GENERAL INFORMATION

The Mission of the UNT Foundation
Structure of the Foundation
Staffing the Foundation
Board of Directors Volunteer Position Description
Conflict-Of-Interest Policy
Directors and Officers Liability
Communicating with the Board
Nondiscrimination/Equal Opportunity/Affirmative Action/Sexual Harassment Policy Statement
Whistleblower Policy
Public Information

ACCOUNT MANAGEMENT

Definitions throughout this Manual
Establishing a New Account
Types of Accounts
Account Holders
Deposits (Contributions) to Accounts
Procedure for Acknowledging and Receipting Gifts

INVESTMENT MANAGEMENT

Endowment Account - Investment Vehicles
Operating Account - Investment Vehicles
Bank, Cash and Funds Management Accounts
Investment Policy
Appendix A
Appendix B
Appendix C

OBTAINING FUNDS FROM ACCOUNT

Withdrawals of Amounts from Endowment Accounts
Distribution Policy
Fees Charged to Endowed Accounts

SPECIAL INFORMATION

Funding Requests from Foundation Unrestricted Assets
Executor Functions
Trustee Functions

GIFT PLANNING AND ACCEPTANCE POLICIES

Overview
Liquidation of Gifts
Appraisal
Tangible Personal Property
Life Insurance
Guidelines for Gifts of Life Insurance
Gifts of Cash
Securities
Individual Wills
Charitable Gift Annuities
Charitable Remainder Trusts
Management
Real Estate Policies

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ACCOUNT MANAGEMENT

Definitions Throughout This Manual

MEMORANDUM OF UNDERSTANDING: A document prepared by Development and Foundation Staff, signed by the donor, the President of the University and the Chairman of the Foundation Board, that specifies to purposes and management guidelines for endowed funds; MOU's are permanently held by the Foundation

PERMANENT ENDOWMENT: A permanent fund, the principal of which is never invaded, which is invested for long-term growth and stable income, that creates distributions of money from combined income and reserve funds generated by the fund.

QUASI-ENDOWMENT: A fund, intended to function as an Endowment, except the principal of which may be invaded for the purposes described in the Memorandum of Understanding, which is invested for long-term growth and stable income, that creates distributions of money from combined income and reserve funds generated by the fund.

GIFTS: All contributions made by donors to the principal of an account, plus any interest and dividends added to the principal prior to reaching the appropriate minimum endowed level.

INCOME: Interest plus dividends plus market appreciation minus market depreciation

TOTAL RETURN: The total earnings from investments net of money manager fees that are earned by the portfolio holding the Endowment and Quasi-Endowment accounts

ACCOUNT HOLDER: The individual University faculty or staff person authorized to access the on-line quarterly report for an account, and to request information, reports, and funds from that account based on the Distribution Policy and the Memorandum of Understanding

DISTRIBUTION AMOUNT: For “Growth Pool” and “Growth & Income Pool” endowment accounts, see the Distribution Policy section

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Establishing A New Account

Any donor, group of donors, corporation, foundation, or official component of the University of North Texas may establish an account with the Foundation, provided that gifts, grants and other income to the account are made payable to UNT Foundation or to an existing named account within the Foundation, and that the basic requirements as to minimum gift amount, intended purpose, and compliance with the Mission of the University are met.

New accounts are established by obtaining the necessary new account set-up form. Once established in this manner, gifts will be accepted into the specified account. Throughout this document, “Gift” shall mean: all contributions made by donors to the principal of an account, and – if so specified in the Memorandum of Understanding - any interest and dividends added to the principal prior to reaching the appropriate minimum endowed level. Market appreciation and depreciation is not used to determine the “gift” amount of an endowed account.

Every new Permanent Endowment or quasi-endowment account established in the Foundation must have a Memorandum of Understanding, which is to be created prior to or at the time the new account is initiated. The Memorandum of Understanding permanently guides the use and management of the gifts contributed, and the distributions made to account holders. The Memorandum may only be changed with the written compliance of the original donor signatories, the President of the University, and the Chair of the Foundation.

The Executive Director of the Foundation works closely with Office of Development staff on all special gifts such as securities, tangible personal property, Trusts, and real estate. Donors and Development staff should contact the Executive Director for assistance in handling anything other than gifts by cash or check.

Checks, securities, or other assets made payable to the “University of North Texas” or “UNT” or the name of an account, which may already exist in the University, cannot be directly placed in Foundation accounts. These funds are placed in the University holding account and a special letter is sent by the Foundation to the donor(s) asking for her/his/their permission to move the gift(s) to the appropriate account in the Foundation. Staff in the UNT Finance and Business Affairs Division process this paperwork and, if approved, transfer the check from the University to the Foundation.

Endowments in the Foundation may also be created by adequately funded planned or deferred gifts. All planned or deferred gifts to the Foundation should be identified by a specific reference in the donor's will, trust, or other legal document. A copy of the appropriate document(s) referencing the gift, or a reasonable substitute, should be supplied to the Foundation.

All gifts establishing a specific endowed fund with the Foundation must meet the minimum level required for that type of fund within five (5) years of the completed signing of a Memorandum of Understanding governing the fund. If an insufficient amount of gifts, contributions, and reinvested net income has accumulated by the end of this five (5) year period to completely endow the account, all funds received may be transferred to the UNT Foundation Presidential Scholarship Fund or another fund specified by the Board of Directors of the Foundation, and the specific endowed fund created by the donor(s) shall cease to exist.

Exceptions to this policy may be discussed on a case-by-case basis with the Executive Director prior to the end of the funding period.

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Types of Accounts

Permanent Endowment Accounts

• The primary type of account established under Foundation management
• Established when the donor has stipulated that only a portion of the proceeds from the gift may be spent (See Distribution Policy section)
• These accounts are established through execution of a Memorandum of Understanding (MOU), which is signed by the donor(s), the President of the University, and the Chair of the Foundation; the MOU binds the Foundation and the University to certain actions and specified uses of the gift(s)
• Gifts are invested for total return in one of the portfolios selected by the donor (See Investment Policy section)
• A management fee is charged monthly against the account based on the market value of the account at the end of each month. (See Fees Charged to Accounts section)
• A minimum of $10,000 in gifts must be received by any Permanent Endowment account before distributions will be made, usually within no more than a five (5) consecutive year period
• The UNT Board of Regents has established minimum gift levels for various types of endowments, which are utilized by the Foundation (see Minimums for Endowment schedule) before distributions are allowed
• Gifts to Permanent Endowment funds are maintained in perpetuity, and are not invaded for any reason without the previous written permission of the donor(s), the Chair of the Board of the Foundation, and the President of the University, as specified in the MOU.

Quasi-Endowment Accounts

• Quasi-Endowment funds are invested in the same portfolios as Endowments, are exposed to market valuation changes, have distribution calculation amounts, and the principal is accessible to the account holder for one of the following reasons:
  • in the event account income and/or reserves are insufficient to supply the calculated distribution amount; or
  • other situations specified in the Memorandum of Understanding.
• Quasi-Endowment funds may be permanent (maintained in perpetuity), or term (held for specific period or until a specific occurrence) after which the principal and/or accumulations may be expended or utilized by other designated University officials, as specified in the MOU
• May be established when the donor has stipulated the use or distribution policy for the gift, which may include all or a part of the original gift, but feel that the growth potential of an endowment investment pool is appropriate
• A management fee is charged monthly based on the market value of the account (See Fees Charged to Accounts section)
• A minimum of $10,000 of gifts must be received by any quasi-endowment account before distributions will be made
• The UNT Board of Regents has established minimum gift levels for various types of endowments, which are utilized by the Foundation (see Minimums for Endowment schedule) before distributions are allowed

Operating Accounts

Characteristics and Services

• Funds are placed in the UNT Foundation’s cash management program
• Funds are available for distribution on the first working day of the second month subsequent to the gift date, and on the first working day of each month thereafter
• Funds are in cash and cash-like instruments, and have no exposure to volatility
• Operating Accounts may have management fees assessed (see below for details)
• All reporting is based on a calendar quarter basis (as of the last working day of March, June, September, December)
• Reconciliation of transactions between Foundation and University fiscal years is the responsibility of the account holder, and not the Foundation
• Disbursement Authorization forms requesting payment must be received by the Foundation at least five (5) working days before the end of each month to produce a check on the first working day of the next month
• Disbursements from these accounts are limited to the available funds in the account after income and fees are processed; deficit spending is not allowed
• Distributions to a general UNT payroll account or to another corporate entity are allowed; payroll distributions directly to individuals are not allowed
• The Foundation must be able to contract with UNT or a third party for all program activities and related reporting services; all contract fees and related expenses will be paid from the account
• Disbursements from these accounts will only be allowed to support activities that will allow the Foundation to maintain its current levels of insurance coverage
• All other services must be negotiated in advance, and may incur additional management fees from the Foundation

Interest Bearing Account

Terms and Conditions
Minimum Daily Balance	$100,000
Interest Paid Monthly	0.25% APR (annualized) on the month end balance
Funds Availability	On the first working day of each month, only
Minimum Placement Period Prior to Interest Paid	Deposited on the first working day of the month or, the date of deposit plus one complete calendar month
All Accounting and Reporting	On a calendar month basis only (Quarterly Statements, only)
Fees Charged	None

Deposit Requirements

• Funds may be given to the Foundation on any working day of the month
• All new contributions will be held in cash with no interest paid (and no fees charged) until the first working day of the following month, at which time interest begins to accrue
• Interest is paid in full-calendar-month increments, only
• Interest is paid through the last day of each calendar month

Withdrawal Requirements

• Funds may be withdrawn by check as directed, or transferred to any Foundation or University account
• All withdrawals will occur on the first working day of the month, only
• All withdrawals will occur after a Disbursement Authorization signed by the Account Holder is received by the Foundation
• Disbursement Authorizations must be received by the Foundation at least five (5) working days before the last working day of the month to be processed
• Requests received by the Foundation after at least five (5) working days before the last working day will be processed during the following month

Placement Period

• After the account balance is at least $100,000, all of the funds must reside in the INTEREST BEARING ACCOUNT at least one full calendar month before interest is paid and funds are available for distribution. (Interest will be paid retroactively to the first day of the first complete calendar month.)

Default Accounts – Below Minimum Balance

• If the balance in the INTEREST BEARING ACCOUNT falls below $100,000, but is at least $50,000, the account automatically becomes an OPERATING ACCOUNT, with no income accrued and no fee.
• If the balance in the INTEREST BEARING ACCOUNT ever falls below $50,000, the account automatically becomes an OPERATING ACCOUNT, with no income accrued, and a 1.5% APR (annualized) management fee will be assessed on the balance at the end of each month ($3.00 minimum monthly fee).

Minimums for Endowment Funds

Minimum Gift Requirements set by the UNT Board of Regents (September 1995)
Category	Minimum Funding Level
Named Building	At least one-half of building costs
Endowment of a School or College	Negotiated, but not less than the current amount of all operating costs
Chair	$ 1,000,000
A faculty position; a significant teacher, research leader and/or new resource; related salary, laboratory and equipment, travel, graduate student support, research support, supplies
Professorship A faculty position; to recognize a significant teacher, research leader and/or existing resource; related salary support, travel, research support, supplies and materials	$ 350,000
Lectureship A visiting acclaimed speaker; related travel, expenses, publicity, publications support	$ 150,000
Fellowship Support for a graduate student; research and teaching expenses; stipend	$ 75,000
Scholarship Support for student enrollment costs; tuition and fees; room and board; books and laboratories; transportation and expenses	$ 10,000
Minimum Gift Requirements set by the UNT Foundation Board of Directors
Presidential Scholarship A special category of Scholarship designed to expand the University’s base of general, unrestricted scholarship funds	$25,000

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Account Holders

Every Account established in the Foundation shall have one individual “account holder” assigned to it. In the absence of an assigned Account Holder, the Dean of the academic unit or the President of the University (if a non-academic unit) is authorized to serve as the Account Holder until such time as a regular Account Holder may be identified.

Account Holders must be full-time faculty or full-time staff currently employed at the University, such as: Vice Presidents, Deans, Department Chairs, Directors of Institutes or Departments, full-time faculty, and on-campus holders of Chairs or Professorships.

Account Holders and Signature Proxies (staff assigned by the Account Holder to assist with the management of their account) are the only persons authorized to request supplemental distributions from any specific account managed by the Foundation (see Withdrawals from Accounts sections), or to direct funds to be transferred to any University account or individual. Account Holders and Signature Proxies will have access to all statements and correspondence from the Foundation regarding their specific account(s). Account Holders are responsible for all management and record keeping for funds disbursed to them by the Foundation once they receive those disbursements.

It is understood that the intent of the donors, the Foundation Board of Directors, and the University’s Board of Regents, that all gifts entrusted to the Foundation for the benefit of the University are to be properly managed. To this end, senior University staff in charge of operating units (President, Provost, Vice Presidents, Deans, Directors, and Department Chairs) are responsible for the proper and efficient management of activities within their units. These senior staff may, upon written notification to the Executive Director of the Foundation, designate certain alternate individual members of their staff to serve as Account Holder for specific accounts. This would be in response to retirements, reassignments, deaths, or other mitigating circumstances.

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Deposits (Contributions) To Accounts

Specific requirements for deposits of gifts into Foundation accounts are outlined in the Procedures for Acknowledging and Receipting Gifts section.

Gifts and contributions that are received at the Foundation offices through the twentieth of the month (or last earlier working day) are credited to the appropriate account(s) on the first working day of the following month. Gifts received after the twentieth of the month may be held in cash funds until the immediately following month’s deposit cycle. Monthly income accrues to these gifts and management fees will be charged after they are deposited into a permanent endowment or quasi-endowment account and have been invested for a full month.

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Procedure for Acknowledging and Receipting Gifts

The Development Services Office (‘the Office”) within the Office of Development supports the outreach and fundraising efforts of the entire University. The Office includes the areas of Records and Gift Processing. The Records staff maintains on-line files of alumni addresses, degrees, etc., as well as records of donors and gifts to the Foundation. The Gift Processing staff processes the gifts and issue acknowledgments and receipts that comply with IRS guidelines.

The donor records of the Office of Development are identified in accordance with the guidelines established by the Council for Advancement and Support of Education (CASE) and the National Association of College and University Business Officers (NACUBO). The Office adheres to the definitions of donor sources and purposes outlined in their manual Management Reporting Standards for Educational Institutions: Fund Raising and Related Activities.

The Office is the official point of gift processing for gifts that will ultimately reside in the Foundation. The Office adheres to the University policy for accepting gifts as described in UNT Policy 7.2 (or its successor, and any other appropriate sections). The Office establishes and maintains gift accounts for donors to the Foundation. All charitable contributions--including cash, gifts-in-kind, stock, and private grants--are processed through the Office to assure compliance with University acknowledgment policies and IRS guidelines. This process includes posting to on-line records, depositing to Foundation accounts, and acknowledging the donor for the gift(s).

Checks made payable to UNT Foundation should be delivered to the Office, with a notation as to the account name and number for deposit. Checks will normally be deposited within a 48-hour period. Donors will receive an official University receipt showing the Foundation account name and number, with an appropriate acknowledgment. The account holder for the account will receive within four working days a copy of the donor's receipt.

The Office tracks pledges to the Foundation for all in-house campaigns and for some school, college and/or departmental campaigns. The primary focus for pledges includes those Annual Fund campaigns that are administered from the Office of Development: the phonathons, direct mail, President's Council, and other campaigns. The Office posts pledges for capital campaign drives and some departmental campaigns. For phonathons, pledges are posted based on the telephone conversation because great care that is taken to validate the pledges; for all other pledges, written documentation is required.

A gift-in-kind is a non-cash gift, such as stocks and bonds, or a tangible item like a computer, a microscope, a piano, etc. Both the donor and the donee have certain responsibilities in giving and accepting gifts-in-kind. The statutory basis for these responsibilities is Sec 170(a)(1), United States Code, which states that a charitable contribution is deductible "only if verified under regulations prescribed by the Secretary of the Department of the Treasury." If the item is tangible personal property, the donor is required to obtain and supply a qualified appraisal of the item to the Foundation to receive a receipt showing a value for their charitable deduction.

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