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EIU Office of Internal Auditing

#121 - Gifts to the University


Approved: December 21, 2005

Nomenclature changes: July 9, 2014

Monitor: Vice President for University Advancement


Gifts must address the needs of Eastern Illinois University and provide a cost benefit to the University while meeting the intent of the donor. The President or Vice President for University Advancement, as the President's designee, shall have the final authority in determining gift acceptance. Board approval is required prior to acceptance of gifts in cases which involve a significant commitment of resources for the operation, maintenance or administration of the gift.

Unrestricted Gifts 

Unrestricted gifts are those upon which the donor has not placed restrictions as to the method or purpose of expenditure and allows the University to use the gifts in the most appropriate manner. Unrestricted gifts do not include those made to specific departments/programs within the University and may be used for any purpose deemed appropriate for the institution.

In the absence of any restriction placed on the gift by the donor, it shall be defined as "unrestricted" and placed in the President's gift account to be used at the President's discretion.

Restricted Gifts

Restricted gifts shall be used only for their designated purposes.

Restricted gifts have definite restrictions for their purpose or the conditions for which they may be disbursed. Acceptance of a restricted gift imposes a legal and ethical obligation to comply with the terms established by the donor. Therefore, the nature and extent of this obligation must be clearly understood. Accordingly, the terms of each restricted gift will be reviewed carefully to insure it is legally acceptable and that they do not hamper the usefulness and desirability of the gift to the University. If a gift is deemed unacceptable because of restrictions the donor has placed on its use, the donor shall be counseled to remove or modify the restrictions. Gifts shall be refused or returned when the purpose (1) is inappropriate, illegal, or not in the best interest of the University; (2) is clearly commercial; or (3) would obligate the University to undertake responsibilities, financial or otherwise, that it may not be capable of meeting during the period required by the terms of the gift. The Vice President for University Advancement, in consultation whit the President, shall have the final authority in determining if a gift is refused or returned.

In addition, the University may launch campaigns to solicit contributions for specific projects. When a solicitation is made for a stated purpose, even if the donor does not state specifically in the letter or transmittal, or on the check, that it is restricted and/or, if the donor is responding to a solicitation for a specific purpose, the donation shall be considered restricted to that purpose.

A separate gift account shall be established for each vice president and his/her designee.

Gifts In Kind

Gifts-in-kind may include real estate, equities, works of art, and other materials of educational, artistic, or historical value. The necessary approvals (fiscal agent, dean/director, and the Vice President for University Advancement) must be obtained and a gift-in-kind form completed before the gift can be accepted. A gift receipt will be issued stating what has been accepted but no value will be assigned to the gift. A gift-in-kind form need not be completed for gifts of equities. Gifts of equities may be sold and the proceeds used according to donor intent.

The University shall not take an official position on the value of in-kind contributions of individuals or companies for tax purposes. Establishment and defense of the value of in-kind contributions for tax purposes is the responsibility of the individual or company making the contribution.

In accordance with state and federal regulations, no officer of the University shall give, or appear to give, legal or tax advice concerning the value of the gift. The potential donor shall be urged to seek the advice of a legal counsel or tax adviser. Gifts with a fair market value of $5,000 or more are subject to special rules of evaluation by the Internal Revenue Service. The office of the designated development officer shall be consulted for specifics before any such gift is accepted. If possible, donors shall be informed of actions planned by the University, such as ways in which the gift will be utilized, where it will be kept, or under what conditions it will be disposed.

If the donor has imposed any restrictions upon the use of the gift, the University, by accepting the gift, accepts responsibility for adhering to those restrictions. Such restrictions shall be observed as long as the gift is held by the University and may be changed only by mutual agreement unless otherwise permitted by law.

Gifts of routine library materials may be accepted provided they fit into the collection development and acquisition policies of Booth Library and provided there are no restrictions. The Library must be free to dispose of – by gift, exchange, or salvage – any publications which are not needed. As a general rule, the Library cannot agree to maintain a gift collection as a separate entity. Gifts offered with such restrictions may be accepted by the Dean, Library Services, on an individual basis.

Gifts of art may be accepted provided they fit into the collection development and acquisition policies of Tarble Arts Center and provided there are no restrictions. The Tarble Arts Center must be free to dispose of – by gift, exchange, or salvage – any works of art which are not needed. As a general rule, the Tarble Arts Center cannot agree to maintain a gift collection as a separate entity. Gifts offered with such restrictions may be accepted by the Director, Tarble Arts Center, on an individual basis. 

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