A Memo of Understanding document is created for each gift of $10,000 or more. The purpose of the document is to provide direction for the short-term or long-term use of the gift, especially for endowments and estate gifts. Click here for a listing of items to consider when choosing to create an endowment. . Adobe Reader is required to view or print this document. If you do not have Adobe Reader click here to download it free of charge.
The Foundation is a tax-exempt private 501(c)(3) organization. If you are considering making a major gift, be sure to work with an advisor to maximize your tax benefits. Confirmation of gifts of all amounts are within one week upon the receipt of the gift in the Office of Development. Please contact us if you have any questions regarding a gift receipt or the receipting process.
Gifts of Assets
Non-cash gifts such as securities, real estate and personal property require special processing. The Foundation attempts to convert securities to cash within 24 hours of receipt, unless prevailing market conditions indicate that a delay will constitute a more valuable selling price.
When making a gift of property valued more than $500, the IRS requires that the donor complete Part I of Tax Form 8283. If the gift of property is valued above $5,000, the IRS requires that the donor complete the Tax Form 8283 and include a written "qualified appraisal" signed and dated by a qualified appraiser.
To fund operations, the Foundation applies an annual management fee of 1 percent to the average balance of each endowment fund. For planned gifts such as the charitable gift annuity, the Foundation applies a management fee of 1 percent from portfolio returns.
Distribution Policy for Endowments
At the end of the fiscal year, Jan. 1 through Dec. 31, the Finance Committee will review the total return on the endowment accounts and declare an annual distribution. A distribution up to 4.00 percent of the average invested balance will be awarded for purposes delineated within the endowment Memo of Understanding document.
If returns permit, an amount equal to the rate of inflation will be added back to each endowment principal balance. If there are positive total returns beyond the inflation rate, then the Finance Committee will add this amount to a contingency reserve that may be distributed during years of poor investment performance as determined by the Finance Committee. When the contingency reserve has reached a balance in excess of two years of normal distributions, the Finance Committee may make additional distributions from the contingency reserve.
For questions or comments about management of SFASU Foundation gifts, contact:
Jill Still, CFRE - Vice President for University Advancement
Phone - (936) 468-5406
Toll Free - (800) 319-9517
E-mail - email@example.com