PROCEDURE: FUNDRAISING GIFTS AND GRANTS
Ramapo College of New Jersey recognizes the importance of securing philanthropic contributions and applying for competitive grants and has designated responsibility to the Ramapo College Foundation and the Division of Institutional Advancement. The Foundation will screen, cultivate and solicit donors/funders; record the terms, restrictions and conditions of the gift with a commitment to honor the designation request(s); and administer all gifts, grants and other resources according to the Gift Acceptance Policy.
This policy applies to all gifts, grants, pledges and other resources received by Ramapo College or its Foundation, a 501(C) (3) corporation, on behalf of and for Ramapo College of New Jersey. The mission of the Ramapo College Foundation “is to provide the resources that make the difference in Ramapo College of New Jersey’s quest for educational excellence.”
REASON FOR THE PROCEDURE
This procedure serves as a guideline to all staff, faculty and students of Ramapo College of New Jersey involved with accepting gifts or applying for grants; to outside advisors who assist the College’s donors in the gift planning process; and to prospective donors or funders who wish to make gifts to Ramapo. Ramapo College and its Board of Trustees empowered the Ramapo College Foundation to obtain private gift support and other grants and resources to meet the needs of the College. The President of the College (ex-officio) and a member of the Board of Trustees (voting member) serves on the Foundation Board of Governors. The President and Vice President of Institutional Advancement establish fund raising priorities and budget based on realistic projections, fund raising management expertise and historical knowledge. These are presented to the Board of Governors of the Foundation at the beginning of each fiscal year for its approval.
- This policy recognizes the substantial increase in need for private, state and federal funds to support the College’s priorities as outlined in the Strategic Plan and the resulting demand on fundraising efforts.
- This policy substantiates the need for an administrative fee in keeping with industry standards that helps to recover the increasing costs of development efforts.
- This policy subscribes to the Council for Advancement and Support of Education (CASE) Statement of Ethics and the Association of Fundraising Professionals (AFP) Code of Ethics. Based on these statements, the Donor Bill of Rights along with the Foundation Management Fee statement is shared annually with all donors.
- All gifts must be appropriate to the mission of Ramapo College, must be legal, and not carry restrictions or conditions that could compromise the College’s core values.
- All gifts from individuals, foundations, MOU’s, corporations, sponsorships, etc. for current or deferred use as well as unrestricted or restricted or special endowment purposes intended to support any aspect of the College should be made payable to the Ramapo College Foundation. All local, state or federal grant dollars will be paid directly to the College through the Office of Grants and Sponsored Projects.
- All fund raising activities including, but not limited to, foundation grants, corporate solicitations of funds or gifts in kind, individual solicitations, special event fund raisers, direct mail, personal contacts, telemarketing efforts, crowd fundraising or any social media solicitations, regardless of size, must first receive approval from the Foundation. This practice will ensure first priority is given to the College’s established strategic needs and allow for efficient use of resources to maximize the benefits derived from each donor and every gift.
- All gifts should be recorded and acknowledged according to the standards recommended and / or required by the Internal Revenue (IRS) Code regulations and State and Federal law, and Council for the Advancement and Support of Education (CASE) and National Association of College and University Business Officers (NACUBO).
- The Ramapo College Foundation Audit Committee will engage an independent annual Financial Audit and will make it public. The Foundation Investment Committee also makes public its investment policies and procedures.
- All gifts should not impose undue risk upon the Foundation, College, or its related programs at any time, now, or in the future.
- All endowment gifts should have a gift contingency clause. It is important for donors to understand that the needs, policies, centers or activities of the College may change over time. The gift will be used as nearly as possible to the donor’s original intent.
- Employees should never encourage or accept a gift if s/he believes doing so is not in the donor’s best interest. Employees should encourage donors to consult with their own financial or legal advisors when contemplating a gift, and not give legal or financial advice.
Gift/Donation: A gift/donation is a contribution, that voluntary and irrevocable transfers money or property from a donor to an organization, for either unrestricted or restricted use in the furtherance of Ramapo’s mission for which the College has made no commitment of resources or services. The donor should have no expectation of, or receipt of, economic benefit. If a donor receives benefits in return for the contribution, the amount of the gift recorded and reported is reduced by the fair market value of all benefits given.
Management Fees /Overhead Fees: The Foundation Board of Governors, in keeping with industry standards, established a management fee in 2001 to help recover the increasing costs of development efforts. It supports operations to continue to seek, solicit and obtain funds to meet the College’s Strategic Plan. The Assessment and Method of Fee Payment is as follows:
- The Foundation will assess a one-time management fee of 5% on all new restricted gifts of $250 and above.
- All newly created endowments and new gifts of $250 and above to existing endowments, the Foundation will assess a one-time charge of 2.5%.
- Revenue generated from initial interest and appreciation may be used to pay the management fee or the donor may provide a separate fee donation.
- This fee is assessed upon receipt of gift and applies to all cash gifts, gifts of securities, pledge payments and nongovernmental grants.
- Deferred gifts, such as charitable gift annuities, trusts, bequests will be assessed only at the time they are realized.
- Grants received from non-governmental sponsors, such as foundations, authorities, corporations, or other organizations, will be assessed according to the Foundation policy except where there are preexisting published guidelines that prohibit it. If a gift assessment fee or overhead cost is allowable, it must be added to the proposal budget to the fullest extent possible.
- If a management fee is not allowed by the sponsor, but the overhead cost is, the fee may be deducted from the overhead granted in the award.
- All government grants submitted through the Office of Grants and Sponsored Programs must include the full applicable and available Indirect Costs Recovery formula approved and in place for the College.
- Fees are not assessed on non-cash gifts such as gifts-in-kind or art donations
Disclosure to Donors: All fees and overhead costs are provided to donors.
- All donors of $250 or more annually receive the Donor Bill of Rights, Ramapo College Foundation Statement of Fundraising Values including notification of the Administration of Fees.
- Proposals, fund agreements, and stewardship reports inform Foundation donors that a portion of the gift is used to cover the cost of development operations. Oral discussion takes place at the time of solicitation and the fee is included in budgets for gift / grant agreements.
- Donors receive full credit for any management fee paid thru their gift.
Donor Agreement: A written agreement between the Ramapo College Foundation and a donor to receive a gift and determine the terms of the gift, including naming recognition.
Building and Facility: A building, facility, classroom, center, room, office, courtyard, field, walkway, path or other interior or exterior space that is the real property owned or controlled by Ramapo College of New Jersey. Buildings and facilities are considered a Physical Asset of the College.
Academic Asset: School, academic department, center or institute, endowed deanship or faculty position.
Non-Academic Asset: Endowments for scholarships, programs, centers, institutes, lecture series, special projects; as well as annual donations for a specific scholarships, programs, centers, institutes, lecture series or special projects will be reviewed and approved by the President and/or the Vice President for Institutional Advancement.
This procedure shall be administered by the Ramapo College Foundation and the Vice President for Institutional Advancement. It will be implemented in accordance with the Ramapo College Foundation Gift Acceptance Policy. This procedure will be available on the College and Foundation Websites. It will be referenced in Donor Agreements and/or made available to potential donors.
- Board of Trustees Policy 219 Naming of Buildings, Facilities and Assets
- Board of Trustees Policy 219 Naming of Buildings, Facilities and Assets Procedure
- Ramapo College Foundation Gift Acceptance Policy
- Ramapo College Foundation Investment and Asset Allocation Policy
- Ramapo College Student Clubs and Organization Fund Raising Policy