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					      Bryant University
        JUNE 2005
GIFT ACCEPTANCE POLICIES                                                                                PAGE 2 OF 30

INTRODUCTION _________________________________________________________________

Bryant University fundraising programs are to provide the University with resources to advance its central
missions of teaching and research. The acceptance of contributions from individuals, corporations,
foundations and others requires that they meet the standards established by the Bryant University gift
acceptance policies and procedures, that they be recorded in an accurate and timely way, that they conform to
federal and state law, that they be acknowledged appropriately, and that all contributed monies are managed
in accordance with the donors' original intentions. This manual has three main purposes:

    To define the different types of gifts and pledges that are acceptable, to identify the types of assets and
    donor restrictions that require higher level review, and to identify the roles and responsibilities of various
    offices for accepting them;

    To identify relevant Bryant University policies and applicable Internal Revenue Service guidelines and to
    ensure that gifts are valued correctly in the fundraising system and are receipted and acknowledged
    according to these rules;

    To establish procedures for creating and naming endowed funds, for naming facilities and for receiving
    recognition and honors.

SECTION I: WHO IS AUTHORIZED TO ACCEPT GIFTS ____________________________________

Board and Staff Authority

Authority over policies and procedures for the solicitation and acceptance of gifts to Bryant University, with
exceptions stated herein, resides with the Board of Trustees. Administration of policies and procedures is
delegated by the Board of Trustees as indicated below.

        The President, as chief executive officer, is responsible for the implementation of Board approved
        policies and for the recommendation of new policies. The President has final authority for all gifts
        received by the University and for authorizing all campaigns or solicitations. The President will keep
        the Board of Trustees informed of all gifts and pledges that reach the standard of ―significant‖ as
        defined by the Board.

        The Vice President for Business Affairs oversees the establishment, management and internal
        reporting of new endowment, physical plant and current use funds, makes recommendations about
        the suitability and possible value of proposed non-cash gifts, oversees the sale or other disposition of
        securities and other non-cash gifts, and prepares the financial statements of the University. The
        VPBA has oversight of the financial recording and reporting of all gifts, the deposit of gift receipts,
        monitoring the use of funds in accordance with donor restrictions, and maintaining the endowment
        unitized model.

    Vice President for University Advancement

        The Vice President for University Advancement is responsible for all activities undertaken to secure
        voluntary support for the University. All solicitation for funds for Bryant University may be
        undertaken only within the guidelines of approved policy and fundraising priorities, and with the
        knowledge and approval of the Vice President for University Advancement. No solicitation of funds
        may be undertaken by any department or individual without the prior approval of the VPUA. No
        approach outside of approved funding priorities may be made to a donor without approval of the
GIFT ACCEPTANCE POLICIES                                                                               PAGE 3 OF 30

        The VPUA shall assure, by appropriate directives and policies, that s/he and the VPBA will be
        informed in a timely manner of all offers of outright gifts of assets other than cash or publicly traded
        securities. The VPUA shall have the authority to formally accept all gifts that comply fully with
        Bryant University policies, procedures and priorities. The VPUA is responsible for determining with
        the donor the purpose of the gift and transmitting that information to the VPBA.

        Designated development staff within the division of University Advancement are responsible for:

                Implementing in a consistent manner the fundraising and gift acceptance and accounting
                 policies as adopted by the Board of Trustees.

                Coordinating and controlling the solicitation, receipt, acknowledgement and documentation
                 of all gifts to the University.

                Documenting all pledge and gift receipts for input into the gift accounting system (and hard
                 copy filed as appropriate).

                Reporting back to donors on all matters pertaining to the acceptance, designation, payment
                 schedule and stewardship of all gifts and pledges.

The Vice President for University Advancement and the Executive Director of Development will review this
manual on a regular basis. Any changes regarding policy should be recommended to the Board of Trustees.
Changes in procedures may be noted in the operations manual and implemented without requiring the
Committee's approval

How and When Gifts May be Accepted

This manual outlines the circumstances under which gifts will routinely be accepted by the University, as well
as the authorizations and procedures in effect for gifts that are not routine. There are two aspects of a gift
that must be considered: the purpose of the gift also known as the gift designation and the type of asset.
Gift designations that can be accepted without further review are unrestricted gifts, gifts to scholarships, and
gifts to stated fundraising priorities during an annual or multiyear campaign. Restrictions that do not fall into
one of these categories should be reviewed to make sure that the purpose is acceptable to the University.
Certain assets, including gifts of cash and publicly traded securities and mutual fund shares, may be accepted
without any formal review, unless they might cause the University to incur a major liability or obligation, or
might require a change in the programs or structure of the University. All others must undergo an approval
process as described below.

The University will establish a Gift Acceptance Committee. This Committee will develop gift procedures as
needed, interpret Bryant University policies as they relate to specific gifts, evaluate those gifts and gift
arrangements that do not fall within these guidelines and make recommendations regarding the advisability of
accepting such gifts. The Gift Acceptance Committee will be comprised of the Vice President for University
Advancement, the Executive Director of Development, the Vice President for Business Affairs and the Vice
President for Academic Affairs. Other individuals from inside or outside the University may be involved as
circumstances and their expertise dictate. The Vice President for University Advancement will chair the
committee. The University and its Board will seek the advice of legal counsel as appropriate.

The Gift Acceptance Committee will review proposed gifts in light of existing policies and procedures and
will recommend additional evaluation of the asset(s) when necessary for an accurate assessment of the gift.
This evaluation can include, but is not limited to, an independent appraisal of the asset by a qualified
independent appraiser acting as an agent of the University, a site visit by Bryant's representatives or agents, a
Phase I environmental assessment, and/or consultation with legal representatives. The Executive Director of
GIFT ACCEPTANCE POLICIES                                                                                 PAGE 4 OF 30

Development is responsible for assembling all relevant information on all proposed gifts to be reviewed by
the Committee, including: the nature of the proposed gift; the purpose of the gift; an independent appraisal
of the assets to be used to fund the gift supplied by the prospective donor; purpose of the gift; any
restrictions on the gift or income generated from its investment; the names, ages and length of term of
anticipated income to be received, for any potential income beneficiaries.

At a minimum, the following conditions must be met before any gift that does not conform fully to these
guidelines can be accepted:

       The gift must advance Bryant's strategic plan and/or long-term interests.

       There must be no restrictions or limitations that would impede Bryant University from managing the
        asset or administering a proposed planned gift arrangement.

       The gift must not pose any potential hazards or legal liabilities for the University.

The Gift Acceptance Committee will from time to time, as circumstances require, review their deliberations
with the President and make him aware of any issues with respect to which he may want to consult the Board
of Trustees. The President will make the final determination about whether to refer the proposal to the

Pro forma resolutions will be prepared for gifts of $250,000 and over, to be voted on by the Board as a form
of donor recognition. As other situations arise that require recognition by the Board, special resolutions will
be prepared and submitted to them.

SECTION II: RESPONSIBILITY TO DONORS _____________________________________________

Bryant University promises its donors that gifts are recorded in an accurate and timely way, that gifts are
receipted properly, and that all contributed monies are managed in accordance with the donors’ original

In accordance with the provisions of the Internal Revenue Code and related regulations, proper records will be
kept and required tax returns filed by the Business Affairs Office or its designated agent for all gifts processed
and/or administered by the Vice President for University Advancement. The Vice President for Business
Affairs or his/her designee(s) are responsible for executing all necessary IRS Forms, including IRS
Forms 8283 and 8282, that relate to gifts processed and/or administered by the Vice President for University
Advancement. Form 8283 and instructions will routinely be distributed to donors who make non-cash gifts.

While the University and its representatives will be sensitive to the tax issues affecting the donor, it will not
provide advice on the tax position of any gift. All prospective donors are advised to seek legal and/or tax
advice from their own counsel.

Bryant University will not, under any circumstances, furnish property appraisals or valuations to donors for
tax purposes or 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.

All donative instruments will be deemed confidential to the extent permitted by law. Any information to be
made public must first be cleared with the donor. In any case, no gifts will be announced publicly unless
approved by the President and Vice President for University Advancement. All other requests for
information will be honored only if the donor approves the release of information or if, in the opinion of the
University’s legal counsel, current law requires release of the information.
GIFT ACCEPTANCE POLICIES                                                                               PAGE 5 OF 30

SECTION III: WHAT MAY BE COUNTED AS A GIFT ______________________________________

What Is a Gift?

    A gift is an unconditional, voluntary, non-reciprocal transfer of assets to a not-for-profit organization. This
    definition includes unconditional promises (pledges).

What Is a Pledge?

    A pledge is a promise to make a gift over a period of time. All multi-year pledges should have a written and
    signed pledge agreement that commits to a specific dollar amount or asset that will be paid according to a
    specified time schedule.

    A pledge may be unconditional or conditional. To be unconditional, a promise cannot depend upon the
    occurrence of a future and uncertain event. A conditional pledge is a statement of intent, which is
    retractable and/or indefinite. If a donor maintains a right to change the beneficiary of his or her gift, such
    as in the case of a will or an insurance policy, the pledge is revocable, the donor is not making a promise,
    but rather a statement of intent. Statements of intent are captured in the fundraising database as
    conditional pledges but are not be recorded in the financial statement of the University.

    Pledges made toward a new building are considered conditional until the funds required for the building
    have been committed. At that time these pledges are move to an unconditional status.

    A challenge pledge is a statement of intention to give which is conditioned on some specific future and
    uncertain event to occur which will obligate the donor. For example, a donor promises to give $50,000
    toward a class gift if all other class members contribute $50,000. The promise would be captured in the
    fundraising database as a conditional pledge until the challenge has been met; For financial statement
    purposes, a conditional pledge should be disclosed in the footnotes.

Documented Pledges

    A documented pledge is: (1) a written statement of a firm commitment to make a gift or grant at some
    future date to Bryant University, signed by the donor or the donor's authorized agent; or, (2) a dated
    written letter of agreement to make a gift or grant, signed by a Bryant representative, a copy of which has
    been signed or initialed by the donor and a copy of which is on file in central files of the Development
    Office. In either case, the pledge must specify the exact amount of the pledge and the duration of the
    pledge period. Grants from private organizations and corporations with more than one payment are
    recorded as pledges. Donors making verbal pledges will be provided with a confirming letter to sign or
    initial and will not be captured in the fundraising database until returned with proper signatures to the
    Development Office.

    In the determination of the pledge receivable balance for the financial statements, pledges of less than
    $1,000 obtained through the Annual Fund will not be included as these unpaid balances will be removed
    at the end of the fiscal year. Therefore, no documentation is required for Annual Fund pledges of less
    than $1,000.

What Is a Grant?

 A private grant is a voluntary transfer of assets or awards to Bryant University from a corporation,
foundation, or association for instruction, research, public service, construction or other specified purpose.
The difference between a private grant and a contract depends on the intention of the awarding agency, and
GIFT ACCEPTANCE POLICIES                                                                                 PAGE 6 OF 30

the legal obligation incurred by an institution in accepting the award. A grant, like a gift, is donative in nature;
it is bestowed voluntarily and without expectation of any tangible compensation and should therefore be
recorded as a gift.

What Is a Contract?

A contract is a transfer of assets to any division of Bryant University from any source, but typically a
corporation, foundation, or association for a specific project -- instruction, research, or public service --
which is governed by a formal agreement between the University and sponsoring agency, subject to certain
stated performance standards and reporting requirements (including accounting of expenditures and
activities), and which is legally binding. Because a deliverable product or service is involved, a contract carries
an explicit quid pro quo relationship between the source and the institution and should not be recorded as a

A government grant, contract, or other award is a direct transfer of assets from a governing agency -- local,
regional, state, federal, or foreign -- for a specific purpose. It is governed by a formal, legally binding
agreement between the University and the government agency. These funds are not included in gift totals.
Regardless of sponsor, therefore, contract revenue of any type is not included in gift totals when reported to
the Council for Advancement and Support of Education.

However, Bryant University will include specified government gifts in their campaign totals for public
relations purposes. These need to be accounted for separately on the computer system to facilitate both types
of reporting.

See the table in Appendix A for examples of attributes that distinguish a contribution from a contract or
exchange transaction. This table is taken from the CASE Management and Reporting Standards.

What is a Quid Pro Quo gift? - Payments for Which Donors Receive Goods or Services -

If a donor receives a benefit as a result of making a contribution to a qualified organization, s/he can deduct
as a charitable contribution only the amount of the payment that is more than the fair market value of the
benefit s/he receives.

Bryant University is required by the Internal Revenue Code to provide a written disclosure statement to
donors who make payments in excess of $75 that are partly a contribution and partly for goods or services.
The disclosure statement must be furnished even if the amount that is allowable as a deductible charitable
contribution is less than $75. The statement must be provided in connection with either the solicitation or the
receipt of the quid pro quo contribution. The disclosure statement must inform the donor that s/he may
deduct only the amount of the gift that is more than the value of the goods or services received. The
document provides the donor with a good faith estimate of the value of those goods or services.

This requirement is separate from the written substantiation required for deductibility purposes (see Section
VII: Acknowledgement and Substantiation of Gifts) although the University may be able to meet both
requirements with one document.

Instances Where Goods and Services Received Are Insubstantial

If the benefit received is inconsequential or insubstantial, then the full amount of the contribution is
deductible. Benefits received in connection with a payment to a charity will be considered to have
insubstantial fair market value and the University need not provide a disclosure statement if any of the
following conditions are met:
GIFT ACCEPTANCE POLICIES                                                                                                   PAGE 7 OF 30

The payment occurs in the context of a fund-raising campaign in which the University informs donors how
much of their payment is a deductible contribution, and one of the following is true:

         The fair market value of all the benefits received in connection with the payment is not more than
          2% of the payment, or an amount that is adjusted for inflation each year -- whichever is less. For
          1999 this amount is $72. or

The following are the updated amounts taken from the IRS web site.

For taxable years beginning in 2005, the unrelated business income of certain exempt organizations under § 513(h)(2) does not
include a “low cost article” of $8.30 or less.

(2) Other insubstantial benefits. For taxable years beginning in 2005, the $5, $25, and $50 guidelines in section 3 of Rev. Proc. 90-
12, 1990-1 C.B. 471 (as amplified and modified), for disregarding the value of insubstantial benefits received by a donor in return for
a fully deductible charitable contribution under § 170, are $8.30, $41.50, and $83, respectively.

         The payment meets or exceeds a minimum amount and the only benefits received in connection with
          the payment are token items such as bookmarks, calendars, key chains, mugs, posters, tee-shirts, etc.
          bearing the University's name or logo. The cost (as opposed to the fair market value) of all the
          benefits received by a donor must, in the aggregate, fall within the limits established for "low cost
          articles" by the Internal Revenue Code. The level of the payment and the amount allowed for "low
          cost articles" is adjusted annually for inflation. For 1999 the payment must equal or exceed $36.00
          and the cost of token items does not exceed $7.20. or

         The University mails or otherwise distributes free, unordered items to patrons. To meet this
          requirement, any item received by a patron must not have been distributed at the patron’s request or
          with the express consent of the patron. Any item distributed must be accompanied by a request for a
          charitable contribution and by a statement that the patron may retain the item whether or not s/he
          makes a contribution and the cost of all such items, in the aggregate, distributed by or on behalf of
          the University to a single patron in a calendar year is within the limits established above for ―low
          cost‖ items.

         Newsletters or program guides other than commercial quality publications will be treated as though
          they do not have measurable fair market value or cost if their primary purpose is to inform members
          about the activities of the organization and if they are not available to non-members by paid
          subscription or newsstand sales.

         This section of the gift acceptance rules must be updated each year to account for inflation
          adjustments in qualifying amounts. See the Standard Federal Tax Reporter in the reference section of
          the library.

Special IRS Rules that Apply to Gifts Involving Athletic Premiums

A special rule involves athletic premiums. Donors may deduct 80% of contributions to higher education
institutions for which they are given the right to purchase preferred seating for athletic events held at the
institution. However, if any part of the contribution is for tickets — rather than the right to buy tickets —
that part is not deductible. The donor must subtract the cost of the tickets from the total paid and may claim
as a deduction 80% of the remaining amount.

See also "Bargain Sales" in Section V: Non-cash Gifts, for another type of gift, which is partially a gift and
partially a sale.
GIFT ACCEPTANCE POLICIES                                                                                PAGE 8 OF 30

SECTION IV: CASH GIFTS _________________________________________________________

As defined by the Internal Revenue Service, cash contributions include those paid by cash, check, credit card
or payroll deduction.


A contribution made by check is effective for income tax purposes when the check is unconditionally
delivered or mailed, as long as the check subsequently clears the donor's bank. When a contribution is
mailed, the effective date is the same as the postmark. During most of the year the gift date recorded in the
fundraising database is the day the gift is received by the institution. However, during the month ranging
from December 15 – January 14 the gift date will equal the postmark; envelopes will be kept for this period
so that the postmark is available should it be needed.

Credit Cards

The date of a gift made by credit card is the date on which the charge is recorded by the issuer of the card.

Payroll Deduction

If a Bryant employee makes a contribution by payroll deduction, no acknowledgement is required by the
Internal Revenue Service. The amount deducted from each paycheck constitutes a separate gift. Should the
amount deducted from a single paycheck equal $250 or more, the donor must keep a pay stub, form W2 or
other document furnished by the University that proves the amount withheld and a pledge card or other
document that states that Bryant did not provide any goods or services in return for the contribution.

For a gift of $250 in one paycheck, however, Bryant will provide a receipt and may, at its discretion, chose to
acknowledge gifts below that amount. Ordinarily, the University will send donors one receipt for the year in
January for the total of the previous year's deductions.

Bryant will not give full credit to donors who give to the University through United Way using the payroll
deduction method. This is because United Way holds back 7% of pledged amounts to cover shrinkage in
their total pool of pledged contributions. Donors will be given hard credit for the amount the University
actually receives.

Out-of-Pocket Volunteer Expenses

The Internal Revenue Service deems certain out-of-pocket expenses incurred by individuals who donate their
time or services to a qualified organization deductible contributions. Bryant University will record and
acknowledge such gifts as Annual Fund contributions when requested to do so by Board members and
volunteers. Such gifts will confer gift club credit at the appropriate level. The Development Office will
remind Board members that they have this option.

Only those expenses that fall within IRS guidelines will be considered. It is the donor’s responsibility to
provide documentation of his or her out-of-pocket-expenses on the form Bryant provides.

See IRS Publication 526, Charitable Contributions for more detail. Also see the Out-of-Pocket Volunteer Expenses
form in the Appendix.
GIFT ACCEPTANCE POLICIES                                                                              PAGE 9 OF 30

Assignment of Income

A donor may assign to Bryant University income that s/he would have received from a third party as
payment for services (e.g. payment for serving on a corporate board, honoraria for speaking engagements,
etc.). In such circumstances, the donor is the person making the assignment, not the organization making the
payment. If the University receives the check directly from the third-party organization, knowing that it is a
payment for a person’s services to that organization, the payment should still be credited as a gift to the
person who performed the service, not to the third party. Note: the organization making the payment will
report such payments to the IRS as income to the donor, regardless of where the check goes.

Corporate Matching Gifts

A Corporate matching gift, unless otherwise directed by the donor and so long as it is consistent with
company policy, will be credited to the account and purpose for which the donor's original gift was made.
Bryant University will adhere to the matching gift guidelines of each employer and to the policies that each
company has established for its employees. When there is an ambiguity concerning any specific gift, the
appropriate prospect manager will consult directly with the donor as to how the donor wants to handle the

There is one exception. When a corporate match is made to a donor’s gift to a trust, annuity, or pooled
income fund, the match will not be added to the planned giving vehicle but will be credited to whatever
purpose the donor designates.

By virtue of the completion of the matching gift request and submission of this request to the company, the
University is confirming that the donation received from the employer will be committed to the educational,
research, or community service mission of the University.

Note: Where an individual makes payment for the services of the institution (for example, tuition and fees,
tickets to sporting events, etc.), or where such services and benefits are provided to the donor or family
members in exchange for the gift, the University will not submit a matching gift form for that gift.

All corporate matching gifts will be entered on the company record, and a recognition credit entered onto the
donor's record. Corporate matching gifts count toward gift club membership for donors who secure them and
will also be counted as part of their individual campaign commitments. However, anticipated corporate
matching gifts will not be included as part of an individual’s campaign pledge.

Corporate Sponsorships

Beginning in 1998, soliciting and receiving qualified sponsorship payments is no longer treated as an unrelated
trade or business, and the payments are not subject to unrelated business income tax (UBIT).

A qualified sponsorship is any payment made by a person engaged in a trade or business for which the person
will receive no substantial benefit other than the use or acknowledgement of the business name, logo, or
product lines in connection with the recipient organization's activities. "Use" or "acknowledgement‖ does
not include advertising the sponsor's products or services. The organization's activities include all its
activities, whether or not related to its exempt purposes.

Providing facilities, services, or other privileges, e.g. complimentary tickets, pro-am playing spots in golf
tournaments or receptions for major donors, to a sponsor or the sponsor's designees in connection with a
sponsorship payment does not does not affect whether the payment is a qualified sponsorship payment.

Instead, providing these goods and services will be treated as a separate transaction in determining whether
GIFT ACCEPTANCE POLICIES                                                                                 PAGE 10 OF 30

the non-profit organization has unrelated business income from the event. Generally, if the services or
facilities are not a substantial benefit or if providing them is a related business activity, the payments will not
be subject to unrelated business income tax.

Similarly, the sponsor's receipt of a license to use an intangible asset, e.g. a trademark, logo, or designation, of
the non-profit organization is treated as separate from the qualified sponsorship transaction in determining
whether the organization has unrelated business taxable income.

A payment is not a qualified sponsorship payment if:

        In return, the organization advertises the sponsor's products or services. Advertising includes
         messages containing (1) qualitative or comparative language, price information or other indications of
         savings or value, (2) endorsements and (3) inducements to purchase, sell or use the products or
         services. Note: The use of promotional logos or slogans that are an established part of the sponsor's
         identity is not, by itself, advertising. Nor is the mere distribution of or display of a sponsor's product
         by the organization to the public at the sponsorship event, whether for free or for remuneration.

        The amount is contingent, by contract or otherwise, upon the level of attendance at one or more
         events, broadcasting ratings, or other factors indicating the degree of public exposure to one or more
         events. However, the fact that a sponsorship payment is contingent upon an event actually taking
         place or being broadcast does not, by itself, affect whether a payment qualifies.

        It entitles the payer to the use or acknowledgement of the business name, logo, or product lines in
         the organization's periodical. For this purpose, a periodical is any regularly scheduled and printed
         materials published by or on behalf of the organization. This stipulation does not include material
         that is related to and primarily distributed in connection with a specific event conducted by the
         organization, e.g. a program or brochure distributed at a sponsored event.

If part of a payment would be a qualified sponsorship payment if paid separately, that part is treated as a
separate payment. For example, if a sponsorship payment entitles the sponsor to both product advertising
and the use or acknowledgement of the sponsor's name or logo by the organization, the part of the payment
that is more than the fair market value of the product advertising is a qualified sponsorship payment.

Bryant University may count qualified sponsorship payments as gifts, provided that they meet all the
applicable IRS guidelines, which can be quite complex. In any case, the Gift Acceptance Committee will
accept no sponsorship payment of $100,000 or more from any one organization as a gift without prior review
and approval.

For further details on sponsorship payments, see IRS Publication 598, Tax on Unrelated Business Income of
Exempt Organizations.

SECTION V: NON-CASH GIFTS _____________________________________________________

The Gift Acceptance Committee will review proposed non-cash gifts to determine if the property will fulfill
the education or research mission of the University. The Committee will determine if the gift is to be kept or
sold. Determining if a non-cash gift will have a related use will affect the donor’s tax position in certain types
of gifts. If a gift is to be sold within two years of its receipt, it is an unrelated use. This decision might
influence the donor’s decision. The Gift Acceptance Committee will also determine with the appropriate
departments if there will be costs associated with acceptance of the gift.
GIFT ACCEPTANCE POLICIES                                                                                PAGE 11 OF 30

The VPUA will provide the Committee with the information required prior to accepting the gift from the

Valuation of Non-cash Gifts for Donor’s Tax Purposes

It is the donor's responsibility to establish the value of a non-cash gift for tax purposes. All donors who are
contemplating non-cash gifts, except publicly traded securities, should be urged to consult their financial
advisors regarding possible tax consequences of those gifts.

See IRS Publication 526, Charitable Contributions, and Publication 561, Determining the Value of Donated Property,
for more detailed information on the valuation of non-cash gifts for tax purposes.

Valuation of Non-cash Gifts for Gift Recording

Ordinarily, gifts will be recorded at the fair market value of the property as of the date on which the property
is transferred to the University. If there is no ready market for the asset, the value as determined by an
independent qualified appraiser will be recorded on the gift accounting system. For items such as equipment
and software, the value of the gift will be the educational discount value, i.e. the value that the University
would have paid had it purchased the item outright from the donor. These valuations are used to determine a
donor’s membership in Bryant’s gift clubs, and towards fund raising totals.

In general, the University will accept the donor’s estimated value for gifts ranging up to $5,000 if such estimates
appear reasonable. For gifts valued above that amount, the University may choose to accept the value placed
upon them by the qualified independent appraiser who signs form 8283 or may opt to seek a second appraisal.
In some instances, valuations may be adjusted, for internal purposes by the Gift Acceptance Committee, upon
the advice of a staff member of the institution with some expertise — such as a librarian or professor of art —
and that informal valuation may be used for institutional reporting purposes. Gift receipts and
acknowledgements will include only a description of the gift, not the internal valuation placed on it.

Neither gains nor losses realized by the University's sale of a non-cash gift will affect the value credited
toward fundraising goals. However, realized gains or losses and any fees incurred by the University in the
disposition of the asset or the maintenance of the asset until sale will affect (usually lower) the amount
available for the purpose designated by the donor.

Designation Of Non-Cash Gifts

Gifts of property that the University intends to sell within two years, or that are to be consumed in the short
term (e.g. greens fees for the golf team or gifts of office supplies), or that replace a cost the University would
otherwise have had to incur (e.g. athletic uniforms) may be counted as gifts for current use.

All other gifts-in-kind are to be recorded as capital gifts, and the appraised fair market value is entered in the
appropriate capital category. In cases where the question of current use vs. capital acquisition is unclear, the
Gift Acceptance Committee will make the determination as to how to account for the gift.
GIFT ACCEPTANCE POLICIES                                                                             PAGE 12 OF 30


Internal Revenue Service rules require all donors making non-cash gifts in excess of $500 to file IRS Form
8283, Noncash Charitable Contributions, with their federal income tax returns in order to obtain the charitable
contribution tax deduction. (See sample form 8283 and instructions in the appendix.) C Corporations, other
than personal service corporations and closely held corporations, must file Form 8283 only if the amount
claimed as a deduction is over $5,000.

The donor may be required to complete Section A of this form, Section B, or both depending on the type of
property donated and the amount claimed as a deduction. For this purpose, the amount of a donor's
deduction is the amount of the deduction before applying any income limits that could result in a carryover
from one tax year to the next. The donor should make any required reductions to fair market value before
determining whether s/he needs to file form 8283 as described above in "Valuation of Non-cash Gifts for
Tax Purposes".

If the total deduction for all non-cash contributions for the year is over $500, but less than $5,000, the donor
must complete Section A. In general, non-cash gifts valued in excess of $5,000 are reported in Section B and
may also require an appraisal. The exceptions to this rule are publicly-traded securities, which are reported in
Section A regardless of value, and non-publicly traded securities valued at $5,001 to $10,000, which are
reported in Section B, but for which no appraisal is required. See Appendix B for a chart that identifies
under what circumstances a donor should fill out Section A or B.

Appraisals: Donor's Obligation

With certain exceptions, items reported on Section B will require a written appraisal by a qualified independent
appraiser. It is the donor's responsibility to obtain and pay for the appraisal. Appraisal fees are not deductible
as contributions. However, subject to the 2% of adjusted gross income limit, they may be taken as
miscellaneous deductions on Schedule A of Form 1040. Generally the donor need not attach the appraisal to
form 8283, but should retain the appraisal for his or her own records.

The appraisal must be made not earlier than 60 days before the date the property is contributed. The donor
must receive the appraisal before the due date (including extensions) of the return on which the donation will
be reported. For a deduction first claimed on an amended return, the appraisal must be received before the
date the amended return is filed.

A separate qualified appraisal and a separate Form 8283 are required for each item of donated property except
for items that are part of a group of similar items contributed in the same tax year. Similar items of property are
items of the same generic category or type, such as stamp collections, coin collections, lithographs, paintings,
books, nonpublicly traded securities, land or buildings.

Only one appraisal is required for a group of similar items contributed in the same year if it includes all the
required information for each item. If the donor gives similar items to more than one donee for which s/he
claims a total deduction of $5,000 or more, s/he must prepare a separate form 8283 for each donee.

If an appraisal is required for donated property, the appraiser must complete and sign Part III of Section B of
Form 8283 certifying that s/he is a qualified appraiser. The appraiser may not be the donor, the donee, a party
to the transaction in which the donor acquired the property, employed by, or related to, any of the foregoing
persons, or married to any person who is related to any of the foregoing persons. However, a person who sold,
exchanged, or gave the property to the donor may sign the declaration if the donor gave the property within
two months of the date on which s/he acquired it and the property's appraised value does not exceed its
acquisition price.
GIFT ACCEPTANCE POLICIES                                                                               PAGE 13 OF 30

Exceptions include the following:

     No appraisal is required by the IRS for non-publicly traded securities valued at $10,000 or less; however,
       the University may ask for an appraisal in order to establish fair market value for campaign counting

     No appraisal is required for donations from C corporations, except for closely held corporations or
       personal service corporations.

       If a donor's total deduction for art is $20,000 or more, s/he must attach a complete copy of the
        signed appraisal to his or her tax return. For individual objects valued at $20,000 or more, the donor
        must be able to provide upon request of the Internal Revenue Service a colored photograph or slide
        of the object of sufficient size and quality to fully show the object.

Form 8283: Bryant's Obligation

For gifts with a value in excess of $5,000 the University must sign Section B, Part IV, acknowledging receipt of
the gift. All appraisal summaries should be submitted to the Executive Director of Development, who will
arrange to have the designated University officer sign the form. The person acknowledging the gift must be an
official authorized to sign the tax returns of the University, or a person specifically designated to sign Form

FORM 8282: Bryant’s Obligation

The Internal Revenue Service also requires that the University maintain detailed records concerning all gifts of
property, other than cash and publicly traded securities (stocks and bonds), with a value greater than $500. The
University must maintain records concerning the location of the property, how the donated property is related
to Bryant's tax-exempt purpose and, if sold, when it was sold, how it was sold and the sale price.

If contributed property subject to the appraisal summary rules is sold, exchanged or otherwise disposed of
within two years of the date of the gift, the University must file Form 8282, an information return, with the IRS
and send a copy to the donor within 90 days of the disposition. Serious penalties may be assessed against the
University for failure to comply with the requirement.


Publicly traded stocks, bonds and mutual fund shares are those for which, as of the date of the contribution,
market quotations are readily available on an established securities market. The value of a gift of securities is
determined by calculating the mean of the high and low prices (or, in some cases, the bid and ask prices) of that
security on the effective date of transfer. If the security was not traded on that date, then the value is set
according to the mean of the high and low prices on the date when the shares were most recently traded. The
effective date of gift for securities varies depending on the method by which ownership is transferred, however,
donor intent should also be taken into account before assigning any gift value:

       If held at a bank or brokerage firm, the date of gift is the date of transfer into a Bryant University

       In the case of physical delivery, the effective date is the date upon which the endorsed certificate
        accompanied by a stock-power is received at Bryant.
GIFT ACCEPTANCE POLICIES                                                                                 PAGE 14 OF 30

       If the certificate and stock power are mailed, the postmark on the stock power envelope is the
        effective date of gift. If the certificate is mailed to a transfer agent for reissue to Bryant, the effective
        date of gift is the date on the new certificate.

If the donor owned the securities for less than 12 months, the tax deduction equals the cost basis of the
security, not the market value. Therefore, such a gift has less benefit to the donor. However, the University
will record the gift at its fair market value and issue a receipt indicating the name of the donor and the number
of shares of stock received. See also ―Revised Procedure for Accepting Stock Gifts to Bryant‖ dated
November 23, 1998 in the office manual.

Zero-coupon bonds are valued at current market price upon the effective date of transfer. Bryant does not
recognize the face value of zero coupon bonds and may liquidate them prior to maturity.

Closely-Held Stock

Closely-held stock is any stock of a corporation, evidenced by a stock certificate, that is not a publicly traded
security, or for which there is no public market. Gifts of closely held stock exceeding $10,000 in value should
be reported at the fair market value placed on them by a qualified independent appraiser as required by the IRS
for valuing gifts of stocks that are not publicly traded.

Gifts of $10,000 or less may be valued at the per-share cash purchase price of the most recent transaction.
Normally, this transaction is the redemption of the stock by the corporation. If no redemption is made a gift
of closely held stock may be captured in the fundraising database at the value determined by a qualified
independent appraiser. An independent certified public account (CPA) who maintains the books for a closely
held corporation is deemed to be qualified to value the stock of that corporation.

Limited Partnerships

Gifts of interests in limited partnerships may be accepted, subject to a review of all available information, and
approval by the Gift Acceptance Committee. At a minimum, the University should receive copies of the
limited partnership agreement, the proposed assignment of interest, and financial documentation sufficient to
describe the assets of the partnership and their valuation.

Exception: Interests in general partnerships, limited partnerships, and working interests ordinarily will not be
accepted as assets in a charitable remainder trust if the University is the trustee. Ownership of these assets
could create unrelated business income tax liability for the trust. However, the University may accept wholly
owned charitable trusts administered by others that are funded with such assets.

In analyzing a proposed gift of an interest in a limited partnership, the intent is to confirm that there is a real
benefit to be derived by the University that is commensurate with any potential liabilities associated with the
gift. Among the factors that will be considered are the following:
       Is there a presently calculable guaranteed minimum amount intended to be distributed to the
        University during the existence of the limited partnership?
       What administrative obligations, if any, would be assumed by the University? For example, would
        any of the activities of the partnership require Bryant to track for additional unrelated business
        income tax reporting?
       Will Bryant receive a guaranteed annual income from the partnership interest sufficient to defray
        administrative costs? In lieu of an annual income payment, is there a cumulative payment made in
        the form of a preferred return before distributions to other partners at the termination of the
GIFT ACCEPTANCE POLICIES                                                                              PAGE 15 OF 30

       Does the partnership agreement provide for a defined distribution/termination event or date?
       Does Bryant have any obligation to make capital contributions to the partnership?
       Can the University be held liable for debts of the partnership?

       Does the partnership appear to be adequately capitalized in light of its activities?

       Does it maintain liability insurance?

Real Property

For the purpose of these policy guidelines, "real estate" is defined as all surface and/or mineral assets other than
campus land which is donated or bequeathed to the University regardless of type, location, or designated use of
the funds to be derived there from.

The Vice President for Business Affairs and the Vice President for University Advancement should be
contacted immediately upon identification of a potential gift of real estate. They will determine whether to
proceed to a formal review of the property. If such a review is agreed upon, the Executive Director of
Development will contact Bryant's legal counsel and ask him to obtain a title report, title policy or
abstractor's certificate on each potential gift of real estate to insure that there are no recorded liens or
encumbrances on the proposed gift.

The donor of a proposed gift of real estate should provide the following information for formal review:

       Map showing location of property
       Legal description of property
       Proof of ownership (deed)
       Survey of subject property
       List of improvements
       Copies of current leases, if any
       List of encumbrances, including deed restrictions or covenants, liens and current expenses, if any
       Proof of payment of taxes and association fees, if any
       Copy of title policy or a recent title commitment
       Recent appraisal or other acceptable valuation
       A written statement from donor identifying any known waste disposal sites or spills of hazardous
        waste material on the property or a statement to the contrary
       Written statement from donor outlining purpose of gift

In the case of a proposed gift of mineral rights, the following should normally be provided by the donor:

       Map, plat or survey of the property
       Legal description of the property
       Proof of ownership (deed or assignment)
       Copies of current oil and gas leases, if any
       Division orders
       List of all encumbrances including any liens and copies of the corresponding documentation
       Abstracts of title or title opinions
       Geological or geophysical records
       Lease ratifications and lease assignments
       Copies of appraisals or reserve studies
       Copies of documents relating to past or present litigation directly affecting the mineral gift or bequest
GIFT ACCEPTANCE POLICIES                                                                                PAGE 16 OF 30

       Copies of insurance coverage carried by the well operator relative to environmental damage.

A proposed gift of real estate to Bryant University will be evaluated for its potential for sale or retention. The
evaluation will include, but not be limited to, such factors as income potential, development characteristics,
type of property interest, holding costs, management requirements, holding period and location.

All gifts and bequests of real estate must be evaluated and inspected by a qualified, independent appraiser
reporting to the Gift Acceptance Committee. Whenever possible, the donor should be encouraged to
contribute funds for the management of the property until disposition occurs. Any unreimbursed costs of
management or sale of the property including disposal will be charged either against income earned by the
property or proceeds from the sale of the property as appropriate. If donor restrictions place undue
limitations on the University's ability to own, manage, and dispose of the property, further negotiation may be

Gifts of mortgaged or encumbered property, as well as gifts of real estate of which Bryant would not be sole
owner, may be accepted by the University upon review and approval by the Gift Acceptance Committee of
the terms and conditions of the gift.

Gifts of surface interests may be accepted provided they are expected to net at least $25,000 upon being sold.
Gifts of mineral interests other than working interests will be accepted if they are expected to generate a
minimum net income of $2,500 per year. Combined gifts of surface and mineral interests will be accepted if
each individual interest meets at least the minimum acceptance criteria noted above. Minority interests in
minerals, other than working interests, will be accepted if the gift or bequest meets the requirements outlined

See Real Estate Preliminary Information Form in the Appendix.

Real Property with Retained Life Estate

        See Section VI: Planned Gifts.

Bargain Sales

A bargain sale of property to a qualified charitable institution is a sale of property for less than its fair market
value. It is partly a charitable contribution and partly a sale or exchange. To determine the amount of the
charitable deduction, the donor must figure both the fair market value and the basis of the contributed portion.
See U.S. Treasury Publication 551, Basis of Assets and U.S. Treasury Publication 544, Sales and Other Dispositions of
Assets and Publication 526, Charitable Contributions for more information.

Generally, if the property sold to the University is capital gain property, the deduction equals the fair market
value of the contributed part. If it is ordinary income property (held less than 12 months), the deduction equals
the adjusted basis of the contributed part. The University will enter into the fundraising database the fair
market value of the part that constitutes a gift, regardless of how long it was held.


With the exception of publicly traded securities, all non-cash gifts of $500 or more must be reviewed and
approved by the Gift Acceptance Committee before they can be accepted by the University.

For liability purposes, representatives from the University should avoid providing donors with any tax guidance.
Donors should refer all questions concerning possible income tax consequences to their tax specialists. Form
8283 and its instructions should be reviewed with donors prior to forwarding the gift proposal to the Gift
GIFT ACCEPTANCE POLICIES                                                                                PAGE 17 OF 30

Acceptance Committee to ensure that the donor is aware of the tax implications of any intended gift. In some
cases, expert counsel may be required. If an appraisal is required to establish the value of the gift, a description
of the property to be donated and a copy of the appraisal must accompany the gift proposal.

All hard-to-value assets will be subject to an independent appraisal by the University and must be approved by
the Gift Acceptance Committee upon appropriate consultation with internal and external experts as needed.
Even with the receipt of an appraisal, some gift items (diamonds, oriental rugs, etc.) may not yield the fair
market value as determined by a qualified appraiser. In these types of cases, the donor should be made aware
that they might have to reduce the fair market value to determine the deductible amount for tax purposes.

A gift of property will not be accepted if the acceptance would cause the University to incur a financial or other
obligation (to display, store, insure, clear of legal restrictions, sell, etc.) which the Gift Acceptance Committee
deems to be burdensome.

In some instances, corporations request that the University sign a gift acknowledgment or acceptance form
prior to the gift being delivered. This may be required for gifts of equipment or cash. If a corporation makes
such a request, the form should be forwarded to the Executive Director of Development.

The effective date of a non-cash gift is the date it passes legally into Bryant University's control.

A gift of property that is not used for institutional purposes but for producing income which is available to
the University should be treated a "quasi" endowment gift. Also, a gift of property that is retained for future
sale or development is considered "quasi" endowment, until such time as the University (Board of Directors)
makes a final decision contingent upon the ultimate distribution of the gift.

See Gift-in-Kind Review Form in the Appendix.



The University will offer donors a variety of planned gift vehicles, primarily charitable remainder trusts and
charitable gift annuity contracts, to encourage and facilitate giving. The Director of Leadership and Planned
Giving will maintain detailed descriptions of the various types of deferred gift arrangements.

The Director of Leadership and Planned Giving and the Director of Operations and Communications will
work with the Executive Director of Development and the relevant Business Affairs staff to establish
arrangements and procedures related to accounting, stewardship reporting, payment schedules, methods of
tax reporting, trust administration and accounting, and all business procedures related to planned gift

The University may use legal, tax accounting, estate planning, and investment services as needed and
appropriate to establish deferred gift arrangements. In the case of charitable gift annuities and deferred gift
annuities, a standard contract will be drawn up. Once approved by the University’s legal counsel, these
standard contracts will be the only approved vehicles for establishing charitable gift annuity contracts..

In the case of charitable gift annuity contracts, the University is required by the Philanthropy Protection Act
of 1995 to issue a disclosure statement prior to execution. Such disclosure statements are not ordinarily
required for charitable remainder trusts, which are individually invested, unless they are commingled with the
investments of others. In that case, a disclosure statement is required. See the ―Disclosure Statement‖ in the
GIFT ACCEPTANCE POLICIES                                                                               PAGE 18 OF 30

The University will ordinarily comply with rates and procedures recommended by the Committee on Gift
Annuities and conform to IRS regulations governing charitable remainder trusts under the Tax Reform Act
of 1969 and subsequent Revenue Rulings. However, exceptions to the rates set by the Committee on Gift
Annuities may be granted on a case by case basis as determined by the Gift Acceptance Committee, upon
recommendation by the Director of Leadership Gifts and Gift Planning.

In serving as trustee of charitable remainder trusts, the University will assume the recording costs. The donor
will be responsible for all other costs, including Phase I and Phase II Environmental Assessments. Ongoing
costs for investment, administration or tax preparation will be borne by the University.

The following guidelines for the most common forms of planned gift are designed to be illustrative rather
than mandatory:

                                   Minimum          Minimum           Max # Income       # Charitable
                                   Age to Fund      Amount            Beneficiaries      Beneficiaries

Charitable Remainder Trust        Any age*          $100,000              Two                    Three
Administered by Bryant University

Charitable Remainder Trust          None              None                N/A                    N/A
Administered by Others

Charitable Gift Annuity              55             $10,000                Two                   Bryant only

Deferred Charitable Gift Annuity 45                 $10,000                Two                   Bryant only

Stepped Charitable Gift Annuity      45*            $20,000                Two                   Bryant only

        *The   minimum age to receive payments, however, would be 60.

The cardinal consideration in structuring any of these gifts, or other planned gifts, is that the University can
expect to realize a minimum yield of at least 35%. All other factors may be adjusted to meet this
requirement. Normally the University will not enter into deferred gift arrangements that include more than
two income beneficiaries.

The University will ordinarily serve as trustee of a charitable remainder trust benefiting more than one charity
so long as the percentage of the remainder interest provided to the University is 51% or greater and there are
no more than three charitable beneficiaries to the trust. All proposals for trusts that will include other
charitable beneficiaries, especially those involving less than a majority share, must be reviewed and approved by
the Gift Acceptance Committee.

Real Property with Retained Life Estate

Gifts of real estate with retained life estates will be reviewed and approved by the Gift Acceptance
Committee prior to acceptance of the gift. Acceptance of such gifts must also be in accordance with the
guidelines for acceptance of outright gifts of real property as set forth in Section V: Non-Cash Gifts. Such gifts
may be accepted provided that adequate provision is made by the donor for any expense in connection with
ownership, including payment of mortgages, taxes, insurance and utilities while s/he continues to reside there.

Capital expenditures designed to maintain the value of the property, e.g. a new roof, are negotiable. Any
arrangements agreed to by the University and the donor must conform to the laws of the state in which the
property is located. Once agreement has been reached, the University will draw up a letter of agreement to be
GIFT ACCEPTANCE POLICIES                                                                                   PAGE 19 OF 30

signed by the donor and either the Vice President for Development or the Vice President for Business
Affairs. [NOTE: The question of who can sign is an issue. See SEG memo of March 9.]

Gifts in Support of Facilities Projects

As a general principle, deferred gifts will not be accepted for facilities construction or renovation; however,
depending on the size and nature of the proposed gift, the Gift Acceptance Committee may, upon
appropriate review, decide to accept such a gift in support of a facilities project.

Partnership Interests

Interests in general partnerships, limited partnerships, and working interests ordinarily will not be accepted as
assets in a charitable remainder trust if the University is the trustee. Ownership of these assets could create
unrelated business income tax liability for the trust. However, the University may accept wholly owned
charitable trusts administered by others that are funded with such assets.

Tax Deductibility of Deferred Gifts

Under current Internal Revenue rules the donor is allowed an income tax charitable contribution deduction
equal to the present value of the University's remainder interest in the deferred gift, which is determined by
reference to Treasury Regulations. The deduction is based on the fair market value of the asset transferred,
the pay-out rate, and the age and number of beneficiaries. Prospective donors should be advised to consult
their own financial advisors in all matters related to planned gift instruments such as the drafting of wills,
trusts, annuities or contracts.

How Deferred Gifts Will Be Counted

All deferred gifts will be recorded in the fundraising system with two values: their face value (or fair market
value at the time the gift is made) and their discounted present value. The discounted present value will be
carried on the University's financial statements. However, the gift will be recognized at its fair market value
and included in campaign totals at that amount.


Wholly Owned Charitable Trusts Administer by Others.

A wholly owned charitable trust is one that is held for the benefit of charity, where the principal is invested
and the income is distributed to charitable organizations. All interests in income and principal are irrevocably
dedicated to charitable purposes (as opposed to a charitable remainder or lead trust). While it is similar in
that sense to an endowment fund, it is created as a free-standing entity.

Since such a trust is not a deferred gift, the fair market value of the assets, or a portion of the assets, of such a
trust administered by an outside fiduciary should be counted in the ―gifts and pledges‖ section of campaign
totals for the year in which the trust is established, provided that the institution has an irrevocable right to all or
a predetermined portion of the income of the trust.

At the time the gift is accepted, the amount to be reported is calculated by multiplying the percentage
allocated to Bryant times the value of the trust assets: Thereafter, the income of the trust is treated as
endowment income and does not appear in the amounts reported under gifts.
GIFT ACCEPTANCE POLICIES                                                                               PAGE 20 OF 30

Charitable Lead Trusts

A charitable lead trust is one that pays income from the trust's underlying assets to a charity for a specified
period while reserving the assets for later distribution to other beneficiaries. Lead trusts are always funded
with income-producing assets.

Because charitable lead trusts are not deferred gifts, but are immediate gifts in trust, the calculation of face
and present values is slightly different than for a charitable remainder trust or pooled income fund. For lead
trusts whose term is five years or less, the value of the income received each year may be counted under
"current gifts and pledges." If the lead trust extends over a longer period, both the discounted present value
and the remaining face value of the remaining income stream should be reported to CASE. The calculation
differs somewhat from Charitable Remainder Trusts and Pooled Income Funds. See CASE Management
Reporting Standards for more detail.

Whole-Life Insurance

With the exception of realized death benefits, life Insurance may be accepted and recorded as a gift only when
the University is both the owner of the policy and the irrevocable beneficiary,.

The preferred form of insurance gift is a paid-up whole life policy. Paid-up policies will be treated as deferred
gifts for counting purposes, i.e. we will record both the death benefit value of the gift and the present value of
the death benefit. The discounted present value will be carried on the University's financial statements;
however, the gift will be recognized at its full death benefit value and included in campaign totals for that

Bryant may also accept policies that are not paid up. A life insurance policy that is not fully paid up on the date
it is contributed should be counted as an outright gift at the existing cash value. In addition, if the donor
pledges to pay the premiums over a five-year pay-out period, these payments may be treated as ordinary
pledges. If the University elects to pay the premiums, those payments are considered operating expenses and
increases in cash surrender value and are not reported as gifts.

The difference between the original cash surrender value and the insurance company’s settlement at the death
of the donor is not reported as a gift, but rather as a gain in the disposition of assets. When Bryant University
receives the proceeds of a life insurance policy in which it was named beneficiary but not owner, the full
amount received is reported as a gift on the date it is delivered to the University.

The insurance company’s settlement amount for an insurance policy whose death benefit is realized during
the campaign period, whether the policy is owned by the University or not, should be counted in campaign
totals at full realized value.

Flexible Endowments

A flexible endowment is an arrangement in which a donor pledges to give the University each year the amount
of money equivalent to the income that a fully endowed fund would have generated until such time as the
endowment principal is fully funded.

Donors may give the endowment principal in one lump sum or in installments. If they choose to give it in
installments, their annual obligation will, over time, drop as the principal builds and generates endowment
income. How and when the donor pays the principal can vary, depending on the terms of the agreement
between the donor and the University. Donors can even defer funding the principal until after their deaths.
GIFT ACCEPTANCE POLICIES                                                                             PAGE 21 OF 30

In determining the amounts to be paid each year, the University and the donor need to take into account the
effect of inflation on the financial needs of the funding objective, both annually and when the endowment
principal is ultimately given. The agreement with the donor, which should be spelled out in a letter of intent,
should specify the donor's annual principal commitment, if any, in terms of current year dollars and how it
will be adjusted annually according to an agreed-upon measure such as the Consumer Price Index or the
Higher Education Price Index. Alternatively, the University may stipulate that the endowment must adjust to
the minimum funding level the Board sets for that type of endowment.

The agreement must also specify when the endowment will be considered fully funded. This could be when
the endowment principal account reaches a market value that equals the level required for that type of
endowment or when donor payments equal the set amount of the agreement, regardless of how the money
performs after it has been given.

The University will enter into flexible endowment arrangements only if such arrangements represent
irrevocable commitments secured by appropriate documentation. The total irrevocable amount donors give
is the tax-deductible amount, depending upon their circumstances and the applicable laws. The part of each
payment that represents income should be counted as a current use gift; the part that goes into the
endowment should be counted as a capital gift. Depending on the payout period, pledges may be counted
two ways. Amounts pledged and scheduled for payment within five years will count at full face value.
Pledged amounts to be paid thereafter will be treated like deferred gifts.

Realized Bequests

A bequest is a gift by will of personal or real property. Realized bequests should be counted at fair market
value at the time the proceeds are received by the University. All realized bequests received in the course of
the campaign will be included in campaign totals. Unrestricted bequests will be reviewed by the Gift
Acceptance Committee and the President to determine whether they should be designated, and if so, for what

Testamentary Pledge Commitments

Whether a bequest intention can be used to satisfy a campaign pledge depends on the donor's age, the nature
of the bequest and Bryant's standing among the beneficiaries of the will. Donors who will turn 72 years of
age during the campaign counting period and who have made some other form of campaign commitment will
have the opportunity to make an additional commitment through this means. For counting purposes, the
discounted present value will be carried on Bryant’s financial statements; the full face value will be recognized
and given campaign credit. Testamentary pledges must be secured by an estate note.

To be included in the University's gift totals, a testamentary pledge must satisfy the following requirements:
(1) the commitment must have a specified amount or percentage of the estate included in the will based on a
credible estimate of the future value of the estate at the time the commitment is made; (2) the donor must
verify the commitment in writing. The latter requirement may be satisfied in several ways. See Case
Management Reporting Standards for further details.

Acceptance of Deferred Gifts

All deferred gifts must be reviewed and approved by the Vice President for Development and/or the
Executive Director of Development before they are accepted or executed. Deferred gifts that will be funded
with real estate or hard-to-value assets, such as limited partnerships, must, in addition, be reviewed and
approved by the Gift Acceptance Committee. A ―Gift Profile‖ must be completed for each proposed
deferred gift prior to review and acceptance. Note: in the case of Charitable Gift Annuities, the University
may not receive the money until the contract has been executed. (See Appendix.)
GIFT ACCEPTANCE POLICIES                                                                              PAGE 22 OF 30



Contributions in Excess of $75

The Internal Revenue Service requires a charity to disclose certain information to any donor who makes a quid
pro quo contribution in excess of $75. A quid pro quo contribution is a gift made by a donor for which the donor
receives something of "substantial" value from the University in exchange for the gift. The University must
provide the donor with a disclosure statement that includes:

A description of the goods or services provided in exchange for the donor's gift;

A good faith estimate of the fair market value of those goods and services;

A statement advising the donor that only the difference between the fair market value of the goods and
services provided and the total value of the donor's contribution may be deducted as a charitable

If only insubstantial (safe harbor) goods and services are provided in return for the contribution, then a
statement must be made to the donor that "the estimated value of the benefits received is not substantial;
therefore, the full amount of the payment is a deductible contribution." See "Quid Pro Quo Gifts" in Section III:
What May Be Counted as a Gift.

The disclosure must be made in a manner reasonably calculated to be seen by the donor, either in the
solicitation materials, the pledge form or the gift receipt. Ordinarily, the Development Office will provide each
donor with a receipt for his or her gift with notice of the IRS requirements. If some other department has
made incentive gifts to the donor, that department is responsible for informing the donor. See IRS Publication
526, Charitable Contributions, for more detail.

Written Acknowledgment for Contributions Over $250

Internal Revenue Code provides that no charitable income tax deduction will be allowed for any taxpayer who
contributes $250 or more at one time, unless the taxpayer can substantiate the contribution with a timely,
written acknowledgment from the charity. It is the donor's responsibility to secure an acknowledgment from
the charity. With the exception of gifts made by payroll deduction of less than $250, Bryant University will
routinely acknowledge all gifts, regardless of the amount within two days of posting them. See Section IV: Cash
Gifts for more information about gifts made through payroll deduction.


While other policies may exist concerning the acknowledgment of specific kinds of gifts to Bryant University, at
a minimum a computer-generated receipt shall be produced for all gifts made by individuals, corporations,
foundations and associations which are processed through the Central Gift Office. In the case of non-cash
gifts other than securities, the gift receipt will not indicate a dollar value, but will simply describe the donated
item(s). No receipts will be issued for planned gifts. These gifts require customized acknowledgements letters
that contain very specific information. The Director of Leadership and Planned Gifts will prepare all such
GIFT ACCEPTANCE POLICIES                                                                              PAGE 23 OF 30

SECTION XI: GIFTS TO ESTABLISH ENDOWMENTS _______________________________________

The Campaign Director will maintain a list of authorized named endowment opportunities and the gift levels
required to name any particular type of endowed fund. These will consist of high-priority funding objectives
recognized as such by the Board of Trustees with the associated minimum gift required for naming. These
naming opportunities start at $100,000.

Establishing a New Endowment Fund

A written donative instrument is required for each new endowment fund established. Pledges may be
accepted to fund endowment at any level recognized by the Board of Trustees; however, at least 20% of the
donor's total proposed funding must be in hand before the named endowment fund will be established. Until
that point, gifts and pledge payments will be entered into a holding account. Endowed funds may be
established for scholarship support, faculty support and program or departmental support.

Board Approval Required

Because the naming of endowed chairs, titled positions, departments or program is a permanent and public
act, approval by the Board of Trustees is required for the naming of such funds.

If a Pledge Cannot Be Fulfilled

In the event that the donor is unable to fulfill the pledge by the end of the five-year campaign counting
period, the endowment will either be dissolved or re-designated. If endowment funds received amount to
less than the minimum endowment funding level, the endowment may be dissolved and the President will
have the discretion to designate an existing endowment to which to transfer the funds, taking into
consideration the donor's original intent. This stipulation will be included in the gift agreement developed
with the donor.

If endowment funds received are in excess of the minimum endowment funding level, but are less than the
level prescribed for the type of endowment originally approved by the Board, the endowment may be re-
designated to the highest level possible based upon the funds held and the donor's intent. Every effort will
be made by the Development Office to consult with the original donor and to assign the funds in a
satisfactory manner.


Once an endowment is established, the terms, purpose, or existence of that endowment may not be changed
if the change has not been specifically authorized or required by the terms of the donative instrument, Board
policy, and/or applicable state and federal laws. In any case, the Board shall change the terms of an existing
endowment only if conditions have changed to such an extent that the terms of the original endowment are
no longer meaningful or practicable or they have been discovered to be illegal. Permission to do so will be
stipulated in the gift agreement.

 Any request to amend the terms or purpose of an endowment or to terminate an endowment must be sent
to the Gift Acceptance Committee for review and recommendation before being forwarded to the President,
who will determine whether to propose the change to the Board..

Donor Restrictions on Endowed Funds

Bryant University prefers that donors of endowed scholarships set only minimal restrictions or criteria for
selecting recipients in order to give the University the flexibility to award the scholarship on a consistent
GIFT ACCEPTANCE POLICIES                                                                            PAGE 24 OF 30

basis. The donor may, however, wish to identify certain preferential characteristics for the award of
scholarships and fellowships. See Section IX, Designation of Gifts for examples.

In discussing preferences or conditions for scholarship funds, Development Office staff should keep in mind
that Bryant University policy states that no person shall be excluded from participation in, denied the benefits
of, or be subject to discrimination under, any program or activity sponsored or conducted by Bryant University
on the basis of race, color, national origin, religion, sex, age, veteran status or disability.

The language used to establish an endowment for scholarships should not include the specific dollar amount of
an annual award. Any reference to the size of an award should be tied to the "funds distributed" with an
indication that the size and number of awards will be determined by the Office of Admission and Financial Aid.
Specified amounts may be referred to in more general terms such as "tuition and required fees".

For similar reasons, donors may not direct the investment transactions or holdings or approve investment
policy or strategy. Restrictions by the donor on the sale or timing of the sale of donated property will be
reviewed by the Gift Acceptance Committee. Should circumstances warrant, e.g. a gift of closely-held stock
the donor intends to buy back — the Committee may agree to the donor’s request.

With the exception of unitrusts, which are ordinarily individually invested, it is the specific and strong
preference of the Board that all endowment gifts be eligible for commingling for investment purposes with
other endowment funds. This commingling permits enhancement of long-term investment programs, affords
appropriate risk control through diversification, and provides for optimization of asset mix through time.
Specific language which allows endowment funds to be pooled for investment purposes should be included in
all donative instruments.
GIFT ACCEPTANCE POLICIES                                                                                   PAGE 25 OF 30

                                                     Appendix A

                                        CASE Management and Reporting Standards
                               Classifying Revenue as Contribution or Exchange Transaction
                Attributes of Contributions                             Attributes of Exchange Transactions
    Initiative for project comes from the organization     Funds provide goods/services for a program of the resource
    receiving the funds.                                   provider
    Proprietary results belong entirely to recipient       Initiative for project comes from the organization providing the
    organization after the work is completed.              funds
    Results of the work have no commercial value for       Proprietary results belong to funding organization, in whole or
    the resource provider.                                 in part, after the work is completed
    Recipient organization defines performance             Results of the work have a specific commercial value for the
    objectives such as a detailed report and a timetable   resource provider
    for meeting objectives.
    Time and place for delivery of results are not  Resource provider sponsors research and development
    specified.                                      activities and retains patents, copyrights, advance and exclusive
                                                    knowledge of outcomes
    Resource provider does not receive commensurate Payment supports direct/immediate need of government or
    value in return for support.                    organization that provides the funding
    Recipient determines ownership of the products of      Benefits to the resource provider are primary and public
    research.                                              benefits are secondary.
    Recipient holds the unconditional right to receive     Resource provider defines performance objectives, such as a
    the funds.                                             detailed report, and a timetable for meeting objectives
    Recipient retains control and ownership of any         Time and place for delivery of results are specified
    work completed after completion of the project.
    Funds used to carry out an already existing        Fulfilla a service as prescribed by the resource provider.
    program of the recipient organization
    Recipient participates actively in determining how Recipient gives up the benefits of the research to the resource
    the funds will be spent                            provider.
                                                       Recipient pays economic/punitive penalties for failure to meet
GIFT ACCEPTANCE POLICIES                                                                    PAGE 26 OF 30

                                                Appendix B

    Type of Property                                    Form 8283     Form 8283     Appraisal
    Contributed                                          Section A      Section B   Required?

    Single item worth $501 to $5,000                            Yes          No          No
    Single item worth over $5,000                               No           Yes         Yes
    Publicly traded securities worth over $500                  Yes          No          No
    Publicly traded securities worth over $5,000                Yes          No          No
    Closely held securities worth $10,000 or less               No           Yes         No
    Inventory gifts by certain C Corporations --
        claimed deduction exceeds basis by over $5,000          Yes          Yes         No
    Closely held securities worth over $10,000                  No           Yes         Yes
    Multiple items with total value of $501 to $5,000, but no
        single item/group of similar items worth over $5,000    Yes          No          No
    Multiple items with total value over $5,000 but no single
        item/group of ―similar‖ items worth over $5,000         Yes          No          No
    Group of ―Similar‖ items with total value over $5,000       No           Yes         Yes
    ―Similar‖ items with total value over $5,000 plus
        non-similar item/items worth $501 to $5,000             Yes          Yes         Yes
GIFT ACCEPTANCE POLICIES                                                                         PAGE 27 OF 30

                                           BRYANT UNIVERSITY
                                         Out-of-Pocket Expense Report

MEETINGS/EVENTS ATTENDED                                  DATE                     LOCATION

Transportation (air, train, bus, taxi)
Mileage @ $ .14 per mile
Other (please specify)

Signature                                                                          Date

Print or type name

Bryant University is an organization exempt from federal taxation under 501 (C) 3. The Internal Revenue
Service deems certain out-of-pocket expenses to be deductible contributions when they are incurred by
individuals who donate their time or services to a qualified exempt organization. Bryant University will
record and acknowledge such gifts as Annual Fund contributions when requested to do so by Board
members and volunteers. To receive credit for expenses incurred in connection with Board business or other
volunteer service to Bryant, simply fill out this form and return it to:

                           Director of Advancement Services
                           Development Office
                           Bryant University
                           1150 Douglas Pike
                           Smithfield, RI 02917-1284

Note: donors must retain appropriate records in order to receive the tax deduction from the Internal Revenue
GIFT ACCEPTANCE POLICIES                                                                                      PAGE 28 OF 30



Name(s)__________________________________________________ Phone:
ADDRESS ________________________________________________________________________

Property Information

Type Of Property____________________________________________________________________
Address Of Property _________________________________________________________________
Access Instructions___________________________________________________________________

Title Held By_ _______________________                   Owner’s Interest____________            Encumbered

Debt Amount                                  Owner’s Value                              Source

Land Value______________           Improvement Value_______________                   Age

Date Acquired_______________ Adjusted Cost Basis_________________________________

Site Visit__________              _ Photos______________ Is Property For Sale Or Been For Sale Recently?

Real Estate Agent______________________________________________________________

Current Property Expenses: Taxes_________________                Insurance____________________

Utilities________________         Maintenance ________________             Other_______________________

Past Uses: Residential_____________          Industrial______________      Farm________________

If Rented, Gross Income ______________________                   Operating Expense

Restrictions: Wetlands____________           Covenants____________                   Zoning

Environment/Biohazard Conditions: Contamination _________________ Asbestos

Underground Oil Tank(s)                                                         Lead Paint

Method of Gift:

Outright _____________                Partial Interest           Bargain Sale

Life Estate __________ Trust __________ Gift Annuity ___________ Other

Birth Date(s) Of Beneficiaries:

#1 __________________________ #2 ___________________________ #3 __________________________

Date submitted to Gift Acceptance Committee:_______________________________
GIFT ACCEPTANCE POLICIES                                                                                         PAGE 29 OF 30


(Use this form to describe each gift-in-kind that is to be presented to the Gift Acceptance Committee. The
committee will use the information herein to determine whether to accept or decline the proposed gift.)

TO:                Gift Acceptance Committee
FROM:              [Name of development officer]
RE:                 PROPOSED GIFT-IN-KIND

Name of Donor/Donors:                                                               Phone:
      Donor(s) Address:
Property Location
Property Description:
Type of Gift:
Gift Restriction:
Gift Value: $___________________Determined by:
The following documents are included for your review:
Real Estate Evaluation Form             Appraisal dated____________              Deed to Donor(s) dated
Deed from Donor(s) (Warranty or Quit Claim) dated                     Original or Copy on file
Plat or Location Maps                   Survey dated_____________                Photographs
Title Report dated__________            Title Insurance Policy dated___________
Property Tax Notices dated___________________ Taxes have have not been paid for 19__
Lease Agreements, Mortgage(s) or Water Shares
IRS Form 8283 signed by appraiser and the Vice President for Business Affairs
Correspondence                          Other Documents (see list below)
Title Report/Insurance: Please note that a current Preliminary Title (PR) is enclosed or
has been ordered from____________________________ at ___________________________on (date)_____________
by ___________________. The PR is to be sent to the attention of _____________________________and is to be billed to
__________________                       . A Title Insurance Policy was was not requested with the PR.


Reimbursements: Please reimburse the Development Office $________from sales proceeds for certain necessary expenses incurred
(PR, survey, or appraisal).

Delivered by:______________________________________                Date:______________________
Accepted by:______________________________________                 Date:______________________
GIFT ACCEPTANCE POLICIES                                                                       PAGE 30 OF 30


Council for Advancement and Support of Education, Management Reporting Standards
Council for Advancement and Support of Education and National Association of University and University
Business Officers, The Impact of FASB Standards 116 & 117 on Development Operations
IRS Publication 526, Charitable Contributions
IRS Publication 544, Sales and Other Dispositions of Property
IRS Publication 551, Basis of Assets
IRS Publication 561, Determining the Value of Donated Property
IRS Publication 598, Tax on Unrelated Business Income of Exempt Organizations
IRS, Internal Revenue Cumulative Bulletin (Washington, DC, Internal Revenue Service): 1990-1, Rev. Proc.
90-12; 1992-1, Rev. Proc. 92-49; 1992-2, p. 581.
Standard Federal Tax Reports (Chicago, Commerce Clearing House, Updated Annually): Par. 1101.52.
Teitell's Substantiating Charitable Gifts
Notice 2005-41 on Intellectual Property