The Oklahoma State University and the Oklahoma State University Foundation strongly encourage the solicitation and acceptance of gifts that enable it to fulfill the University's mission of providing its students with exceptional academic experiences, conducting scholarly research and other creative activities that advance fundamental knowledge, and disseminating knowledge to the people of Oklahoma and throughout the world. For an institution dedicated to higher education, private gifts are essential. Oklahoma State University cannot survive without them.
Gifts may be sought from individuals, corporations, foundations and other organizations. However, they may be sought only for purposes, positions, and programs which have the appropriate academic or administrative approval. Gifts to the University should be made through the Oklahoma State University Foundation.
Gifts to the Foundation on behalf of the University will be accepted for unrestricted use or for any one of the many special funds and programs that have been established. The Foundation may also accept a gift designated for a specific purpose for which no special fund has been established as long as it is within the scope of the University's mission.
Gifts the Foundation receives on behalf of the University must not inhibit the Foundation or University from seeking gifts from other donors, be they similar or different, foreign or domestic. Further, no gift can be received that limits, beyond a general definition of subject area, the research that a faculty member or student can perform.
The Foundation and University value, and will protect, the integrity and independence of both organizations as well as the academic freedom of the University community. Gifts that may expose the Foundation or University to adverse publicity, require expenditures beyond their resources, or involve them in unexpected responsibilities because of their source, conditions, or purposes will be referred to President and CEO of the OSU Foundation. This individual may withhold approval of acceptance, pending a review.
The Foundation cannot accept gifts for the University that involve unlawful discrimination based upon race, religion, sex, age, national origin, color, handicap or any other basis prohibited by federal, state, and local laws and regulations. Nor can the Foundation accept gifts that obligate it or the University to violate any other applicable law or regulation, or that violate the Foundation's certificate of incorporation, or bylaws.
This policy is designed to provide guidance to the Foundation and University communities and the general public so as to facilitate the gift-giving process. It is not intended to stifle philanthropic creativity. Therefore, this policy is to be interpreted liberally so that prospective donors may enjoy the greatest freedom possible in formulating their gifts.
Many types of assets may be used to provide gifts for the University through the OSU Foundation. A variety of methods of giving allows donors to choose the most appropriate for their circumstances and interests.
Outright gifts are those placed with the Foundation for the immediate disposal by the University and in which the donor retains no interest. They may be either restricted or unrestricted in purpose. Gifts that are donated to the Foundation for the University without any express limitation placed upon them will be credited to the President's Excellence Fund.
Special Purpose Endowment Funds
The Foundation may approve the establishment of special purpose endowment funds upon receipt of gifts or commitments that meet the approved funding levels and criteria established for the endowment. There are several types of endowments. The most commonly accepted are:
Endowed Professorships - A fully endowed academic professorship may be
with a total commitment of $500,000.
Fellowships - A fellowship may be established with a minimum commitment of $10,000.
Scholarships - An endowed scholarship may be established with a minimum
President's Distinguished Scholarship - May be established with a minimum
Distinguished Graduate Fellowship - May be established with a minimum endowment
Others - The Foundation will work with prospective donors on the terms and
of other endowment funds provided they support traditional academic activities or
functions. An endowment may be established with a minimum commitment of $10,000.
In all cases, the establishment of any endowment fund requires the approval of the Foundation president or a Foundation vice president. Any exceptions to the above guidelines must be approved by the Foundation's president.
Because conditions change over time, all endowment instruments should contain the following contingency clause:
The most frequent method used to make a gift to the Foundation for the University is a
Checks should be made payable to the Oklahoma State University Foundation and mailed
For gifts made to the Foundation via a check, the postmark date is the gift date.
Gifts of Securities
Publicly-traded securities, shares of stock in closely-held companies, bonds, and government issues may be given to the Foundation for the University. The value of a gift of securities will be determined as noted below:
Publicly-Traded Securities. These are securities regularly traded on a public stock exchange. The value of the gift will be the mean of the highest and lowest selling prices quoted for the security on the day of the gift.
Closely-Held Securities. These are shares of securities in entities which have been organized for profit-making purposes, and are rarely traded on stock exchanges. Donors may give shares of closely-held corporate securities to the Foundation for the University in the same manner as publicly-traded securities. The value of closely held securities in excess of $10,000 will be determined by a qualified independent appraiser as required by the IRS. Gifts of $10,000 or less may be valued at the per share cash purchase price of the most recent transaction. Normally, this transaction will be the redemption of the stock by the corporation. It is the Foundation's policy to convert closely-held securities to cash. While it is permissible for the donor or donor's company to purchase the securities at fair market value, there can be no redemption agreement--either formal or implied--prior to the gift. To ensure that donors of closely held securities receive the tax benefit of such a gift and that both the donor and the Foundation comply with applicable IRS regulations, special handling is required. Gifts of closely-held securities may only be accepted by the Foundation president.
Methods of Delivery and Effective Date of Transfer
Mailing. If the securities are mailed to the Foundation, the value of the gift will be its fair market value on the date the securities were postmarked except in the case of securities transferred via a transfer agent as described above. Donors should obtain a stock power, signing it exactly as it appears on the certificates, and have their signature guaranteed by their banker or broker. The stock power and a letter of instruction should be mailed to the Foundation under separate cover from the stock certificate(s). The Foundation should be designated on the stock certificate(s), stock power, or related instruments of transfer as Oklahoma State University Foundation. The stock certificate(s) should be sent by registered mail, return receipt requested, to the Foundation. Unendorsed stock certificates are non-negotiable. The postmark date on the stock power will be used as the gift date when the stock certificate and stock power are mailed under separate covers.
Electronic Transfer. If securities are electronically transferred from a donor's brokerage account to an account held in the name of the Foundation via the Depository Trust Company (DTC), then the value of the gift will be its fair market value on the date on which the securities are transferred to the Foundation account. Donors may contact the Foundation to obtain DTC instructions which they will then give to their broker along with a letter of instruction regarding the specific securities to be transferred. A copy of the letter of instruction should be sent to the Foundation in order that the donor may be receipted properly.
The Foundation may accept gifts of non-traditional investments, such as partnership
after a thorough review of the following factors:
The Foundation may accept gifts of real estate, including houses, condominiums,
properties, farm land, rental property and undeveloped land, after a thorough review of
Prior to the acceptance of any parcel of real property, an assessment of the potential
environmental risks will be conducted. This assessment shall include the
An environmental audit conducted by a professional service also may be required. The decision to accept gifts of real estate requires the approval of the Foundation's President.
When a gift of real estate property is received from an estate, the Foundation Controller will ensure that policies in regard to accepting gifts of real property are followed. The Foundation may disclaim ownership of the real property based on an evaluation by the outside consultant in the event a determination is made that potential problems exist.
Tangible Personal Property
The Foundation may accept gifts of tangible personal property, including works of art, jewelry, antiques, coin, stamp and other collections, automobiles, manuscripts, and books. Such gifts may be accepted only after a thorough review indicates the property is readily marketable or may be used by the University in a manner consistent with one of the purposes for which it was granted status. An essential issue for donors to consider before contributing a gift of tangible personal property is whether they would like the University to use or display the property. Prospective donors should be advised that the Foundation reserves the right to sell or otherwise dispose of the personal property in question, if such action is financially advisable or necessary.
For all goods-in-kind donations, the Foundation must be furnished with the following
GIK in excess of $5,000 and for which donors are eligible for a charitable gift deduction in accordance with current IRS regulations will be reported on the date of transfer at the fair market value placed on them by an independent appraiser employed by the donor. Gifts of $5,000 and under may be reported at the value declared by the donor or placed on them by a qualified expert on the faculty or staff of the institution
If a value as specified above is not placed on a GIK, the value on the donor's record will be $1.
If the Foundation receives a GIK contribution from a donor who does not want a gift
who does not want to claim the gift as a charitable contribution for federal income tax
(thus eliminating the need for the donor to comply with IRS regulations concerning gifts
property other than cash), the Foundation will use reasonable means to value the asset for
internal financial reporting purposes in an effort to properly state the Foundation's
All appraisals of real and personal property contributed to the Foundation shall be done in accordance with IRS Publication 561. Expenses incurred obtaining an appraisal will be the responsibility of the donor unless special circumstances exist that make it appropriate for the Foundation to share the cost. Any appraisal cost borne by the Foundation must be approved by the Foundation president.
Planned gifts may be either deferred or outright. They involve the transfer of substantial assets which significantly impact the donor's estate and final plans. These gifts often do not immediately confer institutional ownership and generally are not taken out of current earnings. The acceptable methods of creating deferred gifts to the Foundation on behalf of the University are described below.
Gift by Will or Revocable Living Trust
Gifts made by will or revocable living trust are completed only at the death of the donor and/or a surviving beneficiary. These gifts may provide for a specific dollar amount in cash, specific securities, specific articles of tangible personal property or a percentage of the residue of the estate.
Bequests may be given as unrestricted or restricted gifts. Unrestricted bequests are used for the general purposes and can be applied to current needs. A restricted bequest supports a certain purpose or program designated by the donor.
Among donors' options are residuary and contingent bequests. A residuary bequest will give the Foundation all or a portion of the estate after all debts, taxes, expenses, and all other bequests have been paid. A contingent bequest will ensure that, despite unforeseen circumstances, specified property will pass to the Foundation rather than unintended beneficiaries.
Donors may also direct income be paid to survivors before the assets come to the Foundation. The bequest can be used to establish a charitable remainder annuity trust or charitable remainder unitrust. If such a gift is made by will, the principal will pass to the Foundation only after the death of the life income beneficiary.
Gifts may be made to the Foundation on behalf of the University through the execution of a new will or living trust or through a codicil or amendment to an existing document. Donors may also add either a residual or contingent codicil to their wills.
Donors are encouraged to recognize that over the many years following the establishment of a deferred gift, the needs, policies, and circumstances of the University can change in unforeseen ways. The Foundation's Board of Trustees, in consultation with the University administration, must have the flexibility to make use of the funds in the best interest of the institution and in accord with donor interests and specifications. Thus, donors are encouraged to avoid detailed limitations and restrictions for their gifts. Donors considering bequests for a specific purpose are encouraged to consult the Foundation's Vice President for Planned Gift Programs.
Because they are subject to change, gift commitments by will or revocable trust do not generate current tax deductions for the donor nor are they counted as current gift revenue for the Foundation. However, donors are encouraged to advise the Foundation of these provisions to assist the University in its future planning. All such notifications are held in strictest confidence, unless the donor gives express permission for their plans to be made public.
Charitable Remainder Trusts
Charitable Remainder Trusts are irrevocable arrangements that pay income to the donor and/or other beneficiaries for life or a term of years. The Foundation will accept gifts valued at $25,000 or more to either charitable remainder unitrusts or charitable remainder annuity trusts. In instances where accepting gifts of a smaller amount may be advantageous to the University, the president of the Foundation may waive the minimum gift requirement.
Assets which are readily acceptable for charitable remainder trusts include cash, marketable securities, and real estate not subject to debts or incumbrance. Assets that require prior approval of the Foundation president before acceptance include closely held securities, partnership interests, and tangible personal property. Mortgaged real estate cannot be accepted.
Income paid to the non-charitable beneficiary(ies) must be a minimum of five percent of the value of the trust assets. With an annuity trust, the payment remains the same throughout the term of the trust and no additional contributions can be made. With a unitrust, the payment varies each year, as the trust assets are revalued annually. Additional contributions can be made to a unitrust.
While the rate of payment must be a minimum of five percent, the maximum rate is negotiated between the donor and the Foundation. The rate selected must take into account the income needs of the donor, preservation of the trust assets for ultimate use by the University, and any IRS regulations regarding payments.
The Foundation will not pay a finder's fee or commission to any third party in order to secure a charitable remainder trust, with the exception of standard commissions on the sale of real property, securities, or similar payments necessary to the operation of the trust.
Charitable Lead Trust
A charitable lead trust provides immediate support for the University through income generated by the assets in trust for a set period of time, after which the assets pass to a non-charitable beneficiary such as the donor, the donor's children, or other persons the donor specifies. Thus, a charitable lead trust is conceptually the opposite of a charitable remainder trust.
The donor can create a charitable lead trust during his or her lifetime or by will. Assets are transferred to a trustee, with the stipulation that the income from the assets be paid to the Foundation for the life of the trust, after which the principal or corpus of the trust reverts back to the donor or others of his or her choosing.
A lead trust may be advantageous for donors who have a larger income than they currently need or who desire to transfer assets to heirs at a reduced cost.
Trustee for Gifts in Trust
The Foundation will serve as trustee of gifts that require the appointment of a fiduciary, provided that the Foundation is named as remainder beneficiary of a substantial portion of the assets. Trustees fees will be assessed by the Foundation according to a published fee schedule. If the donor chooses, he or she may also designate a trustee other than the Foundation or, when permitted by law, the donor may serve as trustee.
Gifts of Life Insurance
Life insurance can be the medium for giving funds to the Foundation. With it, the donor
make a substantial gift for a relatively modest annual outlay. For instance, a donor may
irrevocably assign to the Foundation an existing life insurance policy that is no longer
family protection, making the Foundation both the policy owner and the beneficiary.
payments made by a donor for a policy for which the OSU Foundation is both the owner
beneficiary are tax deductible to the donor. If the donor does not choose to continue
premiums, the Foundation may elect to:
It is also possible for the donor to purchase a new life insurance policy for gift purposes. Once again, the Foundation must be named both owner and beneficiary of the policy. In this case, however, the donor will make annual tax deductible gifts to the Foundation in the amount of the premium due on the policy. The Foundation, in turn, will pay the premium to the company. Donors are strongly encouraged to select premium payment schedules that will allow a build up of excess cash with the policy so that earnings on the cash and policy dividends will be sufficient to pay the premiums after five to seven years. If a donor stops making premium gifts before the policy is self-supporting, the Foundation will have the options outlined above in regard to the policy.
It is understood that donors expect the desire that their life insurance gifts will result in the policy's stated death benefit (or more) being available for use by OSU upon the death of the insured. Therefore, the Foundation reserves the right not to accept new policies which, because of unrealistic earnings and dividend projections, company instability, or other factors, are unlikely to provide the donor's desired gift amount.
Before contributing gifts of life insurance to the Foundation, donors and/or their insurance agents should consult with the Foundation's Vice President for Planned Gift Programs.
Gift of a Remainder Interest in a Personal Residence or Farm
A donor can give a remainder interest in a personal residence, such as a home or condominium, or a farm to the Foundation. The donor or other occupants may continue to occupy the residence or operate the farm without disruption for the duration of the donor's life. Thereafter, the residence or farm will either be sold or used by the Foundation for purposes specified by the donor, if any. The procedures for evaluating proposed gifts of real property, as outlined above, also apply to gifts of a remainder interest in property.
If a life estate is retained in the property, expenses for maintenance, real estate taxes, and any indebtedness relating to the property are to be borne by the donor or the beneficiary of the life estate.
Charitable Gift Annuity
The gift annuity is an arrangement in which the Foundation pays the donor (and a surviving beneficiary, if desired) a fixed annual income for life. Because it is a contract, rather than a trust, all assets of the Foundation stand behind the commitment to make the payments to the income beneficiaries.
An annuity contract will be issued for a gift of $5,000 or more. A charitable gift annuity may be established with cash or marketable securities. Use of other assets to fund a gift annuity requires approval of the Foundation president.
The minimum age of a beneficiary of an immediate payment gift annuity is 50 years. A deferred payment gift annuity will be issued to a beneficiary age 40 or more. A maximum of two income beneficiaries may be included on a gift annuity contract. The receipt of income from a deferred gift annuity may be deferred for a period of not more than 20 years.
The rate of payment from a gift annuity shall be that which is fixed from time to time by the American Council on Gift Annuities. However, the ACGA recommendation notwithstanding, the rate of payment shall not exceed the 10-year moving average of the annual return of the Lehman Intermediate Government/Corporate Bond Index as of January 1, 1997. This average will be recalculated every three years, in conjunction with the triennial review of rates by the ACGA, and may be adjusted more frequently if market conditions dictate.
Pooled Income Fund
The Oklahoma State University Foundation Pooled Income Fund offers many of the benefits of a charitable remainder trust to donors whose gifts are less than the minimum needed to establish a separate trust. An initial gift of $5,000 or more will enable a donor to participate in the Fund, and additional contributions may be made in increments of $1,000. Gifts may be made using cash or marketable securities. By IRS regulations, restricted stock and tax-exempt bonds cannot be accepted. Gifts to the Fund are commingled for investment purposes--much like a mutual fund. The donor (and/or other concurrent or successor income beneficiaries designated by the donor) receives a pro rata share of the Fund's net annual income for his or their lives. Upon termination of an income interest, a pro rata share of the principal of the Fund will be used to support OSU programs of the donor's choice.
Final Approval, Acceptance, and Execution by the Foundation
Documents effectuating the acceptance of all gifts, the creation of endowment programs, and the transfer of real or tangible personal property to the Foundation must be approved by Foundation legal counsel and executed by the Foundation president or a vice president.
Corporate Matching Gifts
All matching gifts received by the OSU Foundation as the result of an employee or employees contribution(s) will be directed to the same fund as the donor's gift unless specified otherwise by the donor or the contributing corporation.