UC Gift Acceptance Policies
Gifts (restricted, unrestricted, endowments, etc.) are normally accompanied by a letter or form from the donor that specifies the use to which the gift is to be put. Ideally, the gift letter should include the following points for ease in administering the fund:
- Clearly state the donor's commitment (not intention) to make a gift;
- Provide a brief description of the gift (e.g., cash, shares of stock, personal property);
- Declare the gift is irrevocable; and
- Identify the purpose(s) for which the gift will be used (this may include the campus designation and the type of fund [i.e., current-use, endowment]).
The university's stewardship of a gift will be aided by a gift agreement crafted using the simplest, most straight-forward terms, preferably indicating that the administration of the gift will be conducted according to university policy. Please carefully consider and consult on the obligations that the university may be making to build, maintain, and name facilities and programs - especially commitments in perpetuity. Each time a gift agreement stipulates a unique committee structure or other unique administrative requirement, the cost of gift administration increases, as do the chances that at some future time there will be a misstep in the handling of that particular gift. If a gift opportunity involves an unusual circumstance or unique issues, staff are encouraged to contact the ANR Office of Development Services at (510) 987-9139 or firstname.lastname@example.org.
Named Endowment and Gift Opportunities
Named endowed funds provide the benefactor an opportunity to support ANR programs in perpetuity. Each endowed fund bears the name conferred upon it by the donor. The enduring and visible achievements and accomplishments emanating from the gift fund honor the donor for making it possible. Named funds are typically named in honor of the donor, but may also honor, for example, a family member or friend of the donor or outstanding academic personnel.
Named Endowment Fund: Named endowed funds may be established to support a wide range of donor interests. The income generated by an endowment may be designated to support a wide variety of programs, including research, existing or the establishment of new programs, scholarships, internships, symposia, acquisition of new equipment, or facility maintenance and improvements. A minimum gift of $10,000 is required to establish an endowed fund. The actual size of the fund is dependent upon the objectives which the donor seeks to accomplish.
A Fund Functioning as an Endowment (FFE) allows the gift to be spent in its entirety or held as a true endowment for a specified term of years. All or part of the principal of an FFE may be spent at any time for the purpose of the fund as designated by the donor.
Named Positions: One of the most effective tools the university has in recruiting and retaining outstanding faculty and staff are named positions. Endowed appointments are among the most highly regarded academic positions within the university. Besides conferring professional distinction, these positions provide added financial support for the research, teaching, and outreach activities of the incumbent. Income generated by an endowment may be used to support salary, staff, program enhancements, travel, and equipment purchases, as well as provide a source of matching funds for other contributions. Many times these funds provide seed money for the pursuit of new program opportunities.
Donors to ANR may establish an endowed adviser, endowed specialist, endowed academic administrator or other academic or administrative position to support applied research, or educational and outreach activities. A minimum commitment of $350,000 is necessary to establish a named position.
Named Awards: Named awards improve and enhance applied research, education, and outreach activities of ANR academic personnel. Additionally, named awards allow ANR to recognize outstanding academic staff in specific disciplines.
Naming of Properties and Programs: Consideration of proposed named properties, facilities or programs for a donor or donor's designee will include:
- The significance of the proposed gift as it relates to the realization and/or success of the project or to the enhancement of the project's usefulness to the University;
- The urgency or need for the project or for the support funds for the project;
- The eminence of the individual whose name is proposed; and
- The individual's relationship to the university.
Generally, the gift shall be an amount which will support the total cost of the project to be named or provide funding for that portion of the total cost which would not have been available from another source (such as federal or state appropriations or bond issues).
The Office of the Treasurer of The Regents is responsible for managing investments, cash and external financing for the University of California system. The principal activity of the Treasurer's Office is the management of the system's retirement, defined contribution and endowment funds. The overall investment objective for all funds under management is to maximize real long-term total returns while assuming appropriate levels of risk.
The General Endowment Pool (GEP) is The Regents' primary investment vehicle for endowed funds. The GEP is a balanced portfolio containing equities and fixed-income securities in which all endowment funds participate. Income from the GEP is distributed annually using a target payout rate of 4.75 percent of a 60-month rolling average market value (net of investment management and administrative expenses of 0.04 percent of an average annual market value). The payout is conservative to provide sufficient growth to retain purchasing power over the long-term.
During the past 20 years, the GEP has performed extremely well on a risk-adjusted basis as compared to its peers and balanced fund market indices. The GEP has a proven history of steady payout growth; the payout distributions have grown at an average annual rate of 7.4 percent for the past 20 years - well above the annualized inflation of 3.4 percent. The annualized net total return for the past 20 years through June 30, 2000, was 16.2 percent.
More information on investment funds management by the Treasurer of The Regents is available at http://www.ucop.edu/treasurer.
For more information or assistance regarding University policies and procedures related to the solicitation, acceptance, coordination and administration of private support to ANR, please contact ANR Development Services at (510) 987-9139 or email@example.com, or visit http://www.ucop.edu/institutional-advancement/policies-and-guidelines/fundraising/index.html.