UMMS Foundation Gift Policies
I. SOLICITATION OF GIFTS
The University of Maryland Medical System (UMMS) Foundation development staff and administrators are responsible for knowing and adhering to restrictions on gift acceptances and volunteer engagement that may be related to perceived conflicts and other considerations. These restrictions include policies pertaining to the solicitation of gifts that might be construed as advancing a donor’s business interests rather than the interests of UMMS; and gifts that would pose substantial risks to UMMS, whether due to the source or purpose of the funds. The Foundation will decline to pursue or accept donations that are inconsistent with the considerations outlined in this guide. Staff, medical professionals, and researchers of UMMS are prohibited from making a tax-deductible gift, either individually or through a foundation or donor-advised fund, that is restricted to support (or otherwise directly benefit) their own work or that of an immediate family member. All solicitation of large corporate gifts and all corporate naming recognition must be reviewed by the Foundation.
II. ACCEPTANCE OF GIFTS
Gift terms are required for all new funds established at the Foundation. All terms must be drafted from or conform to approved templates. Certain provisions are required. The Foundation must be authorized to:
- invest, administer, and distribute the fund in accordance with its policies; and
- redesignate a fund, working in consultation with the donor, if possible, if the designated purpose of a fund is no longer feasible or appropriate.
Other provisions are prohibited. The Foundation cannot be required to
- waive assessments;
- prevent funds from being used to pay overhead, indirect costs, or administrative costs;
- provide “vendor rights” in exchange for the contribution
- compel a work commitment or appointment acceptance
- enforce return-to-home-country requirements or similar future restrictions;
- grant the donor the right to enforce the terms and conditions of the gift; or
- stipulate governing law other than that of the state of Maryland.
III. RECOGNITION OF DONORS
Consistent with the longstanding tradition of anonymous giving, if requested by an individual donor, UMMS may treat the donor’s gift as anonymous, to the extent permitted by law. Such gifts are subject to a review process. UMMS will not accept a gift anonymously that it would not accept publicly. Corporations are not granted anonymity. UMMS may recognize a donor’s generosity through the naming of a fund, physical space, collection, or scholarship, among other vehicles. Certain types of naming recognition are not permitted, and some names may not be used, including those of governments, sitting heads of state, and current Foundation staff members. Physical spaces may be named for the useful life of the space. Corporate naming recognition must be approved by the Foundation staff. Naming a building, center, or School requires special approval. Namings acknowledge the source of a donation and, like the act of accepting gifts, should not be understood as a judgment of the donor’s character or conduct. However, as noted above, the Foundation will not agree to accept a gift, with or without naming recognition, if doing so would be inconsistent with the considerations described in this document. The Foundation, with approval of the Corporation, may choose to revoke naming recognition when the gift commitment supporting the naming has not been fulfilled, or where the donor’s actions are outside the bounds of acceptable conduct, as judged by reference to prevailing societal norms, that continued use of the name is damaging to the interests of the Foundation. Prevailing societal norms ordinarily will be assessed at the time of the gift, not later.
IV. GIFT FEE POLICY
The University of Maryland Medical System Foundation (UMMSF) administers more than 300 philanthropic support funds comprised of donor contributions for specific purposes within the University of Maryland Medical System (UMMS) or through specific fundraising activities that benefit the University of Maryland Medical Center (UMMC). It is the responsibility of UMMSF to ensure donor intent is honored when disbursing resources from these funds to further the overall mission of the University of Maryland Medical System and in accordance with the specific mission statement established for the fund.
To support its development activity, UMMSF assesses a one-time 10% gift administration fee on all new gifts to Foundation funds supporting UMMS/UMMC.
V. PURPOSE OF POLICY
This is the Gift Fee Policy (“Policy”) of The University of Maryland Medical System Foundation (UMMSF). The purpose of this Policy is to establish the gift acceptance fees (“Gift Fee”) that the Foundation will assess on charitable contributions received. The Gift Fees assessed by the Foundation will be used to support the Foundation’s mission including, without limitation, its administrative and fundraising costs.
VI. FEE IMPLEMENTATION
The 10% gift assessment is taken at the time an outright gift is received. Pledges are assessed a fee on each pledge payment received, not against the pledge commitment, for investment earnings, on a monthly basis concurrent with the posting of earnings by finance team members.
Alternatively, the assessment may be also provided 1) by the donor by making an additional gift equivalent to the fee or 2) by the unit benefiting from the gift paying the assessment from unrestricted resources.
The following fund types are exempt from the initial 10% gift administration fee:
- Funds created as an Endowment Funds1 (aka permanently-restricted funds)
- Funds created in conjunction with a capital project
- Funds created to provide resources for professional education of medical staff
1 While gifts to an endowment fund are exempt from the gift administration fee, investment earning posted to the corresponding Spendable Income fund are assessed the fee at the time the earnings are recorded in that fund.
The Foundation’s administrative fee is disclosed to donors and prospective donors on its website as well as in individual gift agreement documents. Gift officers provide written or oral disclosure of the gift administration fee at the time of solicitation.
IX. THIRD-PARTY EVENTS
- Those interested in organizing an event must complete and submit the Third Party Sponsored Event Application for review and consideration no less than two months prior to the proposed date of the event. All requests will be reviewed by UMMS Foundation and a response provided within two weeks of receipt of the completed application.
- Submission of Third Party Sponsored Event Application does not obligate the UMMS Foundation to enter into a fundraising program with your organization. Only after approval of your application by the UMMS Foundation will the fundraising relationship be established.
- To repeat an event, event organizers must submit a completed Third Party Sponsored Event Application form to the UMMS Foundation in each successive year.
- The UMMS Foundation must be notified in writing of any significant changes to the planned event. If the UMMS Foundation determines that circumstances warrant, the UMMS Foundation at any time, may direct the event organizer to cancel or make changes to the event. Event organizers must agree to cancel or make the changes to the event, if so directed.
- The event organizer is responsible for obtaining any and all necessary permits, licenses and required insurance, including liquor licenses and gambling and/or raffle permits, if applicable.
- Events must comply with all applicable federal, state and local laws governing charitable fundraising, gift reporting and special events.
- The amount or percentage of proceeds to be donated to UMMS must be disclosed on all promotional materials for the event. If there is more than one beneficiary for the event, the amount or percentage of proceeds donated to each beneficiary must be clearly stated on all promotional materials.
- The University of Maryland Medical System Foundation will accept only the net proceeds from the event (pledges must be collected and bills must be paid prior to the University of Maryland Medical System Foundation’s acceptance of funds).
- All net proceeds from the event should be received by the UMMS Foundation within 60 days of the conclusion of the event. Checks are to be made payable to the UMMS Foundation, include the name of the Third-Party Event in the memo line and mailed to the address below:
- UMMS Foundation 110 S. Paca Street, 9th Floor Baltimore, MD 21201.
- An itemized accounting of all funds collected and expenses related to the event is to be provided to the UMMS Foundation within 60 days of the conclusion of the event, if requested.
- The University of Maryland Medical System Foundation cannot extend our tax exemption, meaning that an attendee or donor to your event will not be provided a charitable acknowledgment letter from the University of Maryland Medical System Foundation, unless it is determined in advance with the UMMS Foundation that contributions made in association with the event are 100% tax deductible (no goods or services received) and all contributions must be made directly to the UMMS Foundation through a custom donation link created by the UMMS Foundation (e.g. not checks made out to the event organizer who then signs over the checks to the UMMS Foundation).
- Third party event sponsors are not permitted to use the UMMS Foundation sales tax exemption for event related expenses.
- The UMMS Foundation may receive funds from other similar promotions or events.
- The UMMS Foundation must approve, in advance, all copy for invitations, advertisements, press releases, posters or other promotional information related to your event. Please do not make public announcements or promote the event until you receive written approval from the UMMS Foundation. UMMC or an affiliate may only be identified as the beneficiary of the event.
- For example, an event may not be called “Greenebaum Comprehensive Cancer Center Walk-a-Thon.” The event should be promoted as the “Walk-a-thon to benefit the Greenebaum Comprehensive Cancer Center.”
- If a third party sponsored event organizer reaches out to media with regards to covering their event, the University of Maryland Medical Center media relations team is happy to partner with the event organizer to ensure UMMC personnel are prepared. Conversely, if a third-party event organizer does not have the bandwidth or knowledge in media relations, the UMMC media relations team is available to assist if the press coverage involves a UMMC spokesperson. The UMMC media relations team cannot, however, solicit press coverage for an event organizer.
- If plans are made to have a photographer on site at an event or to have pictures taken during an event, photography consent language (provided by the UMMS Foundation) must be prominently displayed on signage to notify event attendees.
- Please notify the UMMS Foundation in writing if you plan to contact businesses, individuals or organizations for sponsorship or underwriting of the event. If you plan to solicit contributions, sponsorship or gifts-in-kind from local businesses, the list of businesses you plan to contact must be reviewed by the UMMS Foundation before being solicited. Please remember that many individuals and businesses already support UMMC.
- The UMMS Foundation will not solicit sponsorship revenue on your behalf for your fundraising activities.
- The UMMS Foundation cannot provide mailing lists of contributors, employees, volunteers or vendors for solicitation.
- Due to the number of third party sponsored event requests, the UMMS Foundation cannot provide volunteer support or guarantee staff representation at your event.
- Each party shall be responsible for its own acts and omissions and the acts and omissions of its employees, officers, directors and affiliates. A party shall not be liable for any claims, demands, actions, costs, expenses and liabilities, including reasonable attorneys’ fees, which may arise in connection with the failure of the other party to perform any of its obligations hereunder.
- The event organizer must provide and maintain during the term of any agreement, at their expense, general liability insurance coverage in the amount of One Million Dollars ($1,000,000 per occurrence) and Three Million Dollars ($3,000,000) annual aggregate.
- If alcohol will be served at the event, liquor liability insurance must be secured and maintained during the term of any agreement and at the event organizer’s expense.
- Dependent upon the type of event you are hosting, additional insurance coverages and amounts may be required.
- The University of Maryland Medical System Foundation reserves the right to disassociate its name and involvement with any group/individual or event who are not in compliance with the guidelines outlined above by issuing a written statement to that effect. Upon receipt of this letter, the group/individual conducting the third-party event must cease using the name or logo of the University of Maryland Medical System entity in any and all connections with the event.
X. DONOR BILL OF RIGHTS
Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, we declare that all donors have these rights:
- To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
- To be informed of the identity of those serving on the organization's governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.
- To have access to the organization's most recent financial statements.
- To be assured their gifts will be used for the purposes for which they were given.
- To receive appropriate acknowledgement and recognition.
- To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law.
- To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
- To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.
- To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
- To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.
The Donor Bill of Rights was created by the Association of Fundraising Professionals (AFP), the Association for Healthcare Philanthropy (AHP), the Council for Advancement and Support of Education (CASE) and the Giving Institute: Leading Consultants to Non-Profits. It has been endorsed by numerous organizations.
XI. EFFECTIVE DATE
This Policy is effective retroactive to July 1, 2017 and replaces and supersedes any proceeding policy concerning this subject matter.