Gift Policy

The following gift policy is administered by the Restricted Gifts Committee which is chaired by the Vice President and General Counsel and includes the Vice President for Development and Alumni Relations, and the Vice President for Financial Affairs or their designees. For gifts involving the Medical Center, the committee shall request approval from the Provost of the Medical Campus. Prior to approving the acceptance of a restricted gift, the committee will consider any legal and ethical concerns, applicable federal and state regulations and the University’s own policies and priorities. Under no circumstances should a restricted gift be accepted without approval from the Restricted Gifts Committee. To place a restricted gift’s request on the Restricted Gifts Committee’s agenda, contact Donor Relations in the Office of Development and Alumni Relations (3-6347).

The University recognizes and respects the right of a donor to channel gifts to a favored, restricted purpose, and the restriction of any gift accepted by the University will be implemented faithfully. In recognition, however, of the problems for the University and the donor often implicit in restricted gifts, the following policies apply:

1. Gifts that necessitate illegal discriminatory use or administration violate University policy and will not be accepted.
2. If consistent with the donor’s intention, any restriction should be couched in precatory, non-legally-binding language.
3. When the terms of any gift are so restricted as to present a serious risk that changed circumstances may render its use extremely difficult or impossible, donors should be encouraged to include language that will permit an alternative use.
4. A restriction on the use or administration of a gift keyed to the incumbency of any individual in a University post ordinarily will not be accepted.
5. Gifts whose administration and use are to be directed by donors or other third parties ordinarily will not be accepted. All gifts solicited in the name of, and treated as a gift to the University shall be received and expended by the University through regular channels.
6. Gifts to support scholarships, fellowships, loans and other forms of financial aid to students (1) should not be limited to relatives or descendants of the donor and (2) to the fullest extent possible should avoid restrictions as to interest rates or conditions for the repayment of loans that would impair desirable flexibility in the administration of University resources.
7. Gifts to establish an endowed professorship are governed by Boston University Guidelines for Establishing an Endowed Professorship (set forth below.)

Non-cash gifts are generally known as “gifts in kind” and may include art, antiques, equipment, inventory, real estate, and securities. Such gifts shall be acknowledged in terms of a precise description of the property, but no appraisal or evaluation shall be made by the University. In order to comply with University and Internal Revenue Service reporting requirements, prior approval should be obtained from the Restricted Gift Committee when any gift in kind, except securities, is contemplated, especially where the gift may involve obligations or liability that the concerned department’s existing budget cannot absorb. Gifts of securities must be processed through the Office of the Treasurer. Gifts of real estate must be approved by the Vice President for Financial Affairs.

Any member of the faculty or staff who is contacted by a donor about making a gift-in-kind should follow the procedures outlined below.

1. Following notification of a donor’s intent to make a gift-in-kind, the faculty or staff representative should contact the dean of the college or school for which the gift is intended to request the dean’s approval.
2. After the Dean has approved the gift-in-kind, the faculty or staff representative should contact the Office of Donor Relations (3-6347) to facilitate the approval of the Restricted Gifts Committee.
3. The Associate Director of Donor Relations oversees the process of accepting gifts-in-kind and works with the Offices of the Comptroller and the General Counsel to ensure that the gift-in-kind is properly documented, accepted, recorded, and acknowledged by the appropriate University officials.
4. After the gift-in-kind is approved by the Restricted Gifts Committee and received, the Associate Director of Donor Relations notifies the Office of Gifts and Records and the property is recorded as a permanent gift to Boston University. Upon notification to the Office of Procurement and Property Management, the gift-in-kind becomes a permanent part of the Boston University inventory.
5. Once a gift-in-kind has been approved and processed, it will be acknowledged by appropriate University officials (President, Provost, Dean, Vice President for Development and Alumni Relations, or Associate Director of Donor Relations).

Donors who contribute gifts-in-kind may be required to complete IRS Form 8283. The Associate Director of Donor Relations will forward this form, with instructions, to the donor. The valuation of a gift-in-kind is the donor’s responsibility; Boston University does not assign a value to a gift-in-kind and does not determine its value for tax purposes. IRS regulations generally require an independent appraisal for gifts of $5,000 or more. It is the responsibility of the donor to arrange for the appraisal; the University should be given a copy for its records.

In keeping with University policy, written acknowledgments of the receipt of gifts-in-kind should not mention the value of the gift, even though the gift has been appraised.

All gifts-in-kind that meet the University’s capitalization policy will be entered into the University’s property management system. To that end all gifts of equipment must be documented in detail.

The guidelines for accepting gifts-in-kind to Boston University are established to ensure that gifts will be properly recorded, insured, acknowledged and maintained on the University’s inventory.

Prospect Management

In order to avoid duplicative and competitive solicitations of large gifts from individuals, foundations or corporations, the Office of Development and Alumni Relations, in conjunction with the Office of Sponsored Programs, coordinates and monitors prospect solicitations through the Prospect Management System. Any member of the University community wishing to raise money for a program or project from private sources (individuals, corporations, or foundations) must receive approval before an approach is made:

1. The Director of Research in the Office of the Development and Alumni Relations (3-6299) should be contacted before any individual, corporation or family foundation is approached.
2. Corporations and Foundations Relations in the Office of the Development and Alumni Relations (3-7414) should be contacted before professionally-managed foundations are approached.

Boston University Guidelines for Establishing an Endowed Professorship

The schools and colleges of Boston University are encouraged to identify opportunities for establishing endowed professorships, which are the only approved vehicles for naming faculty positions. Endowed professorships enhance the University’s ability to recruit and retain outstanding faculty. They also provide important support for the University’s unrestricted budget.

When a school or college desires to establish an endowed professorship, it should submit a written proposal to the University Restricted Gifts Committee at the Office of Development and Alumni Relations. The proposal should include:

1. A description of the proposed professorship, including any special requirements such as laboratories, equipment, research staff, etc.;
2. An assessment of the fund-raising potential;
3. A development plan for the fund-raising effort; and
4. A proposed alternative use for the funds raised, should the required funding level not be achieved.

Schools and colleges should work closely with the Office of Development and Alumni Relations in preparing proposals. Once these have been reviewed and approved by the Restricted Gifts Committee, they will be sent to the President for his review and subsequent presentation to the Board of Trustees. Upon approval from the Board of Trustees, fund-raising may proceed in accordance with the development plan, and contributions toward the professorship may be accepted.

No University employee is authorized to accept a contribution toward an endowed professorship until the proposal for the professorship has been reviewed and approved as stipulated above.

As a general rule, the sum of $2 million in current funds is required to endow a professorship. In some cases, such as where additional facilities or staff are required to support the professorship, the President may determine that a higher level of funding is appropriate. The level of required funding may also be adjusted from time to time as economic conditions change. The feasibility of raising the required endowment will be carefully assessed when the President reviews the proposal to establish an endowed professorship.

For a period of up to five years, installment payments may be made until the endowment for the professorship reaches $2 million. Under these circumstances, the income from the fund will be accumulated and added to the principal. When the University receives the initial payment, the named professorship will be established and will continue in the absence of a default in subsequent installment payments, until the professorship is fully funded in the amount of $2 million, at which time the professorship will become permanently established and an appointment can be made. At that time, the Office of the Comptroller will establish an income account so that subsequent income from the endowment may be spent in accordance with the restrictions on the fund.

In accordance with customary procedures, all appointments to a professorship will be submitted to the Board of Trustees for review and approval.