all departments and divisions of the college; all restricted gifts (gifts designated by the donor) will be characterized as budget-relieving at the college-wide level rather than at the departmental or divisional level unless otherwise deemed appropriate by the President, Vice President for Finance & Business Affairs, and Vice President for Development.   

Annual Gifts and Memorials

Gifts for annual purposes support the daily operation of the college. Unrestricted gifts of $25,000 or less go into the unrestricted designation for the Annual Fund or may be used for another restricted or capital purpose as deemed appropriate by the Vice President for Development. Unrestricted gifts above that amount go into the unrestricted capital funds designation.

Unrestricted memorial gifts will go into unrestricted designation of the Annual Fund.

Restricted memorial gifts will be used for the designated purpose.

Gifts of $10.00 or more requested by the donor to memorialize or honor a person will be recognized by one individual being memorialized or honored. A letter of notification regarding the gift will be sent to the person being honored or to a family member of the person being memorialized provided the name and address information for such a letter is available or is sent by the donor with the gift.

Permanent memorial designations that are not funded by a benefactor who designates such a memorial shall not be planned or authorized until at least one year after the death of the person to be memorialized.

Involvement of Benefactors and Solicitation of Funds

Each department is expected to involve potential supporters in the work of the department and to obtain gifts to meet the department’s needs, as outlined in the Gift Opportunities Lists. Examples are faculty chairs, faculty development funds, endowed library collections, and funds for equipment.

To maximize fund raising, build donor confidence in Rhodes, and avoid conflicts with the program approved by the Board:

Department heads must inform the Director of Advancement Services (ext. 3850) of every pledge and every gift on the day the pledge or gift is received by the department, and the designation which is to be credited with the gift or pledge.

All checks or cash must be delivered to the Development Office (Dorothy C. King Hall, 2nd floor) on the day received.

All prospects must be cleared by the Vice President for Development before solicitation.

Projects requiring special solicitations must have the approval of the Vice President for Development.

The person requesting special solicitation must submit a proposal in final form to the Vice President for Development. The proposal should be no longer than 3 pages and should include:

  • A project budget, approved by the appropriate administrative officer (head of division) and by the Vice President for Finance and Business Affairs.
  • A project description approved by the appropriate administrative officer (head of division), proposed schedule for fund raising and for the project itself, persons served, and benefits to the college.
  • A list of prospects to be solicited for gifts, including prospective solicitation amount.

The Vice President for Development in consultation with the President will determine the priority of the project and, upon approval, will direct the Development Office in the allocation of staff time to the project.

Charitable Gifts

Solicitation by Other Charitable Institutions

Rhodes follows the practice, along with many of the charitable institutions and agencies in Memphis, that it does not redirect the charitable gifts that it receives to other charitable organizations and agencies (that also solicit funds in Memphis), nor solicit gifts from staff members of those organizations and agencies.