Gift Acceptance Policy

I. Scope

This policy shall apply to all gifts offered to IWU for any of its schools, programs, or services. This policy does not apply to sponsored research projects or contracts for goods or services.

II. Policy Statement

IWU will accept unrestricted gifts and gifts for specific schools, programs, and purposes, provided such gifts are not unlawful nor inconsistent with the University's stated mission, purposes, or priorities. All final decisions regarding the acceptance or refusal of a gift shall be made by the IWU Gift Acceptance Committee (GAC) or other appropriate IWU administrators, Board of Trustees committee, or representatives as duly authorized. IWU will treat gifts as anonymous when requested by our philanthropic partner but will not treat a gift as anonymous with the purpose of disguising the origin or intent of the gift

III. Reason for the Policy

This policy provides guidance to the Board of Trustees, the President, and any other members of the IWU community who are engaged in the acceptance and management of gifts to the University to ensure that University employees, its contractors, and its agents conduct the affairs of the University in accordance with the highest Christian, legal, ethical and moral standards.

IV. Procedures

Part 1 - Policy Details

A. Introduction

Indiana Wesleyan University (hereinafter referred to as IWU) is a not-for-profit educational institution organized under the laws of the State of Indiana.   The University is a qualified organization under Section 501(c)(3) of the Internal Revenue Service.   Charitable gifts given to the University are eligible for deduction under the direction of federal tax laws.  

B. Statement of Ethics, Donor Rights, and Confidentiality

All interactions with philanthropic partners while cultivating or accepting a gift will be conducted in confidence. In the course of cultivating and accepting a gift, IWU, subject to state and federal law, commits to upholding each philanthropic partner's expectations of confidentiality and will uphold the Donor Bill of Rights created by the Association of Fundraising Professionals (AFP), the Association for Healthcare Philanthropy (AHP), the Council for Advancement and Support of Education (CASE), and the Giving Institute: Leading Consultants to Non-Profits; AFP Code of Ethical Standards;  the National Association of Charitable Planners Model Standards of Practice for the Charitable Gift Planner; and Apra International, Statement of Ethics. The aforementioned documents are attached as appendices to this policy.

C. Use of Legal Counsel

IWU shall seek the advice of legal counsel in matters relating to acceptance of gifts where appropriate. A review by University counsel is recommended for:

1. Gifts other than cash or publicly traded stock.
2. Documents naming IWU as Trustee.
3. Gifts including, but not limited to, contracts, bargain sales, which require IWU to assume an obligation such as a debt, mortgage, or other liability.
4. Transactions with potential conflicts of interest, inappropriate private benefit for the Donor, or other arrangements that may invoke IRS penalties upon audit.
5. Other instances in which the use of counsel is deemed appropriate by the Gift Acceptance Committee or the Executive Committee of IWU's Board of Trustees.

D. Conflicts of Interest

No persons acting on behalf of IWU shall provide legal or tax advice to donors nor can the University guarantee that any particular gift will be deductible for a particular donor. IWU staff shall, in all cases, encourage the Donor to discuss the proposed gift with their own counsel and professional consultants.

E. Gift Acceptance Criteria

These guidelines shall be considered in the acceptance of a gift:

1. A gift supports and does not compromise the mission of the University.
2. A gift is in an amount appropriate to carry out its specified intent.
3. A gift is received in a manner consistent with the Internal Revenue Code and does not jeopardize IWU's tax-exempt status.
4. A gift does not stipulate restrictions or conditions that would compromise the University now or in the future.
5. Control of the gift is retained by the University.   Philanthropic partners may designate gifts for a particular use. If the gift is accepted, the University will make every attempt to follow the wishes of the Donor, 
6. A gift does not require expenditures beyond the University's available resources, whether financial or intellectual.
7. A gift is from funds or property acquired through legal means, and a clear title of ownership is traced to the Donor. 
8. Cultivation and acceptance of the gift will tend to the needs and interests of IWU's philanthropic partner.

F. Gift Acceptance Committee

The Gift Acceptance Committee is hereinafter referred to as GAC. The terms of each gift must be considered with the utmost care to ensure they are feasible, do not unduly hamper the gift's usefulness and desirability, and are in conformity with IWU policy. The GAC is tasked with reviewing and recommending gift acceptance when needed. This committee, or other appropriate IWU administrators, committees, or representatives as duly authorized, may approve exceptions to this policy on a case-by-case basis.
The GAC will convene at the request of the Vice President of University Advancement when the circumstances surrounding a specific gift raise significant institutional issues, presents the potential for present or future encumbrances to be incurred, comes in the form of an unusual non-cash gift, or appears to conflict with any of the guidelines listed in this policy.  
The GAC's membership shall consist of three members of senior leaders responsible for University Advancement, Finance, and President’s office.  

G. Gift Agreements

For Gift Agreements under $250,000, the President of the University, the VP of Advancement, or the Executive Vice President for Business Affairs (CFO) may sign the agreement on behalf of the University.
Because Gift Agreements of $250,000 and over are considered financially material and are recorded as Contributions Receivable, only the President or the Executive Vice President for Business Affairs (CFO) may sign the agreement on behalf of the University.
Agreements accepting a Gift in Kind must include language that allows the university to divest of the item, equipment, property, holding, authority, title, interest, or investment.  Exceptions to this requirement may be considered and waived by the Vice President of University Advancement. 

H. Gift Repurposing

The University may repurpose an unspent or endowed gift for a new University use if, due to changes in University programs or applicable laws and regulations, the gift cannot be used as originally intended by the Donor.
The President has the authority to direct a gift to a new use or other need of the University that conforms as closely as possible to the Donor's intent. If the terms of a gift agreement prevent a gift from being directed to a new use, the University will seek permission from the Donor when possible. If the Donor is not agreeable to this change or cannot be reasonably reached, the University may seek a court order when appropriate. 

I. Return of a Gift

The University may return a gift to the Donor if it is determined that to be associated with a specific donor or to use a gift for its intended purpose could cause damage to the University's reputation, standing, or integrity.

J. Tax Receipting and Written Disclosure Statements

All philanthropic commitments to the University must be processed and credited to a donor through University Advancement. A receipt is sent to each Donor upon receiving a gift. 
The receipt shall provide the amount of the gift, the value of any benefits received (goods or services) by the Donor, and the resulting amount of the gift. In addition, the IRS requires the receipt to state affirmatively that the Donor has not received any benefits. 
To ensure the highest possible gift crediting and campaign counting integrity, all charitable contributions to the University will be counted and recorded in the University Advancement database of record in accordance with the standards set forth by the Council for Advancement and Support of Education (CASE).

K. Confidentiality of Information

The University is committed to protecting the privacy of people whose personal information is held by the University through responsible information management and in accordance with applicable law. This includes information on constituents (alumni, donors, and potential donors) that is held by University Advancement. This commitment applies to all employees, including part-time, temporary, contractual, student employees, paid and unpaid interns, and agents of the University who assist in the University's fund-raising and alumni outreach mission.

L. Policy Adoption and Maintenance

This adopted policy will supersede any existing policy or policies purporting to cover the subject matter of this document. This Gift Acceptance Policy will be reviewed by the Vice President of University Advancement by June 30 in every even-numbered year or as warranted by changes in federal or state tax law and university policy.   Any revisions to this policy must follow the University's adopted policy: Establishing University Policies.

 

Part 2 - Guidelines for Gift Acceptance and Forms of Giving

A. Appraisals and Legal Fees Associated with a Gift

It shall be the responsibility of the Donor to secure, where required, an appraisal and independent legal counsel for all gifts made to IWU. IWU may retain an independent appraisal to establish the value of a gift. This appraisal shall be the responsibility of IWU.

B. IRS Filings Associated with a Sale of a Gift

University Advancement will notify the Controller's Office of a sale of a donated item. The Controller's Office will file the IRS Form 8282 upon the sale or disposition of any asset sold within three years of receipt by IWU where the charitable deduction value of the item was greater than $5,000. Form 8282 must be filed within 125 days of the date of sale or disposition of the asset. 

C. Cash

Cash and cash equivalents will be accepted by Indiana Wesleyan University. The Office of Advancement Services may receive cash gifts and may issue receipts to donors for such gifts without further review unless review is needed by the GAC.   Any cash or checks not received directly by Advancement Services shall be forwarded to the Office.  

1. Gifts via credit card will be accepted from MasterCard, Visa, Discover, or American Express.
2. Payroll deduction gifts are accepted and processed as gifts of cash.    Employees must submit a Payroll Deduction Authorization 
3. The Office of Advancement Services will credit the gift for the tax year the gift was received in, or the date the gift was postmarked. Online donations made by credit card will be credited to the tax year they were received in. 

D. Donor Advised Funds  

The University may receive Donor Advised Fund gifts. Gifts from Donor Advised Funds are valued at their face value as of the date of the gift. Donor receipts are not required.

E. Tangible and Intangible Personal Property 

Tangible Personal Property includes but is not limited to art, antiques, jewelry, collections, books and manuscripts, boats, computers, and vehicles. Intangible Personal Property includes but is not limited to royalties, trademarks, patents, cryptocurrency, and copyrights. For the purpose of this policy, Tangible and Intangible Personal Property does not include closely held securities or publicly traded securities. All gifts of tangible and intangible personal property shall be evaluated for acceptance by the GAC based on the criteria listed below:   

1. Does the property fulfill, and is its use related to the mission of IWU?
2. Is the property marketable?
3. Are there any undue restrictions on the use, display, or sale of the property, e.g., such as donated on the condition or expectation that the items will be permanently exhibited? 
4. Are there any carrying costs for the property, such as storage, transportation insurance, etc.?
   1. Title to the gift property should be unencumbered and properly documented.
   2. Absent a related use for the donated property, and if accepted, the University generally will sell or otherwise dispose of such gifts. Because the extent of the Donor's allowable charitable deduction depends upon the standard of "related use," the University's intention to either resell the property or to retain it for a related use must be clear to the Donor at the time of the gift.
      1. Any gifts of personal property that are to be retained by the University for use in advancing its mission are considered Gifts in Kind. The details are provided in the Gifts in Kind section.
      2. If the University disposes of the donated property within three (3) years of the date of the gift, the University must file an information return on IRS Form 8282 and send a copy to the Donor.
   3. Gifts with an estimated value of $5,000 or more are recorded at the fair market value placed upon them by a qualified, independent appraiser. Gifts with an estimated value of less than $5,000 shall be valued at the amount it would cost to purchase the item in its current condition at the time of the donation.
   4. The IRS does not allow charitable deductions for gifts of services (only for tangible items), even if the market value of such services can be readily attained. The receiving department should acknowledge and thank the Donor for the services, but no receipt should be provided.
   5. To receive a receipt for tax deduction purposes, a donor must transfer ownership to IWU by deed or letter transferring ownership to IWU. It must be completed and delivered to the Office of Advancement Services within the appropriate tax year or postmarked within the appropriate tax year.
   6. It is the responsibility of the Donor to establish a value for their gift. If an appraisal is required by the IRS for said gift, it is the financial responsibility of the Donor to do so. IWU may secure a separate appraisal for insurance coverage or other reasons at the University's expense. 

F. Gifts in Kind

Gifts in Kind are gifts of tangible or intangible personal property that will be retained and used by University faculty, staff, or students. It is imperative that the property be used to complement the core mission of the University in the areas of teaching, research, creative endeavors, outreach programs, or a combination thereof. Any restrictions placed on the use of the property by the Donor must be consistent with the institutional needs of the University. 
Before accepting Gifts in Kind, the appropriate unit shall submit a written recommendation to the GAC as to whether the proposed gift is of value to the University. The need for and potential use of the gift property should be approved by the respective dean or director before the gift is submitted to the GAC for consideration. The University may require the Donor to provide the provenance of a Gift in Kind before it is accepted.
Agreements accepting a Gift in Kind must comply with the requirements of the Gift Agreement section of this policy.

G. Closely Held Securities 

Closely Held Securities are defined as not being publicly traded, not publicly marketed, and are held by a limited number of owners. Closely Held Securities include but are not limited to debt and equity positions in non-publicly traded companies, limited partnerships, or limited liability companies. They are accepted only with approval of the GAC with consideration of:

1. There are no restrictions on the security that would prevent IWU from ultimately converting those assets to cash.
2. The security will not generate any undesirable tax consequences for IWU or the Donor.
   1. If potential issues are identified during the initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift.
   2. Gifts with an estimated value of $10,000 or more will be credited at the fair market value as determined by a qualified appraiser. The donors shall pay for the appraisal. Gifts with an estimated value of less than $10,000 may be valued at the per share cash price of the most recent transaction in the same reporting period as the gift is given if available and acceptable to the GAC. IWU may secure a separate appraisal for the University's own purpose. Every effort will be made to sell non-marketable securities as quickly as possible.
   3. The Office of Advancement Services will credit the gift for the tax year the gift was received in, or the date the gift was postmarked. Stock certificate and stock power must be in possession of Advancement Services to be considered received. If wire transferred, the stock must be in IWU's brokerage account to be considered received.

H. Publicly Traded Securities

The Office of Advancement Services may receive gifts of publicly traded securities and may issue receipts to donors for such gifts without further review unless review is needed by the GAC.

1. Marketable securities may be transferred to an account maintained at one or more brokerage firms in the name of IWU, or the certificate may be delivered with the transferor's signature or stock power attached. The Donor should be given the instruction by IWU staff for donating their securities to IWU to avoid delays in processing their gift. 
2. The Office of Advancement Services shall notify the Office of Business Affairs of any gifts of publicly traded securities and transfer all pertinent materials to them as soon as practicable. 
3. As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Investment Committee of the Board of Trustees. In some cases, marketable securities may be restricted by applicable securities laws; in such instances, the final determination on the acceptance of the restricted securities shall be made by the GAC. 
4. The value of a Donor's contribution will be the mean of the high and low per share price on the day the stock is transferred to an IWU brokerage account as computed by the Office of Business Affairs. If there are no sales on the date the securities are transferred, the value of the Donor's contribution will be determined by taking the average of the highest and lowest sales on the first date before and after the transfer date.

a. Mutual Funds are valued once a day; therefore, there would not be a high and low value available to use.

1. Any additional residual transfer of dividends received by the Office of Business Affairs after a gift of stock will not be receipted to the Donor but will be credited to the gift's designation. 
2. The Office of University Advancement will credit the gift for the tax year the gift was received in, or the date the gift was postmarked. The stock certificate and stock power must be in possession of the Office Advancement Services, or stock ownership and stock power must be transferred to an IWU brokerage account to be considered received.  

I. Real Property

Gifts of real property may include but are not limited to developed property, undeveloped property, or gifts subject to a prior life estate interest. Prior to acceptance of real property in any form, including but not limited to outright gifts of property, bargain sales, and remainder interests, the gift must be approved by the GAC and by IWU's legal counsel when appropriate. IWU will not accept time-sharing arrangements - Any exceptions would need to be approved by the GAC. Gifts of real property shall be evaluated by the GAC based on the following criteria:

1. Property must be useful for the purposes of IWU, either by resale or retention.
2. Property must be marketable and judged by real estate professionals to be able to be sold within one (1) year unless IWU wishes to retain the property.
3. Carrying costs, which include but are not limited to insurance, property taxes, mortgages, or notes associated with the property, are negotiated for payment by the Donor or by IWU as considered appropriate.
4. Property is legally zoned for the intended use of its resale or retention by IWU.
5. A completed professional inspection of the improvements to the property, if warranted.
6. Results of a Phase 1 audit by a qualified environmental engineer.
   1. In the event that the initial inspection reveals a potential problem, IWU may retain a qualified inspection firm to conduct a Phase II or Phase III environmental audit. The cost of the environmental audit may be at the expense of the Donor.

1. The Donor may be asked to provide any or all of the following items:
   
   1. a property deed
   2. a property tax bill
   3. a property title report
   4. a property survey
   5. site plans or development surveys relating to the property
   6. any existing leases or agreements encumbering the property 
   7. substantiation of zoning status
   8. verification of title insurance
2. IWU may enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of IWU.   The University will not consider bargain sales that require the University to accept property with outstanding debt. IWU must also obtain an independent appraisal substantiating the value of the property.
3. IWU encourages a warranty deed for a fee transfer. Legal costs of the title transfer may be assumed by IWU. Where appropriate, title insurance shall be obtained by IWU prior to the acceptance of the real property gift and at the discretion of University Advancement. The expense of the title insurance may fall to IWU or to the Donor as negotiated.
   1. The Executive Vice President & CFOO must be involved in gifts involving real estate.
4. The University will dispose of all gifts of real property as quickly as possible when it is not being retained by the University.
   1. If the University sells or otherwise disposes of the donated property within three years of the date of the gift, the University will file an information return on IRS Form 8282 and send a copy to the Donor.
5. The Donor must obtain an independent appraisal substantiating the value of the property.
6. The Office of Advancement Services will credit the gift for the tax year the gift was received in, or the date the gift was postmarked. The deed to the property must be prepared, recorded, and in possession of Advancement Services to be considered received. The Donor will be recognized for the appraised value of the gift. The Donor shall pay for appraisals to substantiate their deduction. IWU may secure a separate appraisal. 

J. Remainder Interests in Property (with Retained Life Estate)

IWU may accept a remainder interest in but not limited to a personal residence, farm, or vacation property with the approval of the GAC. The Donor or other occupants may continue to occupy or use the real property for the duration of the stated life, such as the life estate. At the death of the Donor, IWU may use the property or sell it.

1. Where IWU receives a gift of a remainder interest, expenses for maintenance, real estate taxes, insurance, and any property indebtedness must be paid by the Donor or primary beneficiary pursuant to a separately executed contract. The contract will also provide for review or approval by IWU in the event the Donor wishes to sell or rent their life estate interest.
2. If the Donor wishes to vacate the property, the property can be rented to generate income for the Donor, sold jointly by the Donor (life estate) and IWU (remainder interest), or the Donor can contribute the remainder life estate to IWU and receive an appropriate tax deduction if reviewed and approved by IWU. 

K. Oil, Gas, and Mineral Interests

IWU may accept oil, mineral, and gas property interests if approved by the Gift Acceptance Committee. IWU's legal counsel will be consulted when appropriate.

1. The Donor will be recognized for the appraised value of the gift. Donors shall pay for appraisals to substantiate their deduction. IWU may secure a separate appraisal at their own expense. 

L. Life Insurance

Donors and supporters of IWU are encouraged to name IWU as a beneficiary or contingent beneficiary of their life insurance policy. The policy must be a whole or universal life insurance policy and be a first or second-to-die policy. If the policy is in existence when gifted, the policy may not have any outstanding loans as of the date of the gift.

1. IWU must be named as beneficiary or irrevocable owner of an existing or new life insurance policy before the policy can be recorded as a gift. If IWU is named beneficiary but not the owner, then the gift is revocable, and the Donor is not entitled to a current income tax deduction [but at death may receive an estate tax charitable deduction]. If IWU is named beneficiary and owner, the gift and current income tax deduction are valued at the policy's interpolated terminal reserve value or appropriate cash surrender value, if any, upon receipt.  
2. If the policy is not paid up, IWU shall request that the Donor contribute all future premium payments to IWU. If the Donor contributes future premium payments, IWU will include the entire amount of the additional premium payments as a gift in the years they are made.
   1. If the Donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, IWU may accept the gift if the life insurance policy has sufficient cash value or pays dividends sufficient to cover annual premiums or may accept the gift with the Donor's knowledge that the policy will be cashed out immediately. The Donor's recognition will be decreased to the policy's surrender value.
3. If intended for endowment purposes, the policy shall have a face value that meets minimum funding standards for endowments.
4. The Office of Advancement Services will credit the gift for the tax year the gift was received in, or the date the gift was postmarked. The ownership and beneficiary transfer must be in possession of Advancement Services to be considered received.

M. Charitable Gift Annuities

IWU may offer current and deferred charitable gift annuities. The minimum gift for funding is $10,000. The minimum age for the annuitants shall be 60 for immediate annuities and 50 for deferred annuities, with a minimum deferral period of 10 years. No more than two life income beneficiaries will be permitted on any gift annuity. The University will accept current gift annuities which begin payment within one year of the gift date, as well as deferred gift annuities for which the initial payment is at least ten years after the gift date

1. Annuity payments for new annuities will be made on a quarterly schedule coinciding in date with the calendar quarters. The GAC may approve exceptions to this payment schedule. The rates used in the issuance of charitable gift annuities are based upon rates established by the American Council for Gift Annuities (ACGA) in effect at the time of establishing the gift annuity.
2. Annuities funded through gifts of real property, tangible property, or any other illiquid asset must be approved by the GAC. 
3. Funds contributed in exchange for a gift annuity shall be set aside and invested during the term of the annuity payments. Once those payments have terminated, the funds representing the remaining principal contributed in exchange for the gift annuity shall be transferred following IWU's Annuity Residual Disbursement Policy. 
4. IWU will comply with all applicable state laws relative to gift annuity contracts, including the laws of Indiana as well as the laws of the states where gift annuity donors reside. IWU will register to accept gift annuities in states where required.

N. Charitable Remainder Trusts

IWU may accept the designation as a remainder beneficiary of a Charitable Remainder Trust. IWU may, in some instances, accept an appointment as trustee of a charitable remainder trust subject to the approval of the GAC. The Donor's legal counsel must draft all trust documents. The GAC and the University's legal counsel must review and approve said documents for any trusts in which IWU is named trustee.

IWU is Trustee

1. The Trust must be funded with at least $75,000. The Trust may invest in tax-exempt securities. No additional contributions may be made to the Trust after the initial gift.
2. IWU will pay the beneficiary a fixed annuity amount equal to at least 5% of the initial net fair market value of trust assets. Payments to income beneficiaries must come exclusively from the trust assets and are not guaranteed by the University.
3. Payouts will be quarterly and can be made for any of the following:
4. The life of one beneficiary who must be 50 years of age or over.
5. The lifetime of two beneficiaries, both of whom must be 50 years of age or older.
6. A period of 20 years or less.
7. For the Donor to receive a charitable deduction, the probability that payments will deplete the Trust cannot exceed 5%.
8. The Trust will comply with all other legal requirements of charitable remainder annuity trusts.

Charitable Remainder Unitrust (Regular Unitrust)

1. Will be funded with at least $75,000 in cash, appreciated securities, real property, etc.
2. IWU will pay the beneficiary a fixed rate of return, no less than 5%, of the net fair market value of trust assets, as determined each year. This amount may be paid from income and/or principal.
3. Payouts will be quarterly and can be made for any of the following:
   1. The life of one beneficiary who must be 50 years of age or over.
   2. The lifetime of two beneficiaries, both of whom must be 50 years of age or older.
   3. A period of 20 years or less.
4. The Trust may invest in tax-exempt securities.
5. Additional contributions may be made to the Trust.
6. The Trust will comply with all other legal requirements of charitable remainder trusts.

Charitable Remainder Unitrust (Net Income Unitrust)

1. Will be funded with at least $75,000 in cash, appreciated securities, real property, etc.
2. IWU will pay the beneficiary the lesser of trust income or the percentage payout amount (not less than 5%), even if income falls below the stated fixed percentage. Deficiencies are not made up in later years.
3. Payouts will be quarterly and can be made for any of the following:
   1. The life of one beneficiary who must be 50 years of age or over.
   2. The lifetime of two beneficiaries, both of whom must be 50 years of age or older.
   3. A period of 20 years or less.
4. The Trust may invest in tax-exempt securities.
5. Additional contributions may be made to the Trust.
6. The Trust will comply with all other legal requirements of charitable remainder trusts.

Charitable Remainder Unitrust (Net Income with Make-up Unitrust)

1. Will be funded with at least $75,000 in cash, appreciated securities, real estate, etc.
2. IWU will pay the beneficiary the lesser of trust income or the percentage payout amount (not less than 5%), even if income falls below the stated fixed percentage. Deficiencies may be made up in later years.
3. Payouts will be quarterly and can be made for any of the following:
   1. The life of one beneficiary who must be 50 years of age or over.
   2. The lifetime of two beneficiaries, both of whom must be 50 years of age or older.
   3. A period of 20 years or less.
4. The Trust may invest in tax-exempt securities.
5. Additional contributions may be made to the Trust.
6. The Trust will comply with all other legal requirements of charitable remainder trusts.

O. Charitable Lead Trusts

IWU may accept a designation as the income beneficiary of a Charitable Lead Trust. IWU may accept an appointment as Trustee if IWU is the major beneficiary. The acceptance of the appointment is subject to the review and approval of IWU's legal counsel and the GAC.

1. Charitable lead trusts will be funded with at least $500,000.

P. Retirement Plan Beneficiary Designations

Donors and supporters of IWU are encouraged to name IWU as a beneficiary of their retirement plans. The Donor should name IWU as beneficiary on their retirement plan's beneficiary designation form.

1. The IWU staff member working with the Donor should ask the Donor to obtain a gift agreement for this designation.   IWU staff can help draft said agreement. 
2. Such designations shall not be recorded as a gift to IWU unless the gift is irrevocable. Retirement plans will be valued at face value at the time of transfer. Where the designation is irrevocable and will be due at a future date, the present value of said gift may be recorded.

Q. Bequests

Donors and supporters of IWU will be encouraged to make bequests to IWU through their respective wills and trusts. The IWU staff member working with the Donor should obtain a copy of the Donor's estate planning document that names the University as beneficiary. If the Vice President for University Advancement feels the bequest will be a liability to the University, then the University may decline acceptance of the bequest.   

Such designations shall not be recorded as a gift to IWU unless the gift is irrevocable. Where the designation is irrevocable and will be due at a future date, the present value of said gift may be recorded. Bequests will be valued based on the underlying gift type. 

R. Pledges 

Pledges are commitments to give a specific dollar amount to one or more designated funds within a specified period of time, generally over a span of years. Only the entity exercising legal control over the assets to be given can make a pledge. An individual cannot make a pledge that includes anticipated matching contributions from an employer, funds that may come from a donor-advised fund, or a foundation.  

Conditional pledges for challenge gifts or gifts for capital projects, if the pledge is conditional on either raising other funds or moving forward with the plan to build or renovate, may be accepted.  
The University will accept, and record written pledges if the pledge documentation includes the amount, purpose, and payment period and is signed by the Donor (s). 

1. Multi-year pledges are generally not accepted beyond five (5) years. The GAC would have to approve any pledge agreements that would for longer than five years. 
2. Only pledges of at least $250,000 are considered financially material and will be recorded as Contributions Receivable for accounting purposes.  
3. Pledges to endowed (restricted) funds will be recorded in a non-invested holding account within the appropriate restriction. Upon receipt of the pledge, funds will be transferred into the restricted fund.  
4. Annually the Advancement Office and Business Affairs will review the pledge portfolio to determine if an allowance for uncollectible pledges should be recorded.  
5. A pledge may be terminated if deemed appropriate by both the Advancement Office and Business Affairs Office. The write-off request must be in writing by either the Advancement Office or Business Affairs and should include a brief statement of justification.

S. Student Trips

Mission trips are an important part of our students' experience at Indiana Wesleyan University.  Donations are encouraged to support student trips. For a contribution to be considered a charitable deduction, it cannot be designated for a particular individual.  Any donation earmarked for the benefit of a specific individual is not tax deductible.

Donations are designated for a team fund, not an individual; therefore, in the event the trip is canceled, the University reserves the right to use the donations in the best way to stay consistent with the donation's original intent.  

IWU will not issue tax-deductible receipts for gifts marked for a sports camp or mission trip participant unless each of the following is true: 

1. The student performs meaningful charitable services on the trip;
2. He or she receives no compensation or academic credit for the trip;
3. The activity is not for the student personally: an expectation of his or her employment, financial aid, academic program, or athletic team participation;
4. There is no significant element of personal pleasure, recreation or vacation in the trip; and
5. The gift is not restrictively earmarked for the student.
   1. Gifts for the Benefit of Specific Individuals  

A gift made with the condition that the proceeds will be spent by the University for the personal benefit of a named individual or individuals, such as a scholarship for a particular student for the benefit of a specific University employee, will not be receipted by the University as a charitable contribution.

V. Related Information

A. Association of Fundraising Professionals, Donor Bill of Rights 

B. Association of Fundraising Professionals, Code of Ethical Principles and Standards of Professional Practice

C. APRA International, Statement of Ethics

D. IRS Publication 1771 Charitable Contributions Substantiation & Disclosure Requirements

E. IRS Publication 561 Determining the Value of Donated Property

F. IRS Publication 526 Charitable Contributions

G. IRS Form 8282

H. National Association of Charitable Gift Planners, Model Standards of Practice of the Charitable Gift Planner