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tennessee technological university

Advancement Services

Accepting, Acknowledging, and Processing Gifts

Tennessee Board of Regents Policy 4:01:04:00 mandates written fundraising policies and procedures. Fundraising policies and procedures established for Tennessee Technological University and the TTU Foundation are outlined herein. Tennessee Technological University and its Foundation endorse the management and financial reporting standards developed by CASE (The Council for the Advancement and Support of Education).

The Gifts Records Stewardship Center (GRSC) within University Advancement is responsible for officially recording and acknowledging receipt of all gifts including checks, cash, pledges, securities, trusts, insurance policies, real estate, gifts-in-kind and other donations to the University, University Foundations or any part of the University. Therefore, information about all checks, cash, notice of gifts-in-kind and all other notices of donations shall be delivered to University Advancement to be processed through the GRSC at same time funds are deposited into the University clearing account. A record of every donor to the University and its affiliated foundations shall be maintained by University Advancement.

All gifts information is to be treated as confidential by all University employees. Only those required to have access to such information to fulfill their accounting, fundraising, etc. responsibilities will be authorized to access hard copy and/or computer files relative to donors/gifts.

Gifts should be mailed directly to the Tennessee Technological University Foundation, TTU Box 1915. The Gifts Records Stewardship Center staff will design and maintain accounting records for gifts income for reporting in the University's annual reports and surveys. Records of the number of contributions as well as the dollars given to the University will be maintained separately from those for foundations.

Donor records will be credited and acknowledgments processed as follows:

If the gift is from a married couple, hard credit will be placed on the record of the person signing the check and soft credit on the spouse's record. Receipts will show the hard credit name and acknowledgments will be addressed to Mr. and Mrs. --unless specific donor instructions have been received for otherwise handling gift credit or acknowledgments.

If two names are on a check and we do not know the marital status, hard credit and acknowledgment will be given to the signer only.

If a check has only one name printed, and signed by same (even if we know there is a spouse), hard credit and acknowledgment will be given to the check's signer only.

Completed deposit and/or stock transmittal forms will be verified by GRSC personnel with any changes noted and initialed. Corrections to gift transactions after completion of the process will require written communication by the party initiating the request with copies sent to all relevant parties.

TBR Policy 4:01:04:00 states: "The institution may not accept gifts specifically intended for the foundation, and only gifts specifically intended for a foundation may be accepted by a foundation." "The institution must maintain records of gifts to the institution separate from those of gifts to the foundation." Therefore, all funds intended for the University must be deposited into University accounts, all funds intended for a foundation must be deposited into foundation accounts, and annual totals will be reported separately in the University's Annual Report.

Funds received for student clubs or other organizations with an agency account are not gifts to the university/foundation and should be processed through the Business office for direct deposit into the unit's agency account.

Gifts shall be acknowledged through University Advancement by the President and/or the Vice President for University Advancement according to a schedule devised and kept by University Advancement. Acknowledgment will be made to the individual or organization directly making the gift to the University/Foundation. Others within the University with a special interest in the gift may also wish to thank the donor.

University Advancement's Advancement Services Department will not make an acknowledgment to any individual(s) or organization(s) involved in soliciting a gift. When such an acknowledgment is appropriate, it should be prepared and sent by the unit administering the gift or by others in the University with a special interest in the gift.

University Advancement holds the authority to issue gift receipts. Official tax receipts will be processed for gifts of cash with appropriate statements about no services or goods provided; or premiums will be listed. The donor copy of the receipt will be mailed along with an acknowledgment letter or card to the donor.

No receipts for gifts-in-kind, e.g. equipment, books, stocks, or bonds etc., will be provided. The University/Foundation does not provide nor confirm a value for gifts-in-kind for tax purposes. (Exception: as mandated by IRS regulations, an IRS Form 1098-C will be processed/provided for gifts of vehicles (car, boat, plane) that are valued at over $500.) An IRS Form 8282 will be processed for any gift valued at $5,000 or more and sold within three years of receipt. The In-Kind Form must indicate whether an item that the donor has valued at $5,000 or more will be sold within three years or state that the item will not be sold within three years. If the form shows that the item will not be sold, the receiving unit is responsible for insuring that the item is not sold and is accessible for inventory purposes. (Note: used clothing items will be entered into Raisers Edge with a value of $1 each.)

An acknowledgment letter will be mailed to the donor listing the item(s) gifted. Donors should be advised to discuss tax implications for any gift-in-kind with their individual tax advisor.

No receipts will be provided for gifts of service or rent free use of property. The IRS is very specific in that Publication 526 states "You cannot deduct the value of your time or services." No deduction is allowed for the right to use property (Newkirk, 2-2[b]).

The IRS places the burden for tax substantiation for charitable gifts on the receiving charity. The University/Foundation must not even imply that a service or partial use of property gift may be tax deductible. Service gifts or rent free use of property, under current IRS regulations, are not tax deductible.

Three copies of receipts will be available from Raisers Edge. One copy will be mailed to the donor when appropriate, one copy will be filed in the GRSC, and one copy will be transmitted along with a receipt summary to the Business Office.

Standard form thank you/acknowledgment letters/cards--to be revised semiannually by the Office of Public Affairs--will be processed by the GRSC for all gifts.

When acknowledgment letters are modified/personalized, the supporting staff for the administrator modifying the letter should process the letter and send a copy to the Gifts Records Stewardship Center with a note that the original letter has been replaced.

Acknowledgments for CASH GIFTS consist of an appropriate tax receipt and

  1. Preprinted acknowledgment note card
    $1-$249 (Exception: If donor works for matching gift company and did not send in a form, a letter is sent)
  2. Acknowledgment letter signed by the Vice President for University Advancement
    $250-and above
  3. Acknowledgment letter signed by the President
    $1000--and above

Acknowledgments for GIFTS-IN-KIND consist of:

  1. Preprinted acknowledgment note card
    $1-$249 (Exception: If donor works for matching gift company and did not send in a form, a letter is sent)
  2. Acknowledgment letter signed by the Vice President for University Advancement
    $250-and above
  3. Acknowledgment letter signed by the President
    $1000--and above

Acknowledgments for GIFTS BY PAYROLL DEDUCTION will be processed, and signed by the Vice President for University Advancement, at initiation of gift and annually thereafter.

Information relative to funds transferred by IDT from the University's Flower Fund or from other restricted University accounts "in memory" should be routed through the GRSC so that appropriate acknowledgement to family members may be processed.

Acknowledgments for GIFTS "IN HONOR/MEMORY " will be handled as follows:

When setting up an account in honor/memory of someone, it is very important to talk to the family/donor and see if they want acknowledgment of the donations, define who needs to get the acknowledgment, and communicate this information to the GRSC before any funds are received. Accounts will then be designated for correspondence as outlined below.

Acknowledgments for gifts given to specific scholarships and endowments that were established in Honor/Memory of someone will continue to say in Honor/Memory of that person. The named person will be coded and all gifts to that fund will generate a receipt and thank you letter for the donor stating that their gift was in honor/memory of that person. The family member/contact person of the honoree/deceased will periodically be mailed a list of donors names and addresses. No individual's donation amount(s) will be provided to the family member/contact person.

Any gifts that come into the Gifts Records Stewardship Center marked specifically in Honor/Memory of someone that are to be deposited to an account, other than one already set up specifically in Honor/Memory, must be designated as such on the transmittal, and a name and address of a contact person/family member listed. Any notes and/or correspondence, or copies thereof, that come in with the check should be attached to the transmittal.

The departmental copies of gift documents (including deposit forms, In-Kind forms, payroll deduction forms, etc.) may be sent to Deans' offices if the gift is for an an account administered by an academic unit, when there is no designated development officer in the unit, or to the Director or the appropriate office if administered by other than academic units, e.g. Admissions, Financial Aid. These forms should be used to track gifts into appropriate accounts using the monthly reports from the Business Office and the GRSC.

Athletic events and gifts: IRS Publication 526 states "If you make a payment to, or for the benefit of, a college or university and, as a result, you receive the right to buy tickets to an athletic event in the athletic stadium of the college or university, you can deduct 80% of the payment as a charitable contribution. If any part of a payment is for tickets (rather than the right to buy tickets), that part is not deductible. In that case, subtract the price of the tickets from your payment. 80% of the remaining amount is a charitable contribution." When gifts are received from donors who will receive the benefit of preferred seating at any athletics facility on campus, the gift amount required for the preferred seating must be noted on the appropriate deposit form so that receipts complying with IRS regulations may be prepared. The Athletics Division of the University is responsible for insuring accurate information relative to athletics facility seating and gifts.

Non-profit organizations are required to report gifts as: restricted, temporarily restricted, permanently restricted, or unrestricted.

Restricted (designated) gifts have definite restrictions for their purpose or the conditions for which they may be disbursed. Acceptance of a restricted gift imposes a legal obligation to comply with the terms established by the donor. Therefore, the nature and extent of this obligation must be clearly understood. Accordingly, the terms of each restricted gift will be reviewed carefully to insure that they do not hamper the usefulness and desirability of the gift to the University. If a gift is deemed unacceptable because of restrictions the donor has placed on its use, the donor shall be counseled to remove or modify the restrictions. Gifts shall be refused or returned when the purpose (1) is inappropriate or not conducive to the best interests of the University; (2) is clearly commercial; or (3) would obligate the University to undertake responsibilities, financial or otherwise, that it may not be capable of meeting during the period required by the terms of the gift.

Restricted funds (both Temporarily and Permanently Restricted), are those funds that can only be used for the purpose defined. These include donor restrictions and grants, most of which are given for restricted purposes. In addition, the University/ Foundation(s) may also launch campaigns to solicit donations for specific projects. When solicitation is made for a stated purpose, even if the donor does not state specifically in the letter of transmittal, or on the check, that it is restricted and/or, if the donor is responding to a solicitation for a specific purpose, the donation then can be considered restricted.

Temporarily Restricted funds include all moneys designated by outside donors and grantors for expenditure for specific purposes. Permanently Restricted funds are the endowment funds are to be maintained in perpetuity with only a portion, as defined by the University/Foundation, used for expenditure.

Unrestricted gifts. It is in the best interest of the University, whenever possible, to solicit gifts on an unrestricted basis. Unrestricted gifts are those gifts upon which the donor has not placed definite restrictions as to the method or purpose of expenditure and allows the Foundation/University to use the gifts in the most appropriate manner.

Unrestricted gifts would include Current Operating Fund, University/Foundation Designated Funds (for various projects), and University/Foundation Designated Quasi-Endowment. The term "endowment" has been defined earlier. Unrestricted funds are those that may be used for any purpose deemed appropriate for the organization to support the mission of the University. There should always, of course, be the qualifying statement "within the organization's operating budget" or, perhaps, "deemed appropriate by the University and /or its foundation(s)."

Service--(gifts)--This term includes professional or personal services (time) that are freely given and which can easily be valued by their usual market cost. Gifts of service are never receipted although sometimes recognized by the University/Foundation for recognition purposes. Service is generally not recognized by the Internal Revenue Service as being tax deductible. Examples of gifts that have been disallowed by the IRS are the donation of broadcast time by a radio station and legal services by an attorney.

Cash gifts. For better security and data maintenance/integrity, all Tennessee Tech University and TTU Foundation gifts are to be processed centrally and are to be directed to the Tennessee Tech Foundation, Box 1915, Cookeville, Tennessee 38505; or delivered to the Alumni Relations Office at jere Whitson Hall, Room 103. The secretary in the Alumni Relations office will process/deposit all funds into the clearing account in a timely manner in compliance with State law. When the Alumni Relations secretary is absent, either the Secretary 3 in the Associate Vice President for Development office or the Account Clerk 2 in the Advancement Services office will go to the Jere Whitson Building and process/deposit the funds.

Checks received centrally at Box 1915/JW 103
Checks must be restrictively endorsed (see ** (need new link)), sorted and totaled according to guidelines provided by Advancement Services. Cash Reports will be prepared for depositing the gifts into the clearing account. The checks will be scanned and copies printed—one for the Gifts Records Stewardship Center (GRSC) and one copy for the Business Office--and a secure electronic copy will be kept by the preparer to serve as the “log.” The checks, copies and Cash Report form will then be taken to the Cashier/Business Office for deposit. The Business Office receipt will then be attached to the GRSC’s copy of the checks and taken to the GRSC (Derryberry Hall 201) along with all donor correspondence, envelopes, returned appeal cards, etc.

Credit Card Gifts
Credit card numbers are not to be kept by TTU employees. When a donor/purchaser chooses to use a credit card, the donor/purchaser’s information is to be entered online via our secure PayPal site. Barbara Baier, Brandon Boyd, Veronica Messina, Charlene True, Kristie Phillips and John Smith are authorized to process gifts via PayPal for TTU; or the donor/purchaser may choose to use the Net Communities website.

Gifts received by Campus Unit
When an academic and/or administrative unit on campus receives gifts/checks, departmental personnel must immediately restrictively endorse the check and should enter the name of the donor, the date received, type of gift--e.g. check # ___, --and the amount on a log; and then take the check/gift to the Alumni Office (JW 103) on the same business day that it is received.

Gifts received at the same time as a payment for event attendance or a purchase

Persons making a purchase or paying an event registration at the same time as making a gift should be asked to write separate checks, one for the purchase and one for the gift—made payable to the TTU Foundation.

If the donor chooses to write one check for both a donation and a purchase/registration fee (or mails a check for gift and fee), the process should be: the gift receiver completes the Gift Deposit/Log Form for the fee and the gift (gift amount to be deposited into the clearing account) and then deposits the funds at the Business Office (or in the case of the Craft Center at the bank with a copy to Business Office). A copy of the checks and the Gift Deposit/Log Form must be delivered to the GRSC on the same day as the deposit transaction with the Business Office.

Standards for Gift Entry:
After gifts have been deposited with the Business Office, the GRSC will use the copies of checks, etc. to feed the funds from the Business Office Clearing account into the appropriate foundation/university account. Receipts will be produced and a receipt summary will be provided to the Business Office.

Relevant codes for accurate tracking of gifts in Raisers Edge will be implemented based on the following rules:

  1. If there is an outstanding phonathon pledge in Raisers Edge for the constituent or spouse, then the gift will carry the campaign and appeal on the pledge in RE.
  2. If no pledge, then the gift will carry the appeal ID on the reply card or other documentation returned with the gift.
  3. If not reply card/donor directive (outstanding donor pledge), the GRSC staff will not enter an appeal code on the gift record.
  4. If the check and Annual Programs' reply card are received with no restricte information on either, funds will be deposited into the TECH fund--unless the appeal is fund specific, e.g. the Shakey Fund or Women's Basketball Maintain Tradition; then the check will be deposited into the appropriate fund account and the fund specific appeal will be applied. Annual Programs will inform the GRSC when fund specific appeals will be sent. Both the fund ID and appeal ID will be provided to the GRSC.
  5. If no enclosed directive/notation on check from the donor, the gift will be deposited into the TTU Foundation unrestricted account with no appeal code. No gift will be moved from the unrestricted account unless a specific/direct donor request is received--gift designations will not be determined based upon past donor history.

Requests that a gift be moved to a benefiting unit other than that stated on a donor's receipt should be forwarded to the Director or Associate Director of Advancement Services, either by transferring a caller, forwarding correspondence requesting such change, or summarizing and emailing the request.

Appeal codes will not be changed after a gift has been entered.

Matching gifts are those gifts made by businesses that match the voluntary contributions of the firm's employees or other eligible participants. Matching may be done on a one-to-one, two-to-one, or other basis. Records are kept by University Advancement to make certain that the match is collected. Acknowledgment letters will be sent to the matching gift company if requested. The college, school, department or part of the University to receive the gift is notified when matching funds are received. The gift received from a matching gift company is credited to that company's giving record and not the individual whose gift is matched. However, records are kept of such matching gifts for purposes of recognition societies. Matching gifts cannot be considered or counted as part of a specific donor's pledge record. However, outstanding matching gift expectancies for the same period of the donor's pledge may be reported and counted toward campaign goals.

All matching gift forms shall be forwarded to University Advancement for completion. A GRSC staff person will verify that the university/foundation actually received the money and initial the form before the Vice President for University Advancement is asked to sign the form. The Vice President for University Advancement, will sign as the University representative in all cases for matching gifts. The form will be mailed and file copies maintained by GRSC staff for follow-up to assure collection of the matching gift.

If either matching gift form or the company's literature states that an employer will match gift(s) of the employee or/and spouse, it is acceptable to submit requests to both companies for the total amount of a gift.

Gifts-in-kind (see also Gifts of Stock or Other Securities) are defined as non-cash charitable contributions voluntarily bestowed upon the University/Foundation without expectation of return or compensation on the part of the donor. In order to qualify as a charitable contribution, a gift-in-kind must be an outright gift of real value to the University and represent a tangible benefit to the University.

Gifts-in-kind are accepted by the Foundation to benefit the University by the Vice President for University Advancement. Until the Vice President's signature is obtained on the official In-Kind Form, no gift may become the property of the Foundation/University. Before acceptance, it must be determined that the item(s) to be donated are either readily marketable or needed by the University for use in a manner which is related to one of the purposes for which tax exempt status of the University/Foundation was granted--education or research; or a combination thereof. No gift-in-kind may be accepted or placed on Tennessee Technological University property until an In-Kind Form has been completed. IRS requirements for gift substantiation note that the donor has the responsibility for valuing property for tax deduction purposes. Tennessee Tech does not provide or substantiate gift-in-kind value for tax purposes. Donor recognition credit for gifts accepted must be substantiated. Any gift or collection valued at $5,000 or more should be accompanied by an appraisal from a qualified independent appraiser. At the time of receipt a decision must be made as to whether item(s) costing $5,000 or more will be sold within three years. If the gift is to be sold within three years, a person must be designated to facilitate/document the sale so that the appropriate IRS forms may be completed by the Foundation--otherwise, the gift-collection must be held for a minimum of three years. Gifts valued from $1 to $4,999 should be submitted with either paid invoices or manufacturer /company price lists showing the educational discount value of item(s) donated. Books donated to the library are credited at the value established by the TTU Library director. No transfer of ownership of a gift-in-kind is complete until the Vice President for University Advancement has signed the form. Until a gift-in-kind officially becomes the property of TTU or its foundation, liability for any accident/property damage that may result from the gift will be the responsibility of the employee placing the property on campus.

Also, forms must be completed quickly so as not to negatively impact a donor's possible tax deductions or fiscal year gifts totals. Forms must be submitted through the GRSC; an Advancement Services staff member should review and initial the form before the Vice President is asked to sign. Gifts that serve the purpose of the university should be reported at fair market value. Receipts are not provided for gift-in-kind donations, except as required by the IRS for donations of vehicles. Acknowledgement letters will be processed as appropriate. The donor should be advised to consult with his/her financial/tax consultant/planner to determine any tax implications for a gift-in-kind.

Gifts of real and personal property should be counted at full fair market value regardless of the value the donor may be able to take as a charitable deduction. IRS requirements for gift substantiation note that the donor has the responsibility for valuing property for tax deduction purposes--exception, any gift of a vehicle (car, boat, plane) must have the value established using IRS regulations/Form 1098C. Only gifts convertible to cash, or that are of actual value to the university/foundation, will be included in gifts totals. Gifts reported at $5,000 and less may be reported at the value determined by a qualified expert on the faculty or staff of Tennessee Technological University and declared by the donor. Gifts with a fair market value of $5,000 and/or more will be counted at the values placed on them by qualified independent appraisers. Tennessee Tech does not provide the appraisal service; it is the responsibility of the donor to provide such an appraisal when required. The cost of the appraisal is not counted in the gift's value. For gifts such as equipment and software, report the educational discount value--that is, the value the university/foundation would have paid had it purchased the item outright from the vendor. Gifts which are unrelated to our tax-exempt purpose are limited to a deduction of the donor's cost basis. Standard discounts are not considered gifts, although "deep discounts" may be with vice presidential approval.

Gifts-in-kind in excess of $500 must meet the Internal Revenue Service requirements outlined in IRS Form 8283. Compliance with IRS requirements is the responsibility of the donor.

Care should be taken not to imply tax deductibility for gift-in-kinds. Although for cash gifts, the University is now obligated to provide information about goods or services provided and the dollar amount of the gift, the IRS does not require the university/foundation to provide a value for gifts-in-kind (except for vehicles)--listing the article(s) given is all that's required. Thank you letters describing the gift(s) will be provided with information relative to whether goods and/or services were provided.

Gifts of Service/Partial Interest in Property include professional or personal services (time) or the use of property that are freely given and which can easily be valued by their usual market cost. Although the university/foundation may allow donor credit for services (for example eye exams or dry cleaning) or partial interest in property (for example the use of a car or tractor or airplane), the IRS usually does not allow tax credit. Examples of gifts that have been disallowed by the IRS are the donation of broadcast time by a radio station, legal services by an attorney, free use (lease) of a vehicle or room/building. Thank you letters will be provided to these donors; but no receipts and no dollar amount listings.

A gift-in-kind for the University and/or its foundations may not be accepted until all signatures are obtained on the In-Kind Report Form. Gifts (such as art objects, equipment, real estate, etc.) must be reviewed with special care to ensure that acceptance will not involve financial commitments in excess of budgeted items, liability or other obligations disproportionate to the usefulness of the gift. Consideration shall be given to the cost of maintenance, cataloging, delivery, insurance, display and any space requirements for exhibiting or storage. When gifts-in-kind are given to the University and the donor expects to receive a tax deduction, it shall be the responsibility of the donor--not the University--to obtain an appraisal of the gift. The University will not provide appraisals to donors in connection with gifts.

All prospective gifts-in-kind shall be submitted to University Advancement through the appropriate administrative channels using the In-Kind Report Form. Computer-related gifts may also be approved by the head of the university's Information Technology Services Division if appropriate. Library-related gifts should be approved by the Director of the Library. Either a copy of the invoice, appraisal by an off-campus party, and/or printed company price list must be attached to the In-Kind form.

Gift-in-kind records will be maintained by the GRSC staff. They will design and maintain accounting records and will coordinate inventory items with the University's Business Office. Items that will be placed on inventory are those defined as equipment--any physical resource (other than land, buildings, or attachments thereto) that will benefit a program for more than one year and cost more than $5,000 each. Ownership of gifts that are valued at $5,000 and that will be utilized for one year or more may be transferred to the University for inventory/tagging purposes if approved by the Vice President for University Advancement.

Gifts via Donor Advised/Directed Funds are gratefully accepted by the Foundation, and used to further the mission of our University. Processing of gifts must comply with all appropriate Federal, State, and University/Foundation regulations. Some donors choose to support the University/Foundation by providing gifts through either a donor directed fund or a donor advised fund.

A donor directed fund (DDF) is like your own checking account. You contact the bank/fund holder and direct them to send some of your money to anywhere (does not have to be a nonprofit). Any gift received from a donor directed fund should be credited to the owner of the fund, not the bank/fund holder.

A donor advised fund (DAF) is a legal nonprofit entity to which a donor can make a charitable gift. A donor can then suggest/recommend to the DAF to what other nonprofits they should further distribute gifts--the DAF cannot be required to do so. The IRS prohibits the charity that receives a DAF gift from granting any benefit/privileges to individuals as a result of the gift.

When a gift is received from a DAF, the DAF foundation/entity will get gift credit and the receipt for the donation. For stewardship purposes, the constituent that was responsible for requesting the grant for TTU will have an appropriate notation placed on his/her record in Raisers Edge. The constituent will receive a "thank you" letter, but care must be taken not to imply that this acknowledgement constitutes a document for tax purposes. The constituent advising the gift through a DAF should receive and/or request appropriate tax documentation from the DAF foundation/entity.

A donor advised fund gift cannot legally satisfy an individual's pledge. If an individual's pledge is reduced as the result of a DAF gift, the IRS will consider the amount as income to the individual--thereby possibly causing a serious problem not only to the individual for his/her tax purposes, but also causing the nonprofit DAF to be in jeopardy of losing their nonprofit status.

The method of payment should be discussed at the time a pledge card is signed. If a personal pledge is received, understanding that personal payments will be made, the pledge will be set up in Raisers Edge. If checks are later received from a donor advised fund, the pledge should be reviewed and discussed immediately with the donor to clarify their intent for future payments. If the intent is to continue DAF donations, the pledge will be written off entirely. Adjustments will not be made as payments are received.

The IRS prohibits the charity that receives a DAF gift from granting any benefit or privilege to any individual as a result of the gift. The advisee may be listed in publications as long as the DAF rules/regulations do not prohibit doing so. The constituent will be listed in the donor publication with the source of the gift also cited.

True 2 Tech reflects continuous giving; DAF constituents may be listed and years may be increased based on their advising DAF's to make a gift.

Most matching gift companies will not match a gift submitted through a DAF--since the gift is from the DAF and not the individual. If a company chooses to make an exception and match a DAF gift, written information documenting and verifying the exception along with the name of the company contact person who authorized the match must be sent to the GRSC. The matching gift form will reflect the fact that this gift was from the DAF as advised by the constituent/company employee. Such matching gifts will be treated the same as all other matching gifts for donor recognition purposes.

Gifts via payroll deduction to Tennessee Technological University and/or its foundations shall be initiated through University Advancement on an Authorization for Payroll Deductions Form. Unless a payroll deduction is the method of payment for a documented pledge, a recurring gift will be created in Raisers Edge.

To change payroll deductions for gifts, a new Authorization for Payroll Deductions Form should be completed through University Advancement. The most recent form supersedes all prior authorizations for payroll deductions for gifts to the University and/or its foundations. Therefore, care must be taken to list all deductions each time a form is completed.

To discontinue all gifts to the University by payroll deduction, a new Authorization for Payroll Deductions Form, indicating no deductions, must be completed and routed through University Advancement to the Human Resources Office.

The GRSC staff in University Advancement will verify the appropriate account information with the donor, and notification will be sent to the benefiting party(ies) on campus. Benefiting party(ies) should handle their copies of the payroll deduction form as sensitive and confidential, and limit access to those required to account for funds. The original form will be sent to Human Resources and a copy filed in University Advancement.

New forms will be held in a suspense file until the monthly report is received from Human Resources. GRSC staff will check the report to assure that changes and/or new payroll deductions have completed the cycle and then file the form in the donor's file.

Acknowledgment letters for the Vice President's signature will be processed by the GRSC staff for employees giving to the University by payroll deduction at initiation of the gift. An annual acknowledgment listing amounts given by payroll deduction for income tax purposes will be processed as soon as possible each year after December 31st.

The itemized listing for payroll deductions will be obtained from Human Resources at the end of each month by GRSC staff and a summary report, listing contributions/account numbers, prepared for the Business Office. Amounts will be credited to donor records monthly.

Gifts via EFT(electronic funds transfer) are encouraged. When a donor chooses this option, funds are either automatically deducted from his/her checking or savings account at agreed upon intervals; or deposited into TTU's bank account via a request submitted by the donor to his/her banking institution.

Official pledge documents must also be completed if these transactions are to be handled as pledge payments.

EFT--After donor signs authorization, TTU initiates withdrawal from donor's bank
Before funds can be automatically deducted from the donor's account(s), completed EFT forms along with voided checks must be delivered to the GRSC--no later than the 15th of the month before the money is to be taken from a donor's account.

The GRSC will proceed as follows: A record will be created/updated for the EFT transaction based on the documentation in hand. On or before the 9th of the month, the ACH file will be created from the secure EFT system. This file will be opened and reviewed for verification. Then the Associate Director for Advancement Services will log into the bank's web site. The file will be FTPed to the bank and verified by the bank that it meets the NACHA guidelines. The file will be released for processing on the 10th or the first business day after the 10th if the 10th is on a weekend/holiday. Any error report from the bank should be received within 10 working days after the file is submitted and should be addressed immediately. Error reports will be FAXed to the Human Resources Department--they will call the GRSC when reports need to be picked up. After 10 working days, all errors should be detected and corrected. Funds, authorized for EFT, are to be taken from the donor's account on the 10th of the month. If the 10th falls on a weekend or a holiday, funds will be withdrawn on the first business day following. On the second day after the deductions are scheduled to be withdrawn from the donor's accounts (typically the 12th) the Associate Director will log into the web site to verify the transactions were processed. The Associate Director will print the transaction row summary and provide it along with the gift deposit form to the Account Clerk in the GRSC. The Account Clerk will hold the gift deposit form for 10 days, sufficient time for any rejections to be reported. All reports and confirmations will be attached to the deposit form and a copy made to accompany the deposit to the Business Office. Notation will be made on the deposit form indicating total dollars included for Raisers Edge. Once the transaction has fed, appropriate acknowledgements/receipts will be sent.

EFT--Donor initiates transaction to send gift to TTU's Bank

The Donor or Development Officer should contact the Advancement Services Office to receive appropriate bank/account numbers.

The Donor should be asked to email TTU— notification that a request has been submitted to their bank.

The Donor should make sure that the following information is included with each electronic transaction so that their gift will be deposited correctly at the University:

Donor’s full name
Donor's complete mailing address
Notation that this is a gift/contribution

The Donor must be informed that their bank--not TTU--may charge for the transaction.

Gifts via credit cards are accepted. A donor's credit card may be charged one time or at agreed upon intervals. To begin gifts by credit card, proper documentation must be completed via the GRSC. Official pledge documents must also be completed before a pledge may be entered into Raisers Edge.

The benefiting party should complete the process for all credit card deposits. Charge forms can be obtained from the Business Office.

Pledges may be paid quarterly, semiannually, or annually by credit card. Completed Automatic Credit Card Billing forms must be delivered to the GRSC no later than the last working day of the month before the first charge is to take place. The appropriate information will then be entered by GRSC personnel into a secure credit card system. On the 10th of each month a report will be generated and taken to the appropriate person for processing. The designated person will fill out the credit card slip and complete the authorization with the credit card center before transmitting the deposit form back to the GRSC for pledge payment entry into Raisers Edge, and appropriate acknowledgment letter and receipt.

Gifts of life insurance are to be reviewed through appropriate administrative channels and approved by University Advancement prior to acceptance.

Life Insurance gifts will be counted when the University is made the owner and irrevocable beneficiary of paid up policies. The death value of the policy will be counted at both the face value and the discounted present value. Existing policies, not fully paid up, on the date of the contribution, will be counted at the existing cash value in the gifts and pledges section. In addition where the payment of premiums is pledged over a five-year period, the incremental increase of the cash value should be counted. Realized death benefits from insurance policies will be counted, provided no gift/pledge amount was previously counted. In all cases, these amounts will be defined for inclusion in gift accounting totals and Raisers Edge by the Planned Giving Director at Tennessee Tech.

When a life insurance policy (approved for acceptance) is received, it should be listed on a University Advancement Deposit Form and secured immediately in the University's vault in the Business Office. Copies of the insurance policy should be made for the Planned Giving Director and the GRSC--to be transmitted along with completed deposit forms. Acknowledgment letters will be processed for the donor by the GRSC.

Deferred gifts/bequests. A special software package (PG Calc) is available for planning purposes for deferred gifts. Questions should be referred to the Director for Planned Giving, the Associate Vice President for University Development or the Vice President for University Advancement.

With so many different options available, it is strongly recommended that donors consult with their attorney or tax advisor to decide which form best meets their wishes and needs and also fulfills the legal requirements. Neither Tennessee Technological University nor the TTU Foundation may render legal, tax, or financial planning advice.

Charitable Remainder (remainder not subject to change or revocation) Trusts and Pooled Income Funds gifts should be credited to the "deferred gifts" section of gift totals at both the discounted present value of the remainder interest allowable as a deduction by the Internal Revenue Code and at face value. The charitable remainder beneficiary designation must be irrevocable, and verified as such, in order to be counted.

Charitable Gift Annuities should be reported as deferred gifts because the university/foundation will not receive the gift portion until the death of the final income beneficiary. In a charitable gift annuity transaction, a person irrevocably transfers some property, such as securities, and the university/foundation agrees in a contract to pay the donor or other beneficiaries a guaranteed annuity for life.

Remainder Interest in a Residence or Farm should be credited in the Deferred Gifts section at both the remainder value recognized as an allowable deduction by the IRS and at the face value.

Charitable Lead Trusts are immediate gifts in trust, not deferred gifts, that pay over a period of time. For lead trusts whose terms extend five years or less, the face value may be reported under the "current gifts and pledges" section of campaign totals. For those extending beyond five years, amounts beyond the first five years will be reported at both remaining face value of the income and at discounted present value of the remaining income stream.

Wholly Charitable Trusts Administered by Others are trusts held for the benefit of the University/Foundation where the principal is invested and the income is distributed to the University/Foundation. All interests in income and principal are irrevocably dedicated to charitable purposes. This trust is created as a free-standing entity. The fair market value of the assets, or a portion, of such a trust administered by an outside fiduciary will be counted in the "gifts and pledges" section of the campaign for the year in which the trust is established—provided that the University/Foundation has an irrevocable right to all or a predetermined portion of the income from the trust. If less than the entire income is to be distributed, the amount to be reported is the amount of the income to be distributed to the University/Foundation over the total income (or the stated percentage to be distributed, if the trust terms spell this out as a percentage) multiplied by the value of the trust assets. The income of the trust is thereafter treated as endowment income and does not appear in gifts reports. In all cases, these amounts will be defined for inclusion in campaign totals and Raisers Edge by the Planned Giving Director at Tennessee Tech.

Testamentary Pledge Commitments will be reported annually as follows: (1) The commitment must have a specified amount or percentage of the estate stated in the will based on a credible estimate of the future value of the estate at the time of commitment. (2) Verification and documentation of the commitment must be completed. (3) The amount specified or estimated will be reported at both the discounted present value and at face value in the "deferred gifts" portion of campaign reports. In all cases, these amounts will be defined for inclusion in Raisers Edge by the Planned Giving Director at Tennessee Tech.

Gifts of stock or other securities. All gifts of stock or other securities shall be coordinated through the Office of Business and Fiscal Affairs and University Advancement. Before securities can become the property of any University/Foundation entity, the donor shall sign and have notarized specific documentation or authorize his/her broker to electronically transfer the stock to the TTU Foundation. A stock certificate must be properly endorsed on the back, or an IRREVOCABLE STOCK OR BOND POWER form signed. Also a LETTER OF AUTHORIZATION must be properly signed and included with the stock certificate transmittal.

The date of gift for stock or other securities is the date that the donor relinquishes control of the stock. The University/Foundation's valuation will be calculated for gift credit for donor recognition purposes only as the average between the "high" and the "low" trade on the date a donor unconditionally delivers or mails a properly endorsed stock certificate to the University/Foundation. When a stock certificate is mailed, the postmark date of the last item relevant to the transfer will serve as the date of the gift. Wire transfers are credited on the date of transfer to the University/Foundation's account; not the date a donor authorizes his/her broker to make the transfer. The date printed on a certificate reissued in the TTU Foundation's name at a donor's direction would be the gift date. . NO EXCEPTIONS MAY BE MADE TO THIS VALUATION POLICY. Whether the securities are held or sold (and the amount of the sale) is not pertinent in valuing the gift. Copies of any correspondence relative to a stock gift, the stock certificate(s) and appropriate transfer forms, should be attached to a completed Stock Gift Report Form. After all signatures are obtained, the green copy will be sent to the appropriate development officer and the yellow copy to the benefiting department. Acknowledgment letters will be processed by the GRSC. The responsible development officer should contact the Director of Advancement Services or the Vice President for University Advancement for completion of stock transactions. Stock certificates must be delivered to the University's Business Office. Stock donated to the TTU Foundation will be sold immediately.

No receipts will be issued by the University/Foundation for gifts of stock. Acknowledgement letters will be processed as appropriate. The donor should be advised to consult with his/her financial planner to determine any tax implications for a gift of stock or other securities.

Year-end gifts. The Tennessee Technological University (TTU) Foundation is a tax-exempt corporation under Subsection 501(c)(3) of the Internal Revenue Service Code. Tennessee Technological University was established under the State University and Community college System of Tennessee under Chapter 838 of the Tennessee Public Acts of 1972. Contributions to the University are tax deductible as provided under Section 170 of the Internal Revenue code. All gifts to the above entities are approved deductions according to the schedules established under income tax regulations.

A great number of gifts are made to charitable institutions in December. The University/Foundation usually shows "process date" on gifts receipts. Since the offices close for an extended period in December, the receipt's process date would be many days different from the actual gift date. Therefore, during the first 10 days after the holidays, process date will not be listed on receipts. For gifts of cash/check that are postmarked on or before December 31st, the date will be entered as the postmark date.

While a donor should be advised to consult with their tax preparer to determine the tax consequences of a donation, the date delivered or mailed is generally recognized as the gift date. For items sent via third parties, like FedEx and UPS, the gift date is the date the donee organization signs for the package, not the date it was sent (a donor can recall items "mailed" this way until the donee has signed--thus the item is still in their control). For gifts by check, postmark rules apply despite the fact that taxpayers could hypothetically stop payment on the check and negate the actual gift. {Caution: postdated checks are not deductible when hand delivered or mailed. A postdated check is a promise to pay in the future and, thus, not deductible at time of delivery.}

Gifts by credit card are deductible in the year when the charges are made on the card-owner's account (transaction must be posted by the credit card company). This is true even if the credit-card bill is not paid by the donor until the next year. The date of a credit card gift is the date shown on the donor's credit card statement; therefore, donors should either notify the University/Foundation by mid-December if they want to authorize a credit card gift before year end; or they may choose to go to TTU's secure website and enter their gift by December 31st.

The date of gift for stock or other securities is the date that the donor relinquishes control of the stock. The date printed on a stock certificate reissued in the TTU Foundation's name at a donor's direction would be the gift date. If the donor mails a certificate the gift date is the later of two postmarks for the certificate and stock power. If DTCed (electronically transferred), it is the date of DTC and not the date the donor told their broker to transfer the gift. For the gift to be consummated the stock must be registered in the donee's name or in the control of the donee's legal agent. {Possible stock electronic transfer issue: Stocks are frequently transferred by electronic delivery. For instance, stocks are usually held in "street accounts" with financial services firms. While a taxpayer may irrevocably instruct his or her broker to transfer the stock to a charity, the gift is not complete until the stock is delivered to the charity's account. This means that the gift date for tax purposes may be days and possibly even weeks after the taxpayer's instructions to transfer. This poses a potential problem to last minute charitable contributions.}

Tax exempt status of gifts to the University/Foundation. While gifts are to be made to the Tennessee Tech Foundation, occasionally they may be accepted by the University. In addition to philanthropic motivation for gifts to the University, donors are permitted to take charitable contribution deductions (deductions allowed with respect to a charitable contribution) on Federal tax returns to the extent permitted by Treasury Department regulations. The basis for this deduction is the fact that Tennessee Technological University is an arm of the State of Tennessee, and Section 170-(c)(1) of the Internal Revenue Code is the authority for such qualification. The Tennessee Tech Foundation is a separately registered charity 501 (c)(3). For the transfer of funds to the University to qualify as a "gift," the funds must be for the exclusive use of, and under the control of, the University. For example, a transfer by a donor to fund a scholarship for a designated student or for the purpose of benefiting a designated third party is not a gift to the University, but rather a gift to the student or other third party. Such funds for the benefit of specially named students or third parties may not be accounted for as "gifts" to the University. They must be directly credited to the designated student's account or be credited to an Agency Account for disposition in accordance with the transferor's instructions.

As a result of regulations finalized in December 1996, the IRS now places the burden for tax documentation for charitable gifts on the beneficiaries of these gifts. In addition, the rulings also dictate the reporting requirements for so-called quid pro quo gifts where donors, as a result of their gifts, receive benefits/privileges in return. We must be sure in all areas that the University's receipts do not report payments that include some benefit to the donor as totally tax deductible contributions, if in fact they are quid pro quo contributions. The fair market value of benefits/privileges, with the exception of certain minimal annual benefits, must be considered and reported to the donor for tax purposes and documentation.

Receipts must accurately reflect separate amounts for gifts and premiums. The GRSC does not have information relative to gifts and premiums; therefore, individual units must define whether goods or services were provided each time a transmittal/deposit form is completed. If goods or privileges were involved, then the fair market value must be determined and reflected on the cash deposit form along with gift amounts for receipts. The IRS has defined fair market value for athletics events seating privileges; each unit should define and justify the fair market value for other items/privileges. For audit trails, complete information and calculations of each transaction should be detailed either as a note on the transmittal or in a memo thereto attached. Failure to do this could result in penalties and embarrassment for the University and its donors. "Charities that knowingly provide false written substantiation to contributors may be subject to penalties under IRC 6701, aiding and abetting an understatement of tax liabilities."

Federal Register, Vol. 61, No. 242, Page 65947 states the quid pro quo aspects of this law: "A deduction is not allowed for a payment to charity in consideration for goods or services except to the extent the amount of the payment exceeds the fair market value of the goods or services. In addition a deduction is not allowed unless the taxpayer intends to make a contribution. . . a payment (should) be treated as made in consideration for goods or services if the donee organization expects to provide and does provide services of which the donor has been informed. . . .When a donor's contribution is made in response to an express promise of a benefit the donor generally will have an expectation of a quid pro quo. A donor may also have an expectation of a quid pro quo when the donor makes a contribution with knowledge that the charitable donee has conferred a benefit on other donors making comparable contributions."

Page 65952 defines: "Goods or services means cash, property, services, benefits, and privileges. . . . Goods or services a donee organization provides in consideration for a payment by a taxpayer include goods or services provided in a year other than the year in which the taxpayer makes the payment to the donee organization" as well as those received in the same year as the gift. The University is required by law to make a "good faith" estimate of the fair market value of goods and services and to document the premiums on receipts. Minimal annual benefits--defined annually by the Internal Revenue Service--are allowed without receipt documentation.

Federal Register, Vol. 61, No. 242, Page 65948 further states: "A deduction in the full amount of a taxpayer's payment may be allowed, however, if the taxpayer properly rejects the right." One example shown in IRS Publication 1391:

"Example 7: In support of its summer festival program of 10 free public concerts, the M Symphony, a charitable organization, mails out brochures soliciting contributions from its patrons. The brochure recites the purposes and activities of the organization, and as an inducement to contributors states that:

"A contribution of $20 entitles the donor to festival membership for the season and free admission to the premiere showing of the motion picture * * * starring * * * and * * *.

Cocktails--7:00 P.M. Curtain--8:15 P.M.

This special premiere performance is not open to the public.

Your contribution will benefit an important community function; it also entitles you to choice seats for all summer festival concerts and events."

"The envelope furnished for mailing in payments contains the following:

Enclosed is my tax-deductible membership contribution to the M

Symphony summer concert program in the amount of $______.

___ Send me ____ tickets to the May 1 premiere performance.

___ I do not desire to attend the special premiere performance for festival members, but I am enclosing my contribution."

"A taxpayer mails in a payment of $20, indicating on the envelope form that he desires a ticket to the premiere showing of the film."

"No part of the payment is deductible as a charitable contribution. Payment of the $20 entitles an individual not only to the privilege of attending the cocktail party and the premiere showing of the film, but also the privilege of choice reserved seats for the summer festival concerts. Under the circumstances, no part of the payment qualifies as a gift, since there is no showing that the payment exceeds the fair market value of the privileges involved. Even if a contributor indicates he does not desire to attend the cocktail party and premiere showing of the film, it would still be incorrect for the organization to characterize the $20 payment as a deductible charitable contribution, since under these circumstances, the fair market value of the privilege of having choice reserved seats for attending the concerts would in all likelihood, exceed the amount of the payment. However, if the taxpayer wishes to support the M Symphony, and advises the organization that he does not desire the ticket to the premiere and does not want seats reserved for him, the amount contributed to M is deductible as a charitable contribution."

The quid pro quo requirement applies to all annual gifts over $75 to the University/Foundation, except for privileges at Athletic events. The IRS has determined fair market value for these privileges: twenty percent of the amount paid for the right to purchase tickets for seating at college or university athletic events is treated as a good faith estimate of the fair market value of this right."

IRS Publication 526, Page 3 tells taxpayers: "If you make a payment to, or for the benefit of, a college or university and as a result, you receive the right to buy tickets to an athletic event in the athletic stadium of the college or university, you can deduct 80% of the payment as a charitable contribution. If any part of your payment is for tickets (rather than the right to buy tickets), that part is not deductible. . .

Example 1. You pay $300 a year for membership in an athletic scholarship program maintained by a university (a qualified organization). The only benefit of membership is that you have the right to buy one season ticket for a seat in a designated area of the stadium at the university's home football games. You can deduct $240 (80% of $300) as a charitable contribution.

Example 2. Assume the same facts as in Example 1 except that your $300 payment included the purchase of one season ticket for the stated ticket price of $120. You must subtract the usual price of a ticket ($120) from your $300 payment. The result is $180. $144 (80% of $180) is your deductible charitable contribution."

Anonymous gifts.

Donor(s) and/or gifts may be anonymous. An individual gift may be coded as "anonymous" within Raisers Edge although other gifts on the donor's record are not anonymous. A donor's request for personal anonymity will be honored to the extent possible within the limits of the law. Anonymous gifts are defined and will be handled as follows:

Truly anonymous means that the donor wants no recognition, receipt, or gift record now or in the future. Such donors should ask their bank to submit a check for them so that no University employee will know their identity. All truly anonymous gifts will be entered into the same record to be called "TRULY ANONYMOUS" in Raisers Edge.

Designated anonymous means that the donor wants receipts for tax purposes (an identifiable record in Raisers Edge), and/or may want recognition in a giving club now or in the future. These gifts must be processed through the Vice President for University Advancement's office. Donors should be asked to provide a cashier's check, or have their bank send a check, so accounting personnel will not know their identity. The Associate Director of Advancement Services will be asked to assign an anonymous identification number and maintain a confidential log with the corresponding donor names. The anonymous identification number will be noted on the check and a secretary will be asked to complete a deposit/forms and transmit the information to the GRSC. Receipts will be handled confidentially for filing or mailing, depending on the desires of the donor. Donors, or development officers receiving designated anonymous gifts, should deliver the gift to the Director, Advancement Services. Designated anonymous donors desiring a receipt should contact the Director or Associate Director of Advancement Services.

Gifts receipts policy

Official tax receipts will be processed for gifts of cash with appropriate statements about no services or goods provided; or premiums will be listed. The donor copy of the receipt will be mailed, along with an acknowledgment letter or card, to the donor.

No receipts for gifts-in-kind, stock or bonds will be processed. Any possible tax implications for a gift-in-kind must be established by the donor and/or the donor's tax advisor. An acknowledgment letter or card describing the article(s) donated will be mailed to the donor.

No receipts will be provided for gifts of service or rent free use of property. The IRS is very specific in that Publication 526, page 6 states "You cannot deduct the value of your time or services." No deduction is allowed for the right to use property (Newkirk, 2-2[b]). Final IRS regulations issued December 1996, placed the burden for tax substantiation for charitable gifts on the receiving charity. It is essential not to even imply that a service may be tax deductible, and to differentiate between gifts that are and those that are not deductible. Service gifts or rent free use of property, under current IRS regulations, are not tax deductible.

Pledges for gifts.

Donor commitments (pledges, promises and/or expectancies) may be entered into Raisers Edge to help donors plan their gifts and University Advancement to understand and monitor donor's intent.

Pledges are recorded in Raisers Edge for stewardship purposes when full payment is expected at some defined point in the future. A pledge is a promise, documented with the party making the pledge, to provide gifts over a specified period of time. These pledges commit to a specific dollar amount that will be paid according to a fixed time schedule; and the standard pledge/expectancy card should be completed before any pledge is entered into Raisers Edge for multi-year pledges. If documentation other than the standard pledge/expectancy card is used the following information must be provided to the GRSC before acceptance and entry into Raisers' Edge: (1) the name of the donor(s)--if a company pledge, should anyone be soft credited? (2) the total dollar amount of the pledge (and how much the donor will personally pay against the pledge); (3) if appropriate, the amount of the matching gift "pledge;" (4) the expected date of the first payment; (5) the frequency of expected payments thereafter (monthly, quarterly, semi-annually, annually); (6) the amount the donor wants to pay each time; (7) the purpose/gift designation; (8) the donor's signature or at least verbal confirmation of the amount to a development officer with then the DO's signature.

Pledge confirmation letters are mailed to donors by the GRSC upon pledge entry into Raisers' Edge. This helps assure that we understood and complied with the donor's intent.

Gifts and/or pledges may be counted to only one campaign.

Donors should be counseled at pledge origination as to the significance of pledge designations. When the donor designates a specific account, the University and College or unit consider this commitment and plan accordingly. Therefore, care must be taken at pledge origination to define the donor's interest and intent. All gifts from a donor with an outstanding pledge will be credited against the pledge unless the donor has submitted a request to place the gift in a different account. Pledges should not be redirected to a different account after all documentation has been received and entered into Raisers Edge. Future pledges from persons with previous uncollectible pledges should be evaluated with extreme care before acceptance of a new pledge.

The GRSC has established files in Raisers Edge for tracking and stewarding pledges. The GRSC may, with appropriate documentation, also input data for promises (no donor-signed pledge documentation available) received during annual fundraising drives. Promises will be written off if not paid after one year.

Pledges received at the same time as a payment for that pledge must be transported to the GRSC together, and attention called on the deposit form so that the pledge can be entered into Raisers Edge before the payment. [Exception: If a pledge card is received along with funds to completely satisfy the pledge, the pledge will not be entered into Raisers Edge. The funds will be entered as a gift.]

Annual pledge reports will be generated as of June 30th--sorted by University pledges, Foundation pledges, Agency pledges (for Agricultural Foundation pledges), and expectancies, and will include donor's name and constituent identification number, total amount of pledge, and paid-to-date amount.

Pledge reminders will be generated for all multiple year pledges. Pledge reminders can be set for quarterly, semi-annual, annual, or lump sum payment. If no schedule for payments is defined and forwarded to the GRSC at pledge origination, a reminder will be sent one month before the one-year anniversary date of the pledge (if no interim payment has been received) and annually thereafter.

Changes/modifications, or extensions to the duration, of pledges should not be made after the pledge has been entered into Raisers Edge. Any exception requires the approval of the Vice President for University Advancement. To request an exception, written communication requesting such a change must be be provided.

Development officers should work with donors and make every effort to establish a beneficiary(ies), i.e., benefiting account(s), before a pledge is accepted. Exceptions must be cleared with the Vice President for University Advancement.

A Payroll Deduction Form is a document for a method of payment; not a pledge document. Forms will not be entered as a specific dollar amount pledge on donor records unless appropriate pledge documentation is also completed. All copies of Payroll Deduction forms should be delivered to the GRSC after appropriate signatures are obtained. GRSC staff will verify accounts/fund codes; note the date received and take to Personnel/Payroll; and distribute copies as appropriate.

Scholarships/endowments for specific purposes through Letters of Agreement do not always constitute a pledge to be put into Raisers Edge. Pledges will be entered into Raisers Edge only if an individual, or specific group with defined individuals with responsibility for fulfilling specific dollar amounts, over a specified time period is identified and the development officer has either also completed a pledge/expectancy form, or requested that a pledge be entered, so that a pledge acknowledgement letter may been processed. Any gift to endowments/scholarships when there is not individual(s) accountability will count toward fulfillment of the $10,000 minimum to endow; however interest or dividends accrued will not count.

After all documentation has been completed and entered into Raisers Edge, pledges may be changed only in the case of data input/employee error. An uncollectible pledge will be written off as uncollectible and shown on the donor's record on Raisers Edge. If an error was made at initiation by staff, they will note in memo form and request a correction to the Raisers Edge record.

A change in account number does not constitute a change to a pledge if the new account number is for the exact same purpose as the original gift/pledge.

Under no circumstances may an existing pledge or payment be modified without written documentation. This may come in the form of a letter from the donor or a copy of a letter to the donor from a member of the development staff. The only exceptions to this policy will be for yearly write-offs of annual pledges (promises) or corrections of errors made by GRSC staff.

Original pledge documentation must be forwarded to the GRSC.

An expectancy is a gift expected either because of a person's will, insurance policy or trust. Copies of wills, insurance policies, trusts should be forwarded--the originals of these must be secured with the Business Office--along with a Pledge/Expectancy Form to the GRSC in a timely fashion.

Pledges, promises and/or expectancies are entered into Raisers Edge to help donors plan their gifts and University Advancement to monitor and direct donor's intent.

Data confidentiality. Biographical information and financial records stored in any computer data base, electronic device, or in any hard copy files will be treated as sensitive and confidential information.

T.C.A. section 10-7-504 states that directory information, i.e., "name, age, address, dates of attendance," may be "released to any person, agency, or the public. See also Tennessee Tech Human Resources policy HR 29, Copying and Inspecting Public Records. Tennessee Tech has defined specific offices (office of record) to release directory information if appropriate. The office of record/repository for alumni and/or donor information at Tennessee Tech is Advancement Services. All requests for information from non-University employees must be forwarded to the Gifts Records Stewardship Center/Advancement Services.

All gifts/records information is to be treated as confidential by all University employees. Only those required to have access to such information to fulfill their accounting, fund-raising, etc. responsibilities will be authorized to access hard copy and/or computer files. Each employee must sign the Confidentiality Agreement Form before access is granted.

Conflicts of Interest

The following outlines standards in regard to conflict of interest by those involved with seeking gifts for the benefit of the University, private consulting arrangements by development officers employed by the University, and activities for other charities by Tennessee Technological University development officers. All University employees shall avoid any conflicts of interest in relations with donors or prospects.

Policy. No development officer or other employee of the University will accept favors for personal gain from an alumni, donor, or prospective donor, in connection with fundraising, or cultivation of donors or prospective donors, or for appreciation of services performed on the University's time or at University sponsored events or activities.

Development officers providing consulting services to private clients shall do so only on their personal time according to the University's policy on outside employment and extra compensation. Consulting for pay with clients with a constituency that significantly overlaps that of the University is considered a conflict of interest.

Development officers who wish to provide volunteer fundraising solicitation or consulting services or to serve on a fundraising committee of any not-for-profit entity with a constituency that significantly overlaps that of the University shall seek prior approval from the Vice President for University Advancement.

Procedure. A development officer who wishes to serve as a volunteer fund-raiser or consultant or as a member of a fundraising committee for another organization shall submit a request in writing to the Vice President for University Advancement prior to accepting the appointment.