A.1. Responsibility to Donors

A.2. Acknowledgement and Acceptance of Gifts

A.3. Policies Pertaining to Named Endowment Funds

A.4. Policies Pertaining to Non-Endowed Scholarships, Grants, and Other ‘In & Out’ Receipts

A.5. Glossary

Nicholls State University, as a member of the University of Louisiana System, depends on private sector support to achieve its desired levels of excellence in all areas. Contributions from individuals, foundations, corporations and other entities are critical to the fulfillment of the university’s mission of offering high-quality educational opportunities to meet the unique geographic and multi-cultural needs of south central Louisiana and beyond.

The President of the University has the ultimate responsibility for all fundraising activities. Activities associated with this responsibility are delegated to the Vice President of Institutional Advancement and to the Director of Development as per the president’s direction.

The following policies and procedures are set forth: (a) to define the working rules for accepting various types of donations to the University, (b) to protect the university, its administration, staff and volunteers, and (c) to better inform the university’s advisers, donors and prospective donors. These guidelines also are designed to outline administrative processes associated with the acceptance of gifts processed or administered by the Office of Development for Nicholls State University. Furthermore, these policies and procedures will facilitate the university’s voluntary compliance with Management and Reporting Standards as promulgated by the Council for the Advancement and Support of Education (CASE).

All organizations affiliated with Nicholls State University agree to abide by these same policies and procedures.

These guidelines are to ensure that staff members are able to function in a timely, effective and professional manner in the context of institutions that are engaged in energetic and comprehensive fundraising efforts. When these guidelines do not indicate an appropriate course of action or if they are inappropriate in light of all aspects of a specific situation, staff members are directed to consult with the Director of Development or his/her designated representative to establish an appropriate course of action.

It is the general policy of Nicholls State University (1) to offer diverse opportunities for gift support of the university, (2) to communicate such opportunities to constituents on a regular basis, and (3) to provide resources for a full and effective development program for the benefit of both the donors and the university.

The Office of Development is the clearinghouse for the fundraising activities of the University, and as such, it is the designated repository of all gift information to the university.

It shall be the responsibility of the Office of Development and its staff, under the direction of the Vice President for Institutional Advancement of the university:

• To maintain and increase financial support for the university;
• To develop and propose plans for a comprehensive development program, including annual fund, capital and planned giving efforts;
• To advise senior staff and volunteers of matters relating to the cultivation, solicitation and acceptance of gifts and grants in support of the university;
• To inform, serve, guide and assist the university’s constituents in fulfilling their family, financial and philanthropic objectives;
• To coordinate all such fundraising efforts as may involve the several constituencies (foundation board and members, senior staff, faculty and staff, alumni, friends, corporations, foundations, etc.) of the university by matching donor interests with specific funding opportunities so that prospects and donors are not solicited by multiple individuals on behalf of the university;
• To maintain an accurate database of all donors (individuals and organizations), including biographical information and gift history;
• To prepare necessary documentation to complete voluntary reporting for the Council for the Advancement and Support of Education (CASE) and for the Council for Aid to Education (CAE) Voluntary Support of Education (VSE) survey purposes;
• To undertake research on prospects and donors so as to identify donor interests and to maintain confidentiality with regard to research findings and donor records;
• To report regularly to the President, Vice President for Institutional Advancement and senior staff regarding gifts, grants, pledges and planned gift commitments received by the university.

All gifts to the university should be directed through the Office of Institutional Advancement to the Office of Development unless these policies direct otherwise, where they will be accepted, acknowledged and administered in accordance with the policies of the university.

No solicitation of gifts, funds or real property for the benefit of the university shall be made by anyone without the approval of the Vice President for Institutional Advancement, as designated by the President of the university, or his/her designated representatives.

A.1. Responsibility to Donors

All development officers and staff shall make reasonable efforts to be aware of and be sensitive to the donor’s expectations. All conversations, discussions, records, etc. a donor may have with the university and the Office of Development will be treated with the utmost confidentiality. The President of the university specifically directs access to donor information on a need-to-know basis only.

Nicholls welcomes expressions of interest and financial support, regardless of size or form, from any individual, business, corporation, foundation or similar source. The Office of Development staff and campaign volunteers are available to meet with any prospective donor(s) and their financial advisers, without obligation, to discuss areas of interest, the plans of the university, types of gift commitments, options for payment, estate planning and the tax planning consequences of a possible gift commitment so as to provide every possible assistance to a prospective donor.

The development staff shall advise all prospective donors in writing to seek legal and/or tax advice from their own counsel and professional consultants. University representatives should be knowledgeable about gifts and should disclose to the donor advantages and disadvantages that could reasonably be expected to influence the decision of the donor in making a gift to the university. In particular, planned giving items that may have adverse tax implications to the donor or are subject to variability (such as market value and income payments) should be discussed fully.

While representatives of Nicholls will provide all appropriate assistance, the ultimate responsibility regarding asset evaluations, tax deductibility and/or similar federal, state and/or local legal compliance issues rests with the donor(s) and/or with such legal and financial advisers as the donor(s) shall secure. All donors should have competent legal and financial advisers, and representatives of the university shall always recommend that potential donors seek such assistance.

The university will not knowingly seek nor accept any commitment regardless of size, designation or other condition, which it believes is not in the potential donor’s best interest.

The university will not furnish property appraisals or valuations of real or personal property to the donors for tax purposes or any other purpose. The university will not knowingly participate in a transaction in which the value of a gift is inflated above its true fair market value to obtain a tax advantage for a donor.

To assure that philanthropy on behalf of Nicholls merits the respect and trust of the general public and that of donors, we bear other responsibilities to donors, including but not be limited to the following:

• To inform donors of the university’s mission, of the way it intends to use donated resources, and of its capacity to use such donations effectively for their intended purposes.
• To assure that donors remain informed of the university’s administration and senior staffing personnel, and that donor(s) can expect these administrators to exercise prudent judgment in their stewardship responsibilities.
• To assure donors that their gifts will be used only for the purposes for which they were intended.
• To assure donors that they will receive appropriate prompt acknowledgment and proper recognition of gifts to the university.
• To assure donors that the information about their donations is handled with respect and with confidentiality.
• To assure donors requesting anonymity that they shall remain as such and not have their names appear on “Honor Rolls” or other recognition programs.
• To assure donors that their names and addresses and other personal information shall remain confidential and not be shared outside of the Office of Development except on a need-to-know basis to further the objectives of the university’s Advancement Services.
• To assure donors that they may expect to receive prompt, truthful and forthright answers to questions about a possible donation, and that all will treat them in a professional manner who represent Nicholls State University.

Many contributions to annual fund, capital campaign and other appeals will be “unrestricted” in nature. However, any donor has the option to “restrict” some or all of his/her gift to any particular fund.

Nicholls State University adheres to the CASE Statement of Ethics, as adopted July 1982, and the Association of Fundraising Professionals (AFP) Donor Bill of Rights, as adopted November 1993.

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A.2. Acknowledgement and Acceptance of Gifts

It shall be the primary responsibility of the Office of Development to receive, acknowledge, receipt and record all gifts on behalf of the university. The Office of Development is further responsible for notifying other offices of which gifts they should acknowledge and for notifying the President of the university of all gifts of $1,000 or more. Development’s recording of the gift in the Office of Development’s database does not involve university financial records.

Unless otherwise directed by the Director of Development, all gifts, including cash, checks, pledges or other assets, shall first be directed to the Office of Development for recording into a database in order to develop a single, comprehensive repository of all such gifts. The Office of Development shall maintain said database to facilitate voluntary reporting each year based on the Council for the Advancement and Support of Education (CASE) Management and Reporting Standards.

To wit:

A. All such donations of cash, pledges to give cash or other assets, tangible or real assets, etc., will be entered as a gift by the Office of Development based on the value of the gift on the date it is relinquished to the university, as detailed below and as further explained later in this policy statement.

B. Gifts by check shall be recorded as given as per the date on the check.

Gifts in foreign currencies shall be valued at the exchange rate in effect on the date of the gift.

C. Gifts by credit card are recorded in the same manner as cash or check and should be recorded only after the university has received authorization for the charge from the credit card agency, the date of such authorization being the date of the gift; the face value of the donation will be recorded for the donor, and any fees imposed by card issuing companies will be borne by the university as administrative expenses.

D. Matching gifts made by businesses that match the voluntary contributions of employees must be counted as coming from the business or organization that made the payment rather than from the individual whose gift was matched; in such cases, the individual will receive soft credit for the matching gift.

E. Gifts from various individuals and organizations will be credited to various constituency groups for reporting purposes, such as alumni, parents of students/parents of alumni, faculty/staff, foundations, corporations, etc. Because of VSE reporting requirements, the alum constituency takes precedence over others:

• When an alumnus(a) who is married to a non-alumnus(a) makes a gift and the gift is via a joint account, the alumnus(a) receives legal credit, and the spouse receives an equal amount of soft credit.
• When a gift is made by an alumnus(a) who is married to an alumna(us), and the gift is via a joint account, each graduate is credited with one-half the gift as hard credit and one-half the gift as soft credit; the two records should then by linked.
• The principal or owner of a business, in which an individual plays an instrumental role in helping the university receive the gift from that corporation, will receive a soft credit for the donation; the business still receives the primary credit as the legal donor.
• Gifts from family and personal foundations are counted as foundation (not individual) gifts; any and all related family members, to the extent these are known, may receive soft credit for gifts made by the foundation.

F. Insofar as annual fund gifts are those considered for current operations, gifts may be unrestricted, including matching gifts:

• In cases where a donor expresses a preference but leaves the decision to the university, the gift will be recorded and reported as unrestricted.
• Gifts for current operations that have been restricted by the donor for a specific purpose, such as to a particular academic college or department, for student financial aid and scholarships, etc., will be recorded and reported as restricted (note: gifts to a specific college or department, including athletics, which are directed for scholarships, should be recorded and reported as “student scholarships and financial aid”).

G. Pledges and other promises to give are to be counted and reported (Conditional pledges, which place requirements on the university to perform some task or take some sort of action it might not otherwise initiate, are not considered gifts and are not to be recorded until the asset is actually transferred.)

• Pledges are recorded as such over the period of time agreed upon. The type of pledge is recorded as a gift sub-type in the Office of Development database.
• Only oral pledges may be made through an authorized telethon or phonathon campaign or program are to be counted and reported; this assumes a form of confirmation notice is mailed to the donor immediately following the solicitation period.
• Written pledges of a donor’s assets should be documented, committing to a specific dollar amount that will be paid according to a fixed time schedule.
• In the case of faculty, pledge payments may be, at their option, deducted from nine monthly pay periods each year for multi-year pledges; for staff, pledge payments may be, at their option, deducted from 26 pay periods each year for multi-year pledges.
• Pledges from individuals and organizations apart from the university are entered as promised, and the Office of Development shall send reminder notices at least 30 days in advance of pledge payment due dates.
• The Office of Development shall conduct a review of all open pledges at least annually to ascertain their viability and the likelihood of their fulfillment.
• Annual fund pledges not completed during the fiscal year of the annual fund campaign should be written off since the purpose of the annual fund is to generate operating support for a specific fiscal year.
• For delinquent non-annual fund pledges, the Office of Development will write off those uncollectible pledges judged to lack viability or likelihood of fulfillment. This practice should occur prior to the close of each fiscal year.

H. For non-cash gifts valued at $500 or more, the university will complete IRS Form 8282 and provide a copy to the donor. Additionally, in the cover letter, the university will advise such donors that they may be required to file IRS Form 8283, which would require donor to send the completed form to the university for its acceptance (Part IV); the university will return the form to the donor for his/her filing with the IRS.

• The Office of Development shall coordinate with the Property Control office in all matters regarding the donation of movable equipment in order to comply with requirements of the Property Control section of the Purchasing Manual regarding donations of equipment.
• Non-cash gifts valued at more than $5,000 also require Section B – Appraisal Summary to be completed by the donor on Form 8283, page 2.

I. For CASE and CAE reporting purposes, contributed services are not considered gifts to be recorded in fundraising totals. However, under FASB guidelines, the value of contributed professional services, for a service for which the university would have otherwise had to pay, shall be identified and tracked since these are considered gifts under FASB.

In the case of certain fundraising events and activities, such as scholarship dinners (e.g., “Bite of the Arts”), silent and live auctions, department-specific fundraising activities, university or athletic booster organizations, or non-endowed scholarships, the Director of Development may direct the appropriate offices to receive, record and acknowledge these gifts under procedures outlined in the Gift Acceptance Policy Addendum A.

Raffles, in accordance with IRS regulations, result in an opportunity to win a prize, and any such payments may not be considered a tax-deductible gift to the university. Likewise, no such payments are counted as gifts for CASE and CAE purposes. (Any raffle conducted by any college, department or university-affiliated organization shall be done in accordance with state laws of Louisiana and with proper licensing.)

Other considerations:

Commitments and/or payments to Nicholls State University may take the form of one, or a combination, of the following:

• Cash
• Multi-year pledges
• Appreciated securities or other personal assets
• Real or personal property
• Deferred or planned gifts, including:
• Trusts
• Annuities
• Insurance policies
• Bequest intentions
• Bargain sales
• Gifts of residence with or without a retained life interest.

Appropriate university representatives, as authorized by the president of the university, reserve the right to accept (or, in cases where absolutely necessary, to decline) any commitment that is offered to the university. They also reserve the right to determine how any commitment will be credited and/or how such commitments will be recognized.

Gifts shall be valued on the date of the donor(s) relinquished control of the assets in favor of the university. In cases where gifts are made in cash, by check or pledges of cash or check, the following guidelines will be observed:

• A donor may not retain any implicit control over a gift after acceptance by the university. A donor may certainly suggest or restrict the gift to a particular area of the university. For a gift to be considered a gift, no further involvement on the part of the donor is appropriate upon gift acceptance.
• In the case of a scholarship fund, the donor may be a member of the selection committee as long as he does not control more than 49 percent of the allotted votes. The university should seek legal counsel to ensure no possible control position exists, perhaps by virtue of a donor’s ability to make additional gifts, before permitting a donor to serve on a selection committee.

In cases where gifts are made with assets other than cash, the following guidelines will be observed:

A. The university may accept gifts of stocks, bonds, or other publicly traded securities.

B. Gifts of publicly traded securities may be accepted either by the university or, on behalf of the university, by the appropriate affiliated organization and receipted at the average of the high- and low-market value on the date the donor relinquished control of the asset in favor of the university or by other valuation techniques approved by the IRS. The amount received from the sale of a non-cash gift may be more or less than the value of the gift. [For example, a donor gives a gift of stock valued at $10,000. The stock is sold for net proceeds of $9,500 (after a sales commission). The donor is credited with a $10,000 gift, even though the net proceeds are less.]

C. Gifts of closely held stock will not be accepted by the university.

D. Outright gifts of real estate, bargain sales and/or partnerships will be credited, recognized and/or commemorated at fair market value at the time the asset is transferred to the university, less any encumbrances. The fair market value of real property shall be determined by an independent, qualified appraiser paid for by the donor. Appropriate environmental hazard appraisals are also required and are to be paid for by the donor. The university will not accept a gift of real property without a Level 1 Environmental Assessment, as required by the Office of Facility Planning & Control.

E. Gifts of real estate must be accepted by the university in accordance with statutory requirements governing the university’s acquisition of real property. The University of Louisiana System Board requires its approval prior to accepting gifts of real estate.

F. Outright gifts of hard-to-value assets such as mineral rights or limited partnerships will be credited at $1, and additional credit will be given as the proceeds are received.

G. Outright gifts of tangible personal property for which donors qualify for a charitable gift deduction under current IRS rules will be credited, recognized and/or commemorated at the appraised value of the property at the time it is transferred to the university, less any encumbrances. In accordance with state regulation, gifts of tangible personal property or movable property cannot be sold or given away by the university. Tangible gifts may consist of, but not be limited to, personal collections of books, art, coins or movies; cars, boats and aircraft; animals, such as livestock for a veterinary program or horses for an equestrian program; securities; equipment; software; printed materials; food or other items used for hosting dinners; gas or oil wells.

H. Other guidelines or consideration in connection with the gifts of tangible property are these:

• Generally, the university’s acceptance of such gifts cannot involve significant additional expense to the university for their present or future use, insurance, maintenance or administration.
• Generally, no burdensome financial or other obligation shall be incurred by the university, directly or indirectly, as a result of its acceptance of such gifts.
• Gifts of personal property (jewelry, antiques, paintings, rare books, etc.) exceeding $5,000 in value shall be reported at the fair market value place on them by an independent, expert appraiser at the time the donor relinquishes control in favor of the university. Gifts valued at less than $5,000 may be reported at the value declared by the donor or a qualified on-campus expert (e.g., a librarian who can validate the value of rare books).
• The university will not accept gifts of tangible property if such gifts are made on the condition, understanding or expectation that the gifted items will be loaned to the donor or to persons designated by the donor for life or for an extended period of time as determined by the donor.
• Electronic/computer equipment items valued at $250 – $999, and moveable property valued at $1,000 or more must be tagged by the Property Control Office.

Intangible (intellectual) property is that produced through creativity and innovation, including but not limited to patents, computer software under development, and copyrights of cultural, artistic and literary works. If fair market value of intellectual property is not known and cannot be readily determined, the university will report the asset in the year the value becomes known.

Gifts of gas, oil and mineral rights should be counted and reported at the readily determinable fair market value. Alternatively, if the fair market value is not known and cannot be readily determined, report the asset in the year the value becomes known.

Gifts of royalties from property that the university does not own should be counted and reported at such time as payment is received. No pledge should be entered in anticipation of such payments as there is no guarantee of the amount or the continuation of an income stream. Royalties from vendor affinity agreements, such as alumni credit card programs, are exchange transactions and are not countable.

I. Fully paid up or otherwise vested whole life insurance policies, for which the university is both owner and sole beneficiary, will be credited and recorded as “future” expectancies of the university at the unrealized death benefit (face or cash surrender value) of the policy in cases in which the insured is age 65 or older, and at the replacement value for donors younger than 65.

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A.3. Policies Pertaining to Named Endowment Funds

A. For the purposes of this policy statement, “endowment fund” shall refer to any fund, or any part thereof, not wholly expendable by the university on a current basis under the terms of the applicable gift instrument. All endowments must be reviewed and approved by the Office of Institutional Advancement in accordance with policies of the University of Louisiana System.

Endowment funds are invested according to the policies of the system.

B. Endowment gifts may be used to establish a special endowment fund or may be added to an existing endowment fund. New endowments shall not be created with accumulated distributions from existing permanent endowments.

C. Persons interested in establishing a named endowment fund are encouraged to consult with the Director of Development prior to making the gift so that the donor’s intentions are appropriately established in writing. Negotiation of any named endowment agreement on behalf of the university shall be done over the signature, and with the full knowledge of, the president of the university.

In designating an endowment gift for a specific purpose, the donor is encouraged a) to describe that purpose as broadly as possible, b) to avoid detailed limitations and restrictions, and c) to provide a clause granting the university maximum flexibility to make use of designated funds in a manner most consistent with the intent of the donor and with the interests of the university should programmatic or other developments make it impossible to apply the endowment proceeds to the purpose for which is as designated originally.

D. Gifts for endowment funds for specific purposes must meet the minimum dollar requirements as established by the Board of Regents for endowed chairs and professorships and by the university for endowed scholarships. The principal amount of the original gift need not meet the minimum dollar requirement if the donor agrees to fully fund the endowment at the minimum dollar requirement with a specified and reasonable period of time.

Earnings from the endowment will be used to support the purposes of the endowment. At no time will principal be applied to support any of the purposes.

E. Minimum dollar requirements for endowed chairs, professorships and scholarships may be changed from time to time at the sole discretion of the Board of Regents and the university. Such action may be necessary so as to ensure that endowment proceeds are sufficient to fund the intended purposes of an endowment. Changes in the minimum dollar requirement shall not apply to endowed funds already established.

Current minimum dollar requirements for endowed chairs are set at $600,000 by the Board of Regents, which provides a matching gift of $400,000 from the Board of Regents Support Fund, to establish a $1 million endowed chair. The Board of Regents encourages proposals for a $2 million endowed chair, also matching at the same 60:40 ratio.

Current minimum dollar requirements for endowed professorships are set at $60,000 by the Board of Regents, which provides a matching gift of $40,000 from the Board of Regents Support Fund, to establish a $100,000 endowed professorship.

Endowed funds should be established with gifts of cash or irrevocable estate planning instruments.

Current minimum dollar requirements for endowed scholarships are set by the university at $10,000.

The required minimum funding for any endowment funds will be determined by the total value of gifts from donors and transfers of funds, valued as of the gift date or date of transfer, respectively. Reinvestment of endowment distributions may be used to determine the total funding value.

As an example, a donor contributes $20,000 a year for three years to establish a professorship with a total contribution value of $60,000. At the end of the three-year period, the value of the combined contribution may reach a market value of $65,000 due to capital appreciation. However, the contributed value remains at $60,000, (which is matched with $40,000 from the Board of Regents for a total endowment of $100,000).

Government matching gifts to complete endowments are not to be counted in fundraising totals. While such programs may encourage philanthropy, only philanthropy involves the disposition of privately held resources for the public good. As such, funds from governmental agencies (local, state, federal or foreign, including matching grants) are excluded for purposes of CASE and CAE reporting.

Endowed chairs and professorships will adhere to the policies of the Board of Regents, and endowed scholarships will adhere to the policies of the university.

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A.4. Policies Pertaining to Non-Endowed Scholarships, Grants, and Other ‘In & Out’ Receipts

Non-endowed scholarships, typically referred to “in-and-out scholarships,” are indeed gifts to the university insofar as they are awarded to students on a competitive basis according to set criteria. Such current purpose gifts to the university for these scholarships shall be recorded by the Office of Development and included in CASE and CAE reports.

Grants are contributions to the university whether for unrestricted or restricted use, typically awarded from a corporation, foundation or other organization, and these are considered philanthropic in nature. This includes gifts for current operations restricted for scientific, technical and humanistic investigation. As such, grants to the university shall be recorded by the Office of Development.

As noted above, grants from governmental agencies are not considered gifts and as such are not to be included or recorded as gifts. This includes matching gifts for endowments.

Contracts for services are agreements between the university and another entity to provide an economic benefit for compensation and a quid pro quo exists; such exchange transactions are not recorded as gifts.

There are, however, many other practices, seminars, events, missions, etc., that constitute receipt of funds that are expended entirely or nearly entirely for the purpose of the receipt, and as such these are referred to as “in and out” funds. Typically, these are registrations, ticketed events, banquets, luncheons, etc., for which the receipted money covers the cost of the event.

Some of these “in and out” purposes include but are not limited to these:

• Flower sales for graduation.
• Education, A&S and similar honors banquets or luncheons.
• International Film Club.
• Center for Women in Government banquets and posters.
• Retiree breakfasts.
• Fundraising for nursing missions.
• Free Enterprise Week registrations.
• College of Business Management Series and similar speaker programs.

 

(In should be noted, however, that business donations not tied to admissions, registrations, etc., such as donations to Free Enterprise Week and the Nursing Mission, and similar endeavors, are indeed donations to the university and as such are to be treated as outlined above.)

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A.5. Glossary

Administrative Approval Process – The procedure for accepting gifts to be approved by the Director of Development or the Vice President for Institutional Advancement or his/her designee and which conform to university and Board of Regents’ policy.

Board of Regents – The governing body for higher education in Louisiana. It is composed of nine members who are appointed by the Governor and confirmed by the Senate. Terms are of six years each and staggered, with the terms of three members expiring on February 1 of odd-numbered years.

Book Value – As pertaining to an endowment, the book value is the original value of all gifts and contributions made to the endowment, as well as reinvestment of earnings and any realized gains or losses resulting from the sale of non-cash gifts.

Charitable Lead Trust – A trust in which distributions are paid to one or more qualified charities for a certain period of time, after which the charitable interest terminates and the trust remainder typically reverts to designated non-charitable beneficiaries.

Charitable Remainder Trust – A tax-exempt trust that provides for payment to non-charitable beneficiaries for life (or lives), or a term-of-years not to exceed 20 years, after which the trust remainder goes to one or more qualified charities.

Closely-Held Stock – A corporation the stock of which is held by a few shareholders, often the management or the members of a family. Some closely-held stock is publicly traded. Closely-held stock of a “closed corporation” is not publicly traded.

Current Purpose Gifts – Non-endowed gifts to be expended for the purposes designated by thedonor.

Deferred Gift Annuity – A charitable gift annuity for which payments to the annuitant(s) begin more than one year after property is transferred to the charity. (See Gift Annuity.)

Endowments Held and Administered by External Trustees – Funds administered by a trustee other than the university, from which the university receives distributions, or from which the institution will receive distributions at a specified time. Examples of such trustees are banks, individuals, or other charitable entities.

FASB – Financial Accounting Standards Board.

FMV – Fair Market Value; e.g. in the case of a fundraising dinner, what a person would reasonably be expected to pay for such dinner in one of the area’s better restaurants.

GASB – Government Accounting Standards Board.

Gift Annuity – A charitable giving device by which a donor transfers money or other property to a qualified charity in exchange for guaranteed lifetime payments, the present value of which is less than the amount transferred.

Gift Value – The value of a gift at the time it is made. Gifts are valued in accordance with the provisions of the Internal Revenue Code and regulations thereunder.

Intellectual Property – Creations of the mind: inventions, literary and artistic works, symbols, names, images, and designs used in commerce. Intellectual property includes inventions, patents, trademarks, and copyrights.

Limited Partnerships – A limited partnership is an entity in which one or more persons, with unlimited liability (called General Partners) manage the partnership, while one or more other persons only contribute capital; these latter partners (called Limited Partners) have no right to participate in the management and operation of the business and assume no liability beyond the capital contributed.

Market Value – The price that an asset would bring in a market of willing buyers and willing sellers, in the ordinary course of trade.

Mineral Interest in Real Property – Rights to gas, oil, and other minerals, whether joined to or severed from the surface estate.

Nicholls State University Foundation, Inc. – A non-profit corporation established in 19XX to accept and manage gifts in support of Nicholls State University. The university is the beneficiary of the foundation, but the foundation functions independently under its own Board of Directors and pursues its own investment policies in the management of its portfolios.

Permanent or True Endowment – A fund created with gifts received from a donor with the restriction that the principal is not expendable. The gifts are invested in perpetuity and only the distributions are expended for the purposes designated by the donor.

Quid Pro Quo – The benefit one may receive by virtue of a donation or purchase of a ticket(s) to fundraising events; the actual donation would be the amount of the money less the value (the quid pro quo) of the benefit, based on the fair market value of what one would likely pay for similar services.

Surface Interest in Real Estate – Any interest in the surface of real estate and improvements, and all other property interests that do not constitute the mineral estate.

Term endowment – Funds for which the donor has stipulated that the principal may be expended after a stated period or on the occurrence of a certain event.

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