The Ohio University Foundation Unrestricted Gift Rule as Adopted November 2019

Purpose

The purpose of this Policy is to establish an unrestricted gift rule (“the rule”) that The Ohio University Foundation (“the Foundation”) will assess on contributions received. Funds generated from assessment of the rule will be used by the Foundation to support its mission including, without limitation, its administrative and fundraising costs.

Applicability

Except as otherwise provided, this policy applies to all gifts and philanthropic grants received by the Foundation.

Exemptions

The following gifts are exempt from the rule:

  • Gifts or pledge payments directed to the corpus of permanent endowments. Endowments are subject to an administrative fee calculated in accordance with the Foundation’s Endowment Spending Policy.
  • Payments made on documented pledges executed prior to January 1, 2020.
  • Real estate or in-kind gifts, if the gift is to be retained (i.e. not liquidated or converted to cash) for use by the Foundation or University.
  • Gifts or philanthropic grants from private foundations the governing board of which prohibits the assessment of such fee as an established organizational policy which can be documented in writing. This exclusion does not apply to recommended grants received from donor advised funds.

Calculation Method

The rule will be assessed as gifts are received by the foundation, in accordance with the following rates:

  • 5% will be assessed on all gift commitments up to $1,000,000.
  • 3% will be assessed on the portion of any gift commitment that exceeds $1,000,000 but is less than or equal to $5,000,000.
  • The rule will not be assessed on the portion of any gift commitment that exceeds $5,000,000.

For gifts of cash, cash equivalents and marketable securities, including payments by check, credit card, electronic funds transfer, and publicly traded stocks and bonds, calculations will be based on the gift’s market value as of the date of receipt by the Foundation. For gifts that must be held for a period of time prior to liquidation, including gifts of real estate and nonmarketable securities, or gifts delivered via a charitable gift annuity or charitable trust, calculations will be based on the value of the cash proceeds received from the liquidated gift.

The rule will be assessed, and funds transferred into the Foundation’s appropriate operating funds, as soon as practical.

Enforcement and Implementation

The rule will be calculated and assessed by the Foundation’s Treasurer or designee.

It is the responsibility of all staff to follow this policy and make this information available to donors and potential donors.

Exceptions to this policy may be granted in very rare circumstances upon request from the Foundation’s President and CEO in consultation with the Foundation’s Treasurer. Exception requests will be presented to the Finance Committee for consideration, then forwarded to the Foundation’s Board of Trustees for approval.

Effective Date

This policy is effective as of January 1, 2020. It replaces and supersedes any prior policy concerning this subject matter. The policy is subject to periodic review by the Foundation’s Finance Committee. When deemed necessary, the Finance Committee will recommend changes to this policy for approval by the Foundation’s Board of Trustees.