• Section 1 - Introduction / Background
• Section 2 - Scope / Purpose
• Section 3 - Instructions
• Gift Consideration Phase
• Authority to Accept Gifts and Determining Whether an Offer is Covered by the Philanthropic Fundraising, Gift Acceptance and Recognition Policy
• Notification Requirements of Gifts
• Consideration of Gifts Against the University’s Gift Acceptance Principles
• Requirements for Gifts
• Sources of Gifts
• Feasibility of Gifts
• Feasibility examples for different types of gifts
• Declining a Gift
• Section 4 - Gift Documentation Phase
• Section 5 - Letter of Acknowledgement (sufficient in certain cases)
• Section 6 - Gift Acceptance Agreement and Covering Letter (required for more complex gifts)
• Section 7 - Completing the sections of the Gift Acceptance Agreement
• University Contact
• Gift description
• Section 8 - Execution of the Gift Acceptance Agreement
• Section 9 - Finalisation and Lodgement of Documentation
• Section 10 - Reporting, Accounting and Distribution
• Account Codes
• Receipts
• Section 11 - Responsibility for Applying Gifts Once Accepted
• Section 12 - Roles and Responsibilities
• Section 13 - Definitions

Section 1 - Introduction / Background

(1) The purpose of the Procedure is to provide a clear process on the execution of a gift acceptance which will ensure consistency, accountability and transparency in the University’s consideration of accepting, processing and documenting philanthropic gifts.

(2) This Procedure must be read in conjunction with the Philanthropic Fundraising, Gift Acceptance and Recognition Policy.

Section 2 - Scope / Purpose

(3) This Procedure covers the process of gift acceptance as defined within the Philanthropic Fundraising, Gift Acceptance and Recognition Policy.

(4) This Procedure applies to all bequests and all other gifts to the University of Wollongong (the University) as defined in the Philanthropic Fundraising, Gift Acceptance and Recognition Policy.

(5) This Procedure applies to all staff and affiliates of the University and to entities or groupings that form part of the University including all Faculties, Departments, Schools, Colleges, Museums, Libraries, Institutes and Centres not separately incorporated.

Section 3 - Instructions

Gift Consideration Phase

Offer of a potential Gift

(6) The gift acceptance process commences when an offer of a gift to the University is made to any employee or affiliate of the University, or any entity or grouping that forms part of the University including all Faculties, Departments, Schools, Colleges, Museums, Libraries, Institutes and Centres not separately incorporated.

(7) In relation to deceased estates, where a will contains a bequest to the University that has not been previously assessed, the offer is taken to have been made when the University is first provided with a copy of the bequest. Development Staff negotiating the terms of any potential bequest with a living donor should seek to ensure that the terms of any proposed gift are consistent with the University’s policy principles for the acceptance of gifts.

Authority to Accept Gifts and Determining Whether an Offer is Covered by the Philanthropic Fundraising, Gift Acceptance and Recognition Policy

(8) For guidance on authority to accept gifts, please refer to the Philanthropic Fundraising, Gift Acceptance and Recognition Policy.

(9) For guidance on determining whether a proposed offer constitutes a gift covered by the policy, please refer to the Philanthropic Fundraising, Gift Acceptance and Recognition Policy.

Notification Requirements of Gifts

(10) While the Philanthropic Fundraising, Gift Acceptance and Recognition Policy applies to all offers of gifts covered by the policy’s definition of a gift, there are particular requirements and processes for gifts made by bequest and gifts of real property (land and other real estate).

(11) If the gift is a bequest (a gift in a will) all correspondence regarding the bequest must be provided to the Development Unit within the Advancement and Communications Division as soon as possible, as particular processes and policies need to be followed in relation to dealing with bequests.

(12) If the proposed gift is of real property the Development Unit within the Advancement and Communications Division must be informed immediately, as there are particular complications in accepting gifts of this type, and specific procedures that must be followed.

(13) The Development Unit within the Advancement and Communications Division will assist the Director of Advancement or Nominee involved with the consideration of the potential gift, to ensure that it is considered and processed in accordance with the Philanthropic Fundraising, Gift Acceptance and Recognition Policy and all other applicable University policies.

Consideration of Gifts Against the University’s Gift Acceptance Principles

(14) The delegated authority (as per the Delegations of Authority Policy) has a responsibility to determine whether a gift is consistent with the University’s principles governing gift acceptance. Acceptance of a gift must be in harmony with the core values of the University, must meet its strategic objectives, and must preserve or enhance its reputation. The Philanthropic Fundraising, Gift Acceptance and Recognition Policy, Section 6, sets out three categories of principles (requirements, sources and feasibility) against which potential gifts must be assessed.

(15) In the first instance, the delegated authority must carefully consider the likely extent of public interest in the proposed gift should it be accepted by the University. If the delegated authority forms the view that acceptance of the gift by the University would be likely to give rise to sustained public debate and comment within the broader community, then advice must be sought within the university where appropriate to resolve, however should the matter remain unresolved this must be referred to council to make a final determination.

(16) If the delegated authority believes that the proposed gift is consistent with all of the University’s Gift Acceptance Principles, then the gift may be accepted. The delegated authority must then follow the further procedures for documentation set out below (Section 3, Gift Acceptance Process – Documentation Phase).

(17) If the delegated authority believes that the proposed arrangement is inconsistent with one or more of the principles outlined in the Philanthropic Fundraising, Gift Acceptance and Recognition Policy then the Director of Advancement should initiate negotiations with the potential donor (if the donor is still alive, and if it is feasible to do so) to change the nature of the gift to conform with the principles, or decide to decline the gift. It should be noted that executors do not have the power to vary the terms of the will of a deceased donor, therefore a gift may need to be declined in this scenario.

(18) If the delegated authority decides to decline the gift, the procedures set out below must be followed (Section 3.19-23, Declining a Gift).

Requirements for Gifts

(19) It is common for a gift to be offered with certain requirements placed on its use or management by the donor. The delegated authority must consider the following issues and questions:

1. Are the requirements proposed by the donor consistent with the University’s strategic priorities? In the event of uncertainty, the delegated authority should consult the University of Wollongong’s Strategic Plan to resolve any doubts about this question. If a gift is in clear conflict with the University’s strategic priorities then it should be declined.
2. Are the requirements proposed by the donor consistent with the principle of academic freedom, especially with regard to: methods of research; conclusions and findings; and the dissemination and publication of research (see University Code of Conduct)? For example, a donation for a research project/activity that had specified a desired finding would be unacceptable.
3. Are the requirements proposed by the donor consistent with the University’s educational purpose (see University Code of Conduct)? For example, a donation which required the University to provide classes promoting a theory which is scientifically discredited would be unacceptable.
4. Are the requirements proposed by the donor consistent with legal obligations and restrictions which affect the University or any individual student member of staff or affiliate?
5. Are the requirements proposed by the donor consistent with all applicable University policies? To answer this question, advice may be sought from across the University, and if necessary, negotiations with the potential donor made to find an arrangement which is mutually agreeable. For example, the offer of a gift from a tobacco company would be unacceptable because it would be inconsistent with the Philanthropic Fundraising, Gift Acceptance and Recognition Policy.
6. Do the requirements present any risk of Foreign Interference and, if so, can the risk be appropriately managed? For example, a donation from a foreign government or political party which imposes requirements that unduly influence an academic program may not be acceptable.
7. Will the requirements proposed by the donor allow the University to maintain its good reputation?

Sources of Gifts

(20) In determining whether the source of a gift is consistent with the University’s principles for the acceptance of gifts, the delegated authority must consider the extent to which the proposed arrangement is consistent with the University’s objectives, values, strategic direction and reputation. The delegated authority must consider the following issues and questions:

1. Does the source of the gift align with the University’s objectives and values? The delegated authority must consider the University’s educational and other objectives and values (see University Code of Conduct), and if in any doubt as to whether the source of the gift aligns with these, must refer the proposal to the Director of Advancement. For example, the University does not accept gifts from tobacco companies – as per the Philanthropic Fundraising, Gift Acceptance and Recognition Policy.
2. Would the source of the gift be such as to damage the reputation of the University? If the delegated authority has concerns regarding this principle, the matter must be referred to the Director of Advancement for advice.
3. Does the gift arise from an illegal source or illegal activity? Decisions must not be based on rumour, but care must be exercised in accepting any gift where there is risk of significant damage to the University’s reputation. If it is clear that the proposed gift arises from an illegal source then the Director of Advancement or Nominee must decline the proposal outright. In the case of unproven allegations of unethical, illegal or criminal behaviour against a potential donor, the proposal must be referred to the Director of Advancement or Nominee for advice.
4. Does the gift arise in whole or in part from any activity which suppressed or falsified academic research or limited freedom of enquiry? If the Development Unit Staff believe this to be the case then the proposal must be declined. In cases of ambiguity, the proposal must be referred to the Director of Advancement or Nominee for advice.
5. Is the source of the gift consistent with all applicable University policies? Just as for the similar principle relating to restrictions on gifts, if in doubt, an officer of the University may seek advice from the Director of Advancement or Nominee. It should be possible to resolve most questions of policy without referral to the Director of Advancement, and if necessary, negotiations with the potential donor made to find an arrangement which is mutually agreeable. For example, for a cultural gift, consistency with a relevant collection policy.

Feasibility of Gifts

(21) In determining whether a proposed arrangement is feasible, Development Unit Staff must consider the following issues and questions:

1. Is the proposed gift adequate to achieve the intended purpose, or that the University agrees to meet any additional costs that will arise from accepting the Gift?
2. Are any obligations that a donor wishes to impose upon the University in relation to the management or administration of the gift reasonable and able to be met? If the Development Unit Staff remain in doubt the proposal must be referred to the Director of Advancement or Nominee together with any further documentation made available by the Development Unit and other relevant offices of the University.
3. Will acceptance of the gift lead directly or indirectly to a net decline in the asset base of the University? If Development Unit Staff have any concerns in this regard then the Director of Advancement or Nominee should be consulted in the first instance. Further consultation with the Financial Services Division may be required.

Feasibility examples for different types of gifts

(22) It is vital that a gift is both strategically desirable for the University, and is not overly burdensome to administer.

(23) The dollar amount offered in the gift arrangement must accurately reflect the real cost of the activity in question. Under-pricing the cost of a particular activity is likely to result in the University being unable to give effect to the donor’s wishes and may compel the University to decline or return the gift.

Declining a Gift

(24) If the delegated authority decides to decline the offer of gift, Development Unit Staff with the assistance of the Director of Advancement or Nominee, must prepare a letter to the donor explaining why the University cannot accept the offered arrangement.

(25) The final draft of the letter of decline must be approved by the Director of Advancement or Nominee before is sent to the donor.

(26) The Director of Advancement or Nominee must make all effort to make direct contact with the donor to advise the outcome of the gift offer, prior to sending the formal notification.

(27) Once the signed letter has been sent to the donor either the Development Unit or Advancement Services Unit must be provided with a copy for filing on the donor record.

(28) If this process should result in a modified offer being made by the donor then the Director of Advancement or Nominee should begin consideration of the gift again, to determine whether the modified offer now aligns with the University’s principles for the acceptance of gifts.

Section 4 - Gift Documentation Phase

(29) Once the Director of Advancement or Nominee determines that a proposed gift is consistent with the University’s principles governing the acceptance of gifts, and should be accepted on behalf of the University, final negotiations and formal documentation of the gift must be arranged in accordance with the procedures outlined below.

(30) Any requirements and restrictions made by a donor must be documented clearly in the Gift Acceptance Agreement confirming the terms of the gift and the University’s acceptance of the gift, or in cases where an unsolicited bequest is realised the requirements and restrictions should be made available via either the will or other suitable documentation provided by the estate.

(31) It should be noted that the Gift Documentation is not a substitute for a receipt for the gift being issued. A receipt is issued by the Advancement Services Unit after the documentation process is complete (see Section 3.61-64).

(32) If the gift involves entering into any written arrangement (an agreement, contract, understanding or undertaking) with a foreign government or agency, or an overseas university (in certain circumstances) it may be considered a Foreign Arrangement, notifiable under the Australia’s Foreign Relations (State and Territory Arrangements) Act 2020. Notification obligations arise both when such an arrangement is being proposed and when finalised, and are coordinated by the Global Strategy Division. Further information is available on UOW’s Foreign Engagements website.

Section 5 - Letter of Acknowledgement (sufficient in certain cases)

(33) If a donor is gifting cash to the University for general purposes, with no conditions attached up to the maximum value of $5,000, all that is required to evidence acceptance of the gift by the University is a letter of acknowledgment from the Director of Advancement or Nominee to the donor.

(34) The letter of acknowledgement must include:

1. the amount of money to be given to the University; and
2. who has responsibility for accepting the gift (i.e. Director of Advancement or a specified nominee as appropriate).

(35) Examples where a letter of acknowledgment is required would include:

1. a donor who has made a gift of $40,000 to the Faculty of Science, Medicine and Health for general purposes.
2. a donor who has made a gift to the University for use at the Vice-Chancellor’s discretion.
3. a donor who has made a gift to an existing philanthropic fund (e.g. The UOW Learning & Development Fund).

(36) Either the Development Unit or a Nominee will send this letter of acknowledgement.

Section 6 - Gift Acceptance Agreement and Covering Letter (required for more complex gifts)

(37) A ‘Gift Acceptance Agreement’ is a standard document which can be one of the following; a Scholarship Agreement, a Bequest Plan, a Deed of Gift, or a Gift Proposal dependant on the complexity and type of gift. These are to be used when the University is accepting gifts where:

1. the gift in question is for a specific purpose, such as ‘for a scholarship for students from the Shoalhaven Region’, or
2. the gift in question is to be realised through instalments over a period of time, such as $30,000 per annum over the next three years, or
3. the gift is non-cash, such as shares, property or artwork.

(38) Each Gift Acceptance Agreement must record:

1. the amount of the gift;
2. the schedule for the payments of the gift, where the gift is to be made by instalments or otherwise over time;
3. the purpose of the gift;
4. any restrictions or requirements placed on the use or management of the gift; and
5. must be signed by the Director of Advancement or Nominee.

(39) The specific terms and conditions included in the relevant Gift Acceptance Agreement will vary according to the type of gift that is being offered.

Section 7 - Completing the sections of the Gift Acceptance Agreement

University Contact

(40) Insert details of the relevant University contacts. This would normally be the relevant Development Officer and should always include the Director of Advancement or Nominee as well.

Gift description

(41) Insert a ‘Description of the Gift’ as indicated. For financial gifts this will usually be the actual amount to be gifted and include the manner of payment (i.e. lump sum or instalments). If to be paid in instalments, include the schedule of payments.

(42) State whether the amount of the proposed gift is sufficient in value to fulfil the intended purpose. If the amount is not sufficient, the Director of Advancement will need to approach the Chief Financial Officer or Nominee to confirm in writing that the University or another source is willing to meet the shortfall. This written confirmation should be included as an Appendix to the Gift Acceptance Agreement.

(43) Insert a description of the ‘Purpose of the Gift’. This section is intended to define how the specific gift will be allocated.

Gift Requirements

(44) If there are any particular requirements attached to the gift insert a description of these, in a ‘Special Terms’ section of the Agreement. Such ‘Special Terms’ will include:

1. any conditions placed on the use of the gift. These conditions should have been checked against the ‘Principles of Gift Acceptance’, as outlined in this document and in the Philanthropic Fundraising, Gift Acceptance and Recognition Policy. An example might be: ‘this gift is to be used for undergraduate students studying communications and media studies’.
2. any obligations the donor proposes to impose upon the University in relation to the management or administration of the gift. As per the ‘Principles of Gift Acceptance’, these obligations must be reasonable and able to be met.

Negotiation with the Donor on the terms of the Gift Acceptance Agreement

(45) If, during the course of finalising the Gift Acceptance Agreement, the donor’s requirements change or agreement cannot be reached about the content of the Gift Acceptance Agreement, then it is open to the Director of Advancement or Nominee to decline the gift at this point.

Section 8 - Execution of the Gift Acceptance Agreement

(46) Dependant on the complexity of the gift, the Gift Acceptance Agreement must be drafted by University’s Development Unit. The Development Unit will then provide the draft to Director of Advancement or Nominee for final approval before it can be sent to the donor for signing.

(47) Dependant on the complexity of the gift, both the Director of Advancement or Nominee and the donor must have their signatures witnessed by another person. The execution clause provides a space for the witness’ details and signature. The person who acts as the witness must actually witness the signing of the document.

(48) Documents presented for signing by donors are the final and complete versions and should not include handwritten changes.

(49) All Gifts should be made payable to the University of Wollongong. If a Gift is intended to benefit a particular part of the University which forms part of, or is connected to the University (such as a Faculty, Department, School, College, Museum, Library, Institute, or Centre) then this should be made clear in the ‘Purpose of Gift’ section.

Section 9 - Finalisation and Lodgement of Documentation

(50) In the case of a planned bequest, all documentation including a signed copy of the bequest plan and any documentation volunteered by the donor must be lodged with the either the Development Unit or Advancement Services Unit, which will ensure that a copy is filed electronically to the individual bequest file on the University’s Advancement Information Systems.

(51) In the case of an unsolicited bequest, any documentation volunteered by the estate must be lodged with either the Development Unit or Advancement Services Unit, which will ensure that a copy is filed electronically to the individual bequest file on the University’s Advancement Information Systems.

(52) In the case of gifts that require a Gift Acceptance Agreement, once the Director of Advancement or Nominee and the donor have both signed the Agreement, a signed copy of Agreement must be lodged immediately with either the Development Unit or Advancement Services Unit, which will ensure that a copy is filed electronically to the donor record on the University’s Advancement Information Systems.

(53) In the case of a gift made to the University with no, or inadequate, supporting documentation, it will be necessary for the Development Unit in conjunction with the Advancement Services Unit to determine whether the gift is self-explanatory. Examples of a gift which is self-explanatory are:

1. a gift ‘to the Graduate School of Medicine at the University of Wollongong’ can be taken to be a gift for general purposes, or to be spent at the Dean’s discretion within the Medical School (either destination is acceptable).
2. a gift ‘to the University of Wollongong’ can be taken to be a gift to be spent at the Viceâ€'Chancellor’s discretion.
3. a gift ‘for student support’ can be taken to be a gift to be spent on student scholarships and bursaries, and should be directed to the appropriate account as advised by the University’s Development Unit.

(54) Examples of gifts that are not self-explanatory include:

1. a gift ‘for melanoma research’ is ambiguous because several units within the University undertake melanoma research.
2. a gift which is ‘for Professor John Smith and his work with Wollongong Hospital’ is ambiguous. Although the academic mentioned may be an employee of the University, the Wollongong Hospital and the ISLHD is a legal entity distinct from the University of Wollongong.

(55) Reasonable attempts to find supporting information should be undertaken by Development Unit in conjunction with the Advancement Services Unit or officer relevant to the gift. Examples include:

1. contacting the donor for clarification;
2. speaking with the University officer/contact who holds a professional relationship with the donor in regards to the gift; and
3. speaking with the Director of Advancement or Nominee for further advice.

(56) If there is no supporting information, and all attempts to find appropriate supporting information have failed to locate this information, the Director of Advancement or Nominee in consultation with the Development Unit and Advancement Services Unit must make a judgment based on what information it can find (such as detail on the cheques), against the Gift Acceptance Principles. A note about the lack of available information must be added to the gift record on Advancement Information System. If information comes to light after the gift has been accepted that subsequently puts the gift into conflict with the Gift Acceptance Principles, then the gift must be referred to the Director of Advancement or Nominee for review. If it is evident that the gift is in violation with the Gift Acceptance Principles, Financial Services Division and Legal Services should be consulted for advice as to next steps.

Section 10 - Reporting, Accounting and Distribution

(57) The gift amount (or instalment agreed with donor) will be transacted by the Advancement Services Unit.

(58) Upon receipt of the gift and/or the correspondence from the donor, the Director of Advancement or Nominee must record the Gift Details within the Advancement Information Systems with an AIS Batch Processing Form.

(59) All fundraising transactions intended for the University of Wollongong, or any particular faculty, department or unit within the University, must be:

1. attached to a completed AIS Batch Processing Form.
2. bundled with all key documentation (not already provided) including:
   1. the fundraising transaction (i.e. gift or donation);
   2. all original documents, including envelope; and
   3. all accompanying correspondence.

(60) All cheques should be made out to University of Wollongong. However, cheques made out to the Faculty, Department, Program or Project may still be processed. If a cheque is made out to an entity that is not part of the University, it cannot be processed.

(61) In cases where the funds have not been directly received by the Advancement and Communications Division, These funds must be sent to: Advancement Services Unit, Advancement and Communications Division. Please note that cash must not be sent via internal mail.

(62) As financial transactions contain sensitive personal information they must be stored securely. It is recommended that all fundraising transactions and documentation be sent to the Advancement Services Unit within the Advancement and Communications Division as soon as possible.

(63) If the cheque is made payable to an individual staff member, that staff member should endorse the cheque to the University by signing the back of the cheque. The cheque and a letter of explanation, together with the items listed above, can then be sent to Advancement Services Unit.

Account Codes

(64) Advancement Services Unit will establish a new cost centre or use an existing cost centre at the approval of the Director of Advancement. All donations which are subject to spending and reporting requirements, must have a separate cost centre, and use the approved accounting structure (below). All donations must use the correct classifications for a donation account (xxx14xxxx) with an appropriate income object code for donations (540x) or scholarships (530x).

(65) Codes are to be recorded in Advancement and Communications Division alongside the completed Gift Acceptance Agreement, Letter of Acknowledgement and any other associated information. For gifts endowed in perpetuity this paperwork must also be recorded in University’s Advancement Information System by the Advancement and Communications Division.

Receipts

(66) A receipt will be generated by the Advancement Services Unit. The receipt will be issued either to the donor directly, or if requested, to a relevant internal liaison for forwarding to the donor (e.g.: an Executive Relationship Manager, or a Faculty Industry Liaison Officer.)

(67) For gifts received on behalf of an Australian Domiciled Entity of the University, the information provided on the receipt in order to comply with our legislative requirements and meet the obligations imposed by the Australian Tax Office as a part of our Deductable Gift Recipient status will include:

1. confirmation that the receipt is for a gift;
2. the name of the fund, authority or institution receiving the gift;
3. the ABN of the Relevant Entity (such as the University’s ABN or Entity’s ABN) as required;
4. the date the gift was made;
5. the amount of the gift if it was money; and
6. a description of the gift if it was property, shares, cultural or other gift.

(68) For gifts received on behalf of an International Domiciled Entity of the University, the information provided on the receipt will meet the legislative requirements of the Domiciled Country, and guidance on this is provided by the Federal Tax Agency within the Domiciled Country such as the Internal Revenue Service in the US, HM Revenue and Customs in the UK, Canada Revenue Agency in Canada.

(69) The Release of Donation Funds Form is issued to release gifted monies and ensure that funds are provided to the recipient academic or University officer, the funds are released subject to the approval of the Director of Advancement or Nominee and must be in keeping with the donor’s wishes expressed in the Gift Acceptance Agreement or letter of acknowledgement.

Section 11 - Responsibility for Applying Gifts Once Accepted

(70) Once the University accepts a gift, it undertakes to carry out the donor’s wishes as expressed in the Gift Acceptance Agreement, or letter of acknowledgement and is bound by that undertaking.

(71) Gifts must not be used for a purpose that is contrary to the donor’s wishes. The failure to apply a gift in the way agreed with the donor is a failure to carry out the terms of the Gift.

(72) The Advancement and Communications Division has the responsibility to ensure funds are spent or invested in accordance with the donor’s wishes and where appropriate or previously agreed, report back to the donor on outcomes.

(73) Any variation to the intended use of donation funds must be made in writing and subject to the approval of Director of Advancement or Nominee, which will include consultation with the Donor if possible.

Section 12 - Roles and Responsibilities

(74) The Vice-Chancellor and President is responsible for setting the strategic fundraising priorities for the University.

(75) The Director of Advancement oversees the fundraising strategy for the University and is responsible for co-ordinating the University fundraising activities.

(76) The Advancement and Communications Division administers all donations to the University as per the requirements and processes outlined in the Philanthropic Fundraising, Gift Acceptance and Recognition Policy and the associated procedures.

Section 13 - Definitions