The University of Georgia Foundation Restrictions on Gifts :: Ways of Giving :: UGA Foundation

 


Restrictions on Gifts

POLICY: 3.9
Effective Date: 01/01/04
Last Updated: 09/12/2013
Policy Owner: Scott, Brandon

  1. Gifts that discriminate on the basis of race, color, religion, nationality, national origin, age, disability, gender, or sexual orientation are prohibited.
  2. Preferences for relatives or descendants in the awarding of scholarships or in the use of donated funds are prohibited.
  3. Gifts made on the condition or with the understanding that the award will be made to a student of the donor's choice are prohibited. Money received subject to such restrictions may be credited to a depository account within the University's Bursar's Office, but it will not be recorded as a gift to UGA or UGAF.
  4. The terms of any gift should be as flexible as possible to permit the most productive use of the funds, and as nearly as possible, to be consistent with the original intent of the donor. 
  5. Gifts that restrict or impede the work or scholarly activity of a faculty member, fellowship holder, or student are prohibited. 
  6. Gifts that include a commitment for the future employment of the student recipient are prohibited. 
  7. Donors may not select the recipient(s) of scholarships, awards or any benefits to be derived from their gift. 
  8. In certain limited circumstances, the donor of a gift may serve on a selection, evaluation, or advisory committee involved in the selection or evaluation of students or faculty members who would benefit from the gift. These are limited in number and must meet very specific criteria. 
  9. Gifts or pledges contingent on an action the institution would not have otherwise taken are prohibited.

Changing Restrictions

The use of donated funds for a purpose other than that stipulated by the donor is ordinarily prohibited. If another use is deemed necessary, consent for using the funds in a different manner may be sought from the donor or may be altered in accordance with the terms of the gift agreement or law, which often requires court approval.

Rescinding Gifts

As stated previously, a gift is by definition an irrevocable transfer of property or money and the UGAF routinely issues a Gift Receipt for all contributions. These receipts represent the documentation required by the IRS to claim a charitable deduction for income tax purposes. Therefore, in those rare instances in which a donor's gift is returned, the UGAF will do one of the following:

  1. Request that the donor return the original gift receipt (this would generally be most appropriate when the gift is returned within the same calendar/tax year).
  2. Issue a 1099 identifying the payment as a source of income (this action would be taken only if the donor failed to return the original gift receipt or if the contribution(s) were made in previous calendar/tax years during which the donor would have already claimed the charitable deduction).