NSU Gift Acceptance Policy

March 2019

nova.edu

Division of Advancement and Community Relations

Nova Southeastern University Gift Acceptance Policy

Introduction/Overview Purpose Statement .............................................................................................................................. 1

Gift Policies Statement of Gift Purposes ................................................................................................................. 1 Recognition ......................................................................................................................................... 1 Communication with Donors .............................................................................................................. 1 Conflict of Interest .............................................................................................................................. 1 Restrictions ......................................................................................................................................... 2 NSU Matching Policy ......................................................................................................................... 2 Account Management ......................................................................................................................... 3 Gift Acceptance Committee ................................................................................................................ 3 Gifts Generally Accepted Without Review ........................................................................................ 4 Gifts Accepted Subject to Prior Review ............................................................................................. 4 Valuing In-Kind Gifts ......................................................................................................................... 7 Use of Legal Counsel .......................................................................................................................... 8 Naming of Facilities and Programs..................................................................................................... 8 Quid Pro Quo Contributions ............................................................................................................... 8

ESTATE AND PLANNED GIFTS .................................................................................................. 8 Charitable Gift Annuities .................................................................................................................... 9 Charitable Remainder Trust ................................................................................................................ 9 Charitable Lead Trust ......................................................................................................................... 10 Life Insurance ..................................................................................................................................... 10 Bequests .............................................................................................................................................. 11 Retirement Plan Assets ....................................................................................................................... 11

APPENDICES

APPENDIX A—NSU LIBRARY SYSTEM GIFT POLICY Introduction .................................................................................................................................. 13 Donating ......................................................................................................................................... 13 Monetary Donations ........................................................................................................................... 13 Personal Book Collections or In-Kind Gifts ....................................................................................... 13 Memorial/Tribute Book Donations ..................................................................................................... 13 How to Donate .................................................................................................................................... 13 Acknowledgment ................................................................................................................................ 14 Appraisals ........................................................................................................................................... 14 Donations Not Accepted ..................................................................................................................... 14

APPENDIX B—NSU ART MUSEUM FORT LAUDERDALE ACQUISITIONS ............................................................................................................................... 15 COLLECTION CATEGORIES ...................................................................................................... 15

PROCEDURES ................................................................................................................................. 15

APPENDIX C—GIFTS IN KIND GIFT IN KIND WORKSHEET…………………………………………………………………… 17 GIFT IN KIND FORM...................................................................................................................... 19 DEED OF GIFT (INDIVIDUAL) ………..………………………………………………………. 21 DEED OF GIFT (NON-INDIVIDUAL) …………………………………………………………. 22 GIFT IN KIND FLOWCHART…………………………………………………………………… 23

APPENDIX D MODEL STANDARDS OF PRACTICE FOR THE CHARITABLE GIFT PLANNER……... 24

APPENDIX E THE DONOR BILL OF RIGHTS………………………………………………………………… 26

APPENDIX F GLOSSARY………………………………………………………………………………………… 27

APPENDIX G FREQUENTLY ASKED QUESTIONS……………………………………………………...…… 30

APPENDIX H NSU FACILITIES NAMING AND SIGNAGE POLICY…..…………………………………... 31

APPENDIX I NSU ACADEMIC PROGRAMS NAMING AND SIGNAGE POLICY…..…………………... 35

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Nova Southeastern University Advancement and Community Relations Gift Acceptance Policies and Procedures

Introduction/Overview Purpose Statement Nova Southeastern University (NSU or the University), a recognized 501(c)(3) not-for-profit organization, in accordance with the regulations of the Internal Revenue Service Code, actively seeks philanthropic gifts to maintain and increase the standard of excellence of its programs. But for the philanthropy of many – and the bold vision of a few – NSU would neither have come into being nor come as far as it has since its founding in 1964. The purpose of this document is to set forth the criteria that NSU uses to determine that a proposed gift is acceptable and to inform prospective donors and their advisors of the types of gifts NSU accepts. While these guidelines establish best practices, they are designed to provide flexibility as directed by NSU. This policy is designed to ensure that all gifts contributed to NSU provide maximum benefit to both the donor and to NSU. This policy shall be applicable to gifts made to NSU, both current and deferred, in an effort to encourage support of NSU. It is the policy of NSU that the solicitation, evaluation, acceptance, acknowledgement, and treatment of all gifts shall be conducted in accordance with the standards and procedures set forth in the following policy statement and generally align with policies of the Council for the Advancement and Support of Higher Education (CASE) and the Association of Fundraising Professionals (AFP). Gift Policies Statement of Gift Purposes Gifts to NSU may be given for the general purposes of NSU or designated for the specific purposes of a college, program, school, center, division, department, or institute. Donors may direct “specific handling” (as described in the following sentence) of gifts as long as such directives are consistent with the purposes and policies of NSU. Examples of specific handling include the following:

A donor directs that the gift is expended in full during one or more years for unrestricted or restricted current operations;

A donor directs that the gift is used to establish a special restricted or unrestricted endowment fund within the general endowment pool.

Gifts may be designated for a wide range of purposes, including, without limitation, scholarships, research, professorships, chairs, the library, or NSU-approved building funds. Barring any extenuating circumstances, gifts with appropriate supporting documentation received by NSU’s Division of Advancement and Community Relations (DACR) will be deposited within 48 hours of receipt. Recognition DACR will ensure that gifts are acknowledged in a timely and appropriate way; utilize exemplary donor stewardship as a way to retain current donors and raise their sights for giving at higher levels; ensure public recognition of donors to the University; and increase the profile of the University as an institution worthy of private philanthropy. The NSU Donor Stewardship and Recognition Plan describes NSU gift recognition procedures in detail. Communications with Donors NSU holds all communications with donors and information concerning donors and prospective donors in strict confidence, subject to legally authorized and enforceable requests for information by government agencies and courts. All other requests for or releases of information concerning a donor or a prospective donor will be granted only if permission is first obtained from the donor. Conflict of Interest NSU does not provide personal legal, financial or other professional advice to donors or prospective donors. Donors and prospective donors are strongly urged to seek the assistance of their own professional advisors in

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matters relating to their gifts and the resulting tax and estate planning consequences. NSU endorses the Model Standards of Practice of the Charitable Gift Planner promulgated by the National Committee on Planned Giving (attached as Appendix D) and the Donor Bill of Rights promulgated by the Association of Fundraising Professionals (attached as Appendix E). Restrictions Unrestricted gifts and gifts for specific programs and purposes may be accepted, provided they are consistent with NSU’s mission, purposes and priorities. NSU will not accept gifts that are inconsistent with its mission, purposes or priorities, are judged too difficult to administer, or have other problems associated with them as determined by NSU in its sole discretion. NSU admits students of any race, color, sex, sexual orientation, age, nondisqualifying disability, religion or creed, or national or ethnic origin to all the rights, privileges, programs, and activities generally accorded or made available to students at the University, and does not discriminate in administration of its educational policies, admissions policies, scholarship and loan programs, and athletic and other school-administered programs. Consistent with University policy, NSU will not accept any gift that contains restrictions based on race, color, sex, sexual orientation, age, nondisqualifying disability, religion, creed, or national origin. With regard to gifts designated for scholarships, fellowships, or other student financial aid, NSU will not accept any of the following:

restrictions that permit the donor to designate an individual recipient or relative of the donor as a recipient

restrictions related to the future employment of the recipient, except where such restriction is consistent with the purpose of the establishment of the award and does not inure to the benefit of the donor or any other private individual or corporation

restrictions by the donor regarding conditions or terms of repayment, including interest, of loans to students from the donated funds or their proceeds

When deciding whether to accept gifts, NSU will consider the following factors:

Values – whether the acceptance of the gift compromises any of the core values of NSU; Compatibility – whether there is compatibility between the intent of the donor and NSU’s use of the

gift; Public relationships – whether acceptance of the gift damages the reputation of NSU; Primary benefit – whether the primary benefit is to NSU versus the donor; Consistency – whether acceptance of the gift is consistent with prior practice; Form of gift –whether the gift is offered in a form that NSU can use without incurring substantial

expense or difficulty; and Effect on future giving – whether the gift will encourage or discourage future gifts;

All decisions to accept potentially controversial gifts will be made by the President in consultation with the Board of Trustees Executive Committee when appropriate. The primary considerations will be the impact of the gift on NSU. NSU Matching Policy

From time to time, the university will provide a “match” (as defined below) for individual endowments of $25,000 or greater when deemed a critical issue by the President as well as for Board of Trustee members’ gifts. This policy is meant to clarify the process and to ensure the university adequately budgets for the commitment. All proposed matches of gifts to the university using university funds must be approved by the NSU President/CEO. This includes matches of outright gifts, pledge payments, distributions from endowed funds into their associated spendable accounts, and scholarship awards to students.

Trustee Match. NSU shall match the annual distribution (as calculated per the NSU spending policy of up to 5%) from endowment funds of active, voting (non ad hoc) members of the Board of Trustees. The trustee match exists and is in effect for as long as the trustee is an active and voting member. It applies to any endowed funds established after appointment to the Board with 1) personal gifts or 2)

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gifts from foundations established by the trustee. If specific matching provisions are included in the trustee’s endowment gift agreement, the specific agreement terms supersede this policy.

DACR will notify Finance of any endowment funds eligible for the trustee match or any other special donor match as provided for under this policy. Finance will budget for the anticipated NSU match annually; the estimated amount will be determined based on the previous year’s activity and considering any newly eligible accounts. (Finance will budget in the university’s general fund a “transfer out” expense to the eligible spendable accounts; the Controller’s Office will provide the Budget Office with the estimated amount and will process the transfer according to this policy and/or per the terms of an executed agreement).

Each year a report will be prepared by DACR and Finance for the NSU President/CEO and Executive Vice President/COO detailing the results of the Gift Matching Policy.

Finance will complete the transfers to the spendable accounts for endowment fund matches annually as set forth above. With respect to the expenditure from the spendable, and for all other matching activity, the related college or department is responsible for completing all activity necessary to ensure the match is met per donor expectations and university standard.

Note: Contributions received for the NSU Fund will be applied to the institutionally funded scholarships managed by ESS. (ESS will budget a “transfer in” from the NSU Fund annually; the budgeted amount will be estimated based on a three-year average of NSU Fund contributions.) Account Management All gift activity through NSU is recorded and managed through funds. Each fund account is considered separate. However, funds may be grouped together for purposes of accounting, investing, and reporting. (Fund accounts are invested under guidelines established by the Finance/Audit & Investment Committee of NSU’s Board of Trustees.) Information about specific accounts is made available only to the donor, to those people designated by the donor and serving as account administrators, appropriate NSU administrators, and to those who must receive information (such as federal, system, or external auditors). Donors will be provided with information related to the specific use of gifts. Information may include market values, spendable income, names of scholarship recipients, progress of programs funded, and/or the performance results of endowment funds. DACR will seek permission of the donor to publicize and recognize the gift. Nova Southeastern University will not pay fees or commissions to any person in consideration of directing a gift to NSU. Gift Acceptance Committee For the purpose of this policy, the Gift Acceptance Committee will hereafter be referred to as the GAC. The GAC is responsible for reviewing and recommending approval of certain proposed gifts to the President and/or Executive Vice President/Chief Operating Officer (EVP/COO) as appropriate, under the guidelines approved and described herein. The focus of the GAC is gifts-in-kind, defined as gifts of tangible and intangible personal property, bargain sales/deep discounts, and gifts of real property over $5,000 value. The GAC is composed of these administrators:

Vice President for Advancement and Community Relations Vice President for Facilities Vice President for Business Services Vice President for Legal Affairs Vice President for Finance/Chief Financial Officer Vice President of Information Technology and Chief Information Officer Executive Director, NSU Art Museum Fort Lauderdale

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Senior Director of Advancement Services and Operations In addition to the GAC, specific NSU officials and executive management may be included in the review and approval process of gifts that directly relate to their areas of responsibility and expertise. The GAC is also responsible for reviewing this Gift Acceptance Policy at least annually or more often as needed to ensure that this policy remains consistent with applicable laws and the programs of NSU. Gifts Generally Accepted Without Review

Cash - Cash gifts are acceptable in any form, including those made by check, money order, bank draft, credit card, or on-line. Donors wishing to make a gift by credit card must provide the card type (e.g., Visa, MasterCard, American Express), card number, expiration date, and name of the cardholder as it appears on the credit card. NSU will accept gifts in U.S. and foreign currencies, the latter being valued at foreign exchange rates on the date the gift is made.

Marketable Securities - Also known as publicly traded securities; stock for which a market quotation is readily available on an established securities market. Marketable securities may be transferred electronically to an account maintained by NSU at one or more brokerage firms or delivered physically with the transferor's endorsement or signed stock power (with appropriate signature guarantees) attached. All marketable securities will be sold promptly upon receipt. For gift crediting and accounting purposes, the value of the securities is the average of the high and low on the date NSU takes ownership of the securities. In some cases marketable securities may be restricted, for example, by applicable securities laws or the terms of the proposed gift; in such instances the decision whether to accept the restricted securities shall be made by the Vice President for Advancement and Community Relations. If the marketable security requires holding for greater than one year, the GAC will review prior to acceptance.

Bequests (which are gifts through someone’s estate) and Beneficiary Designations under Revocable

Trusts, Life Insurance Policies, Commercial Annuities and Retirement Plans - Donors are encouraged to make bequests to NSU under their wills, and to name NSU as the beneficiary under trusts, life insurance policies, commercial annuities and retirement plans.

Charitable Remainder Trusts - NSU will accept a designation as a remainder beneficiary of charitable remainder trusts.

Charitable Lead Trusts - NSU will accept a designation as an income beneficiary of charitable lead

trusts.

Assignment of Income - A donor may assign to NSU income received from a third party as payment for the donor’s services.

Gifts Accepted Subject to Prior Review Certain forms of gifts or donated properties may be subject to review prior to acceptance. Examples of gifts subject to prior review include, but are not limited to:

Life Insurance - NSU will accept gifts of life insurance where NSU is named as both beneficiary and irrevocable owner of the insurance policy. The donor must agree to pay, before due, any future premium payments owing on the policy. See Section “Estate and Planned Gifts” for further detail on the acceptance process for life insurance.

Gifts in Kind - See Glossary for definition of Gifts in Kind. Appendix C includes a flowchart that details the gifts-in-kind acceptance process. A gifts-in-kind form and deed of gift forms are also included.

Tangible Personal Property - The Gift Acceptance Committee shall review and determine whether to accept any gifts of tangible personal property valued at $5,000 or above in light of the following considerations: does the property further NSU’s mission? Is the property marketable? Are there any

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unacceptable restrictions imposed on the property? Are there any carrying costs for the property for which NSU may be responsible? Is the title of the property clear?

Bargain Sales/Deep Discounts - See Glossary for definition of bargain sales/deep discounts. Bargain sales and deep discounts are complex gifts that require the prior approval of the Gift Acceptance Committee. The following procedures shall be followed:

1) Before entering into discussions with vendors or accepting any bargain sale/deep discount to be recorded as a Gift in Kind, the academic or non-academic unit MUST work with the Office of Procurement at the beginning of the process and follow the established protocols as with any other purchase, in order to ensure the proper bid process is in place and resulting documentation is obtained to determine the lowest available price.

2) Once the academic or non-academic unit has completed the process with the Office of Procurement and a proposed bargain sale/deep discount has been substantiated for consideration, the Vice President of Advancement and Community Relations should be notified to determine if the proposed gift meets the criteria for an in kind contribution. If the criteria are met, the proposed gift will be sent to the Gift Acceptance for review.

3) Any vendor involved in a bargain sale or deep discount transaction will provide NSU with a letter demonstrating its intent to make a gift. The letter should include the educational/non-profit discount price of the items, and the amount to be discounted.

4) Exclusions: If any of the following applies to a possible bargain sale/deep discount connected to a purchase, the proposed discount amount will not be counted as a gift: a) The purchase has not been processed in compliance with established university

procurement policies and procedures. http://www.nova.edu/procurement/policies.html b) The same discount applies to purchases made by NSU on a regular basis and is not

uniquely identified as a special reduction to be considered as a donation. Thus, NSU will not count as gifts standard deductions offered to an institution based on the nature of its business or because it is a major or frequent customer.

Real Property - Also called real estate, or realty; includes land and/or buildings and other structures. Real property includes improved and unimproved land, residences, condominiums, cooperatives, apartment buildings, rental property, commercial property, and farms. The following procedures shall be followed:

1) All gifts of real property must be reviewed by the GAC. The GAC will work with the Vice President of Facilities and the Vice President for Legal Affairs on the feasibility of accepting property. During negotiations, NSU retains the right to refuse a gift without incurring any cost or liability.

2) Real property may be given to NSU either outright; as a remainder interest; or, under certain circumstances, to a charitable split-interest gift. The donor is encouraged to seek independent counsel to address tax-related issues.

3) NSU shall not assign a value to the gift property. It is the donor’s responsibility to obtain an independent appraisal of the property not more than 60 days prior to the date of the gift’s acceptance by NSU.

4) Prior to acceptance of any gift of real property, NSU shall require a building and/or environmental review by qualified firms.

5) Criteria for acceptance of gifts of real property include, but are not limited to: the usefulness of the property for NSU’s purposes; the marketability of the property; any covenants, conditions, restrictions, reservations, easements, encumbrances or other limitations associated with the property; any carrying costs (including insurance, property taxes, mortgages, notes, or the like) or maintenance expenses associated with the property; and whether the environmental review or audit reflect that the property is damaged or otherwise requires remediation.

6) Depending on the value and desirability of the gift and the donor’s connection with NSU, the donor may be asked to pay for all or a portion of the following: a) maintenance costs b) real estate taxes c) insurance d) real estate broker’s commission and other costs of sale e) appraisal costs f) environmental audits

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7) Legal property issues such as survey, appraisal, title, environmental assessments, etc. must be reviewed by the Vice President of Facilities Management and Vice President for Legal Affairs and approved by the President and/or EVP/COO as applicable.

8) The donor must provide verification to NSU’s satisfaction of the following by signing a completed Deed of Gift Form, which can be found in Appendix C: a) The donor is the rightful owner of the property. b) No violations of state, local, or federal law exist on the property that would impact the

ability to sell or use the property. c) There are no violations of any recorded restrictions or covenants affecting the property. d) Title is marketable in accordance with the standards of the Florida Bar. e) No unrecorded rights-of-way, easements, or encumbrances affect the property. No

contractual or other donative commitments to other individuals, corporations, or groups are attached to the property.

f) The property is not the subject of, or threatened with, litigation. g) Any other matter affecting the property as determined by the University.

9) Payment of costs associated with carrying the property until it is sold and expenses to rehabilitate shall be addressed in an agreement between the donor and NSU prior to acceptance of the gift.

10) NSU has the right to dispose of the gifted property unless NSU has agreed to keep the property for a specific period of time. The NSU Controller will report on Form 8282 any sale occurring within three years of the date of the gift acceptance.

Gifts to the NSU Art Museum Fort Lauderdale - The NSU Art Museum Fort Lauderdale is subject to all the requirements of this policy. The acceptance of gifts-in-kind for the NSU Art Museum Fort Lauderdale, however, must be also approved by the NSU Art Museum Fort Lauderdale Director.

Gifts to NSU’s Library System - NSU’s library system is subject to all the requirements of this policy. However, the acceptance of gifts-in-kind of library materials must be approved by the NSU Vice President for Information Services and University Librarian in compliance with the NSU Library System Gift Policy (Appendix A). Gifts-in kind of library materials include items in print on paper, in electronic or other special formats, recordings, and other audio-visual materials held in NSU libraries.

Out of pocket expenses: Contribution credit for out-of-pocket expenses can only be given if the donor submits receipts or check copies clearly indicating the vendor name and documenting the goods purchased or expenses incurred on behalf of NSU, as well as receipts indicating acceptance of goods resulting from the expenditure. Donor recognition and credit for donations of out-of-pocket expenses are awarded upon approval of the Vice President for Advancement and Community Relations.

Limited Use of Private Property: Contribution credit for limited use of private property can only be given if the donor submits a copy of the rent agreement or invoice reflecting the contribution. Donor recognition and credit for donations of limited use of private property are awarded upon approval of the Vice President for Advancement and Community Relations.

Services: Contribution credit for services can only be given if the donor submits a copy of the service agreement or invoice reflecting the contribution. Donor recognition and credit for donations of services are awarded upon approval of the Vice President for Advancement and Community Relations

Closely Held Securities: Definition: Stock for which there exists no public market on a stock exchange, over-the-counter market or otherwise. Non-publicly traded securities must be reviewed by the GAC. Prior to acceptance, methods of liquidation for the securities through redemption or sale will be explored. Contact will be made with the closely held corporation to determine an estimate of fair market value, and/or any restrictions on transfer. No commitment for repurchase of closely held securities shall be made prior to completion of the gift of the securities, which may include determining the value of the securities.

Specific Property Gifts Gifts of technology and equipment will be reviewed and evaluated in relation to the needs of

NSU by the GAC. Landscape materials are generally not accepted unless the donor provides funding to cover

transportation of materials to NSU and planting costs. Exceptions are made for the acceptance of extremely valuable plants when the cost of relocating is not a large factor. Accepted landscape materials gifts must fit into NSU’s existing landscaping plans.

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Art and sculptures will be reviewed based on quality, physical condition, future care, and conservation, as well as related costs (e.g., shipping, installation, and insurance). The donor should agree to be responsible for payment of shipping and installation.

Generally, gifts of vehicles (e.g., cars, planes, boats) must be reviewed by the GAC. Valuing In-Kind Gifts Any in-kind gifts above $5,000 must first be appraised by an independent, expert appraiser, paid for by the donor, at the donor’s expense. A copy of this appraisal should be provided to the University with the intended gift, and the University shall report the fair market value placed upon this item as recorded by the appraiser.

In the case where a gift is valued below $5,000, the donor shall declare the value of the item.

The CASE Reporting Standards & Management Guidelines for Educational Fundraising (4th Edition) states that, “In those rare instances when the donor is not required to provide an appraisal, the institution’s appraisal obtained independently for insurance purpose is sufficient.”

The CASE Reporting Standards & Management Guidelines for Educational Fundraising (4th Edition) states that in cases when the value of an item is in question (for example, when received from a sole source vendor), the institution can use “the value determined by a qualified expert on the faculty or staff of the institution, not an individual whose fundraising totals are directly affected by the gift.”

Donors are required to provide NSU with independent, qualified appraisals for proposed gifts-in-kind with a documented, apparent or possible value of $5,000 or more within three (3) months of receipt of the gift. The exceptions to this policy are: (1) closely-held stock that must be appraised before consideration by the GAC only if the apparent or possible value is at least $10,000; (2) gifts of out-of-pocket expenses; and (3) limited use of private property. In cases where an appraisal is required but not submitted, and the gift is accepted, the value of the gift for recognition purposes will be $1 or NSU’s selling price. In cases where the apparent value is less than $5,000, the donor is encouraged, but not required, to submit an appraisal. Donors are required to submit IRS Form 8283, if they are planning to claim tax deductions. The minimum information required on Form 8283 is the donor’s name, social security number, and a description of the property. If the donor is not claiming a tax deduction, Form 8283 is not required. In this case, NSU requests written notification of the donor’s intent not to claim a tax deduction. General information on IRS appraisal requirements of donated gifts-in-kind is provided to potential donors by development officers and other NSU personnel. Donors are also advised to contact their personal financial advisers, tax attorneys, and/or accountants for professional tax deductibility advice. NSU does not act as an appraiser of gifts-in-kind. The donor, not NSU, has the responsibility of substantiating the value of donated property with the IRS. In order for a gift to be tax deductible, the donor, not NSU, must pay for an appraisal. Therefore, no values for gifts-in-kind, except for publicly traded securities, shall appear in acknowledgment letters. The signature of the appropriate NSU representative on required IRS forms acknowledging receipt of a property is not a concurrence with the fair market value. Values are recorded for accounting and donor recognition purposes only. Form 8283 is signed, on behalf of NSU, by the Vice President for Finance/Chief Financial Officer. The general policy regarding the disposition of gifts-in-kind is that NSU divests itself as rapidly as possible of gifts unless the property is placed into service by NSU. Disposition is made without regard to a donor appraisal, and NSU assumes no responsibility for any variance between appraised value and the amount obtained from the sale. Use of Legal Counsel

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NSU seeks the advice of legal counsel as appropriate on matters relating to acceptance of gifts. Review by legal counsel may be sought in connection with:

a. Closely held stock transfers that are subject to restrictions or buy-sell agreements; b. Documents naming NSU as a trustee c. Gifts involving contracts, such as bargain sales or other documents requiring NSU to assume a legal obligation d. Gifts of patents or other intellectual property e. Transactions with potential conflict of interest that may invoke IRS sanctions f. Other instances in which use of counsel is deemed appropriate by NSU’s Board of Trustees or Gift Acceptance Committee.

Naming of Facilities and Academic Programs See Appendix H for the NSU Facilities Naming and Signage Policy. See Appendix I for the NSU Academic Programs Naming Policy. Quid Pro Quo Contributions Definition: a payment made partly as a contribution and partly in consideration for goods and services provided to the payer by the donor. The value of the benefits or “premiums” the donor receives is a key factor in determining the gift portion of the contribution. Donor goods and services must have “substantial value” to be considered as benefits and therefore deducted from the donor’s contribution. Goods and services that have insubstantial value need not be subtracted from the donor’s contribution. NSU follows all IRS regulations regarding such quid pro quo gifts, which may include, but are not limited to:

Auctions—Donors who provide evidence of the fair market value of the donated item will be credited for that amount. Winning bids may only receive gift credit for the amount over the fair market value;

Raffles—In accordance with IRS regulations, no portion of a payment made resulting in an opportunity to win a prize may be considered a tax deductible gift;

Preferential Seating or Invitation to Special Events—Only the amount over the fair market value of what the donor receives is considered tax deductible; and

Membership Benefits such as tickets, travel, and other gifts and benefits must be considered when determining the tax deductible gift portion of the contribution.

ESTATE AND PLANNED GIFTS Definition: Gifts to NSU, including those that divide the income and principal (i.e., split income gifts), made through a will, trust, life insurance policy, retirement plan, gift annuity, charitable remainder trust, or charitable lead trust, are considered estate and/or planned gifts. NSU will not pay a commission or other compensation to anyone in return for his/her role in bringing an estate or planned gift to NSU. NSU representatives advise all prospective planned gift donors to consult their own attorneys and tax and financial advisers for advice regarding any and all aspects of their proposed gifts. Split interest gifts, bequests, and beneficiary designations that are intended to name endowed chairs, faculty positions, or cultural arts series will generally be structured to ensure that the remainder received by NSU, upon the donor’s death or the end of the trust term, will be sufficient to achieve the donor’s objectives. In the event that the remainder is not sufficient to meet the donor’s goal at the time of the donor’s death, the NSU Vice President for Advancement and Community Relations will consult with estate representatives to determine a solution. If the action taken does not result in the full funding of the donor’s goals, then the funds will be applied as close to the donor’s original intent as possible, at the discretion of the NSU President. All donors who create an estate gift or planned gift are eligible for 1964 Society membership. The 1964 Society recognizes those individuals who include NSU in their wills and estate plans. Individuals become eligible for membership in the 1964 Society by sending written notification to the Director of Legacy Gifts that they have recognized NSU in their estate plan by one or more of the following actions:

including NSU in their will or revocable trust

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designating NSU as a beneficiary of a retirement plan designating NSU as a beneficiary of an insurance policy designating NSU as a beneficiary of a gift annuity or a charitable trust donating real estate to NSU upon their passing

For gift crediting purposes, the Director of Legacy Gifts will strive to obtain a copy of the legal documents. Membership is determined by a declaration form, copy of documentation, or a written letter. The following instruments are generally accepted examples of split interest gifts. Charitable Gift Annuities Definition: A charitable gift annuity (CGA) is a simple contract between a donor and NSU. The donor irrevocably transfers to NSU a specific sum of money, or transfers readily marketable securities, and in return receives a fixed payment for life. CGA contracts may be for a term of one life or two, but no more than two. Annuity payments are backed by the general assets of NSU. The rates NSU offers for CGAs are those promulgated by the American Council on Gift Annuities . Only under extraordinary situations would NSU vary from these rates, and if so, the deviation must be approved by the NSU President. A standard CGA must meet the following requirements:

The youngest annuitant must be at least 60 years of age; The donor must irrevocably transfer to NSU at least $10,000 in cash or readily marketable securities;

and Administrative fees shall be paid by NSU and not from the income earned on the CGA. NSU will

receive whatever sum is in the annuity account at the death of the last income recipient for the purpose specified by the donor in the annuity gift agreement.

A deferred CGA mirrors the standard CGA except that instead of paying out immediately, the first payout is deferred until a date in the future more than one year from the date of execution. Deferred CGAs provide an immediate charitable deduction as well as a higher payout rate. Deferred CGAs must meet the following requirements:

The youngest annuitant must be at least 50 years of age at the time of the contract and at least 65 years of age at the time payments commence;

They must be irrevocably funded with at least $10,000 in cash or readily marketable securities; and Administrative fees shall be paid by NSU and not from the income earned on the CGA. NSU will

receive whatever sum is in the annuity account at the death of the last income recipient for the purpose specified by the donor in the annuity gift agreement.

Charitable Remainder Trust Definition: A charitable remainder trust (CRT) is an irrevocable trust authorized and governed by federal tax law. It is established by a donor, who then transfers assets (e.g., cash, securities, real estate, or tangible property) to it. Once created, the donor cannot undo the CRT and cannot amend the terms without going to court. However, the CRT may include a provision that reserves the right of the donor to change its remainder beneficiary. The donor of the CRT selects a trustee who manages the assets and ensures that both the specified payout and remainder are distributed as per the terms of the trust and in accordance with federal and state law. The payment rate negotiated with the donor must be at least 5 percent, and the trust must pay out at least once annually for the life of the income beneficiaries, or for a term of up to 20 years. Upon termination of the trust, the remaining assets in the trust pass to one or more qualified charities, known as “remainder beneficiaries.”

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NSU will generally not agree to serve as trustee of a CRT. Exceptions will be considered by the GAC on a case-by-case basis and approved by the NSU President. Under those circumstances where NSU would agree to serve as the trustee of a CRT, the following guidelines will be considered:

NSU must be the irrevocable remainder beneficiary of 100% of the CRT. The fair-market value of the funding assets is at least $500,000. The payout of the CRT must be between 5–7 percent. The life income beneficiaries must be at least 55 years old Management fees for administration shall be paid from the assets of the trust.

There are two standard types of CRTs.

Charitable Remainder Annuity Trust (CRAT)—A CRAT distributes a fixed dollar amount based on the original fair market value of the assets contributed to the trust. No additional contributions are allowed.

Charitable Remainder Unitrust (CRUT)—A CRUT distributes a fixed percentage of the fair-market value of the trust assets, calculated annually. A donor may make additional contributions to a CRUT after it is established. In addition to the standard CRUT and CRAT, there are three variations of CRUTs:

Net Income Unitrust (NICRUT)—A NICRUT pays income beneficiaries the lesser of a specific percentage payout or the actual net income of the trust. As with a standard CRT, the payout must be at least 5 percent. NICRUTS are an attractive option when the trust is funded with an asset that may take time to sell before it generates income, such as real property;

Net Income with Makeup Unitrust (NIMCRUT)—The NIMCRUT operates much like the NICRUT, but it can make up any income payment deficits from excess ordinary income earned in subsequent years. A deficit may occur when actual net income is less than the fixed percentage payout rate. NIMCRUTS are also useful for trusts funded with real property;

Flip Unitrust, or CRUT with a “flip provision”—A CRUT which “flips” begins as a NICRUT and then converts to a standard unitrust (CRUT) upon the occurrence of a specific event or date. Flip provisions are often attractive when the funding asset is an illiquid or difficult-to-sell asset; the trust flips after the sale.

Charitable Lead Trust Definition: The charitable lead trust (CLT) is created by a trust document wherein the donor specifies all beneficiaries, determines the term of the trust and the payout rate, and designates a trustee. In a CLT, the charity receives annual payments and, at the expiration of the trust term, the remainder is distributed to individuals. Because of the potential for liability, the sophisticated nature of the CLT, and the oversight required to ensure that a CLT benefits the donor and the remainder beneficiaries, NSU will not serve as trustee for a CLT. Life Insurance Definition: A policy that will pay a specified sum to beneficiaries upon the death of the insured. Donors may make an outright gift of a policy to NSU by irrevocably transferring all incidents of ownership in a policy to NSU. In order for the life insurance policy to be counted as a gift, NSU must be named as both beneficiary and irrevocable owner of the policy. In general, NSU will accept the policy if it meets these conditions:

The donor wants to irrevocably transfer ownership of whole, variable, or universal life insurance policies to NSU with the understanding that the university will cash in the policy as soon as practical, at the discretion of NSU.

The donor wants to irrevocably transfer ownership of whole, variable, or universal life policies to NSU and continue making payments directly to the insurance company (and not to or through NSU). If the donor desires to obtain a gift receipt from NSU for premium payments made directly to the insurance company, then the donor must provide proof of such payments to document these gifts for the benefit of NSU.

In general, NSU will not:

accept ownership of any life insurance policy where ongoing premium payments are required to be made by NSU;

accept ownership of term policies;

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accept group life insurance as it is owned by the employer; participate in any pooled insurance program including Investor-owned Life Insurance or Stranger-

Owned Life Insurance; participate in, or promote, premium financed plans or premium arbitraged plans; endorse or promote any particular insurance product, company, program, agent, or agency, and will not

provide donor lists to any of them; and consider proposals to participate in new, creative applications of life insurance for charitable gifts

(exceptions reviewed by GAC on a case-by-case basis)

Donors may opt to name NSU as a beneficiary of either a term or group life policy, but that would qualify as a revocable deferred gift as opposed to a current outright gift. Bequests Definition: A bequest is a gift made through a will, or through a trust substituting for a will, such as a revocable trust. A bequest may be outright or contingent. If outright, NSU will receive the funds designated, provided there are sufficient assets in the estate to fulfill the bequest. If contingent, NSU will only receive the funds specified in the bequest under certain circumstances. Because bequests are subject to change, or revocation, at the donor’s direction during lifetime; they are revocable gifts. NSU will not draft, nor pay for the drafting, of a will or any estate planning document for a donor. However, the Director of Legacy Gifts will be available to provide the names of local estate planning attorneys with whom an NSU donor might consult for independent legal counsel. NSU representatives shall not sign as witnesses to wills which name NSU as a beneficiary. If NSU has been named beneficiary, then no NSU representative shall serve as personal representative, or other legal actor, under a donor’s estate plan. However, if the donor is the NSU representative’s family member, an exception may be made. When a donor informs an NSU representative that he or she has included NSU in his or her estate plan, then the NSU representative shall contact the Director of Legacy Gifts. NSU will encourage the donor to disclose the terms of the bequest to make certain that NSU will be able to carry out the provisions of the bequest. When a donor notifies NSU that NSU is in the individual’s estate plan, a representative from DACR will develop a gift agreement to document the donor’s wishes for the use of the endowed fund if not specifically delineated in the estate plan to NSU’s satisfaction. A signed copy of the gift agreement will be provided to the donor and kept on file at NSU, in the donor’s gift record. Any gift to NSU received through an estate gift should be deposited in the NSU endowment unless specific contrary directions, designations and/or guidelines accompany the gift. Retirement Plan Assets Definition: Plans, contributed to by individuals, often on a tax-deferred basis, that appreciate over time and are used to provide income after retirement. Some examples of retirement plans include 401(k) plans, 403(b) plans, IRAs, and company-based pension plans. Although outright gifts from retirement plans are generally not tax favored (except that in 2009, gifts of up to $100,000 from IRAs, made by individuals over 70½, are not taxed) in many cases, naming a charity as a beneficiary is an excellent option for donors, since accumulations that are left to family members are potentially subject to both income and estate taxation at the donor’s death. NSU can be named as a total, partial, or contingent beneficiary of a retirement plan. NSU representatives shall instruct donors considering this action to contact the administrator of their retirement plan in order to request the forms necessary to make this designation. The manner in which NSU is named will depend upon the type of plan and the plan administrator. In those instances where a donor indicates the intention to establish an endowed fund through a retirement plan designation, the development officer will work with the Director of Legacy Gifts to create a gift agreement

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outlining the donor’s wishes for the use of the funds when they are received by NSU. A signed copy of the gift agreement will be provided to the donor and kept on file at NSU, in the donor’s file.

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APPENDIX A NSU LIBRARY SYSTEM GIFT POLICY Introduction The NSU Library System welcomes cash and in-kind donations, as well as gifts of personal book collections. Monetary gifts are welcome for the purchase of specific items consistent with the NSU Library System’s Collection Development Policy, available online at http://sherman.library.nova.edu/sites/policies. All in-kind gifts are subject to NSU’s Gift Acceptance Policy. Any materials given to the NSU Library System are evaluated by the same standards as purchased materials. The NSU Library System reserves the right to dispose of any portion of an in-kind gift that does not meet collection-development criteria. Gifts offered with restricting conditions or that are $50,000 or more require a gift agreement. Requirement of a gift agreement is determined by the Vice President for Advancement and Community Relations in consultation with the Vice President for Information Services and University Librarian. Once a gift is accepted by the University for the NSU Library System, the NSU Library System should determine final disposition of gifts or donations. Donating Monetary Donations Monetary contributions to the NSU Library System support the purchase of books and materials necessary to maintain the NSU Library System’s status as a premier facility. All charitable contributions to Nova Southeastern University are tax deductible. NSU and the NSU Library System accept contributions of cash, stocks, or other appreciable assets. Personal Book Collections or In-Kind Gifts The NSU Library System accepts donations of books, videos, DVDs, CDs, audio books, manuscripts, photographs, equipment, realia, artifacts, or other documents from personal collections. Donations from any field of academic study are desired and appreciated. Rare books and manuscripts will be evaluated on a case-by-case basis by the appropriate staff members, in conjunction with the director of collection development and, when appropriate, the NSU Gift Acceptance Committee. Memorial/Tribute Book Donations A donation to the NSU Library System may be in the form of a memorial or tribute to an individual, or a commemoration of a special occasion, such as a birthday, anniversary, graduation, etc. or other special occasion. The NSU Library System respectfully requests a minimum contribution of $50 per book. In addition to university gift recognition administered through the NSU Division of Advancement and Community Relations (DACR), the NSU Library System will send an acknowledgement to the family of the honored individual(s), notifying them of the gift. Each book purchased through a memorial/tribute donation will bear a personalized bookplate commemorating the person or event. How to Donate Anyone wishing to make a cash or in-kind contribution may contact either the director of collection development, or the director of library development, at the Alvin Sherman Library, Research, and Information Technology Center (http://sherman.library.nova.edu/sites/policies/gift/) by mail, phone online or in person. To donate materials to Nova Southeastern University, please call the Collection Development Department at (954) 262-4542. The appropriate subject specialists and the director of collection development will review all donated materials. DACR administers monetary donations. All cash and in-kind donations are forwarded to DACR for university processing.

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Acknowledgment The NSU Library System will send a formal written acknowledgment letter and provide DCAR with a copy for scanning into Netsearch. Appraisals NSU will not appraise gift materials. NSU is prohibited, by conflict-of-interest concerns, from providing estimates of monetary value for any donation. If desired, appraisals should be sought from qualified third parties. NSU adheres to all federal and state regulations governing donations, including rulings on appraisals for tax deduction. Donors must comply with all IRS regulations in force before delivery of gifts or donations to NSU. The acceptance of a gift that has been appraised by the donor or by a third party in no way implies NSU’s endorsement of the appraisal. Donations Not Accepted The NSU Library System will not accept any offered in-kind donation containing mold, mildew, or insects as these conditions are potentially dangerous to the existing collection. The NSU Library System will not consider any material that is damaged by water, ripped or torn, or showing extensive wear, or that has been written in or highlighted. The NSU Library System does not accept National Geographic magazines or daily or weekly news magazines such as Time, Newsweek, People, etc.

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APPENDIX B NSU ART MUSEUM FORT LAUDERDALE ACQUISTIONS The NSU Art Museum Fort Lauderdale may build its collections through gifts, bequests, purchase, exchange or any other approved method by which legal title to the object is transferred to the museum. All acquisitions require approval of the Collections Committee, and all accessions require the approval of both the Collections Committee and the Board of Governors. Acquisition refers to the process of obtaining an object by the museum. It does not necessarily mean that the transfer of ownership has already taken place. Accessioning is the formal process used to record an object as a collection item, and includes obtaining legal transfer of ownership to the museum. Acquisitions cannot be added to the Permanent Collection, registered, or catalogued until they have been accessioned. An accession is an acquisition that the museum has formally added to its collections. COLLECTION CATEGORIES The museum maintains the following collections:

Permanent—The permanent collection is composed of objects the museum intends to retain for the foreseeable future. These objects have been scrutinized and approved by curatorial staff, the NSU Art Museum Fort Lauderdale Director, the Collections Committee, and NSU Art Museum Fort Lauderdale Board of Governors. The museum strives to make its permanent collection accessible through exhibition programs, publications, and loans. Objects in this category receive priority treatment in the event of emergency, and the majority of preservation funding.

Archival—The archival collection is the most recently identified and developed. Composed largely of photographs, writings, and publications related to William Glackens, The Eight, and CoBrA, it receives the same standard of care as the permanent collection. Objects in this collection may or may not be accessioned.

Disposition—Disposition collection objects include deaccessioned objects still in the possession of the museum, objects that fail to meet accessioning criteria, and unaccessioned objects acquired for the express intent of resale to generate museum revenue. This collection is considered secondary in the event of an emergency, and does not receive preservation funding.

Transitional—Objects in the transitional collection are unaccessioned and pending assignment to other collections, either permanent, archival, or disposition.

PROCEDURES All works of art offered to the museum for gift or purchase will be subject to curatorial review before being presented to the Collections Committee. Objects should be on deposit in the museum or be represented by accurate photographic images prior to presentation to the Collections Committee for approval. The donor or vendor should be asked to complete an object questionnaire about the object and its history that includes questions regarding provenance. The NSU Art Museum Fort Lauderdale’s Registrar’s Office assigns a temporary transitional number to any proposed acquisition object in the possession of the museum. Decisions about acquisitions must be made in a timely manner, and all phases of the review and accessioning process shall be documented in writing and kept on file thereafter. The director and/or curatorial staff will identify works of art to be considered for acquisition. Curatorial staff members will complete a Proposed Acquisition Preliminary Information Sheet, which should contain appropriate information regarding the artist, title or subject, medium, provenance, condition (including conservation/restoration treatment), donor or vendor’s name, and exhibition and publication/bibliographic history. The donor or vendor is responsible for establishing the value of the object; however, Curatorial staff

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members may provide additional information regarding value as a reference only when presenting an object to the Collections Committee. Works of art offered as gifts or proposed for purchase will then be presented to the Collections Committee by the NSU Art Museum Fort Lauderdale Director or an appropriate member of the curatorial staff, along with a Proposed Acquisition Preliminary Information Sheet. Each member of the Collections Committee must receive an agenda listing works of art offered as gifts or proposed for purchase, along with staff member recommendations for acceptance or rejection. Artist information should include biography (including training, age, and education), bibliography, exhibition history, and collections that contain the artist’s work. If an object is rejected by the committee, the museum director or an appropriate curatorial staff member will notify the owner, explain why the piece was not accepted, and may suggest other institutions that might be interested in the object. The NSU Art Museum Fort Lauderdale’s Registrar’s Office then arranges for the return of the object to the owner. Any related materials should be returned to the donor at this time. Accessioning begins with the formal acceptance of an object by the Collections Committee upon recommendation by the director, and a concurring vote of approval by the NSU Art Museum Fort Lauderdale’s Board of Governors and the Nova Southeastern University Gift Acceptance Committee.

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APPENDIX C – GIFTS IN KIND

Nova Southeastern University Gift In Kind – Worksheet

The purpose of this worksheet is to assure that all gifts-in-kind received by Nova Southeastern University support the mission of the University and are consistent with its policies; are properly accounted for in the University's Advancement and Financial systems; and are appropriately acknowledged. An additional aim is to provide informational transparency, so that any costs or activities related to the gift that might require the allocation of University resources will be known before the gift is accepted. In-Kind gifts with a value of less than $5,000 may be approved by the Vice President for Advancement and Community Relations. The following information should be submitted with the request for review:

A memo from the Dean, should be submitted to the Vice President for Advancement and Community Relations. If the proposed gift in kind is related to a purchase, deep discount, or bargain sale, the Vice President of Facilities Management and the Vice President of Business Services must also be copied on the memo.

The memo should include the following:

o How the gift will be utilized by the college/school/center

o Estimated value of the gift (and how the value was or will be determined)

o Estimated maintenance cost for the gift (if any)

o If the gift is a product, then an estimation of its useful life

o If the gift is a bargain sale/deep discount, a summary of the equipment’s retail price, proposed educational/non-profit discount price, and any proposed additional discounts.

o Any other information related to possible costs incurred by NSU in connection with the proposed gift (relocation charges, storage costs, etc.)

o Any other information related to restrictions the donor will be placing on the use of the gift

According to the Gift Acceptance Policy Guidelines established by the Board of Trustees, all In Kind donations with an apparent value of over $5,000 must be submitted to the Gift Acceptance Committee prior to approval by the President and/or Executive Vice President/Chief Operating Officer and acceptance by the University. Gift requests and backup materials will be reviewed by the GAC which will recommend rejection or acceptance/disposition of the item.

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Once gift is approved for acceptance, a completed Deed of Gift form will be needed to process. This form MUST be signed by the donor.

In the event that the donor plans to declare the gift as a tax deduction to the IRS, personal property gifts with a value of $5,000 or more will require an appraisal (performed within IRS time requirements) from a qualified third party appraiser for gift recording valuation purposes. The IRS requires donors to obtain an appraisal to substantiate their charitable tax deduction for gifts valued at $5,000 or more. The cost of the appraisal will be the responsibility of the donor.

In cases where the donor is not claiming a tax deduction and thus is not required to obtain an appraisal, documentation should be submitted with the item to support the valuation placed on the gift.

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Gift-In-Kind Flowchart

Donor declares

intention to give in-kind gift

Donor and DOD prepare paperwork and submit request to make in-kind gift

Is gift valued at $5,000 or more? YES

NO

VPACR reviews gift

Does gift require appraisal?

DOD obtains appraisal from

donor

Gift Acceptance Committee reviews gift

YES

NO

Is gift acceptable?

VPACR informs DOD

NO

NO

VPACR informs DOD

YES

Is gift acceptable?

DOD informs donor

DOD informs donor and processes gift

VPACR informs EVP/COO and DOD

DOD informs donor

NO

VPACR sends to EVP/COOYES

Does gift need review by President?

NSU President reviews gift

YES

Is gift acceptable?

Is gift acceptable?

President informs EVP/COO

YES

EVP/COO informs VPACR

VPACR informs DOD

DOD informs donor and processes gift

President informs EVP/COO

NO

EVP/COO informs VPACR

VPACR informs DOD

DOD informs donor

NO

NO

EVP/COO informs VPACR

VPACR informs DOD

DOD informs donor and processes gift

YES

EVP/COO informs VPACR

VPACR informs DOD

DOD informs donor

Is gift related to a purchase, deep

discount, or bargain sale?

Head of unit seeking the gift must inform

VP Facilities Management and

VP Business Services

YES

NO

VPFM and VPBS work with VPACR to

determine if proposed gift meets

criteria for GIK

Is gift acceptable?

YES

DOD informs donor

NO

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APPENDIX D

Model Standards of Practice for the Charitable Gift Planner

PREAMBLE The purpose of this statement is to encourage responsible gift planning by urging the adoption of the following Standards of Practice by all individuals who work in the charitable gift planning process, gift planning officers, fund raising consultants, attorneys, accountants, financial planners, life insurance agents and other financial services professionals (collectively referred to hereafter as "Gift Planners"), and by the institutions that these persons represent. This statement recognizes that the solicitation, planning and administration of a charitable gift is a complex process involving philanthropic, personal, financial, and tax considerations, and as such often involves professionals from various disciplines whose goals should include working together to structure a gift that achieves a fair and proper balance between the interests of the donor and the purposes of the charitable institution. I. PRIMACY OF PHILANTHROPIC MOTIVATION The principal basis for making a charitable gift should be a desire on the part of the donor to support the work of charitable institutions. II. EXPLANATION OF TAX IMPLICATIONS Congress has provided tax incentives for charitable giving, and the emphasis in this statement on philanthropic motivation in no way minimizes the necessity and appropriateness of a full and accurate explanation by the Gift Planner of those incentives and their implications. III. FULL DISCLOSURE It is essential to the gift planning process that the role and relationships of all parties involved, including how and by whom each is compensated, be fully disclosed to the donor. A Gift Planner shall not act or purport to act as a representative of any charity without the express knowledge and approval of the charity, and shall not, while employed by the charity, act or purport to act as a representative of the donor, without the express consent of both the charity and the donor. IV. COMPENSATION Compensation paid to Gift Planners shall be reasonable and proportionate to the services provided. Payment of finders fees, commissions or other fees by a donee organization to an independent Gift Planner as a condition for the delivery of a gift are never appropriate. Such payments lead to abusive practices and may violate certain state and federal regulations. Likewise, commission-based compensation for Gift Planners who are employed by a charitable institution is never appropriate. V. COMPETENCE AND PROFESSIONALISM The Gift Planner should strive to achieve and maintain a high degree of competence in his or her chosen area, and shall advise donors only in areas in which he or she is professionally qualified. It is a hallmark of professionalism for Gift Planners that they realize when they have reached the limits of their knowledge and expertise, and as a result, should include other professionals in the process. Such relationships should be characterized by courtesy, tact and mutual respect. VI. CONSULTATION WITH INDEPENDENT ADVISORS A Gift Planner acting on behalf of a charity shall in all cases strongly encourage the donor to discuss the proposed gift with competent independent legal and tax advisors of the donor's choice. VII. CONSULTATION WITH CHARITIES Although Gift Planners frequently and properly counsel donors concerning specific charitable gifts without the prior knowledge or approval of the donee organization, the Gift Planners, in order to insure that the gift will accomplish the donor's objectives, should encourage the donor, early in the gift planning process, to discuss the

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proposed gift with the charity to whom the gift is to be made. In cases where the donor desires anonymity, the Gift Planners shall endeavor, on behalf of the undisclosed donor, to obtain the charity's input in the gift planning process. VIII. DESCRIPTION AND REPRESENTATION OF GIFT The Gift Planner shall make every effort to assure that the donor receives a full description and an accurate representation of all aspects of any proposed charitable gift plan. The consequences for the charity, the donor and, where applicable, the donor's family, should be apparent, and the assumptions underlying any financial illustrations should be realistic. IX. FULL COMPLIANCE A Gift Planner shall fully comply with and shall encourage other parties in the gift planning process to fully comply with both the letter and spirit of all applicable federal and state laws and regulations. X. PUBLIC TRUST Gift Planners shall, in all dealings with donors, institutions and other professionals, act with fairness, honesty, integrity and openness. Except for compensation received for services, the terms of which have been disclosed to the donor, they shall have no vested interest that could result in personal gain.

Adopted and subscribed to by the National Committee on Planned Giving and the American Council on Gift Annuities, May 7, 1991. Revised April 1999.

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APPENDIX E

The Donor Bill of Rights

The Donor Bill of Rights was created by the Association of Fundraising Professionals (AFP), the Association for Healthcare Philanthropy (AHP), the Council for Advancement and Support of Education (CASE), and the Giving Institute: Leading Consultants to Non-Profits. It has been endorsed by numerous organizations.

Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To ensure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the nonprofit organizations and causes they are asked to support, we declare that all donors have these rights:

I. To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.

II. To be informed of the identity of those serving on the organization's governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.

III. To have access to the organization's most recent financial statements.

IV. To be assured their gifts will be used for the purposes for which they were given.

V. To receive appropriate acknowledgement and recognition.

VI. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law.

VII. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.

VIII. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.

IX. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.

X. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.

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APPENDIX F GLOSSARY This glossary is not intended to be a comprehensive presentation of all terms and definitions related to philanthropic activities. Rather it provides a quick reference to terms in the Gift Acceptance Policy document; definitions provided from other sources; and information on available resources.

Assignment of Income A donor may assign, to NSU, income received from a third party as payment for donor’s services.

Bargain Sales/Deep Discounts

A “bargain sale” relating to real property, or a “deep discount” relating to personal property, is when a vendor offers equipment to NSU for less than the lowest price NSU should pay through educational/non-profit discount prices. The Council for Advancement and Support of Education (commonly known as “CASE”) allows this transaction to be counted as an in kind contribution.

Bequests A bequest is a gift made through a will, or through a trust substituting for a will, such as a revocable trust.

Cash, Checks and Credit Cards

A charitable gift to NSU that is paid in the form of cash, by check, or currently accepted credit card.

Charitable Gift Annuity

A Charitable Gift Annuity (CGA) is a simple contract between a donor and NSU. The donor irrevocably transfers to NSU a specific sum of money, or transfers readily marketable securities, and in return receives a fixed payment for life.

Charitable Lead Trust A Charitable Lead Trust (CLT) is a trust created by a trust document wherein the donor specifies all beneficiaries, determines the term of the trust and the payout rate, and designates a Trustee. In a CLT, the charity receives annual payments and, at the expiration of the trust term, the remainder is distributed to individuals.

Charitable Remainder Trust

A Charitable Remainder Trust (CRT) is an irrevocable trust authorized and governed by federal tax law. It is established by a donor who then transfers assets (e.g. cash, securities, real estate, or tangible property) to it. Once created, the donor cannot undo the CRT and cannot amend the terms without going to court. However, the CRT may include a provision that reserves the right of the donor to change its remainder beneficiary.

Closely Held Securities Stock for which there exists no public market on a stock exchange, over-the-counter market or otherwise.

Estate and Planned Gifts

Gifts, including those that divide the income and principal (i.e. split income gifts), made through a will or trust, or naming NSU as the beneficiary in a life insurance policy or retirement plan, are considered estate and/or planned gifts. The term “deferred gift” is often used for those gifts which are arranged now, but fulfilled later.

Gift Agreement Written document used for gifts which require an understanding of the terms, designation, and stewardship as well as naming opportunities as appropriate. Generally drafted by NSU, the donor should be advised that it be reviewed by an independent legal or financial advisor.

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Gift Subject to a Life Estate or a Remainder Interest in a Home or Farm

When a donor makes an irrevocable gift by deeding a personal residence or a farm to NSU, but retains the right to use and enjoy the property for a specified term, he or she has made a life estate gift, also known as a “gift subject to a retained life estate.” NSU’s interest in the property is known as a “remainder” interest.

Gifts in Kind/ Non-Cash Gifts

Donated tangible and intangible assets and property which represent value to NSU (e.g. mortgages, limited partnership interests, royalty or copyright interests, art, books, equipment, software, vessels, automobiles, inventory, personal property, securities, other physical assets, material bargain sales, deep discounts, limited use of private property, out of pocket expenses, and services.)

Intellectual Property Intellectual property refers to the creations of the human mind, such as inventions and literary or artistic works, and to symbols, names, images and designs used in commerce.

Letter of Intent Written document used when an individual is undecided about the specific amount or designation of a gift but has made a verbal commitment. The Vice President for Advancement and Community Relations will draft a letter to the individual confirming the oral commitment. These are non-binding agreements and not carried on the university’s financial statements.

Life Insurance Limited Use of Private Property Out-of-Pocket Expenses

A policy that will pay a specified sum to beneficiaries upon the death of the insured. Donors may make an outright gift of a policy to NSU by irrevocably transferring all incidents of ownership in a policy to NSU. 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 period of time. Such gifts are recognized by NSU, but are generally not recognized by the IRS as tax deductible. Examples include the rent-free use of office space, or the rent-free use of a vacation home to host an NSU event. Payments made by a donor to a vendor for material or services utilized on behalf of NSU. It includes un-reimbursed expenses paid by a person while volunteering time to NSU, but does not include the person’s time.

Outright Gifts These are current contributions of cash, stocks, bonds, mutual fund shares, real estate and personal property.

Partial Interest Gifts A partial interest gift is a gift of less than the entire interest in a property.

Pledge Pledge Form Pledge Payment

An unconditional or conditional promise to give cash or other assets. Form used for current use gifts. This form, is generally signed by the donor, includes information on the schedule of pledge payments and any school or center designation. Amount of cash or other assets given to NSU for the purpose of fulfilling a pledge.

Publicly Traded Securities

Stock for which a market quotation is readily available on an established securities market.

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Quid Pro Quo Contributions

A payment made in consideration for goods and services provided to the payor by the donee organization. Example includes: memberships, auction items, event tickets.

Real Property Also called real estate or realty, real property includes land and/or buildings and other structures.

Retirement Plan Assets

Individuals make regular contributions to a variety of plans, often on a tax-deferred basis, which appreciate over time and are used to provide income after retirement. Some examples of retirement plans include 401(k) plans, 403(b) plans, IRAs, and company-based pension plans.

Services Transfer of an Undivided Interest in an Asset

Professional services or time which are freely given and which can easily be valued by their usual market cost. Gifts of services are recognized by NSU, but are generally not recognized by the IRS as being tax deductible. Examples of gifts of services are the donation of broadcast time by a radio station or legal services by an attorney. A gift of an undivided interest in an asset will only qualify as a charitable gift if the donor transfers an equal part of each and every substantial interest or right he or she has in the contributed property. Thus, the transfer of an undivided interest in an asset is not a gift if only some, but not all, rights are transferred.

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APPENDIX G FREQUENTLY ASKED QUESTIONS 1. What is the definition of a charitable contribution?

As per the IRS (Publication 526) a charitable contribution “is a donation or gift to, or for the use of, a qualified organization. It is voluntary, and is made without getting or expecting to get, anything of equal value”. CASE (Council for the Advancement and Support of Education) defines a gift as “a contribution received by an institution for either unrestricted or restricted use in the furtherance of the institution for which the institution has made no commitment of resource or service other than, possibly, committing to use the gift as the donor specifies”.

2. What should I do if I received a gift from a donor or I am planning on receiving a gift?

Please contact the Director of Development for your school/center and he or she will walk you through the process in order to have the gift processed through Advancement Services. To ensure a complete and accurate compilation of contributions and donor information, as well as proper compliance with IRS regulations, all checks, cash, stock and other gifts must be directed to and processed by Advancement Services. We can be reached at extension 22113 or via email at devis@nova.edu.

3. Our School/Center is planning on having an event and would like ticket sales to be counted as a charitable contribution. How can I go about setting this up?

We encourage anyone having a special event, to contact the Office of Special Events and Community Partnerships at extension 22144. They can go over the details on what is necessary to calculate the gift amount from the event. Furthermore, here is a link to a worksheet that will help you determine the charitable gift amount from ticket sales. http://www.nova.edu/advancement/forms/event_quid_pro_quo.pdf

4. Can Raffles be counted and processed as gifts?

In accordance to IRS regulations, donors may not consider any portion of a payment made resulting in an opportunity to win a prize to be a tax-deductible gift. Thus, the answer is NO. 5. What should I do if a donor wants to set up a scholarship fund?

Please contact the Director of Development for your school/center and he or she will walk you through the process. This may include drafting gift agreements and following our current policies and procedures. 6. Can a donor impose a requirement or restriction when providing a gift to the university?

There may be some restrictions that a donor may impose on their gift. Please contact your school/center Director of Development as it may differ case by case. A donor can suggest a department or area to which the institution should apply the contribution. A donor may not maintain any explicit or implicit control over the use of a gift after acceptance by the university. NSU adheres to CASE standards on this matter. 7. Does your office send out gift receipts?

The Division of Advancement and Community Relations records and receipts all philanthropic gifts to the university.

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APPENDIX H

Policy Name: NSU Facilities Naming and Signage Policy

Adopted: July 8, 2015

Revised: February 28, 2019

Established by: Dr. George Hanbury, President and CEO

PURPOSE This policy sets forth the guidelines for the naming of new and existing Nova Southeastern University buildings, grounds, streets, interior areas, features, objects, exhibits, galleries, and spaces (collectively referred to as Facilities) through private donations to NSU. Donor gift agreements in which Facilities are named should reference this policy.

GUIDELINES The Vice President for Advancement and Community Relations is responsible for reviewing all names proposed for Facilities through private donations. This review is done in consultation with the appropriate dean or director as well as the Provost, Chief Operating Officer, Vice President for Facilities, and other NSU officials as appropriate. Recommendations are made to the President who has sole authority to approve such names. The President will advise the Board of Trustees on significant namings.

Lifespan of Name for a Building or Other Structure The function and life of buildings and other structures on any university campus are fluid, and depend on many factors. Unless otherwise authorized by the President in writing, or unless otherwise stated in a gift agreement, when a building or structure is named for a donor in recognition of a donation, the building or structure will only bear such name for its useful life, as determined by generally accepted accounting principles.

Modifications of Naming If during its useful life the Facility is transferred or conveyed by NSU, closed, destroyed or severely damaged, so that NSU chooses not to rebuild or reopen it, then NSU will determine a suitable alternative naming opportunity that it considers in good faith worthy of the donor’s contribution. In making this decision, NSU will consult with the donor. If not available, then the donor’s family/representative(s) if available will be consulted.

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When space use changes or renovation affects a named space, the Vice President for Facilities shall notify the Vice President of Advancement and Community Relations who will determine if any fundraising and/or stewardship issues exist, and recommend how the name should be preserved. NSU will determine a suitable alternative naming opportunity that it in good faith considers worthy of the donor’s contribution. In making the decision, NSU will consult with the donor. If not available, then the donor’s family/representative(s) if available will be consulted.

Due Diligence In all cases, due diligence must be performed and observed to ensure that names for Facilities are appropriate for NSU. NSU naming opportunities shall bear only the name of individuals or entities that exemplify the attributes of integrity, character and leadership consistent with the core values of NSU. Furthermore, in connection with the naming of a proposed building or other structure to be built, the Vice President of Advancement and Community Relations will verify that the construction project has been funded within the NSU Master Plan or is unfunded and on the Master Plan, before a gift agreement naming the building or structure is presented to the donor.

Removal of Name Once a Facility has been named, except as provided for below, the name shall not be removed unless there are unusual or compelling reasons for doing so. NSU, in the sole and absolute discretion of its President, may determine to remove a name for the following reasons:

In the event of any default in payment of the gift that is not resolved to the sole satisfaction of NSU, subject to any applicable payment default provisions in the gift agreement;

In the unlikely event the President and the Board determine in their good faith opinion that as a result of a change in circumstances the name chosen by the donor would adversely affect NSU’s reputation, mission, image or integrity;

In the event that removal of the name is provided for in the gift agreement; or

In the event the naming is for a set period of time and called for in the gift agreement.

Upon removal of a donor’s name, except as expressly provided for in a gift agreement, NSU shall retain all funds provided by the donor through the date of removal, despite anything that may be stated or implied to the contrary. Upon any such removal, NSU at all times reserves the right to re-name its Facilities, if it deems the re-naming to be in its best interest.

Contribution Types

Gifts to name Facilities, spaces, and exhibits at NSU must be related to contributions in cash, cash equivalents, marketable securities, pledges payable in less than five (5) years,

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or irrevocable planned gift commitments acceptable to NSU. An exception to such five (5) year pledge period can be made by the President on a case by case basis.

All gifts to name Facilities at NSU must include an endowment component of at least 25% to support a defined program at NSU.

Please see the NSU Academic Programs Naming Policy for guidelines regarding the naming of new and existing NSU academic programs, including departments, divisions, centers, institutes, museums, schools, units, and colleges.

Campus Streets The naming or renaming of a street may be a lengthy process involving utility providers, the property appraiser, the post office, county plats, and other external agencies. Any such naming or re-naming of streets requires approval by appropriate NSU departments. When a naming of a street/entrance requires the approval of outside agencies, the gift agreement should recognize that the final approval does not rest with NSU, but rather with an external party where the timing and outcome is not guaranteed.

Signage All building and exterior signage must be in accordance with local zoning and other regulations, and is subject to approval by local government agencies. The Vice President of Facilities Management is responsible for compliance with appropriate governmental regulations and NSU policy.

The NSU facilities department will be responsible for all signage installed with regard to namings. In some cases, the donor name may be shortened on directional signage if deemed appropriate by NSU.

Wording for signage or plaques designating a named area, building or other structure, or interior/exterior space should be developed in conjunction with the donor and NSU Facilities and approved by the appropriate dean or director and the Vice President of Advancement and Community Relations. In addition, all signage must be approved in writing by the NSU President.

Historical Records Within the Division of Advancement and Community Relations, the Office of Donor Relations maintains records on named Facilities. Records relating to the naming of a Facility will be maintained provided there is a gift agreement between the donor and NSU. Records for interior Facility spaces that are named will also be maintained by colleges, schools, divisions, offices, and centers. Copies of these records will be provided to the NSU Library for archival purposes.

Promotion and Publicity

Appropriate public recognition, depending on the scale and purpose of the gift and the donors’ wishes, will be arranged. Unless otherwise provided in the gift agreement, the donor’s choice of name will be used when referring to the Facility. It is NSU’s intent to

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have the right, without charge, to photograph the donor and use the name, likeness, and image of the donor in media relations to describe the named Facility and the gift that provided for the name. Generally, a public event or reception appropriate to the gift level will be held for the ground breaking or dedication of a named Facility. The donor’s wishes for promotion and publicity shall be paramount.

All pledged gifts to name Facilities at NSU will remain confidential and not announced to the public until at least 10% of the pledge has been paid to NSU.

Naming Gift Opportunities The minimum dollar level to name Facilities on campus will be identified by the Vice President for Advancement and Community Relations in consultation with the President and other appropriate NSU officials prior to solicitation by members of the development staff. The President may make exceptions to the minimum contribution rules.

NSU’s current inventory of naming opportunities is maintained by the Vice President for Advancement and Community Relations or his/her designee.

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APPENDIX I

Policy Name: NSU Academic Programs Naming Policy

Created: February 28, 2019

Established by: Dr. George Hanbury, President and CEO

PURPOSE This policy sets forth the guidelines for the naming of new and existing Nova Southeastern University academic programs including departments, divisions, centers, institutes, museum exhibits, schools, units, and colleges (collectively referred to as Academic Programs) through private donations to NSU. Donor gift agreements in which Academic Programs are named should reference this policy. GUIDELINES The Vice President for Advancement and Community Relations is responsible for reviewing all names proposed for Academic Programs through private donations. This review is done in consultation with the appropriate dean or director as well as the Provost, Chief Operating Officer, and other NSU officials as appropriate. Recommendations are made to the President who has sole authority to approve such names. The President will advise the Board of Trustees on significant namings.

Due Diligence In all cases, due diligence must be performed and observed to ensure that names for Academic Programs are appropriate for NSU. NSU naming opportunities shall bear only the name of individuals or entities that exemplify the attributes of integrity, character and leadership consistent with the core values of NSU.

Furthermore, in connection with the naming of a proposed Academic Program to be developed, the Vice President of Advancement and Community Relations will verify that the proposed Academic Program has the approval of the NSU Provost and Chief Operating Officer, before a gift agreement naming the Academic Program is presented to the donor.

Removal of Name Once an Academic Program has been named, except as provided for below, the name shall not be removed. NSU, in the sole and absolute discretion of its President, may determine to remove a name for the following reasons:

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In the event of any default in payment of the gift that is not resolved to the sole satisfaction of NSU, subject to any applicable payment default provisions in the gift agreement;

In the unlikely event the President and the Board of Trustees determine in their good faith opinion that as a result of a change in circumstances the name chosen by the donor would adversely affect NSU’s reputation, mission, image or integrity;

In the event that removal of the name is provided for in the gift agreement;

In the event the naming is for a set period of time and called for in the gift agreement;

In the event that the donor or the donor’s immediate heirs request in writing that the naming be removed.

Upon removal of a donor’s name, except as expressly provided for in a gift agreement, NSU shall retain all funds provided by the donor through the date of removal, despite anything that may be stated or implied to the contrary. Upon any such removal, NSU at all times reserves the right to re-name its Academic Programs, if it deems the re-naming to be in its best interest.

Modifications of Naming Modifications to naming recognitions of Academic Programs may be made at the request of either NSU or the Donor, of if not living, then the Donor’s immediate heir(s) or representative(s). This includes, but is not limited to, modifications that may be triggered by a significant change in the Academic Program, or the discontinuation of the Academic Program. For example, if an Academic Program is no longer needed, then NSU will recommend another naming recognition to the Donor, or if not living, then the Donor’s immediate heir(s) or representative(s).

Modifications to naming recognitions of Academic Programs must be agreed to in writing, signed by NSU and the Donor, or if not living, then the Donor’s immediate heir(s) or representative(s). If the Donor is not living and no immediate heir(s) or representative(s) can be reasonably found, then NSU may proceed with such modifications at its sole discretion.

Contribution Types

Gifts to name Academic Programs, at NSU, including exhibits, must be related to contributions in cash, cash equivalents, marketable securities, pledges payable in less than five (5) years, or irrevocable planned gift commitments acceptable to NSU. An exception to such five (5) year pledge period can be made by the President on a case by case basis.

All gifts to name Academic Programs at NSU must include an endowment component of at least 25% to support the operation of the named Academic Program.

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Signage When appropriate, NSU may use the Academic Program name on signage, including signage on a building, signage outside a building, and directional signage. See the NSU Facilities Naming Policy section on “Signage” for guidelines regarding the signage approval and installation process.

Printed Materials The NSU Department of Publications, in conjunction with the NSU Division of Advancement and Community Relations, will be responsible for all printed materials produced with regard to namings of Academic Programs. In some cases, the donor name may be shortened on printed materials if deemed appropriate by NSU.

Wording for printed materials should be developed in conjunction with the donor by the NSU Division of Advancement and Community Relations, and approved by the appropriate dean or director, the Vice President of Advancement and Community Relations, and the President.

Historical Records Within the NSU Division of Advancement and Community Relations, the Office of Donor Relations maintains records on named Academic Programs. Records relating to the naming of an Academic Program will be maintained provided there is a gift agreement between the donor and NSU. Records for Academic Programs that are named will also be maintained by colleges, schools, divisions, offices, and centers.

Promotion and Publicity

Appropriate public recognition, depending on the scale and purpose of the gift and the donor’s wishes, will be arranged. Unless otherwise provided in the gift agreement, the donor’s choice of name will be used when referring to the Academic Program. It is NSU’s intent to have the right, without charge, to photograph the donor and use the name, likeness, and image of the donor in media relations to describe the named Academic Program and the gift that provided for the name. In some cases, a public event or reception appropriate to the gift level will be held for the public announcement of a named Academic Program. The donor’s wishes for promotion and publicity shall be paramount.

All pledged gifts to name Academic Programs at NSU will remain confidential and not announced to the public until at least 10% of the pledge has been paid to NSU.

Naming Gift Opportunities The minimum dollar level to name Academic Programs will be identified by the Vice President for Advancement and Community Relations in consultation with the President and other appropriate NSU officials prior to solicitation by members of the development staff. The President may make exceptions to the minimum contribution rules.

NSU’s current inventory of naming opportunities is maintained by the Vice President for Advancement and Community Relations or his/her designee.

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NSU Division of Advancement and Community Relations 3301 College Avenue, Fort Lauderdale, Florida 33314. Tel. (954) 262-2100

www.nova.edu/acr