SOLICITATION, ACCEPTANCE, AND ADMINISTRATION

OF GIFTS TO THE UNIVERSITY

I. REFERENCES

A. California State Constitution.

B. By—Laws and Standing Orders of The Regents.

C. Delegations of Authority, PPM 10—5 and Supplement VII.

D. Policy and Procedure Manual for Gifts and Endowments.

E. Policy and Procedure Manual for Contracts and Grants.

II. RELATED POLICIES

UCSD Policy and Procedure Manual (PPM)

150—33 Patent Policy

410—2 Solicitation, Acceptance and Administration of Gifts to the UC San Diego Foundation

III. AUTHORITY

In Article IX, Section 9, of the California State Constitution The Regents of the University of California, a California public corporation, is empowered:

“...to take and hold, either by purchase or by donation, or gift, testamentary or otherwise, or in any manner, without restriction, all real and personal property for, the benefit of the University or incidentally to its conduct.”

Except as provided in Standing Order 100.4 (cc), gifts or grants offered to the University, or to the Corporation for the benefit of the University shall be accepted only by the Board or with its express authority.

The California State Constitution empowers The Regents to delegate to others such authority or functions as The Regents may deem necessary. Pursuant to this authority, the regental corporation has delegated to the President certain authority with regard to solicitation, acceptance, and administration of gifts. Also pursuant to the Standing Orders of The Regents, the President is empowered to delegate most of his duties provided for therein; thus by memorandum of July 23, 1976, the President delegated to Chancellors, and Vice Presidents, the Dean of University Extension, and the University Dean of Agriculture certain authority with regard to solicitation, acceptance, and administration of gifts.

IV. POLICY

It is the policy of the San Diego Campus and the Office of Development to record all gifts received from individuals and other sources directly to The Regents, to issue appropriate receipts and/or acknowledgements to the donors, to officially accept such gifts or private grants on behalf of The Regents, to initiate and maintain such records as will clearly set forth the designation and restriction of each gift, and to ensure compliance with the provisions of each gift.

V. PROCEDURES

A. Types of Gifts

The University receives gifts of many different types because of the multiplicity of its activities. Uniqueness, per se, is not a deterrent to acceptance if the nature and terms of the gift are appropriate to the purposes of the University. The most common types and salient points which are peculiar to the recording and reporting of the various types of gifts (more expressly defined in Exhibit A) are listed below;

1. Monetary (currency, coin, checks, money orders, bank drafts, etc.).

2.* Securities (stocks and bonds).

3* Gifts—in—Kind.

4* Pledges.

5. Real Property.

6. Inventions and Patents.

7. Mineral Rights.

8. Fractional or Remainder Interests.

9. Life Income Plans.

10. Bequests and Devises.

NOTE: Gifts preceded by an asterisk(*) are covered in this procedure. For information on

processing other types of gifts, contact Office of Development.

1. Monetary

In regard to gifts of currency, coin, checks, money orders, bank drafts, etc., special precautions should be taken. CASH should be delivered immediately to the Office of Development on campus or the Planning Office at the UC Medical Center, San Diego. All other checks, bank drafts, money orders, etc., should be forwarded to the Office of Development with proper documentation. (See Exhibit B.)

2. Securities

IMMEDIATELY take to Office of Development.

As set forth in the By-Laws of The Regents, the Treasurer is the official custodian of all

securities belonging to the Corporation (University). The Office of Development should be

consulted as to governing procedures for handling gifts of this nature. In the absence of

special circumstances, the following procedures normally apply:

Securities issued in the name of the donor should be transmitted to the Office of Development and be accompanied by a stock power signed in blank by the donor and sent in a separate envelope from the stock certificate. In the event the donor wishes to have the stock transferred on the books of the corporation prior to transmittal to the University, please request that the name of the nominee be RUCAL rather than The Regents, University of California. Donors of securities should be requested to provide a guarantee of their signature, either by their bank or broker, at the time of transfer of securities to the University. While most donors will appreciate the necessity of this safeguard, it may be that some will be reluctant to comply. In such case, the stock certificate and/or stock power should be forwarded to the Treasurer's Office by the Director of Development, certifying knowledge of the donor and the validity of the donor's signature together with the letter of gift which also would bear the donor's signature. Securities are valued as of the date they are received on the local campus. (This may not, however, be the amount received by the office, college, department or unit.) This date should be clearly indicated in the campus letter transmitting the securities to the Treasurer's Office.

3. Gifts—in—Kind

Departments and/or units to have custody of gifts-in-kind should be consulted before this type

of gift is accepted, and proposals should be reviewed by the Vice Chancellor—Administration.

Special care must be taken to ensure that acceptance will not involve financial commitments

in excess of budgeted items, or other obligations disproportionate to the usefulness of the gift.

Consideration should be given to cost of maintenance, cataloging, crating, delivery, insurance

or display, as well as to space requirements for exhibition or storage.

A fully effective legal transfer of a gift—in—kind, for tax purposes, may be accomplished by a transfer of title by letter or deed—in—gift form (Exhibit C). In addition, the property must be placed under the control of, or in the physical possession of, a duly authorized representative of the University.

For deduction on income tax, the donor may wish to secure a professional appraisal. Because the appraisal is used solely for the benefit of the donor, the University deems the securing of such an appraisal to be the donor's personal responsibility. The cost for such appraisal by the donor is also deductible on income tax.

Direct involvement of the University in securing appraisals could result in their accuracy and objectivity being challenged by the Internal Revenue Service. Thus it is in the donor's best interest that the University neither provide directly nor be responsible for securing the services of an appraiser in connection with gifts to the University.

For internal administrative purposes only, it is appropriate to have a qualified member of the University's staff estimate a gift's value. Such an estimate should approximate, as nearly as possible, the market value, and is a useful guide in establishing inventory control and in determining appropriate handling, custody and insurance.

4. Pledges

May be accepted in the same manner and under the same conditions as a gift, and are to be reported on Form UDEV100 (Exhibit B).

NOTE: Pledges do not represent an appropriate source of funding for purposes of bid solicitation

and contract award in connection with construction projects. Reliance on donor's pledge payments to meet actual construction costs in fulfillment of contractual agreements has been deemed impracticable. Additionally, commitments against non-constructive pledges must be specifically approved by Vice Chancellor-Administration.

5. Real Property