Policy No. C.1.1
Initiated by: Director of External Affairs
Approved by: MBL Director/CEO
After review by Trustee Development Committee
Date: February, 1995
Revision: #1, July 23, 2005
Distribution: MBL Community
1.0 Policy Statement:
Reporting to the Director/CEO of the MBL and the Development Committee of the Board of Trustees, the Director of External Affairs is responsible for the coordination of all fund-raising activities, including the overall supervision and management of fund-raising programs, administration of staff, and management of the cultivation, solicitation and proper stewardship of all donors on behalf of the Laboratory. All MBL staff or volunteers soliciting gifts of private support on behalf of MBL or its units report through the Office of External Affairs.
2.0 Gifts to the MBL
Gifts are outright or deferred contributions received from private contributors (individuals, partnerships, corporations, foundations, trusts, and other organizations, sometimes referred to in this policy as “donors”) in which neither goods nor services (other than general reports and fulfillment of donor intent) are expected, implied or forthcoming for the donor. (Such contributions are sometimes called “grants” by foundations and corporations.) All gifts, whether for current use or endowment, solicited in the name of and treated as a gift to any part of the MBL, must be received and expended by MBL or in accordance with specific exceptions delineated in written agreements.
The MBL is dedicated to the highest standards of ethical conduct in general but particularly in fund-raising. Staff members advocate these standards by incorporating them into all fund-raising activities and by serving as models of professionalism to others. The MBL supports and encourages its staff members in these efforts by providing appropriate opportunities for training, education and leadership. Staff members, through training and orientation, are expected to be familiar with professional standards of ethics.
4.0 General Guidelines:
4.1 The fund-raising program generally supports and encourages both unrestricted gifts to the MBL and designated gifts to the centers or programs within the MBL of the donor’s choice.
4.2 All fund-raising projects or campaigns must be pre-approved by the Director of External Affairs and the appropriate program or center director.
4.3 All construction or renovation projects require the approval of the MBL Director/CEO and/or the Director of Facilities and Services before solicitation begins.
4.4 All formal solicitations and even preliminary discussions with a prospect or donor concerning gifts to the MBL must be coordinated with the Office of External Affairs. External Affairs maintains a prospect tracking system (PTS) which records and manages the solicitation of prospects in order to avoid multiple solicitations that confuse the prospect or diminish the effectiveness of the solicitation.
5.0 Fund Raising Responsibilities
5.1 Annual Fund (AF)
5.1.1 Any telefundraising will be coordinated and/or conducted by AF on behalf of the MBL.
5.1.2 To prevent duplication of effort and confusion among prospects, all direct mail solicitations that are related to fund-raising must be coordinated with and cleared through AF.
5.2 Corporate and Foundation Relations (CFR)
CFR is responsible for enhancing the MBL’s relationships with corporations and foundations, and for coordinating fund-raising strategies, proposals and solicitations to the corporate and foundation sectors. Effective, coordinated management of corporate and foundation fund-raising is increasingly requested by many donors. In order to maximize the MBL’s chances for receiving such support, and recognizing that the optimum results will often come from joint efforts involving the faculty and staff of the programs and centers, CFR will assist and advise all MBL staff and scientists in effective cultivation and solicitation strategies, and, where appropriate, assist with proposal development.
5.2.1 Using CFR as a resource will ensure that the proposed project or solicitation meets the funder’s guidelines and interests, and also prevent multiple simultaneous solicitations of a particular prospect.
5.3 Planned Giving (PG)
PG provides expertise in the planning, cultivation and solicitation of “planned gifts” to the MBL. Because the documentation and execution of many planned gifts may be complex in terms of protecting both MBL and the donor, PG must review all documents relating to such gifts prior to execution by the donor and acceptance by the MBL. The donor will always be advised to seek his or her own outside legal and tax advice before executing a planned gift.
5.3.1 Charitable Gift Annuities:
The establishment of a charitable gift annuity requires a minimum gift of $10,000. If the gift is other than cash or publicly-traded securities that can be liquidated promptly, approval will be required by the MBL Board of Trustees for the issuance of the gift annuity. A charitable gift annuity may not be funded with a gift of real estate. The rates paid on charitable gift annuities will follow the suggested rates approved by the American Council on Gift Annuities. The minimum beneficiary age is 55 years old.
5.3.2 Charitable Remainder Trusts:
A charitable remainder trust (unitrust or annuity trust) requires a minimum gift of $100,000 if MBL is to be trustee and at least 50% of the remainder must be irrevocably designated for the benefit of MBL. Unitrusts may be established initially for less than the minimum amount provided that the donor assures in writing that the corpus of the trust will eventually exceed the required minimum.
Specific or residual bequests will be recorded by PG. A documented (copy of the estate planning document provision, or Bequest Provision Form) specific or residual bequest will be counted for New Century Society purposes.
For insurance to qualify as a gift, whole life, endowment or certain universal life insurance policies must be owned by the MBL with the MBL also named as the irrevocable beneficiary of the policy. The MBL will not participate in any split-dollar insurance arrangements.
5.3.6 Life Estate:
Gifts of property with retained life interests may be accepted. A charitable contribution deduction for a gift of a life estate is available only for a gift of a personal residence or farm.
6.0 Restrictions on Gifts
6.1 Gift Agreements
The terms of all endowment gifts, and all non-endowed gifts of $100,000 or more, will be specified in a written gift agreement (or other written form) that outlines the program to be supported and the schedule of contributions. All donors are presumed to have directed MBL to apply for any matching funds from federal, state or private sources that might be available as a result of their gifts.
6.2 Restricting Policies
6.2.1 The MBL is fundamentally committed to bringing and maintaining diversity in the Laboratory community. Fund-raising efforts made on behalf of the MBL reflect this commitment to diversity, and provide opportunities for donors through support of programs and scholarships that will foster an inclusive environment for aid recipients, enriching the MBL community with individuals with a variety of geographical, cultural, ethnic, economic and social backgrounds. All gifts accepted by the MBL must comply with the MBL policy on Equal Opportunity, Affirmative Action and Diversity as well as prevailing state and federal discrimination laws.
6.2.2 The MBL may not accept gifts which state preferences for relatives or descendants of the donor in the awarding of scholarships or in the use of donated funds.
6.2.3 Gifts from any donor for a fellowship or scholarship made on the condition or with the understanding that the award will be made to a student of the donor’s choice may not be accepted.
6.2.4 The terms of any gift should be as general and flexible as possible to permit the most productive use of the funds.
6.2.5 Gifts that restrict or impede the work or scholarly activity of a faculty member, fellowship holder or student will not be accepted.
6.2.6 No fellowship or scholarship gift may be accepted if the terms of the gift include a commitment for the future employment of the student recipient by the MBL.
6.2.7 The donor of a gift may serve on an advisory committee but not participate in the selection or evaluation of students or faculty members who would benefit from the gift.
6.3 Changing Restrictions
The use of donated funds for a purpose other than that stipulated by the donor is prohibited. If another use is deemed necessary, consent for using the funds in a different manner may be sought from the donor or may be altered in accordance with the terms of the gift agreement. If the use becomes impossible or unlawful, court approval may be sought to alter the use. Similarly, for a donor to change the originally stated use of donated funds, the change must first be agreed to by appropriate MBL officials.
7.0 Acceptance of Certain Types of Gifts
7.1 Gifts of Tangible Personal Property
A gift of tangible personal property may be accepted on behalf of the MBL provided that:
7.1.1 such a gift is consistent with the mission of the laboratory, or may be liquidated and the proceeds used by the MBL;
7.1.2 acceptance of such a gift will not involve significant additional expense in its present or future use, display, maintenance or administration; and
7.1.3 no financial or other burdensome obligation or expense is or will be directly or indirectly incurred by MBL as a result thereof.
Unless otherwise specified as a condition of the gift, MBL, in assuring that the donor’s intent for the gift is honored, is empowered to retain the gift of property or liquidate it for the benefit of the MBL.
7.2 Gifts of Works of Art, Books and Other Collections
Gifts of works of art, collections of books and other scientific collections may be accepted by the MBL. In addition to the policies on acceptance of gifts of tangible personal property the MBL in accepting works of art will require that proof of ownership as a condition of acceptance for any artwork because of increasing problems of repatriation lawsuits for certain ethnic and cultural categories.
7.2.1 Works of high quality, individually or in whole collections may be given to and accessioned by the MBLWHOI Library, the official collector and keeper of important works for the laboratory. To be “accessioned” indicates the MBL’s commitment to care for and use the work for laboratory purposes. Gifts must be approved by the Director of the MBLWHOI Library prior to acceptance. The principal criteria for acceptance, besides quality, are condition, ownership, authenticity, and relatedness to the purpose and collections of the laboratory. In addition it must meet the following conditions:
184.108.40.206 Generally it must be unencumbered by any restrictions as to use, attribution, exhibition and disposal. The MBL will, however, honor the donors wishes regarding gift recognition.
220.127.116.11 Works of art should also be accompanied by a bill of sale or other proof of ownership and a complete provenance (the artwork’s history of owner-ship), where available.
7.2.2 Works not meeting the MBL’s standards may still be of value to the MBL for decorative, instructional or resale purposes. However used, title to these works remains with the MBL and decisions regarding disposition rest with the title.
7.3 Gifts of Real Property
Gifts of real property may be accepted on behalf of the MBL in accordance with MBL policies. Most real property is actively marketed and the proceeds are used for the charitable purposes specified by the donor. A real estate policy has been adopted by the MBL Board relating to the acceptance, management and liquidation of real property. No interest in real property, whether outright, in trust, by bequest, as a secured interest, or otherwise, will be accepted by or on behalf of MBL without first complying with all due diligence requirements as set by the Board. MBL rarely accepts mortgaged property and never accepts mortgaged property into a charitable remainder trust.
Stewardship is the act of thanking and maintaining contact with previous donors. The MBL is committed to an active program of stewardship coordinated by the Office of External Affairs.
All major donors will be assigned to a development officer for stewardship purposes. The assigned development officer should involve faculty and administrators from the particular area(s) funded by the gift in order to maintain regular contact with the donor and to report, at least annually, the status and uses of the donor’s gift, to accompany the Annual Endowment Reports to donors of endowed funds.
9.0 Administration of gifts
Donors should not be given assurances that their gifts will be invested in a manner inconsistent with the general policies of the MBL. This is particularly true in cases where the donor wishes to:
9.1 direct that specific investments be made; or
9.2 direct that a specific investment manager be used.
The MBL Records Department in External Affairs will record all gifts, convey gifts to financial services for deposit and issue gift receipts to donors.
10.0 Confidentiality of MBL records
The successful partnership between the MBL and its constituencies is based on effective service, trust and accountability. The MBL’s ability to assure donors and prospective donors that their personal or financial information will be held in confidence is essential to fulfilling its specific mission of raising private support for the Laboratory.
Upon receipt of a reasonable and specific request in writing, the MBL will provide financial information, such as expenditures from MBL funds, documentation regarding completed business transactions, and information about the investment and management of MBL assets. The MBL will furnish this information in a format reasonable responsive, at a reasonable cost to the requesting party. The MBL will not, however, release any record or information that includes personal or financial information about a donor, alumnus, prospective donor, volunteer or employee. All records associated with such activities relating to personal or financial information about a donor, alumnus, prospective donor, volunteer, or employee are records of MBL and are confidential.-
11.0 Policy Clarification and Updates:
Policy clarification and updates are available in the Office of External Affairs