Planned Giving

Policy Statement

By offering and encouraging planned gifts, Adelphi University seeks to enable a broader group of supporters to make more significant gifts to the institution, either during their lifetime or as part of an estate plan, than they could otherwise make through outright gifts.

Reason for Policy

The purpose of this policy is to provide the Board of Trustees and Adelphi University employees and staff of the Office of the Vice President of University Advancement with a set of guidelines to assist them in the solicitation and acceptance of planned gifts.

Who Is Governed by this Policy

Staff

Policy

Corporate, Foundation, and annual giving programs are standard elements of fundraising. Another form of voluntary financial support that has risen in popularity with both donors and institutions is planned giving. It is Adelphi University’s intent to offer an active planned gifts program which will provide donors with an alternative means of giving while furnishing them with an additional source of long-term support. This document establishes the program’s structure and purpose while providing a thorough outline of its policies and administrative guidelines.

A planned gift can be defined, in general, as one legally provided for during the donor’s lifetime, but whose principle benefits are not received by the Institution until some future time, usually the death of the donor and/or other income beneficiaries. Such gifts may be conveyed by any of the following means:

• A Gift by Will
• A Gift by Insurance
• A Life Estate in Personal Residence
• A Charitable Remainder Unitrust or Annuity Trust
• A Pooled Income Fund
• A Tax-Exempt Income Trust
• A Charitable Q-Tip Trust
• A Gift Annuity
• Retirement Plans

Planned giving as a mechanism for philanthropy presents distinct advantages to both the University and the donor. For such a program represents:

• The most promising of all philanthropic fields to cultivate in terms of gift dollars available.
• A unique opportunity to assist the donor through:
  • Offering the opportunity for income, estate tax deductions, and
  • Potentially assuring income to the donor or his/her beneficiaries while at the same time providing a way to support the University, usually at a significant level, and 3. Providing estate-planning assistance through qualified, third party experts, this often leads to bequests not previously planned.

From the standpoint of the donor, planned giving may have greater appeal than other forms of philanthropy because such a gift:

• Offers well-intentioned prospects an opportunity to assist the University when they might not feel financially able, or willing to contribute.
• Utilizes tax laws expressly written for this purpose to reduce the cost of a gift or to increase the size of the gift, which had been contemplated.
• Presents the opportunity to further increase the spendable income, which donors and/or their beneficiaries can enjoy during their lifetimes by minimizing capital gain taxes.
• Provides beneficiaries with sound management of income producing assets to guarantee a source of income throughout their lives, potentially and through third party qualified experts that the donor selects.
• Allows donors to enjoy in their own lifetime a feeling of participation in the University’s continued success due to their generous commitment.

A planned giving program should benefit by:

• Substantially increasing additional funds over a period of years while providing, from investment income, money for worthwhile University projects.
• Stimulating a measurable increase in cash gifts to current giving programs once the planned gift is realized by the University.
• Creating new potential sources of additional planned gifts and other forms of support.
• Growing the number of people who are informed, supportive, and interested in the University.
• Establishing or enhancing the special relationship between the University and the planned gift donor, providing a close bond between them, significantly improving the donor’s potential for further support.

A planned giving program for the University is an effective means of increasing the number and size of gifts from a broad and diverse constituency.

Process of Planned Giving

In order to administer a sound Planned Giving Program for the University, certain agreed upon policies should govern their operation.

A. Primacy of Donor’s Interest

1. In the consideration of any proposed deferred gift, the interest of the donor will come first. No presentation, draft of contract, or recommendation should be urged on the donor that would improperly benefit the University at the expense of the donor’s interest. No agreement should be made between the University and any agency, person or company (through sale, investment, or management) which would knowingly jeopardize or compromise the donor’s interest.
2. The Office of the Vice President of University Advancement, in communication with prospective donors, shall exercise caution in urging the donor to take action. Each representative of the University is obligated, before a gift is made, to instruct the donor to seek third party expert counsel to gather as much information as possible regarding the benefits, limitations, and tax implications with respect to their agreement. In particular, Office of the Vice President of University Advancement representatives will not, at any time, advise donors on the amount of income they may expect to receive or the amount of charitable deduction they may take as a result of their donation to the University.

B. Legal Counsel

1. The University shall seek the advice of legal counsel in all matters pertaining to its Planned Giving Program and shall execute no agreement, contract, trust or other document with any donor or a donor’s legal representative without the advice and consent of legal counsel if the agreement is outside existing guidelines and policies. A prospective donor is to be advised to seek the counsel of their own attorney concerning all aspects of the proposed gift, both orally and in written form. If the donor does not have an attorney, the donor shall be provided with a list of experienced estate planning attorneys for consultation. If the donor chooses not to seek legal counsel, the donor must sign a statement that states that he/she recognizes that they have been advised to seek counsel but have declined to do so.
2. Personal advisory expenses incurred by the donor shall be the responsibility of the donor.

C. Investment Advisors

Donors will have a continuing economic interest in gifts made through Charitable Remainder Trusts. It is preferable that a Fiduciary serve as the trustee of charitable remainder trusts.

D. Confidentiality

Other than discussions pertaining to gifts by members of the Board at Board Meetings and by appropriate committee members, all information concerning the donor must be kept in strict confidence, e.g. names of beneficiaries, amount of gift, size of estate, kinds of investments, unless prior permission for disclosure or partial disclosure is obtained from the donor.

E. Caution on Undue or Extreme Sales Tactics

1. The University shall exercise extreme caution against the use of undue persuasion, influence, or duress when dealing with prospective donors. On the contrary, the task of all Office of the Vice President of University Advancement representatives shall be to inform, serve, guide, and assist in every possible way the donor in fulfilling the donor’s wishes.
2. Prospective donors shall be assured that all personnel do not have and cannot have any possible self-interest in the prospective deferred gift agreement by way of commission or any other emolument.

F. Use of Donation

Donated funds may be designated for a specific purpose selected by the donor and approved by the University. If the donor’s purpose no longer exists, the Board shall have the right to designate the funds to a similar use that corresponds to the intent of the donor. Undesignated donations from deferred gifts and bequests shall be unrestricted unless otherwise designated by the Board.

H. Authorization to Negotiate Agreements

The President, and his/her designee, is authorized to negotiate with any donor all Planned Giving agreements that follow the limitations and the basic format of established policies. Any agreement or trust to be funded by real estate or other assets that are difficult to value, or involve liquidity problems, requires the specific approval of Board.

I. Management of Trusts

Management of all gift annuities, trusts, and charitable remainder trusts shall be in accordance with the policies established by the Finance and Investment Committee. The Board must be kept informed of all information, activity, or correspondence related to or conducted with donors or prospective donors. Decisions concerning purchase and sale of assets and accounting procedures shall be the responsibility of the Board.

Methods of Planned Giving

A variety of means for conveying the planned gift makes it possible for the donor to choose a method best suited to their philanthropic purposes and personal circumstances. The following brief descriptions are of gift types, which will play a part in the growth of the University.

Gifts from the Donor’s Estate

A. Bequests

1. Cash, securities, real estate or property of any description may be bequeathed to the University by a clause in the donor’s Will or by a Codicil added to the Will. The donor using this method retains full control and use of the property during his/her lifetime and may alter or revoke the bequest at any time.
2. At the time of the donor’s death, the bequest qualifies as a charitable deduction for estate tax purposes. The bequest does not, however, provide the donor with any tax advantages during their lifetime. Neither does it provide an assured income for donors or their beneficiaries, as other plans may.
3. The following are recommended clauses that may be used to make a gift to the University through a will. The following clauses are only examples. The donor should contact an attorney for proper legal advice.

Language for Planned Giving Vehicles

General/Percentage Bequest

I give and bequeath                       Dollars ($               ) or percentage of my estate to Adelphi University, a not-for-profit organization incorporated in the State of New York the principal office at 1 South Avenue, Garden City, New York, and its successors forever, for its general purposes.

Specific Bequest

I give, devise, and bequeath all my right, title, and interest in and to (describe the specific property) , to Adelphi University, a not-for-profit organization incorporated in the State of New York the principal office at 1 South Avenue, Garden City, New York, and its successors forever, for its general purposes.

Residuary Estate

I give my residuary estate, which is all the rest, residue, and remainder of my property, real and personal, of every kind and description and wherever located (including all legacies and devises that may for any reason fail to take effect), belonging to me at the time of my death or subject to my disposal by will to Adelphi University, a not-for-profit organization incorporated in the State of New York the principal office at 1 South Avenue, Garden City, New York, and its successors forever, for its general purposes.

Endowment Bequest

I give, devise, and bequeath (describe the specific property or amount) to Adelphi University, a not-for-profit organization incorporated in the State of New York, the principal office at 1 South Avenue, Garden City, New York, and its successors forever, to establish an endowment fund (to be known as the ______ Fund); the principal amount to be invested and the annual income therefrom to be used for the benefit of Adelphi University.

Addition to Endowment Fund

I give, devise and bequeath to Adelphi University, a not-for-profit organization incorporation in the State of New York the principal office at 1 South Avenue, Garden City, New York, and its successors forever, the sum of $ _ Dollars (or otherwise describe the gift) and direct that this bequest be added to the endowment fund of Adelphi University. (Where the bequest takes this form, only the income may be used).

Codicil

Having hereinbefore made my last Will and Testament dated and being of sound mind, I hereby make, publish, and declare the following Codicil thereto: (here insert clause in same form as if it had been included in body of Will). Except as hereinbefore changed, I hereby ratify, confirm, and re-publish my said last Will and Testament.

Office of the Vice President of University Advancement representatives will instruct the donor to seek a competent lawyer to prepare the Will or Codicil and to supervise its execution in order to comply with all the requirements of the law of the state in which the maker of the Will resides, as well as the provisions of the Internal Revenue Code governing the deduction of charitable gifts and bequests. It is also wise to give the University considerable latitude in the use of any fund so that a change of circumstances may not impair the usefulness of the gift. The Office of the Vice President of University Advancement will be glad upon request to review the phrasing of any proposed form of bequest, subject to the donor’s attorney’s approval.

Definitions

This policy does not have definitions associated with it at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Forms

This policy does not have forms associated with it at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Related Information

This policy does not have related information at this time. Upon periodic policy review this area will be evaluated to determine if additional information is needed to supplement the policy.

Document History

• Last Reviewed Date: December 31, 2017
• Last Revised Date: December 31, 2017
• Policy Origination Date: Unknown

Who Approved This Policy

Brady Crook, Vice President, University Advancement