Donor Information

The Development Foundation performs several important services for the benefit of Texas State University-San Marcos, but its primary function is endowment fund management. Endowment funds are created by donated gifts that are invested to produce a permanent flow of income. The income is used year after year to support the university activity of the donor’s choosing, such as student scholarships, research funding, faculty support, fellowships and lectureships. The Development Foundation processes gifts to create endowments, sets up appropriate accounts, invests the funds according to its Board of Directors’ policy, tracks income and expenses, produces and distributes reports, as well as manages all transactions for each fund.

The Foundation will accept gifts that establish endowments, fund capital improvements and scholarships donated in the form of cash, legacies, gifts-in-kind, capital gifts, securities, gift annuities and real estate.

Real estate donations can be accepted and held by the Foundation, if the intent is to sell the property and deposit the proceeds into an endowment held by the Foundation.

The Foundation also accepts gifts directed toward the President’s unrestricted funds and general/non-specific scholarship funds.

Donations given for operating, short-term purposes (i.e., wages, travel, rent, utilities) or special projects may be directed to the University or passed into the University from the Foundation.

Cash: Cash gifts may be accepted in the form of US dollars, personal or corporate checks, credit card transactions, payroll deduction transmittals through the University Fund Drive, and cashier’s checks.

Outright Gifts: Outright gifts fall into five broad categories – gifts of personal property (tangible and intangible), gifts of real property (real estate), gifts-in-kind (including non-monetary corporate sponsorships), gifts of securities and gifts of life insurance.

Gifts of Real Property (Real Estate)

Gifts of real property (also called real estate or realty) are defined as land, its natural resources such as timber, coal, oil, gas and other minerals, and any permanent buildings on it. Examples of real property include:

Residential property
Investment property, such as apartments, office buildings and shopping centers
Commercial property, such as industrial parks, hotels and recreational parks
Agricultural land used for the production of livestock or crops

Gifts of Securities

Securities are among the most popular assets used to make gifts. Securities include publicly traded stocks, mutual funds, Treasury notes, and closely held stock.

Development officers or the appropriate University representative must understand and communicate to the donor that it is the University’s policy to sell gifts of securities as expeditiously as possible. Thus, regardless of the value placed upon the property by the donor’s appraisal, the University will attempt to sell it at a reasonable price in light of current market conditions.
Stock certificates received will be transferred to a designated broker for immediate sale. For stock certificates registered in the donor’s name, a signed stock power, which allows the stock to be sold by the University, is required.
Closely Held Stock: Because closely held stock is a security not publicly traded, its value must be established by the donor through an independent appraisal.

Prior to acceptance of closely held stock, the Gift Acceptance and Disposition Committee (GADC) will review the proposed gift to make certain there are no restrictions on selling the stock and that there is an available market for it. Otherwise, the GADC must confirm that the nature of the business the University is about to become a partial owner of is consistent with the University’s mission, and also whether the arrangement will result in any unanticipated unrelated business income.
Marketable securities’ value is based upon the average of the high and low quoted selling prices on the date the donor relinquished dominion and control of the assets in favor of the University.
The criteria used for determining the legal date of a gift of securities is:
1. Stock certificates that are mailed to the University are considered to be a legal gift as of the date of postmark for the certificate or signature guaranteed stock power, whichever is later.
2. Stock certificates that are sent to the University via a third-party provider, such as UPS or FedEx, are considered to be legal gifts as of the date of receipt by the University.
3. Stock certificates registered in the name of the University are considered to be a legal gift as of the date of registration in the University’s name.
4. Stock certificates transferred electronically are considered a legal gift as of the date the stock is credited to the University account.

Gifts of Life Insurance

A. Criteria for Acceptance of Life Insurance

The University will accept gifts of life insurance policies, including whole life, variable and universal life policies, which meet the following six criteria:

The policy is fully paid up.
If the insurance policy is not fully paid up, the usefulness of the gift will be judged on a case-by-case by the Gift Acceptance and Disposition Committee (GADC). An unpaid policy must:
1. have a recommended minimum face value of $50,000;
2. have a recommended payment schedule not to exceed five years; or
3. require a written pledge of a charitable contribution from the donor to the University in a total amount that equals or exceeds the total premiums due, and with pledge payments scheduled so as to equal or exceed each policy premium payment as that payment becomes due. This written pledge also will acknowledge the absolute ownership by the University and the resulting right of the University to cash in the policy and apply the proceeds according to the wishes of the donor.
The insurance company must have received a ranking of B+ or better by AM Best.
The University is designated as the owner and the beneficiary of the policy. The Development Officer, in working with the donor, will clarify the use of the gift by attaching a written memorandum, letter, or endowment agreement to the policy.
If intended for endowment purposes, the face value of the policy meets the minimum funding standards for endowments for its stated purpose and in effect at the time of the gift. Since the actual funding of a specified endowment with the proceeds from a life insurance policy takes place following the death of the insured, the minimum funding requirements that are in effect at the time of the insured’s death will govern whether there are sufficient death benefits to fund such an endowment for its stated purpose.
The Development Officer, in consultation with the Planned Giving Officer, will prepare a summary form for any proposed gift of a life insurance policy that meets all of the five criteria listed above to be submitted to the GADC. The summary shall include the following information:
1. Name of insurance company
2. Description of the type of life insurance policy, face value, premium payment schedule, interest rate, age of insured, and other relevant policy information.
3. The purpose of the gift and that department, program, or endowment to benefit from the gift

Special Gifts and Other Assets

For special gifts and other assets that require customized handling, the Development Foundation is able to assist with the transfer to the University or the Foundation. Examples of such gifts include operating corporations, collections and tangible personal property, time shares, mineral interests, vehicles and

royalty and patent interests. Professional advisors working with Foundation staff facilitate the transfer of ownership of these “hard-to handle” assets and work with the donor’s advisors to accommodate the appraisal, valuation, contractual, title, physical transfer and proper reporting of donated assets.

Life Income Funds Management

The management of life income funds for grantors and income beneficiaries is another service provided by the Foundation. This includes working with Charitable Trusts, Charitable Gift Annuities, Remainder Life Estates (residences), and other long-term estate management vehicles. The Estate Planning staff in the Texas State University-San Marcos Development Office work with donors and their advisors to consider the various options available. Once agreeable arrangements are finalized, the Foundation serves as Trustee and provides such services as creating contracts, the acceptance of Trust documents, receiving gifted assets, the investment of funds and managing income beneficiary payments. Custodial and preparation of tax information are included services.

Following are brief descriptions of endowment categories and minimum amounts required for the creation of each.

Faculty Support Endowments
1. Chair
  - For outstanding, distinguished, tenured faculty members and visiting scholars.
  - May provide supplementation to state-funded base salary.
  - To enhance scholarly efforts and research.
  - Minimum funding: $2,000,000.
2. Professorship
  - For outstanding, tenured faculty members.
  - May provide supplementation to state-funded base salary.
  - To reward and enhance teaching and scholarly efforts and research.
  - Minimum funding: $600,000.
3. Faculty Fellowship
  - For any rank of faculty member.
  - May provide supplementation to state-funded base salary.
  - For research and teaching efforts, and for visiting scholars while in residence at the University.
  - Minimum funding: $150,000
Student Support Endowments
1. Graduate Fellowship
  - To support graduate student awards.
  - Academic merit may be a consideration.
  - Financial need may be a consideration.
  - Other allowable criteria may be suggested by the donor.
  - Minimum funding: $50,000.
2. Presidential Scholarships
  - Renewable support to undergraduate students beginning in their sophomore year for the following 2 years.
  - Maintain a GPA of 3.25 or higher.
  - Financial need may be a consideration.
  - Other allowable criteria may be suggested by the donor.
  - Minimum funding: $25,000.
3. Undergraduate Scholarships
  - To support undergraduate student awards.
  - Academic merit may be a consideration.
  - Financial need may be a consideration.
  - Other allowable criteria may be suggested by the donor.
  - Minimum funding: $25,000.
4. Book Scholarships
  - To support undergraduate student awards.
  - Academic merit may be a consideration.
  - Financial need may be a consideration.
  - Minimum funding: $10,000.
Other Endowment Types
1. Program Support Endowments (a.k.a. Excellence Endowments)
  - To support specific or general programs of the University or a particular department, such as laboratory support, art acquisitions, research, or academic development.
  - Often designated for use at the discretion of a college or school dean, department chair, or unit director to support programs on an as-needed basis.
  - Minimum funding: $10,000

Memorandum of Understanding

A Memorandum of Understanding (MOU) is the formal agreement that guides an account established by a donor’s gifts. The MOU is signed by the (1) donor, (2) Texas State University-San Marcos president, (3) dean of the school or college, and (4) executive director of the Development Foundation Board of Directors. The MOU specifies how the endowed fund is to be managed, to which University entity the distribution amount is to be applied and any criteria for the use of the distribution amount.

University Advancement Development Officers usually initiate the creation of an MOU, working closely with the donor and the executive director of the Development Foundation, who produces an MOU agreeable to all parties.




	Make a Gift Frequently Asked Questions Donor Information The Development Foundation performs several important services for the benefit of Texas State University-San Marcos, but its primary function is endowment fund management. Endowment funds are created by donated gifts that are invested to produce a permanent flow of income. The income is used year after year to support the university activity of the donor’s choosing, such as student scholarships, research funding, faculty support, fellowships and lectureships. The Development Foundation processes gifts to create endowments, sets up appropriate accounts, invests the funds according to its Board of Directors’ policy, tracks income and expenses, produces and distributes reports, as well as manages all transactions for each fund. The Foundation will accept gifts that establish endowments, fund capital improvements and scholarships donated in the form of cash, legacies, gifts-in-kind, capital gifts, securities, gift annuities and real estate. Real estate donations can be accepted and held by the Foundation, if the intent is to sell the property and deposit the proceeds into an endowment held by the Foundation. The Foundation also accepts gifts directed toward the President’s unrestricted funds and general/non-specific scholarship funds. Donations given for operating, short-term purposes (i.e., wages, travel, rent, utilities) or special projects may be directed to the University or passed into the University from the Foundation. Cash: Cash gifts may be accepted in the form of US dollars, personal or corporate checks, credit card transactions, payroll deduction transmittals through the University Fund Drive, and cashier’s checks. Outright Gifts: Outright gifts fall into five broad categories – gifts of personal property (tangible and intangible), gifts of real property (real estate), gifts-in-kind (including non-monetary corporate sponsorships), gifts of securities and gifts of life insurance. Gifts of Real Property (Real Estate) Gifts of real property (also called real estate or realty) are defined as land, its natural resources such as timber, coal, oil, gas and other minerals, and any permanent buildings on it. Examples of real property include: Residential property Investment property, such as apartments, office buildings and shopping centers Commercial property, such as industrial parks, hotels and recreational parks Agricultural land used for the production of livestock or crops Gifts of Securities Securities are among the most popular assets used to make gifts. Securities include publicly traded stocks, mutual funds, Treasury notes, and closely held stock. Development officers or the appropriate University representative must understand and communicate to the donor that it is the University’s policy to sell gifts of securities as expeditiously as possible. Thus, regardless of the value placed upon the property by the donor’s appraisal, the University will attempt to sell it at a reasonable price in light of current market conditions. Stock certificates received will be transferred to a designated broker for immediate sale. For stock certificates registered in the donor’s name, a signed stock power, which allows the stock to be sold by the University, is required. Closely Held Stock: Because closely held stock is a security not publicly traded, its value must be established by the donor through an independent appraisal. Prior to acceptance of closely held stock, the Gift Acceptance and Disposition Committee (GADC) will review the proposed gift to make certain there are no restrictions on selling the stock and that there is an available market for it. Otherwise, the GADC must confirm that the nature of the business the University is about to become a partial owner of is consistent with the University’s mission, and also whether the arrangement will result in any unanticipated unrelated business income. Marketable securities’ value is based upon the average of the high and low quoted selling prices on the date the donor relinquished dominion and control of the assets in favor of the University. The criteria used for determining the legal date of a gift of securities is: Stock certificates that are mailed to the University are considered to be a legal gift as of the date of postmark for the certificate or signature guaranteed stock power, whichever is later. Stock certificates that are sent to the University via a third-party provider, such as UPS or FedEx, are considered to be legal gifts as of the date of receipt by the University. Stock certificates registered in the name of the University are considered to be a legal gift as of the date of registration in the University’s name. Stock certificates transferred electronically are considered a legal gift as of the date the stock is credited to the University account. Gifts of Life Insurance A. Criteria for Acceptance of Life Insurance The University will accept gifts of life insurance policies, including whole life, variable and universal life policies, which meet the following six criteria: The policy is fully paid up. If the insurance policy is not fully paid up, the usefulness of the gift will be judged on a case-by-case by the Gift Acceptance and Disposition Committee (GADC). An unpaid policy must: have a recommended minimum face value of $50,000; have a recommended payment schedule not to exceed five years; or require a written pledge of a charitable contribution from the donor to the University in a total amount that equals or exceeds the total premiums due, and with pledge payments scheduled so as to equal or exceed each policy premium payment as that payment becomes due. This written pledge also will acknowledge the absolute ownership by the University and the resulting right of the University to cash in the policy and apply the proceeds according to the wishes of the donor. The insurance company must have received a ranking of B+ or better by AM Best. The University is designated as the owner and the beneficiary of the policy. The Development Officer, in working with the donor, will clarify the use of the gift by attaching a written memorandum, letter, or endowment agreement to the policy. If intended for endowment purposes, the face value of the policy meets the minimum funding standards for endowments for its stated purpose and in effect at the time of the gift. Since the actual funding of a specified endowment with the proceeds from a life insurance policy takes place following the death of the insured, the minimum funding requirements that are in effect at the time of the insured’s death will govern whether there are sufficient death benefits to fund such an endowment for its stated purpose. The Development Officer, in consultation with the Planned Giving Officer, will prepare a summary form for any proposed gift of a life insurance policy that meets all of the five criteria listed above to be submitted to the GADC. The summary shall include the following information: Name of insurance company Description of the type of life insurance policy, face value, premium payment schedule, interest rate, age of insured, and other relevant policy information. The purpose of the gift and that department, program, or endowment to benefit from the gift Special Gifts and Other Assets For special gifts and other assets that require customized handling, the Development Foundation is able to assist with the transfer to the University or the Foundation. Examples of such gifts include operating corporations, collections and tangible personal property, time shares, mineral interests, vehicles and royalty and patent interests. Professional advisors working with Foundation staff facilitate the transfer of ownership of these “hard-to handle” assets and work with the donor’s advisors to accommodate the appraisal, valuation, contractual, title, physical transfer and proper reporting of donated assets. Life Income Funds Management The management of life income funds for grantors and income beneficiaries is another service provided by the Foundation. This includes working with Charitable Trusts, Charitable Gift Annuities, Remainder Life Estates (residences), and other long-term estate management vehicles. The Estate Planning staff in the Texas State University-San Marcos Development Office work with donors and their advisors to consider the various options available. Once agreeable arrangements are finalized, the Foundation serves as Trustee and provides such services as creating contracts, the acceptance of Trust documents, receiving gifted assets, the investment of funds and managing income beneficiary payments. Custodial and preparation of tax information are included services. Following are brief descriptions of endowment categories and minimum amounts required for the creation of each. Faculty Support Endowments Chair For outstanding, distinguished, tenured faculty members and visiting scholars. May provide supplementation to state-funded base salary. To enhance scholarly efforts and research. Minimum funding: $2,000,000. Professorship For outstanding, tenured faculty members. May provide supplementation to state-funded base salary. To reward and enhance teaching and scholarly efforts and research. Minimum funding: $600,000. Faculty Fellowship For any rank of faculty member. May provide supplementation to state-funded base salary. For research and teaching efforts, and for visiting scholars while in residence at the University. Minimum funding: $150,000 Student Support Endowments Graduate Fellowship To support graduate student awards. Academic merit may be a consideration. Financial need may be a consideration. Other allowable criteria may be suggested by the donor. Minimum funding: $50,000. Presidential Scholarships Renewable support to undergraduate students beginning in their sophomore year for the following 2 years. Maintain a GPA of 3.25 or higher. Financial need may be a consideration. Other allowable criteria may be suggested by the donor. Minimum funding: $25,000. Undergraduate Scholarships To support undergraduate student awards. Academic merit may be a consideration. Financial need may be a consideration. Other allowable criteria may be suggested by the donor. Minimum funding: $25,000. Book Scholarships To support undergraduate student awards. Academic merit may be a consideration. Financial need may be a consideration. Minimum funding: $10,000. Other Endowment Types Program Support Endowments (a.k.a. Excellence Endowments) To support specific or general programs of the University or a particular department, such as laboratory support, art acquisitions, research, or academic development. Often designated for use at the discretion of a college or school dean, department chair, or unit director to support programs on an as-needed basis. Minimum funding: $10,000 Memorandum of Understanding A Memorandum of Understanding (MOU) is the formal agreement that guides an account established by a donor’s gifts. The MOU is signed by the (1) donor, (2) Texas State University-San Marcos president, (3) dean of the school or college, and (4) executive director of the Development Foundation Board of Directors. The MOU specifies how the endowed fund is to be managed, to which University entity the distribution amount is to be applied and any criteria for the use of the distribution amount. University Advancement Development Officers usually initiate the creation of an MOU, working closely with the donor and the executive director of the Development Foundation, who produces an MOU agreeable to all parties.

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