Solicitation By Other Charitable Institutions

Rhodes follows the practice, along with many of the charitable institutions and agencies in Memphis, that it does not redirect the charitable gifts that it receives to other charitable institutions and agencies (that also solicit funds in Memphis), nor solicit gifts from staff members of those organizations and agencies.

Gifts for annual purposes support the daily operation of the college. Unrestricted gifts of $25,000 or less go into the unrestricted designation for the Annual Fund or may be used for another restricted or capital purpose as deemed appropriate by the Vice President for Development. Unrestricted gifts above that amount go into the unrestricted capital funds designation.

Unrestricted memorial gifts will go into unrestricted designation of the Annual Fund.

Restricted memorial gifts will be used for the designated purpose.

Gifts of $10.00 or more requested by the donor to memorialize or honor a person will be recognized by one individual being memorialized or honored. A letter of notification regarding the gift will be sent to the person being honored or to a family member of the person being memorialized provided the name and address information for such a letter is available or is sent by the donor with the gift.

Permanent memorial designations that are not funded by a benefactor who designates such a memorial shall not be planned or authorized until at least one year after the death of the person to be memorialized.

Involvement of Benefactors and Solicitation of Funds

Each department is expected to involve potential supporters in the work of the department and to obtain gifts to meet the department’s needs, as outlined in the Gift Opportunities Lists. Examples are faculty chairs, faculty development funds, endowed library collections, and funds for equipment.

To maximize fund raising, build donor confidence in Rhodes, and avoid conflicts with the program approved by the Board:

Department heads must inform the Director of Advancement Services (ext. 3850) of every pledge and every gift on the day the pledge or gift is received by the department, and the designation which is to be credited with the gift or pledge.

All checks or cash must be delivered to the Development Office (Dorothy C. King Hall, 2nd floor) on the day received.

All prospects must be cleared by the Vice President for Development before solicitation.

Projects requiring special solicitations must have the approval of the Vice President for Development.

The person requesting special solicitation must submit a proposal in final form to the Vice President for Development. The proposal should be no longer than 3 pages and should include:

• A project budget, approved by the appropriate administrative officer (head of division) and by the Vice President for Finance and Business Affairs.
• A project description approved by the appropriate administrative officer (head of division), proposed schedule for fund raising and for the project itself, persons served, and benefits to the college.
• A list of prospects to be solicited for gifts, including prospective solicitation amount.

The Vice President for Development in consultation with the President will determine the priority of the project and, upon approval, will direct the Development Office in the allocation of staff time to the project.

The following statement should appear on every deferred giving pamphlet, form, or draft of a legal document provided by the College:

“Rhodes College, through this pamphlet (or form, document, etc.) or otherwise, is not engaged in rendering legal or tax advisory services. Individuals considering estate gifts to the college should obtain the services of a financial advisor (an attorney or Certified Public Accountant or CLU).”

The Bellingrath Society is established to recognize donors whose concern for the future strength of Rhodes has led them to make significant deferred gifts to the college. It is named in honor of Walter D. Bellingrath, one of Rhodes’ most substantial benefactors, whose $22 million estate gift helped to propel the college to new levels of strength, service, and recognition. The Bellingrath Society is open to those who have made deferred commitments of at least $1 million for Rhodes and whose gifts do not qualify them for membership in the Benefactors’ Circle. These deferred commitments may include will provisions, charitable trusts and charitable gift annuities.

Members of the Bellingrath Society will have their names permanently inscribed on the Bellingrath Society wall. In addition, they will be listed in the annual donor report, and will be invited to special events.

Proposed changes in the minimum level of commitment shall be brought to the Board of Trustees for its approval.

The Benefactors’ Circle is the highest recognition afforded to supporters of Rhodes College. Open to individuals, corporations, or foundations whose commitments total $1 million or more, the Benefactors’ Circle acknowledges the leadership role of those whose gifts have helped to make Rhodes one of the world’s outstanding liberal arts colleges. The $1 million in commitments which qualify a donor for membership in the Benefactors’ Circle will be counted on the following basis:

• The value of gifts paid to Rhodes;
• The value of pledges to be paid over as many as 7 years;
• The present value (at the time of the gift) of all irrevocable deferred gifts.

Members of the Benefactors’ Circle have their names inscribed on the floor of the cloister of Southwestern Hall during a special ceremony, are listed in the annual report, and are invited to special events.

Proposed changes in the minimum level of commitment shall be brought to the full Board for approval.

This document defines how outright and deferred gift commitments will be recorded for gift counting purposes in order to measure Rhodes’ success in achieving its fundraising goals and to ensure that donors are recognized appropriately for their contributions. The policies will be effective as of October 2006 and will supersede previous gift crediting policies.

General Gift Policies:

• Cash gifts will include pledges and outright gifts for the Annual Fund, capital, endowment and any annual priority of the college.
• In order for pledges to Rhodes to be credited they must be received in writing and processed by the college. This will ensure that the donor receives proper acknowledgement, recognition and credit. No pledge without written confirmation by the donor will be recorded.
• Deferred gift commitments will be counted as follows:
  • Bequest
    • Bequest intentions will be counted at face value if the college is the direct beneficiary.
    • Bequest intentions will be counted at present value if the college is the indirect beneficiary.
  • Life Income Plans
    • Life Income Plans will be counted at face value if the beneficiary is of the donor’s generation.
    • Life Income Plans will be counted at present value if the beneficiary is of a younger generation than the donor such as a child or grandchild.
  • Life Insurance
    • Life Insurance gifts will be counted at face value if the insured is of the donor’s generation.
    • Life Insurance gifts will be counted at cash value if the insured is of a younger generation than the donor such as a child or grandchild.
    • Term life insurance will not be accepted.
• The college may accept gifts of real estate, including houses, condominiums, commercial properties, farm land, rental property, and undeveloped land after a thorough review is made by Rhodes in accordance with Gift Handling Policies. These same guidelines will be followed for deferred gifts of remainder interest in a residence or farm.
• Pledges will be counted in the full amount of the pledge commitment as soon as the donor has signed a pledge agreement. Pledges will ordinarily be expected to be paid within five years, although a schedule of payments extending beyond that point can be arranged in special circumstances.

Gift Crediting Guidelines:

The following gifts and pledges will be counted towards the campaign. IRS rules and regulations will apply in all instances. Accordingly, qualified appraisals must be obtained by the donor and provided to the college where a qualified appraisal is required by the IRS in order to substantiate a charitable tax deduction.

• Cash: Cash is credited at full value the day it is received. 
• Marketable Securities: Securities are credited at the average of the high and low of the fair market value on the date of delivery or the date the donor relinquishes control of the assets.
• Closely Held Stock: Gifts of closely held stock will be credited at the fair market value placed on it by a qualified independent appraiser as required by the IRS.
• Real Property: Gifts of real property will be credited on the date of transfer at the fair market value as determined by a qualified appraisal.
• Tangible Personal Property: Tangible personal property including works of art, jewelry, antiques, coins, stamps and other collections, automobiles, manuscripts, and books which are accepted by Rhodes College will be credited at the fair market value on the date of transfer as determined by a qualified appraisal. 
• Gifts in Kind: Non-cash donations will be credited at fair market value on the date of transfer as determined by a qualified appraisal.
• Bequests: Bequests are counted as cash only after the bequest matures and is received by Rhodes College.   Bequest intentions will be included in the campaign deferred commitment total only where the college has received signed documentation.  After the bequest matures and received by Rhodes, the amount will be subtracted from the Deferred Commitment total and added to the Cash Commitment total. 
• Charitable Gift Annuities: Charitable gift annuities will be credited at face value.
• Charitable Remainder Trusts: Charitable remainder trusts will be credited at face value if the beneficiary is of the donor’s generation.  Charitable remainder trusts will be credited at present value if the beneficiary is of a younger generation than the donor such as a child or grandchild.
• Charitable Lead Trusts: A charitable lead trust will be treated as a cash pledge, and credited at full value of all anticipated payments as stipulated in the trust document which will be received by five years after the close of the campaign. For example, a charitable lead trust created June 30, 2005, with an annual payment to Rhodes of $10,000 for ten years will be credited as a $100,000 cash pledge. 
• Life Insurance: Rhodes College must be the owner and beneficiary of any whole or universal life insurance policy given to the college. (Term life insurance will not be accepted and will not be credited in the campaign.) At the time the policy ownership is transferred to the college, all donors must confirm in writing that  they will pay in a timely manner all future premium payments, whether known or unknown at the time the gift is made. Life insurance gifts will be credited at face value if the insured is of the donor’s generation.  Life insurance gifts will be credited at present value if the insured is of a younger generation than the donor such as a child or grandchild.

GIFTS OF CASH OR SECURITIES     

A. Designated for Annual Purposes:     

1. Budget-relieving annual gifts go into the appropriate designation of the Annual Fund.

• Financial Aid/Fellowships (Scholarships) (Fund 111000, Account 520041)
• Faculty Support (Fund 111000, Account 520042)
• Campus Life (Fund 111000, Account 520043)
• Library/Technology (Fund 111000, Account 520044)
• Campus Preservation (Fund 111000, Account 520045)
• Where most needed (Fund 111000, Account 520011)

These funds are either immediately expended or invested through the college’s cash management policy. Any interest income is credited to interest income (Fund 111000, Organization 80001, Account 530011, Program 00).

2. Budget-relieving athletic gifts go into the appropriate designation of the Lynx Club (Fund 111000, Account 520011).

• Lynx Club
• Baseball
• Basketball (Men)
• Basketball (Women)
• Field Hockey
• Football
• Golf (Men)
• Golf (Women)
• Lacrosse (Men)
• Lacrosse (Women)
• Soccer (Men)
• Soccer (Women)
• Softball
• Swimming
• Tennis Track and Cross Country
• Volleyball

These funds are either immediately expended or invested through the college’s cash management policy. Any interest income is credited to interest income (Fund 111000, Organization 80001, Account 530011, Program 00).

3. Restricted annual gifts go into the designation supporting the purpose specified by the donor.  

B. Designated for Capital Purposes:     

1. Unrestricted capital gifts are recorded in Capital Funds Unrestricted (Fund 214019-60001-520116-40). Using the 60/40 ratio of endowment to capital expenditures formula and the projected needs for Board approved capital funds expenditures, the Comptroller transfers immediately the amount necessary to the Quasi Endowment (Fund 510007) if the 60/40 ratio is not met.     

2. Restricted Capital Gifts   

a. For an item in the “Capital Needs List”:   

Gifts designated “for endowment” are deposited immediately in Quasi Endowment (Fund 510006-200031-520116-40).

Gifts for professorships, fellowships or other named Funds are set up in the Endowed Funds. Each year an allocation determined by a formula mandated by the Board of Trustees is used for the endowment purpose; excess earnings and appreciation are added to principal.  

Gifts for equipment or plant improvement or other projects are expended for the project or invested until the project can begin. Interest earned is credited to interest income (Fund 111000, Organization 80001, Account 530011, Program 00) or towards the project as decided by the Vice President for Finance and Business Affairs.   

No interest income will be accumulated in a particular fund account unless: 1) the gift is $10,000 or more, 2) there is a request from the donor or donors for the interest to be credited to the account, and 3) granting the request may encourage additional future gifts.   

b. For an item not designated as an institutional priority or listed in “The Gift Opportunities List” the President recommends to the Board to accept or not accept. Accepted gifts are treated as in B.2.a.   

C. Undesignated Gifts:   

1. $25,000 or under is treated as a gift “Designated for Annual Purposes”: follow A.1, unless otherwise deemed appropriate by the Vice President for Development.   

2. Over $25,000 is treated as a gift “Designated for Capital Purposes”: follow B.1.   

GIFTS OF REAL ESTATE  

When gifts of real estate are offered to Rhodes, there must be an on-site inspection and environmental survey prepared before the gift can be accepted by the Vice President for Finance and Business Affairs.   

If the gift of real estate is accompanied by a valid appraisal, it is entered on the college books at that value (in the case of multiple valuations, the average). Absent a valid valuation, it is entered at a value of $1.00. A development officer works with the donor to determine the purpose of the gift.   

If the value of the gift is to be added to the endowment as a restricted designation, the designation is set up, and the gift is acknowledged at the time the gift is made, but the income to the college does not begin until the property is sold and converted to cash. While the sale price does effect the size of the account and the cash flow, it does not change the amount credited to the donor by Rhodes. The amount credited to the donor is determined by a valid appraisal at the time of the gift. According to IRS regulations, the gift acknowledgment to the donor describes the property, but does not include a dollar amount. 

The President upon the recommendation of the Vice President for Finance and Business Affairs recommends to the Investment Committee whether to sell or hold gifts of real estate. A list of all property held will be prepared by the Vice President for Finance and Business Affairs and submitted to the Investment Committee periodically. 

If the real estate is sold the income flows through the “Gifts of Cash or Securities” and expenses are deducted from the gross proceeds. 

If the real estate is held the property is booked at appraised value in the assets of the Current, Restricted, or Endowment fund. 

If the rental, lease or other income is undesignated the funds are credited to the appropriate current fund account: Fund 111000, Organization 80001, Account 560020, Program 00 Royalties or Fund 111000, Organization 80001, Account 560016, Program 00 Miscellaneous Income. 

If the rental, lease or other income is designated the funds flow to the appropriate account or project. 

GIFTS OF TANGIBLE PROPERTY 

The President upon the recommendation of the Vice President for Finance and Business Affairs recommends whether to hold or sell all individual gifts of tangible property (furniture, jewelry, art work, equipment, books, etc.) valued at $5,000 and over to the Investment Committee of the Board. The President will decide the disposition of gifts valued up to $5,000 and will report those decisions to the Investment Committee at the January Board meeting. 

If the property is sold the income flows through the “gifts of cash or securities” and expenses are deducted from the gross proceeds. 

If the property is held the item will be appropriately booked at appraised value in and added to the college’s inventory system. 

GIFTS OF LIFE INSURANCE 

Rhodes College must be the owner and beneficiary of any whole or universal life insurance policy given to the college. (Term life insurance will not be accepted and will not be credited in the campaign.) At the time the policy ownership is transferred to the college, all donors must confirm in writing that they will pay in a timely manner all future premium payments, whether known or unknown at the time the gift is made. 

The President upon the recommendation of the Vice President for Development recommends to the Finance Committee whether to keep the policy in force or to surrender the policy. 

If the policy is surrendered, proceeds are treated as “Gifts of Cash or Securities. 

If the policy is kept in force, and the donor does not make gifts to support premium payments, the Investment Committee, upon recommendation of the President, should decide if the premiums should be paid and if so, how they should be paid. (Note: see section below on “Accepting Gift” about the expenditure for purpose of gift). At termination of the policy, proceeds are treated as a gift “Designated for Capital Purposes.” 

GIFTS OF STOCK IN CLOSELY HELD CORPORATIONS, THE VALUE OF WHICH CANNOT BE DETERMINED, OR FOR WHICH THERE IS NOT A READY MARKET 

The college is grateful for such gifts and shall acknowledge receipt immediately and thank the donor. The college will record these at $1.00 until such time as the stock is sold or a professional appraisal acceptable to the Investment Committee of the college is received. 

The valuation of such gifts on the books of the college shall normally occur only in the fiscal year in which the gift is sold, except in the case of an acceptable professional appraisal. 

The Comptroller will prepare a list of all closely held securities to include in the quarterly report of securities on hand. This report will list the changing value of the security and the asset account into which it has been booked. 

The Comptroller shall seek at least twice a year—in May and December—to find a market for such stocks and dispose of them, subject to the approval of the Investment Committee. 

The Comptroller shall consult with the Vice President for Development about donor sensitivity before attempting to sell the stock. 

ACCEPTANCE AND VALUATION OF NON-CASH GIFTS 

The date of acceptance and valuation of any non-cash gift to the college shall be the date the donor has unconditionally parted with dominion and control over the property; delivery directly to Rhodes is not required as long as the donor has relinquished all control over the property. Thus, delivery to a third party who agrees to act as Rhodes’ agent in accepting the property is effective when delivery is made to the agent, but delivery to a third party acting as the donor’s agent is not effective until that agent delivers the property to Rhodes or Rhodes’ agent. 

ACCEPTANCE OF GIFT ANNUITIES AND CHARITABLE REMAINDER TRUSTS 

The minimum acceptable principal amount accepted for a gift annuity is $10,000. The minimum for a charitable remainder trust for which the college will act as trustee is $50,000. 

For gift annuities, the rates offered the annuitant will not exceed the most recently published rates of the American Council on Gift Annuities. Gift annuities will be accepted only when the annuitant is 55 years or older. Deferred gift annuities will be accepted for annuitants younger than 55 depending upon the beginning date of the annuity payment. 

Payout rates offered on charitable remainder trusts will be based on negotiated rates acceptable to the donor, the Vice President for Development and the Vice President for Finance and Business Affairs. There is no minimum age requirement on charitable remainder trusts. 

Payment of annuities and trusts will begin three months after receipt of gift. The payments will be scheduled only at quarter-end dates. 

INTERNAL HANDLING OF GIFTS 

All cash or checks are processed by the Development Office and then go immediately to Rhodes Express. Gifts of securities, real estate, other tangible property, life insurance, etc. will be received by the Development or Comptroller’s offices. These offices will notify other interested offices and will complete the appropriate Gift Receipt form (Securities, Real Estate, Personal Property). In the case of securities the Comptroller’s office will follow the Policy for Handling Contributed Securities and as required the Policy Regarding Gifts of Stock in Closely Held Corporations. 

IRS FORMS RELATED TO GIFTS 

If Rhodes receives from a donor a contribution of property other than cash or publicly-traded securities and the deduction associated with the property is more than $5,000, the donor will need to present Internal Revenue Service Form 8283 to Rhodes for its signature. If Rhodes disposes of this “charitable deduction property” within three years of the date of the donor’s contribution, the Comptroller will report, in a timely manner, such disposition to the Internal Revenue Service on IRS Form 8282. Rhodes will furnish the donor with a copy of the completed IRS Form 8282. 

ACCEPTING GIFTS 

The final determination for acceptance of gifts to the college is the responsibility of the Board, on recommendation of the President. 

Unless there are actual returns such as dividends, rent or lease income, no expenditure for the purpose of the gift will be made without the approval of the Board of Trustees until the gift is liquidated or income from the gift is earned. 

GIFTS TO THE COLLEGE OF A NON-PERMANENT NATURE 

While Rhodes makes every effort to maintain its campus and furnishings to the highest standard, donors of gifts that will deteriorate in time should be told that the college does not guarantee the replacement of such items. These may include garden benches, rugs, and other materials, the durability and appearance of which may erode with passing years. When deterioration sets in, gifts may be replaced by the original donor or by others who wish to make such a contribution to the college. 

GIFTS TO ANNUAL BUDGET AND DESIGNATED CAPITAL GIFTS 

To minimize the likelihood of donors dictating the budget priorities of the college, to retain budgeting responsibilities with the administration, as charged in the college Bylaws (VII, 1.6), and to maintain flexibility in budgeting among all departments and divisions of the college; all restricted gifts (gifts designated by the donor) will be reckoned as budget-relieving at the college-wide level rather than at the departmental or divisional level.

 

The Ralph C. Hon Society recognizes individuals who make Rhodes a beneficiary of their estate plans, including will provisions, charitable gift annuities and charitable remainder trusts. The names of each member of the society will be listed in the Honor Roll of Donors and members will be invited to special events on campus.

All members who document their gifts will receive special recognition and their names will be included in The Ralph C. Hon Society plaque.

When the donor’s estate plans mature, the donor will be recognized permanently through the naming of a room, an endowment or other means, according to the donor’s wishes.  

A gift of $10,000 or more will create and name an endowed student award; $50,000 or more will create and name an endowed faculty award. Income from endowed awards will be used to pay all the costs of the award and to support the work of the department in which the award is given.

To protect the importance of the awards, the following regulations and guidelines will be used:

• The total number of awards currently presented is adequate. However, the college will add awards if they are fully endowed and are in areas not covered by present awards. Each department should attempt to replace departmentally-funded awards with fully endowed awards.
• Already established departmental student awards which include a stipend shall be a minimum of $100. Until endowments support these awards, they may be funded from the departments’ non-salary budgets.
• All awards should be accompanied by an appropriate framed plaque funded by the endowed award or by the department.
• Criteria and selection of award winners are the responsibility of the participating department with the approval of the Vice President for Academic Affairs.
• Named awards are listed each year in the college Catalogue.

The Board of Trustees has authorized the creation of named endowment funds for such purposes as academic programs, fellowships, scholarships, library collections, awards, etc. The minimum amounts required to guarantee the effectiveness of such gifts are outlined in this Handbook and in the Gift Opportunities List, available in the Development Office.

Upon approval by the Vice President for Development and the President, a named endowment may be created to recognize an initial gift of less than the minimum if there is the expectation that future gifts will build the endowment to the required level.

A gift of $10,000 or more will create and name an endowed library collection in the area of the donor’s choosing. Named collections are listed in the college Catalogue and in a brochure describing support for the Paul Barret, Jr. Library.

Endowed faculty positions enable the college to attract and keep teacher-scholars of the highest caliber. Minimum requirements for creating endowed faculty positions (or chairs) are:

A gift of $50,000 or more will create and name an endowed scholarship.

Named endowed scholarships are listed each year by the Finance Office. Files containing, among other information, the name of the fund and the current annual distribution, are provided by the Finance Office to the Director of Financial Aid and the Director of Advancement Services by September 15. A list of one-time annual scholarships is provided by the Director of Advancement Services to the Assistant Director of Financial Aid by September 15.

By September 30, the Director of Advancement Services sends to the Assistant Director of Financial Aid the list of sponsors or interested parties to whom it would be appropriate for a student recipient to write a letter of thanks.

By October 31, the Assistant Director of Financial Aid matches student recipients to named scholarship and provides the information to the Director of Advancement Services.

By November 30, the Stewardship Officer asks student recipients to write letters of thanks to their sponsors and send copies to the Development Office for sponsor files. At the same time, the Stewardship Officer sends information to the appropriate sponsors identifying the student recipient for their scholarship and providing the endowed fund balance, if applicable.

The Development staff may provide occasions when the sponsors and recipients of named scholarships may meet. The Offices of Admissions and Financial Aid may assist in these meetings.

Additional assignments, the need for which is usually initiated by either the Development Office or the Finance Office, are made by the Assistant Director of Financial Aid after the original assignment each year. The appropriate administrative offices are also notified.

Named scholarships are listed in the College Catalogue.

The Development office will work with donors to arrange appropriate recognition for gifts and will depend on the scale and purpose of the gift. Any public recognition will be discussed and approved by the donors and if they prefer to remain anonymous, their wishes will be honored.

1. Establishing Names for Buildings, Endowments and Programs. Authority to name buildings, facilities and parts of facilities, endowment funds and programs rests with the Board of Trustees upon recommendation from the President. Naming authority has been granted for the following naming opportunities under item 4 and 5 of this document. No advance approval for determining names is implied in this policy.

2. Procedures for Naming a Building or Portion of a Building. When it appears that a contribution to the college will result in a request to name a building or portion of a building for a donor or other individual, the Vice President for Development should be notified. A profile of the donor, the area of interest with any proposed stipulations, and information about how the gift will be paid should be provided. The Vice President for Development will discuss the potential naming with the President and other appropriate College officials.

3. Contribution Guidelines for Buildings, Facilities and Programs. In order for a building, facility or program to be named based upon a contribution the following will normally be met:

a. The amount of the gift will comply with the guidelines following;

b. The gift must be in irrevocable form, e.g., trust, contract for will, or to be paid over a period of five years (longer if necessary in special circumstances) based upon a signed commitment (A deferred gift is not normally acceptable for a facility where construction is dependent upon the gift.);

c. The person for whom the name is assigned has some reasonable connection to the facility or program being so designated.

d. Unless the gift is required to construct the facility to be named, the gift should be used to establish a program endowment restricted to an appropriate department or program closely associated with the facility.

e. If a program or department is to be named, a restricted program endowment supporting that program/department normally will be established.

The following amounts are suggested to establish a naming opportunity for a building, facility or program:

4. Named Endowment Funds

To establish an endowment, a formal written agreement between the donor and Rhodes College must be executed which details the purposes and objectives of the endowment fund. In establishing a named endowment fund, the principal must be sufficient to meet the stated objectives of the endowment agreement.

The Rhodes College Board of Trustees has authorized the creation of named endowment funds for such purposes including academic programs, scholarships, library collections, lectureships, awards, etc. The college will establish a named endowment fund when the minimum level of endowment is achieved.