University at Albany Foundation Policies and Procedures

The University at Albany Foundation (the Foundation or UAF) was established in 1967 as the State University of New York at Albany Foundation to administer philanthropic contributions from individuals, corporations, foundations, and other organizations in support of activities and programs of the University at Albany. In 1991, the Foundation merged with the University at Albany Fund, Inc., and the name of the surviving corporation became The University at Albany Foundation.

The Foundation is the principal mechanism for the receipt and administration of charitable contributions and philanthropic grants raised by and for the benefit of the University at Albany, State University of New York. It is a not-for-profit corporation organized under the laws of the state of New York and is classified by the IRS as a public charity under sections 509 (a) 1 and 170 (b) 1 (A) (iv) of the Internal Revenue Code and meets the requirements of section 501(c) 3. Most gifts to the Foundation are tax-deductible.

The mission of the Foundation is to receive, hold, invest, manage, use, dispose of, and administer property of all kinds, whether given absolutely or in trust, by way of agency or otherwise.  The Foundation will make expenditures to or for the benefit of the University at Albany, its mission and programs, or for any or all of the educational and support activities that may be conducted by the University. The Foundation receives and administers contributions of gifts and grants of money, property, works of art, historical papers and documents, and museum specimens of educational, historical, or artistic value to the University at Albany; more specifically, to establish and maintain endowments and other funds to support the faculty, their academic research, and scholarship, to provide fellowships, scholarships, and all forms of student financial aid, and to support the programs, activities or services of the University at Albany. The Foundation may also manage and administer investment funds it receives on behalf of an entity that both qualifies as an exempt organization under Section 501(c)(3) of the IRS Code and provides, as part of its stated purpose, assistance to the University or University System: in furtherance of this purpose, the Foundation, at times, may serve those qualifying entities by investing qualifying entity’s investment funds in the same pool of investments as the Fund.  Any such services will only be provided pursuant to a separate agreement approved by the Finance Committee.

Responsibility for governance of the Foundation is vested in a Board of Directors, comprised of alumni and University representatives, and others in the community who have shown an interest in furthering the missions of the University and providing financial support to the Foundation. The Directors provide oversight of Foundation activities, including advice and counsel to the Foundation management and the University on a broad range of issues, leadership for the Foundation’s fund-raising activities, and help interpret the needs of the University to the larger political and business communities. In addition, the Board of Directors elects the officers of the Foundation, establishes the Foundation’s operating and investment policies, and approves all budgets and major expenditures.

Foundation operations are managed by the Executive Director, who is also the Vice President for University Development. He or she is responsible for all fund-raising, alumni relations, and related matters in addition to the management of all funds and is committed to ensuring ethical stewardship of the Foundation’s resources.

The Foundation is exempt from Federal and State income tax under Section 501(c)3 of the Internal Revenue Code.

The federal tax-exempt ID number for the Foundation is 14-1503972. The NYS sales tax-exempt ID number is 133750. The Florida sales and use tax exemption number is 85-8013799525C-8

This Investment Policy Statement (IPS) details the oversight and management of the Investment Portfolio of the University at Albany Foundation (Foundation). For clarity, this IPS applies only to those assets within the Foundation’s investment portfolio and excludes those assets within the Foundation’s Gift Annuity Portfolio, which operates under its own IPS.

Read the Foundation's Investment Policy Statement.

I. Development Policy and the Role of the Vice President

The Vice President for University Development will provide leadership and cohesion for all development initiatives and programs and will work collaboratively with individual University units to further University priorities and the unit’s fund-raising efforts.

The Vice President for University Development is responsible for approving the design and ensuring the implementation of all fund-raising activities. Any effort to solicit philanthropic support from any source must include the prior approval of the Vice President for University Development or designee.

Use of The University at Albany Foundation’s logo/image, or the University’s logo/image, for any fundraising initiative or project requires the express approval of the Vice President for University Advancement or designee.

Recognizing that the relationship between alumni and friends of the University is likely to be life-long, both the University and the Foundation will engage donors and prospective donors in an ethical and courteous manner. Philanthropy is voluntary, and the Development staff will educate philanthropists on the needs of the University and make every reasonable attempt to match the interests of those who are being asked to provide vital support with the interests and needs of the University.

All solicitations should clearly indicate that a donor’s support is sought for the benefit of the University at Albany through The University at Albany Foundation. In addition, all solicitations must include the following language:

The University at Albany Foundation is a 501(c)3 not-for-profit corporation established in 1967 for the purpose of encouraging philanthropic contributions from individuals, corporations, foundations, and other organizations in support of the activities and programs of The University at Albany. A copy of the Foundation’s Annual Report is available upon request at The University at Albany Foundation, UAB 226, 1400 Washington Ave, Albany, NY 12222 (and is also accessible through the internet at www.albany.edu/ualbanyfoundation) or from the NYS Attorney General’s Charities Bureau, 120 Broadway, New York, NY 10271.

The University at Albany Foundation (Foundation) is the designated 501(c)3 organization for charitable gifts supporting the University at Albany (University). All contributions must be reported through the Foundation. The following policies and guidelines govern the acceptance of gifts made to the Foundation for the benefit of the University at Albany.

Read the Foundation's Gift Acceptance Policies and Guidelines.

Read the Foundation's Policy on Gift Handling, Reporting, and Stewardship. 

Program Fund Establishment

Program Funds (spendable accounts) may be established for either restricted or unrestricted purposes. To establish a new program or spending account not tied to an endowed fund, a minimum gift or transfer of $2,000 is required. Exceptions to this must be approved by the Controller or Chief Financial Officer of The Foundation.

• If a Program Fund has a donor-stated restriction, the Foundation is legally required to limit expenses charged to the account according to the donor's instructions. Expenses that do not fall within the donor’s stated restriction cannot be charged to a restricted account.

• If a Program Fund is unrestricted, it may be used for expenses directly relating to the general purpose of the fund as set forth in the description.

• All Program Fund spending is subject to Foundation policies.

A Program Fund not tied to an endowment will be established upon receipt of a Request to Establish a Fund form and a minimum deposit of $12,000 gift or contribution. As applicable, any documentation supporting the request should be attached to the form.

Program Fund accounts do not earn interest. Program Fund accounts are assessed a one-time expense Recovery Fee when funds enter the account.  The recovery fee is reviewed annually by the Foundation’s Board of Directors.

Whenever funds are transferred from the Undesignated Major Gifts account to a newly established fund, the Foundation must advise the Office of Development Data Entry to adjust related gift transactions.

ing the request, such as pledge forms or letters from the donor, should be attached to the form.

Program Fund accounts do not earn interest. Program Fund accounts are assessed a one-time expense Recovery Fee (9 percent as of 7/1/10) when funds enter the account. The recovery fee is reviewed annually by the Foundation’s Board of Directors.

Whenever funds are transferred from the Undesignated Major Gifts account to a newly established fund, the Foundation must advise the Office of Development Data Entry to adjust related gift transactions.

Responsibility of Fund Managers

Generally, the Fund Manager of an account will be the Dean of the appropriate academic unit, the Vice President of a University Division, or another similar academic or administrative leader responsible for an area of the University. Fund Managers may designate other staff to oversee their fund(s), but the Foundation will still consider the Fund Manager to be the party responsible for the fund.

Fund Managers, or their approved designee(s), are responsible for ensuring that all deposits and disbursements to Foundation accounts are in accordance with the account guidelines and the donor's intent.  Specific responsibilities include:

• Reviewing all forms requiring the Fund Manager's signature and submitting them to the Foundation Office for processing on a timely basis;
   
• Abiding by Foundation policies and procedures;
   
• Ensuring that any accounting reports and statements issued to third parties accurately reflect the activity of the account;
   
• Reviewing balances to ensure appropriate management of the funds;
   
• Ensuring that the funds available for expenditure each year, especially of endowed accounts, are spent (or have a spending plan) before the end of the fiscal year for the appropriate purpose;
   
• Ensuring that any discrepancies are rectified in a timely manner;
   
• Ensuring that any funds administered through the Foundation are utilized in an appropriate manner;
   
• Ensuring adequate funds are available in the spending account to cover requested disbursements.  Fund Managers should be aware that disbursements may not be made by the Foundation if adequate funds are not available in the account;
   
• Ensure that any proposals, contracts, or other documents to which the Foundation is a party are sent to the Foundation for review and approval.  
   
• Fund Managers may never sign a document on behalf of the Foundation. Fund Managers and other University personnel do not have the authority to endorse checks or enter into contracts on behalf of the Foundation. The Fund Manager’s signatory authority is limited to the completion of the Deposit Transmittal Form and Request for Disbursement Form from the accounts he/she manages.

Demonstrating Donor Impact

Fund Managers are responsible for ensuring that accounts remain in good standing and should understand that it is highly recommended that the funding available, especially from endowed accounts, is spent (or is part of a spending plan) each fiscal year.

The Office of Donor Relations will request that Fund Managers provide information regarding how funds are spent during the fiscal year, particularly the spending generated by endowed funds. This information may be included in Donor Impact Reports that are prepared for donors after each fiscal year closes. It is important to demonstrate the impact and positive effects of donor philanthropic contributions on students, programs, and initiatives occurring at the University.

The Foundation will always follow any and all regulatory requirements in its endowment management. Whenever there is a question about the endowment policies of the Foundation, it should be resolved in a donor-centric manner.

Read the Foundation's Endowment Policy.

The endowment of chairs and related positions provides a means by which the University at Albany can recruit and retain, on a competitive basis, outstanding leaders, teachers, scholars, researchers, and creative and performing artists.  The following policies are applicable to such endowments.

Selection Criteria

Unless specified in the MOU, all endowed positions will be administered through the Office of the Provost or his/her designee.

In consultation with the Vice President for Development and the appropriate leadership, the Provost grants endowed chairs and professorships to those already on the faculty or during recruitment for new faculty as part of their offer.

Use of the Endowment Income

Income made available to holders of endowed positions shall be used to support their teaching and research activities in accordance with University at Albany Foundation policies and according to a budget recommended annually by the position holder and approved by the appropriate Chair/Dean/or by the Provost in the normal budgetary process.

Dean

Deans are the visionary leaders responsible for maintaining and enhancing the quality of the colleges or divisions they oversee. No two have the same responsibilities due to the varying needs of faculty and students. An endowed deanship provides discretionary funding to help a dean realize his or her vision and address emerging college priorities.

Minimum Gift for Named Endowed Dean: $3.5 million

Distinguished Chair or Vice President

Carrying great prestige within the academy, a distinguished endowed chair represents the highest honor the University can confer on prominent and exceptional faculty members. A named distinguished chair or vice president represents reward, recognition, opportunity, and incentive.           

Minimum Gift for Distinguished Chair: $3 million

Named Endowed Chair

Endowed chairs are an effective tool to attract and retain scholars of proven brilliance. Named academic chairs represent reward, recognition, opportunity, and incentive. By providing specially dedicated resources for innovative research and teaching opportunities, these celebrated positions enable the most gifted faculty members, deans, directors, and department heads to excel in their scholarly activities.

Minimum Gift for Endowed Chair: $2 Million

Named Endowed Professorship

Typically used to support the most accomplished senior scholars, professorships are used to recognize current faculty members who have established national reputations in their disciplines and attract distinguished scholars to the faculty.

Minimum Gift:  $1.5 Million                                                                                                                                             

Named Excelsior Professorship

Named Excelsior Professorships, allow the University to recruit faculty from around the world who show great promise and encourage them to expand their careers at Albany. This permits the University to continue building a thriving intellectual community by helping attract and retain promising scholars early in their careers.

Minimum Gift: $500,000

Categories of Student Financial Aid
The Foundation may accept gifts for various types of student financial aid. These include:

1. Undergraduate Scholarship: to a matriculated undergraduate student who may have financial need or may exhibit academic merit or any combination of need and merit. The minimum for an endowment is $35,000, and the minimum to establish a Temporary Named Fund is $10,000. An undergraduate scholarship provides support up to a student’s cost of attendance.

2. Graduate Scholarship: to a matriculated graduate student who may have financial need or may exhibit academic merit or any combination of need and merit. The minimum for an endowment is $35,000, and the minimum to establish a Temporary Named Fund is $10,000.  A graduate scholarship provides support up to a student’s cost of attendance.

3. Research Fund: to a matriculated undergraduate or graduate student to use in pursuing their own academic research or who will assist a member of the faculty with academic research. The minimum threshold for an endowment fund is $35,000, and the minimum threshold for a Temporary Named Fund is $10,000.

4. Fellowship: to a matriculated graduate student who may have financial need or may exhibit academic merit or any combination of need and merit. The minimum for an endowment is $250,000, and the minimum to establish a Temporary Named Fund is $10,000. These minimums may be increased at the request of the academic unit, depending on what degree or subject area the student is pursuing their degree. A fellowship provides support toward a student’s cost of attendance.

The Office of Financial Aid

The Office of Financial Aid should always be the Fund Manager for a scholarship, fellowship, or other form of financial aid. This ensures coordination of all financial assistance to a student, assists the University in meeting its legal obligations, and prevents over-awarding aid to students.

In the limited instances where the Office of Financial Aid is not the Fund Manager for an award of student financial aid, the Office of Financial Aid will be advised by the Development office or College/School/Department of the recipient(s). The Office of Financial Aid will include the aid awarded into the student’s record, which may impact other financial aid determinations.

The Office of Financial Aid must be consulted by academic units or other interested divisions of the University in selecting recipients designated for financial aid.  Recipients should be selected by June each year to receive financial aid for the following academic year.

Financial Aid Disbursements

To award a student a scholarship, fellowship, or other form of financial aid, the Fund Manager must submit a disbursement request form or spreadsheet to the Foundation.  The Foundation will disburse all financial aid funds to the Office of Student Accounts to be deposited into the student’s account. Generally, no funds will be disbursed directly to a student.

Prize or Award Funds
Donors may establish funds to give a student a prize for a competitive activity related to their academic career or studies. The Fund Manager for a Prize or Award fund will generally be the Dean of the academic unit most involved with the area of the competitive activity being rewarded. Recipients of prizes or awards should generally be selected by March of each year so they can receive their awards by the end of the academic year.

Prizes and awards are amounts received primarily in recognition of charitable, scientific, educational, artistic, literary, or civic achievement or as the result of entering a contest.  All prizes and awards (with the exception of qualified scholarships) are includible in the gross income of the recipient unless certain conditions are met.

IRS Reporting Requirements

Awards or prizes to employees and students are generally taxable and are reported as taxable income. Selection criteria and documentation are required to process the payment.  Payments for services rendered are taxable and reportable on Form 1099 if the total paid in a calendar year exceeds the regulatory amount.

For US and resident aliens, all prizes and awards in the amount of $600 or greater must be reported by the Foundation to the IRS on Form 1099-MISC.  Regardless of the amount of the prize, all prize and award recipients must report the taxable amount received to the IRS on their personal income tax returns.

For non-resident aliens, the Foundation is required to withhold a 30% tax on the amount.  The amount will be reported to the IRS and to the student on form 1042-S.  The withholding rate may be reduced or eliminated if applicable treaties are in place.

Fellowships and scholarships generally are not taxable under Section 117A of the Internal Revenue Code unless services are required to be performed as a condition of the grant.  Then, they are taxable to the extent of the fair market value of such services and are reportable on a form W-2 and subject to withholding taxes.  FICA will be applied, depending on the nature of the employment.

The scholarship must be used for tuition and related expenses.  Any part of the scholarship used for room and board is taxable.  The burden of proof is on the recipient.  Student scholarships are non-taxable if no services are required or there is no action on the part of the student as a condition to the award.

This policy refers to certain tax matters.  Recipients of Financial Aid and prizes should be encouraged to consult with a tax advisor on how their individual taxes may be affected.

The University at Albany and The University at Albany Foundation may recognize gifts by naming facilities, academic units or endowments. Naming opportunities can recognize donors, families, friends, colleagues, or others in accordance with university policies. Other recognition opportunities can include projects funded from current gifts provided over a fixed period of time.

Read more about UAlbany Foundation recognition opportunities.

The Foundation fully embraces the need for an appropriate level of corporate governance and internal controls and understands that successful internal controls depend on the participation of all employees at every level.

Governance
The Foundation’s board will meet regularly and maintain minutes showing the items discussed and actions taken.  As required, the board (or designated committees) will approve the foundation’s annual budget, periodic fiscal reports, audited financial statements, and the independent auditor’s management letter.

The Foundation should file all required reports in a timely manner, including Forms 990, 1099, W-2, and 941 (Internal Revenue Service), CHAR500 (New York State Attorney General), and any other required reports.   Foundations that are writing CGAs must register with the NYS Department of Financial Services as required by Section 1110 of NYS Insurance Law and must also meet the annual filing requirements as needed.

Written Policies and Procedures
Policies and procedures will be developed and kept current for key business functions:

• Introduction
• Investment Policy Statement
• Fundraising Activity for the Foundation
• Gift Acceptance Policies
• Gift Handling, Reporting and Stewardship
• Program Fund Information
• Fund Managers
• Endowments
• Endowed Chairs and Professorships
• Student Financial Aid and Prizes
• Recognition Opportunities
• Governance and Internal Controls
• Procedures for Depositing Funds
• Policies and Procedures for Disbursements
• Policy and Procedures for Equipment

Record Retention
The Foundation maintains an overall record retention policy for hard copy and electronic documentation. A copy of the policy can be reviewed upon request at the Foundation’s administrative offices.

Security
Foundation staff are reminded that the information used to do one’s job should be treated as confidential. Never share information with those who do not need to know it, and protect the information assets of the University and the Foundation from misuse.

Foundation and Development staff are reminded of a few simple procedures to ensure confidentiality:

• Do not share computer passwords or post passwords in an obvious place.
• Always log off or screen lock your computer at the end of the day.
• Establish a timed screen lock when the computer is not in use.
• Shred any documents containing confidential or sensitive data.
• Keep documents containing confidential or sensitive data in secure filed locations.

Social Security Numbers and Personally Identifiable Information
The Foundation will follow all applicable federal and New York State laws and regulations regarding the security of social security numbers and personally identifiable information. This means that social security numbers and personally identifiable information will not be provided to outside organizations.

Family Education Rights and Privacy Act (as related to UAF awarded scholarships, awards & prizes)
The Foundation follows the University policy of limiting the personally identifiable information it will provide to non-employees or employees who do not need it to pursue their responsibilities. The University at Albany has determined that the following is directory information within the meaning of the Family Education Rights and Privacy Act (FERPA) and can be released (except if there is a FERPA block on a student’s record):

• Name
• Address
• Academic status (Undergraduate, graduate, general studies)
• Dates of Attendance
• Degree completed
• Program of study
• Honors and Awards

Check Payee

The University at Albany Foundation is a tax-exempt organization under section 501(c)3 of the Internal Revenue Code.  This means that the Foundation is eligible to receive tax-deductible contributions from donors.  In order for donors to deduct their contributions, all checks must be made payable to The University at Albany Foundation.

Handling of Cash or Checks:

All cash and checks should be directed to the Foundation lockbox or hand delivered to the Foundation office located in UAB 226.  Cash and checks should never be sent via interoffice mail.

In rare instances, any cash or checks (gift or miscellaneous receipts) received by a department or program should be hand-carried on the day received to the Foundation Office, UAB 226, along with a completed Deposit Transmittal Form and any additional documentation.  The transmitting office may keep a copy of the Deposit Transmittal and all attached paperwork. University and Foundation staff should lock all cash and checks away in a secure manner. Never leave a check in the open.

All documentation or letters of transmittal indicating the intent of the donor must accompany all gifts.  It is important that this documentation accompany the gift so that it can be credited to the proper account and the donor's wishes can be substantiated.  Only the donor or the Board of Directors can place a restriction on a gift. The Foundation is required to maintain documentation in its records that stipulates the donor’s wishes.

Checks over 90 days old generally will not be accepted.

Required Documentation for Deposit Transmittals

All Contributions Require:

     1.      Letter or other documentation (including the postmarked envelope) from the donor indicating the intent and purpose of the gift

     2.      Name of the development officer involved in cultivating the gift, if applicable

     3.      Valid address of donor or Colleague #

Credit Cards
The Foundation accepts various credit cards for gifts and event revenue. The Foundation does not process credit cards on-site. All credit card transactions are required to be processed via the online giving web page or mailed to the Foundation’s lockbox.

For all payments, a Request for Disbursement Form must be completed. Forms should be submitted within 30 days of the vendor's due date. Reimbursements should be submitted within 30 days of the expense. Reimbursements for expenditures more than one year old may not be accepted. Any disbursement request for more than one year must be accompanied by an explanation of the time lag and submitted to the Foundation Executive Director or CFO for approval.

Read the Foundation's Policies and Procedures for Disbursements.

The Foundation transfers equipment and other capital assets with a value greater than $1,000 to New York State unless the Fund Manager applies for a waiver.  Reasons for retaining these assets in the Foundation include the expectation of a future sale, trade, or appreciation in value.

Valuation of donated assets is the responsibility of the donor and should be provided in a letter of transmittal, which should also state the purpose of the gift and any restrictions placed upon the gift by the donor.  It is imperative that gifts of assets, like other contributions, be immediately communicated to the Advancement or Foundation offices to properly record and acknowledge the gift.

The subsequent sale of charitable deduction assets donated to the Foundation within three years must be reported to the IRS. In some instances, the sale of such assets within the three-year period may result in a taxable event for the donor.

Board of Directors

The directors are selected for their distinguished achievements in business, industry, and the professions along with their commitment to the advancement of the University at Albany. While many are from the Capital Region area, an increasing number of directors reside in other parts of the country.

The directors provide advice and counsel to the Foundation on a broad range of issues and help interpret the needs of the University to the political and business communities. In addition, the directors appoint the officers of the Foundation, establish the Foundation's operating and investment policies, and approve all budgets and major expenditures of the Foundation.

The Board of Directors consists of 57 directors:

• Seven ex-officio directors
  • President of the University
  • Chairman of the University Council
  • President of the Alumni Association
  • President of the Benevolent Association
  • Vice President for University Advancement
  • Vice President for Finance and Business
  • Executive Director of the Foundation
     
• 50 directors elected from the following groups:
  • Alumni Association Board (5)
  • University President (10)
  • Benevolent Association Board (1)
  • University Faculty (3)
  • University student body (1)
  • At-large members (30)
     

Committees and Councils

The following are the standing committees of the corporation:

• • Executive Committee
  • Audit Committee
  • Finance Committee (Investment Sub-Committee, Real Property Sub-Committee)
  • Nominating Committee
  • Campaign Development Committee.

Their membership consists of representatives selected from the Board of Directors. The Foundation Councils consist of the Community Council and the Economic Outreach Council.

In carrying out its mission, the Foundation concentrates its activities in the following areas:

A. Fund Raising
The Foundation supports the University's development efforts to attract philanthropic commitments and provides advice and counsel on University fundraising goals, objectives, and strategies.

B. Financial Services
The Foundation provides financial management for University-related projects, programs, and organizations, including the activities of other University affiliated corporations.

C. Real Estate Development
The Foundation owns and operates the following properties.

• University at Albany Bioscience Development Corporation
  d/b/a Bioscience Development Properties
   
• By virtue of a ground lease with the University, Brubacher Hall, Albany, NY - The Foundation also holds Brubacher Hall in its real property portfolio. The Foundation sub-leases Brubacher Hall to the College of St. Rose.

D. Investments
The Foundation manages a substantial investment portfolio for the benefit of the University at Albany. The investment objective for the portfolio is to preserve its real (inflation-adjusted) purchasing power while providing a relatively predictable, constant, and stable (in real terms) stream of earnings for University endeavors.