Gift Solicitation and
Responsible Administrative Units:
Deposit Policy
CSM Office of Finance & Administration
CSM Foundation

Issued: Septembe
P
er 2010
olicy Contacts:
Roger A. Cusworth (RCuswort@mines.edu)

Linda Landrum (Llandrum@mines.edu)

Revised: January 2011


1.0
BACKGROUND AND PURPOSE

Colorado School of Mines (the School) relies on gift support from the private sector.
Such gifts enrich the educational experience at Mines, providing for scholarships,
classroom and laboratory equipment, faculty development and support, academic
programs, library acquisitions, new facilities and student activities. Private gifts inspire
the campus community to reach new heights in teac
ching, learning, and research.

A gift is an item of value given to the School or to the Colorado School of Mines
Foundation (the Foundation) by a donor, and the donor neither expects nor receives
anything of economic value in return. The School and the Foundation provide the donor
no consideration in exchange for the gift other than recognition of the gift and the
assurance that the disposition of the gift will be handled in accordance with the donor’s
wishes.

Recently, the School and the Foundation entered into an operatiing agreement due to a
desire to formalize their relationship. As memorialized in the agrreement, the Foundation
supports the School through its gift raising, receiving, holding, and investing services,
and is organized as a 501(c)(3) tax exempt entity solely for the benefit of Colorado
School of Mines. While the School is a tax exempt entity (as a state agency) and
therefore can receive tax deductible gifts, the operatting agreement makes it clear that
the School intends for the Foundation to be its fundraising and gift receiving arm. The
Foundation invests donor directed funds and develops and maintains donor
r relations on
behalf of the School.

Thus, it is important for all School and Foundation personnel to communicate the
distinctive roles and relationship between these two entities to donors. To assist in this
process, the Foundation will communicate with current donors to inform them of this
distinction. Additionally, the School and the Foundation are issuing the following policy
and procedures for the solicitation and deposit of gifts.

2.0
DEFINITIONS

2.1 Fundraising Events: An event at which a requirred monetary payment
to attend or participate includes both a gift component (charitable
contribution) and a non-gift component (goods and/or services are
provided or available to the attendees, sponsors, or donors). A fundraising
event will most often be completed in a single day; however, the event
may consist of a multi-day, singularly identifiable event, such as a trip or
cultural celebration weekend. This type o
of event differs from a conference
in that some portion of the attendees’ payment is intended to b
be tax
deductible. Examples of fundraising events include the collection of gifts or
Page 1 of 5




Gift Solicitation and
Responsible Administrative Units:
Deposit Policy
CSM Office of Finance & Administration
CSM Foundation

Issued: Septembe
P
er 2010
olicy Contacts:
Roger A. Cusworth (RCuswort@mines.edu)

Linda Landrum (Llandrum@mines.edu)

Revised: January 2011

money through sale or auction of merchandise or services, collection of
registration or sponsorship fees with a promise of a tax deduction,
imposition of admission charges or registtration fees with a promise of a
tax deduction, and/or membership fees.

2.2 Discretionary Gift Funds: Donations re
eceived either through the
Foundation or directly by the School that do not contain specific restrictions from
the donor as to how the money may be spentt.


3.0
POLICY AND PROCEDURES

3.1 Solicitation of Gifts
The Foundation’s Office of University Advancement will serve as the coordinating
point for all solicitations of private donations in support of the School other than:

1) Fundraising Events; or
2) Those that involve student clubs, student
t activities, or departmental
sponsored activities, such as lift-athons, bake sales etc., where donations are
not expected to exceed $1,000 per donor.

Administrators, Department Heads and other School representatives who have
reason and opportunity to solicit donations, other than for (1) or (2) above will
coordinate their efforts with the Foundation well in advance of such solicitation.
All solicitations should indicate that the Foundation is the gift receiving entity for
the School, and checks or other forms of payment should be directed to it.
Solicitations may include but are not limited to: direct mail, articles, ads,
newslette
ers, or personal solicitations.

Administrators, Department Heads and other School representatives who are
involved with (1) or (2) above should contact the Controller’s Office during the
planning stages of the activity to obtain the appropriate guidance on how the
event or activity should be conducted and ac
ccounted for.

3.2 Deposit of Gifts
3.2.1 Gifts of Cash (checks) other than from ((1) or (2) ab
bove: All cash gifts
intended for support of the School, received by any employee of the School or
Foundation, and regardless of how the check is made out, are to be delivered to
the Foundation (Office of University Advancement - OUA) for processing.

Foundation staff will determine and execute the appropriate action on each gift
as follows:

Page 2 of 5




Gift Solicitation and
Responsible Administrative Units:
Deposit Policy
CSM Office of Finance & Administration
CSM Foundation

Issued: Septembe
P
er 2010
olicy Contacts:
Roger A. Cusworth (RCuswort@mines.edu)

Linda Landrum (Llandrum@mines.edu)

Revised: January 2011

1) Gifts
made out to Colorado School of Mines Foundattion (CSM Foundation,
CSMF, fund name, etc.): deposit with the Foundation and use normal
procedures thus generating usual acknowledgements.

2) Gifts
made out to Colorado School of Mines (CSM, CSM (department name),
fund name, etc.):

a) Gifts of less than $10,000: Will be deposited in the Foundation and
processed through the usual means and manner IF accompanied by:
i) A pledge card or other gift vehicle evidencing tthe gift was solicited by
or in the name of the Foundation.
ii) A donor letter indicating a specific account number or name that exists
in the Foundation (e.g., Mathematics Fund; XY
XYZ Scholarship).
iii) Documented clarification from a development officer or campus
representative indicating that the gift was solicited by the Foundation
and that the donor is aware the gift is to be deposited with the
Foundation.

If items i) – iii) above are not available, a Foundation staff member will
contact the donor for permission to deposit the gifft through the
Foundation. If permission is granted and documented, the gift will be
processed through the usual means; if not then the gift will be delivered to
the School but processed as outlined in c) below..

b) Gifts of $10,000 and more: A Foundation staff member will contact the
donor and seek written confirmation frrom the donor of their intent.
i) If documented donor intent is that the gift be given to and administered
by the Foundation, then the gift will be deposiited with the Foundation
and processed through usual means.
ii) If documented donor intent (or no documentation received to the
contrary) is that the gift be given to
o and administered by the School,
then the gift will be deposited with the School, but acknowledgment of
the gift will be processed as follows:

c) Gifts intended to go to the School:
i) Before delivery of the funds and documentation to the School,
Foundation staff will copy all documentation and process the gift using
a code that indicates the gift was made directtly to the School. The gift
will be included in the Foundation’’s donor rec
cords and fundraising
totals but will not be recorded on the financial books of the
Foundation. The Foundation staff will generate an appropriate gift
receipt or acknowledgement for gifts deposited by the School on
School letterhead to be signed by
y the Vice President for University
Page 3 of 5




Gift Solicitation and
Responsible Administrative Units:
Deposit Policy
CSM Office of Finance & Administration
CSM Foundation

Issued: Septembe
P
er 2010
olicy Contacts:
Roger A. Cusworth (RCuswort@mines.edu)

Linda Landrum (Llandrum@mines.edu)

Revised: January 2011

Advancement (VPUA) in his/her capacity as an appointed agent of the
School.

ii) The Foundation will provide the School with any documents or donor
agreements that show donor restrictions for g
gifts directly received by
the School. The School will use these documents to properly
categorize the type of net assets in its financial statements.

All of these actions are to take place in a ttimely manne
er.

3.2.2 Gifts of Cash (checks) related to Fundraising Events or that involve student
clubs, student activities, or departmental sponsored activities, such as lift-athons,
bake sales etc., where donations are not expected to exceed $1,000 per donor:

i) Cash
and checks, which should be made payable to the School, should be
deposited through CASHNet into the appropriate Index/FOAP using one of
the following revenue accounts:

4402 – gifts;

4403 – Banquet/Conference Contributions

4404 – Student Fundraising

4405 – Auction Fundraising

ii) The
Controller’s Office will work with the Department staff or other School
representative to generate appropriate gift receipt or acknowledgements
deemed necessary. The Controller’s Offiice will also inform University
Advancement if donations are received that exceed $1,000 per donor to
ensure those donors are properly tracked in the Foundation’s donor records..

3.2.3 Gifts of Securities, Other Publicly Traded Assets, a
and Real Estate:

The Foundation should be notified immediately of any notice or offer of gifts of
securities, other publicly traded assets, or real estate. The Foundation will work
directly with the School’s Senior Vice President for Finance and Administration
(SVPFA) to execute due diligence and to dettermine appropriate action with
regard to accepting these offers.

Gifts of securities or other publicly traded assets must be directed to the
Foundation and will be handled in the same way as cash gifts.

Gifts of real estate to the School will be accep
pted and managed by the School,
subject to the CSM Board of Trustee’s approv
val as appropriate, and gifts to the
Foundation will be accepted, managed and sold by the CSMF Property
Management Corporation.

Page 4 of 5




Gift Solicitation and
Responsible Administrative Units:
Deposit Policy
CSM Office of Finance & Administration
CSM Foundation

Issued: Septembe
P
er 2010
olicy Contacts:
Roger A. Cusworth (RCuswort@mines.edu)

Linda Landrum (Llandrum@mines.edu)

Revised: January 2011

3.2.4 Gifts of Intellectual Property, Equipment and Other Tangible Property:

Gifts of intellectual property (e.g. patent), equipment or other tangible property
(e.g., art, museum quality rock specimens, etc.) that are for the use of the School
will be accepted, recorded and inventoried by the Schooll under the auspices of
the Foundation’s VPUA and the School’s SVP
PFA. The VPUA’s office should be
notified immediately that such a gift is in the offering. The VPUA (or his/her
designee) will coordinate with the receiving department and the School’s
Controller’s office to assure its acceptability to the School and to assist in
gathering all appropriate information for tax reporting, gift acknowledgement, and
due diligence. A CSM Gift of Property form will be comp
pleted by the beneficiary
department, all appropriate documentation will be attached, and the packet sent
to the Office of University Advancement. A copy will be sent to the Controller’s
office so that the item may be added to the university’s inventory records.
Page 5 of 5