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Gift Acceptance Policy

Policy Number: 02.0002

Purpose

The purpose of this policy is to outline the different ways that donors may give to The New School; govern the acceptance and recognition of gifts; and provide guidance to staff and volunteers who solicit on behalf of the university.

This policy and its related procedures govern the solicitation and acceptance of gifts made to The New School and/or its supporting organizations for the benefit of any of its programs, divisions, or centers. The New School is a nonprofit corporation organized under the laws of the State of New York and has tax exempt status under section 501(c)(3) of the Internal Revenue Code.

While this policy provides internal guidance regarding prospective gifts, donors are ultimately responsible for ensuring that any proposed gift furthers their philanthropic and financial goals. The Office of Development and Alumni Engagement does not provide legal, accounting, tax, estate planning, or other advice to prospective or current donors.

Scope

This policy applies to all members of the New School community that solicit, accept, process, approve, or record gifts. This policy also applies specifically to acceptance of contributions in the form of "gifts," not "grants," both defined below.

Definitions

Conflict of Interest: A conflict of interest may arise when an individual, their family member, or an entity with which they are associated has an existing or potential external interest that impairs or may reasonably appear to impair the individual’s independence of judgment in the discharge of their responsibilities to the university or may receive a material benefit from the use or disclosure of non-public information pertaining to the university.

Gift: An irrevocable, complete, and voluntary contribution received by an institution for either unrestricted or restricted use, in the furtherance of the institution and for which the institution has made no commitment of resources or services other than, possibly, committing to use the gift as the donor specifies. The contribution is a nonreciprocal transfer, in that there is no implicit or explicit statement of exchange, purchase of services, or provision of exclusive information. If the donor receives benefits in return for the contribution, the true value of the gift is the amount over and above the fair market value of any benefits received.

Grant: A contribution received by an institution for either restricted or unrestricted use that typically comes from a corporation, foundation, or other organization, rather than an individual. Grants can be specific (resulting from a grant proposal submitted by an institution) or nonspecific (not resulting from a specific grant proposal), and the recipient’s commitments regarding the use of and reporting on received funds may vary accordingly. Grants are not within the scope of this Policy.

Gift Types

Gift-In-Kind: A noncash donation of materials or assets other than real estate or securities, like works of art, jewelry, equipment, royalties, or food and drinks for an event.
Gifts with Associated Benefits: Gifts for which donors receive associated benefits include purchasing event tickets, purchasing goods or services at auctions, or purchasing tables or seats at a dinner. These gifts often exceed the Internal Revenue Service’s token exception threshold.
Outright Gift: A straightforward financial gift.
Planned or Deferred Gift: A gift or commitment made in the present that will not be fulfilled until a future date. These are most commonly bequests or other estate gifts and can be cash, stocks, gifts of real estate, or gifts-in-kind. A donor can also name an institution as a beneficiary of their retirement account or life insurance policy.
Pledge (Commitment): A commitment to make a future gift, typically a specific amount according to a fixed schedule. Only the entity exercising legal control over the assets to be given can make a pledge. Although many pledges are unconditional, some pledges (e.g., matching gifts) may be dependent upon the institution meeting certain requirements.

Designated Fund Types

Current Use: A gift made by a donor that has not been designated for an endowment. These gifts should be fully expended unless the terms specify otherwise. The funds are held in a gift or plant fund to track the gift and related spending.
Endowment: A donation made with the expectation that the principal will remain intact and the proceeds generated from investments will be either reinvested or used for a purpose designated by the donor.

Quasi-Endowment: A donation made with the expectation that the fund will be invested but not held permanently. Unlike endowments, the fund’s principal may be spent at the discretion of the governing body.

Plant Fund: A plant gift is a voluntary and unconditional transfer of cash or other assets to an independent nonprofit entity in which there is no commitment of resources or services. Unlike other expendable gifts, the donor has specified that this gift be used to support capital and non-capital plant expenditures. Common types of plant expenditures are equipment, buildings and building improvements, leasehold improvements, and land and land improvements.

Responsibilities

Development & Alumni Engagement (DAE): Development and Alumni Engagement's responsibilities include the maintenance and administration of this policy, accepting and processing all gifts, issuing receipts and ensuring accurate recordkeeping for all gifts, soliciting gifts, and, as needed, convening the Gift Review Panel.

Gift Review Panel: The Gift Review Panel reviews complex gifts to ensure compliance with all legal and financial standards, ensures that proposed gifts will not unduly restrict The New School if accepted, reviews any gift that requires the use of New School resources to either accept or maintain, permits flexibility in the application of this Policy and related procedures or guidelines, and approve certain naming and other special recognition decisions. The Panel's approval must be given before a gift agreement is presented to the donor for signature.

The Gift Review Panel shall include the Senior Vice President, Development and Alumni Engagement; the Chief Financial Officer; the Provost or a representative designated by the Provost; and General Counsel. The members of the Panel may appoint other individuals as appropriate to assist in determining whether to accept a gift or in the event of a vacancy in one of the designated positions.

Policy

Approval of Gifts

The New School accepts the Gift Types defined above. The Gift Review Panel must approve the following gifts prior to acceptance:

Any gifts over $1,000,000;
Any gifts establishing or renaming an endowed named fund;
Any gift naming a new or existing physical space;
Any security with sale restrictions or stipulations;
Any real property, regardless of its estimated fair market value;
Any trust where The New School is named as a trustee;
Any non-cash asset that cannot be readily liquidated;
Any non-cash asset worth over $25,000 that will not be liquidated but instead used by any college, school, unit, program, or employee of The New School;
Any gifts of intellectual property;
Any gift or challenge grant that will require an outlay of New School resources to accept or maintain or that will provide any exposure to liability;
Other gifts as necessary, as determined by the Panel or by senior university leadership.

The university will make every effort to accommodate and accept all charitable contributions from donors. However, it will not accept gifts that, in the judgment of the university:

Violate the terms of this policy;
Violate a federal, state, or other law;
Are too difficult or expensive to administer;
Were acquired by other than legal means or in which clear title to the donated asset does not flow directly from the donor to the university;
Are too restrictive in purpose or could compromise the academic freedom of the university community;
Could create unacceptable liability or cause the university to incur future unanticipated or anticipated expenses;
Are for purposes that do not further the university’s mission;
Could damage the reputation of the university or are contrary to the university's values;
Would jeopardize the university's tax-exempt status; or
Provide a donor with goods or services of financial value in exchange for the donor’s gift unless such value is fully disclosed in the time and manner as required under federal and state law and regulations.

Endowment & Gift Funds

Gifts received by The New School are designated as a Fund Type as defined above.

Before soliciting or accepting any gift that establishes an endowment or gift fund, the responsible parties within each school, department, institute, or center must understand the proposed terms and restrictions on spending and use and have confidence that they will be able to administer and spend the gift in accordance with those terms and restrictions and any applicable laws. The New School prohibits discrimination in all education programs and activities of the university. Gifts with restrictions that involve unlawful discrimination based on race, religion, gender, age, national origin, disability, or any other basis prohibited by federal, state, and local laws and regulations may not be accepted or distributed. Before accepting a donation with such restrictions, or financial assistance based on such factors, the Gift Review Panel will consult with the Office of Equity, Inclusion, and Social Justice, the Title IX Coordinator, and the Office of the General Counsel.

Acceptance of Gifts

Employees of Development & Alumni Engagement (DAE) and other authorized individuals may accept gifts to The New School. No individual may take possession of gift prior to approval by the Gift Review Panel if such approval is required.

All gifts must be directed to Gift Administration. Development and Alumni Engagement will accept, deposit, record, receipt, acknowledge, and administer all gifts in accordance with policies and practices of The New School, IRS regulations, and the documented wishes of the donor.

Accounting

The New School accounts for all gifts in its financial statements in accordance with Financial Accounting Standards Board (FASB) Rules 116 and 117, which require gifts to be classified as permanently restricted by the donor, temporarily restricted by the donor, or having no donor-imposed restrictions. Fundraising amounts represented in The New School’s financial statements follow FASB guidelines, which discount the face value of gifts and pledges based on IRS discounting methodologies for determining the present value of future receipts. This is not a measure of fundraising effort, but a measure of the future value of a gift.

The New School discloses all gifts in its financial statements in accordance with ASU 2016-14, Presentation of Financial Statements of Not-for-Profit Entities. Net assets are presented on the financial statements as Net assets with donor restrictions and Net assets without donor restrictions. The New School has also adopted ASU 2018-08, Not-for-Profit Entities (Topic 958): Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made. Promises to give are initially recognized at fair value. Fair value is estimated giving consideration to anticipated future cash receipts and discounting amounts at a risk-adjusted rate for the duration of the donor's payment plan. This is not a measure of fundraising effort, but a measure of the future value of a gift.

Receipts

In accordance with IRS regulations, The New School will provide the donor with a receipt for a contribution with a statement as to whether any goods or services were given to the donor in exchange for their contribution as well as a description of such goods and/or services.

Legal Counsel & Advice

The Office of the General Counsel offers legal opinions on behalf of its client, The New School, on matters related to gift solicitation, acceptance, and disposition in support of the university’s goals. The New School will adhere to federal law, the Internal Revenue Service Code and its regulations, and State of New York statutes relating to charitable organizations and not-for-profit corporations, particularly the Uniform Prudent Management of Institutional Funds Act.

All prospective donors shall be strongly urged to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting financial, tax, and/or estate planning consequences. At no time should any New School employee or volunteer involved in the solicitation of a gift serve as professional legal, tax, or financial advisor to a donor or prospect in matters relating to a gift. The university will not pay legal or other fees for the preparation or review of a donor’s will or living trust or other arrangement that names the university as a beneficiary.

Neither the university nor an individual acting on behalf of the university may agree to serve as the trustee or successor trustee of a non-charitable trust, as the personal representative of any estate in which the university is named as a beneficiary, or as power of attorney for a university donor without the approval of the Senior Vice President of Development and Alumni Engagement and the Senior Vice President and General Counsel.

University employees acting on behalf of the university shall not draft wills or living trusts, regardless of whether such employee is licensed to practice law or if the university is named (or not named) as a beneficiary. This provision does not apply to employees drafting their own will or wills for family members naming the university as a beneficiary.

University employees may provide donors with suggested bequest language or assistance with other language pertaining to gift designation within the university.

Conflicts of Interest

Individuals shall always act in a manner consistent with their responsibilities to the university and the university’s Conflicts of Interest Policy and shall exercise due care to avoid situations that create conflicts between their private interests and those of the university.

Ethical Considerations

All solicitations on behalf of The New School or any unit or program thereof shall comply with the standards in the Donor Bill of Rights developed by the Association of Fundraising Professionals (AFP) and other national organizations. If a gift supports human subjects research, there must be an approved research protocol on file at the university’s Institutional Review Board (IRB).

Privacy & Confidentiality

Unauthorized use or disclosure of any information in print and electronic files that are maintained, stored, or processed by Development and Alumni Engagement is not permitted.

Employees at The New School are not permitted to seek personal benefit from any confidential information that has come to them by virtue of their work assignment, nor are they permitted to exhibit or divulge the contents of any record or report to any person except in the conduct of their work assignment and in accordance with the university’s Information Security policies.

Development and Alumni Engagement never knowingly includes or causes to be included in any record or report a false, inaccurate, or misleading entry. Requests for anonymity are honored, as are requests concerning solicitation. If the donor requests it and provided all other requirements of this policy have been met, information concerning a transaction between a donor and the university shall be held in confidence and the gift will be identified as anonymous by The New School, publicly disclosed only with the permission of the donor. Disclosure of the gift shall be made to key individuals at The New School, including but not limited to the President, the Senior Vice President of Development and Alumni Engagement, the Board Chair, the Board Finance Committee Chair(s), and any others as deemed appropriate by the Board Chair and President. In addition, a limited number of development staff may be informed as is necessary to process and steward the gift.

Procedure

Physical Acceptance of Gifts

When an individual receives a check, cash, or other currency, it is the responsibility of that individual to transmit the funds to Gift Administration within 24 hours, or, if traveling on university business, within 24 hours of their return. A donor letter or reply form from an approved university solicitation must be attached.

No individual may take physical possession of any non-cash item prior to approval by the Gift Review Panel if such approval is required. If Panel approval is not required for a non-cash item, the individual shall follow the acceptance procedures outlined within this document.

Gifts of cash must be delivered in person to Gift Administration. At the time of delivery, Gift Administration will verify the cash amount with the deliverer. As verification of the amount delivered and accepted for deposit by Gift Administration, both the Gift Administration staff member and the deliverer will sign a completed Cash Contribution Receipt Form. Staff can contact Gift Administration at x3991 or giftaccounting@newschool.edu to coordinate a delivery time. Interoffice mail should not be used to transmit funds to Gift Administration.

Counting & Reporting

Gifts are received in accordance with the Gift Counting & Reporting Guidelines. Additional guidelines are also summarized by Gift Type:

Gift Agreements

Development and Alumni Engagement requires the use of its standardized gift agreements for new multi-year gifts. These standardized agreements include provisions that facilitate the proper management and administration of donated funds. Exceptions to this requirement will be evaluated on a case-by-case basis. Prior to acceptance, all gift agreements must be approved by Development and Alumni Engagement, which will consult with the Office of the General Counsel, the Gift Review Panel, university officers, and trustees as necessary. Only the Senior Vice President, Development and Alumni Engagement, the Vice President, Development, or their delegate may sign a gift agreement on behalf of the university.

Return of Gifts to Donors at Their Request

Donations may be returned to the donor under a few circumstances. If the terms of a gift agreement are substantially violated (for example, money given to fund scholarships is used to pay for dinners at events) or an employee embezzles donated money or uses the funds illegally, The New School is legally obligated to return the donation. A donor is also entitled to request a total refund in the event that a concert or another event is canceled and a donation was made alongside their ticket purchase or when an online donation is transacted multiple times by mistake.

Donations may not be returned if the donor changes their mind after 30 days of initial donation.

Policy Administration

Responsible University Official: SVP for Development & Alumni Engagement

Responsible Office: Development & Alumni Relations

Contact Information: development@newschool.edu

Policy History

Effective Date: 8/20/2024

Last Reviewed Date: 8/20/2024

Next Review Date: 8/20/2029

Revision History: N/A