Crediting Policies and Counting Guidelines
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 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.
Revised March 30, 2015
Revised March 16, 2011
In effect October 20, 2006
Vice President for Development