FIN-018: Gifts of Securities

Date: 05/14/2007 Status: Final
Policy Type: University
Oversight Executive: Vice President for University Advancement
Applies To: University-wide and Univesrity-Related Foundations.
Reason for Policy:

To standardize policy on the acceptance, valuation, recording and disposition of gifts of securities.

Definition of Terms in Statement:
  • Marketable Security:

    Any security, stock, debenture, share or other interest capable of being sold in a liquid market or readily converted to cash.

  • Security:

    An instrument which allows the holder to claim an ownership position or interest in a corporation; a creditor relationship or interest in a corporation, a government or its agency; or other rights to ownership or interest as stipulated in specific contracts.

Policy Statement:

The acceptance, valuation, recording and disposition of gifts of securities made to the University shall be handled as follows:

  1. Gift Acceptance:
    The University of Virginia accepts donations of marketable securities and mutual fund shares. Gifts of non-marketable or restricted securities may be accepted by the Gift Acceptance Committee after obtaining input from the Gift Accounting Department, the University of Virginia Investment Management Company, Treasury Operations, and the receiving school or area.
     
  2. Gift Liquidation:
    If the donor is identified, security gifts will be sold immediately upon transfer to the University. Exceptions to this policy must be approved by the Executive Vice President and Chief Operating Officer or Vice President and Chief Financial Officer.

Security gifts from unidentified donors received in the Rectors and Visitors securities acceptance account will be held for a period of one year. At that point, the stock will be sold and recorded in the University of Virginia unrestricted endowment fund. Records of these transactions will be maintained by the Gift Accounting Department for future reference

  1. Gift Valuation:
    Security gifts will be valued for recording and receipting purposes in accordance with existing Internal Revenue Service regulations.
     
  2. Gift Recording:
    Securities gifts will be recorded on the donor’s gift record at the valuation amount. Securities gifts received through the University’s brokerage account on behalf of a related foundation will be sold and the net sales proceeds will be transferred to the foundation for recording and receipting purposes.
Procedures:

**Pending**

Major Category: Finance and Business Operations
Category Cross Reference: External Relations
Approved by, Date: Executive Vice President and Chief Operating Officer, 05/14/2007
Revision History: This is the first version of this policy.