"Our vision is to be a premier institution in the state of Louisiana and one of the best in the nation for carrying out its mission at the highest levels of quality. We are proudly an HBCU, but we do not circumscribe our aspirations and we will not allow others to do so. We are guided by our own high expectations and are uninfluenced by the low expectations others may have of us."

- Dr. Horace A. Judson, GSU President

GBGfoundation.org, your IMPACT begins here.
Planned Giving Policies & Procedures

VII. WAYS OF GIVING

A.     Current/Outright Gifts

The University will accept current/outright gifts of cash, securities and real and personal property.

B.     Pledges

The University will accept and record written pledges in accordance with generally accepted accounting standards and FASB rules. No multi-year pledge of more than $10,000 will be recorded on development or general accounting records unless it is substantiated in writing via a University-approved gift agreement signed by both the University and the donor. The agreement must include the gift amount and schedule of pledge payments. The agreement will also specifically state the designation of the gift within the university, indicating specific preferences and restrictions on the use of the funds. Single year pledges will be recorded in accordance with Office of Development procedures.

The maximum amount of time to fulfill a pledge will be five years from the date of execution of agreement. Pledges of more than five years must be approved by the President, after consultation with the Gift Acceptance Committee.

C.     Deferred Gifts

The Office of Planned Giving within the Office of Development will coordinate the receipt of all deferred gifts. Deferred gifts include bequest made through wills or living trusts, retirement plan designations, life income plans, charitable lead trusts, and retained life estates. Donors of life income giving arrangements may designate the remainder value of their gifts to any approved program within the University. Remainder gifts that will be used to establish named endowments or for naming opportunities must meet with the prevailing minima.

The GBG Foundation Counsel will process all legal documents associated with deferred gifts; and prior approval by GBG Foundation Counsel is required before any legal document may be executed by an approved University officer. (Note: The donor is always advised to seek his/her own outside legal and tax advice before executing a planned gift). All planned gifts will be processed in accordance with the Model Standards of Practice for the Charitable Gift Planner created by the National Committee on Planned Giving (NCPG). http://www.ncpg.org/ethics_standards/Valuation%20Standards%20-%20Final.pdf.

  1. Bequests and Retirement Plan Designations. The University will receive
    charitable bequests and retirement plan designations, and will generally abide by any restrictions or designations indicated in appropriate documents assuming such restrictions and designations are applicable to current programs within the University and do not violate University policy. The University will not abide by any restrictions that are considered to be in violation of federal, state, or local laws. If the intended use does fall outside of the law and/or University policy, the University will adhere to the laws and regulations of the Commonwealth of Louisiana regarding such matters.

    If a bequest or retirement plan designation of $25,000 or more is given for the general purposes of the University, such funds shall be deposited into a segregated account and the President shall have discretionary authority to determine how to spend these contributions. In accordance with Board of Directors of GBG Foundation, unrestricted and undesignated gifts of under $100,000 may be converted to quasi-endowment at the discretion of the President. Unrestricted and undesignated gifts of $100,000 or more may be converted to quasi-endowment upon approval of the Board of Directors.

  2. Life Insurance. The University will accept gifts of life insurance policies (where the University or GBG Foundation is named as both owner and beneficiary of the policy) based on the following:

    1. The policy must have a death benefit of $100,000 or more, unless the policy is fully paid up. Any future policy premiums due will be paid by regular contributions from the donor to the University. The Office of Planned Giving will coordinate all premium payments with the donor.

    2. Term policies of any amount will be declined unless the donor irrevocably
      pledges to make regular contributions to the University equal to the regular premium amount. If the donor refuses to make regular contributions equal to the premium amount, the University will allow the policy to lapse.

    3. The University may surrender an existing life insurance policy for its
      surrender value or sell the policy via a viable settlement based on prior review and approval of the Gift Acceptance Committee.

    4. Acquiring a naming opportunity within the University with a life insurance policy while the donor is living can only be done with a fully paid up policy for the equivalent cash value of the naming opportunity. All exceptions to this policy must be approved by the President after consultation with the Gift Acceptance Committee.

    5. The University will record a gift of life insurance policy only on the basis of its fair market value for general accounting purposes.

    6. All donations of life insurance policies and contributions made to pay life insurance policy premiums will be receipted and acknowledged to the donor in accordance with prevailing IRS regulations.

  3. Charitable Gift Annuity. The University will establish and promote gift annuity contracts with donors in accordance with applicable federal law, IRS regulations and the laws and regulations of the State of Louisiana. Additionally, the University’s gift annuity program will adhere to the following:

    1. The minimum size contributions to fund either an immediate gift annuity contract or a deferred payment gift annuity contract will be set by the Gift Acceptance Committee and may be periodically adjusted at its discretion.

    2. All gift annuity contracts must first be approved by Foundation University
      Counsel.

    3. The payout rates will conform to the applicable published rates of the American Council of Gift Annuities (ACGA). Any deviation from the ACGA rates must be approved by the Gift Acceptance Committee. (http://www.acga-web.org).

    4. The University Foundation may engage one or more third party entities to provide gift administration, custodial and investment services for its gift annuity contracts.

    5. All assets given to fund a gift annuity will be invested and income and principal will be used to pay any annuity obligations of the contract until all income beneficiaries under the contract are deceased or no longer entitled to receive income.

    6. Gift annuity contracts will be booked at face value for development and recognition purposes, but only at remainder value for general accounting purposes.

  4. Charitable Remainder Trust (CRT). The University will accept and administer contributions to a charitable remainder trust in accordance with applicable federal law, IRS regulations and the laws and regulations of the State of Louisiana. Additionally, the University will administer its charitable remainder trusts based on the following:

    1. The University may serve as a trustee for charitable remainder annuity trusts (CRAT) or charitable remainder unitrusts (CRUT) only if it is named as an irrevocable remainder beneficiary of at least 51% of the remainder value of the Trust (GSU CRT), whichever is less.

    2. The President, after consultation with the Gift Acceptance Committee, will establish from time to time the minimum initial gift to GSU CRT.

    3. The University may hire one or more third party entities to provide trust administration and custodial and/or investment services for GSU CRT agreements.

    4. The Foundation’s Office of University Counsel must approve all GSU CRT agreements prior to their execution.

    5. If GSU is named as trustee and 100% irrevocable remainder beneficiary of a GSU CRT, the University will not charge the trust or the income beneficiary(ies) of the trust any administrative, management or brokerage fees that are expended to operate the trust. If GSU is named as less than 100% irrevocable remainder beneficiary, any costs incurred by the University to operate the trust must be proportionately shared by any other named remainder beneficiary.

    6. Grambling State University will serve as trusted of a GSU CRT when a donor wishes to donate real estate to the trust only if the donor will accept the trust in the form of a charitable remainder net-income Unitrust, with a flip provision. Contributions of real estate to a GSU CRT must follow the University’s policy on real estate contributions and any costs associated with the sale of real estate within the GSU CRT will be charged to trust principal.

    7. The Office of Planned Giving is authorized to establish GSU CRT payout rates at the minimum required by law and up to a maximum of 7%. If a donor wants a payout rate higher than 7%, it must first be approved by the President, after consultation with the Gift Acceptance Committee. All CRT payout rates established by the University must also conform to applicable federal law, IRS regulations and the laws and regulations of the Commonwealth of Louisiana.

    8. GSU CRT agreements will be booked at face value for development and recognition purposes, but only at the remainder value for general accounting purposes.

    9. When a donor establishes a qualified CRAT or CRUT outside the University and names GSU as an irrevocable remainder beneficiary, the University may book this contribution in the same manner as a GSU CRT upon receipt of a copy of the signed trust agreement.

    10. Donors may contribute additional gifts of a minimum value of $5,000 to their charitable unitrust for which GSU serves as trustee.

  5. Pooled Income Fund. The University will establish one or more pooled income funds (PIF) and will serve as trustee of any PIF in accordance with applicable federal law, IRS regulations and the laws and regulations of the Commonwealth of Louisiana. Additionally, the University will administer its PIF program in accordance with the following:

    1. The President, after consultation with the Gift Acceptance Committee, will establish from time to time the minimum size gift to a GSU PIF.

    2. The Office of Finance in consultation with GBGF Finance committee and Counsel must approve all PIF transaction agreements prior to their execution.

    3. The University may hire one or more third party entities to provide trust administration and custodial and/or investment services for any of its PIFs.

    4. PIF contributions will be booked at face value for development and recognition purposes, but only at remainder value for general accounting purposes.

  6. Charitable Lead Trust. The University will promote the use of Charitable Lead Trusts (CLT) to donor prospects as a means of reducing income or estate taxes and helping the University at the same time. Income produced by a CLT for the University may be restricted and designated in accordance with policies established for any other cash contributions. The University will not serve as a trustee of a CLT.

  7. Remainder Interest Real Property. The University will promote and accept gifts of retained life estates in real property if the donor agrees in writing to be responsible for all maintenance, insurance costs, and taxes associated with the property for as long as they retain their right to reside in the property. Gifts with a retained life estate must also conform to all other University policies regarding gifts of real estate. Gifts of a remainder interest will be credited to the donor in the year the transfer of ownership is completed from the donor to the University at the charitable remainder value of the contributed real estate.

  8. Trusts Held by a Third Party. The University will record such trusts, and gifts from such trusts, in accordance with generally accepted accounting practices.

Source: Excerpts from “Ways of Giving”, Gift Acceptance Policies adopted by GBGF 02/02/2006 by GBGF.

 

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