ADVANCEMENT POLICIES & PROCEDURES

11.h. Depositing Non-Charitable Donations

Noncharitable donations are non-tax deductible (e.g., donations from a government agency, paying for a specific student's tuition, where the donor benefits from donating, donations to sororities or fraternities, or donations that do not support the mission of the University. Units are encouraged to thank donors for non-charitable donations, however, because the funds are non-charitable the donation does not get deposited through the Office of Advancement Services. Non-charitable donations may be tracked as an attribute in the Alumni Donor Database so that they can be included when pulling reports that reflect how the constituent has supported the University.

11.i. Endowment Overview

The Utah State University Endowment Fund consists of endowed gifts which provide perpetual financial support for scholarships, fellowships, faculty chairs and professorships, and other important University programs and services. An endowed gift is intended to provide the University with a permanent source of funding by investing the principal amount of the gift and making available a portion of the income it generates. The amount of endowment "income" available for spending is determined by the USU Board of Trustees and is governed by Utah law.

The Endowment may also include donor contributions and surplus funds that are designated by the University as "quasi-endowments." Quasi-endowments are treated like endowed funds, except that no laws prohibit any portion of a quasi-endowment from being spent in accordance with its designated purpose. However, University policies and procedures govern the minimum time frame a quasi-endowment must be established before the principal is eligible to be spent.

Nearly all endowment and some quasi-endowment funds are collectively invested as a large, singular pool of funds, called the Endowment Pool (the "Pool"). Although the Pool is invested as a singular fund, the individual endowment and quasi-endowment funds comprising it are separately tracked by assigning each fund shares of ownership in the Pool, similar to how an individual's investment in a mutual fund is tracked.

The investment objectives for the University endowment funds are long-term in nature. The Endowment Pool is a balanced portfolio of funds designed to produce long-term growth with reduced volatility. The strategy for endowment management includes investing in a broad range of financial instruments. It is the desire of the University to continue to grow the size of the endowment over time and to produce a stable and predictable payout stream.

11.j. USU Investment Policy 1100

11.k. Endowment Performance

Fiscal Year	Year	Rate of Return	Endowment Value
1997	1997	13.09	$44.90
1998	1998	12.78	$54.60
1999	1999	5.19	$66.70
2000	2000	(3.88)	$76.90
2001	2001	(6.38)	$85.50
2002	2002	(7.18)	$81.90
2003	2003	0.65	$81.90
2004	2004	18.38	$91.50
2005	2005	7.65	$97.10
2006	2006	6.78	$110.30
2007	2007	15.77	$130.60
2008	2008	(3.20)	$145.60
2009	2009	(13.70)	$151.20
2010	2010	10.60	$172.40
2011	2011	17.40	$209.10
2012	2012	2.25	$209.20
2013	2013	12.40	$242.06
2014	2014	13.90	$283.10
2015	2015	2.90	$315.10
2016	2016	1.50	$326.00
2017	2017	12.50	$360.20
2018	2018	7.60	$322.04
2019	2019	6.10	$341.80
2020	2020	(1.51)	$346.95
2021	2021	23.94	$430.01
2022	2022	1.05	$425.51
2023	2023	6.32	$452.41
2024	2024	11.29	$503.47

11.l. Endowment Administrative Fee and Use Of

Utah State University assesses up to a 1.5% fee on the true endowments invested in the endowment pool. This fee, that has been approved by University leadership, USU Foundation Board and USU Board of Trustees, is used to support University Advancement, investment administration, and other president-approved purposes. The fee is assessed on the 12-quarter moving average of the portfolio fair market unit value for the three preceding fiscal years, with a budget lead time of one year. No new endowments whether funded with new money or existing monies will have the endowment fee waived. Any exception to this will be reviewed by the Gift Acceptance Committee for recommendation to the University President for action.

Endowment administrative fee calculations are made as follows:

If there is a transfer to the spendable, then a fee will be charged.
If there is no transfer to the spendable due to a restriction on the endowment (endowment has to get to a certain dollar value, can't spend until someone retires, no spending until a certain fiscal year), then no fee will be charged UNLESS the corpus of the endowment is over $25,000.
For the first fiscal year an endowment buys into the endowment pool the fee will be calculated as follows:
- All units purchase on October 1, 20xx will be charged 75% of the fee (calculated on a per unit basis).
- All units purchase on January 1, 20xx will be charged 50% of the fee (calculated on a per unit basis).
- All units purchase on April 1, 20xx will be charged 25% of the fee (calculated on a per unit basis).
- All units purchase on June 30, 20xx will not be charged a fee - These endowments will pay the full fee the next fiscal year.
For endowments that specifically say to spend all the earnings each fiscal year, there will be no fee charged in years when there is less than the 4% earnings.
The fee will be charged only if there are funds in appreciation. The University will spend appreciation down to zero, but won't go negative to pay the spending rule or fee.

11.m. Endowment Spending Policy

The University's spending policy is to distribute, annually, 4% of the three-year average fair market value of the endowment. These funds are taken from the earnings. In years when the investment does not earn 4%, the transfer for spending can come from appreciation. In addition to the 4% that is transferred for spending, the university currently retains 1.5% of the value of the endowment to support University Advancement, investment administration, and other president-approved purposes.

The spending policy benefits both the donor and the University by protecting the core growth of the endowment. This protects the distributable income. Therefore, the University ensures that donors' funds are not losing income for awards made according to donors' wishes.

11.n. CMIP Investment

Cash Management Investment Pool, consists of available cash in excess of estimated daily operating requirements from all University and agency funds. The pool is not operated on a unit (marked value) method. The rate of return is similar to a money market.
https://www.usu.edu/policies/517/Cash_Management_Investment_Pool_Guidelines

11.o. CASE Reporting & Management Guidelines

The University follows the CASE Reporting Standards and Guidelines for Educational Fundraising by the Council for Advancement and Support of Education (CASE) for reporting annual fundraising and campaigns. The latest edition of the guidelines is the 4th edition.

11.p. FASB

Financial Accounting Standards Board (FASB) that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP).

11.q. Donor Bill of Rights

The Donor Bill of Rights, found at https://www.case.org/resources/donor-bill-rights, was created by the Association of Fundraising Professionals (AFP), the Association of 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 including Utah State University.

11.r. Requesting Banner Index

Requesting new banner indexes for a unit/department will go through the unit Financial Officer using Service Now. When requesting an index for a charitable donation, you must ensure that the fund type is one that can hold a donation.
The new endowment must have a completed gift agreement in place before a new index can be requested. Donations will be deposited in the Advancement holding index until a new index can be created.

11.s. Solicitation Codes

Units can request a solicitation code through the Office of Advancement Services that can be tied to their specific solicitation. When donations are processed in the database, the gift is then tagged with the same solicitation code to ensure accurate reporting on solicitation efforts.

11.t. Moving Donations to a Different Account

The Alumni Donor Database used in Advancement is the system of record for donations. Any donation that needs to be moved to a different account than what the funds were initially deposited to must work with the Office of Advancement Services to move the funds. This is to ensure that the funds are being used for the purpose the donor instructed and to keep Banner in sync with the Alumni Donor Database.

11.u. Compliance

The following regulatory requirements, managed by University Advancement or in partnership with other USU areas, are reviewed annually.

CAN-SPAM Act of 2003, 16 CFR 316, controls electronic marketing communications, including to prospective donors
Charitable Gift Annuity Antitrust Relief Act
Charitable Gift Annuity Registration
Charitable Solicitations Act, UCA 13-22-6
Disclosure of Foreign Donations to Higher Education Institutions, Board of Regents R545
Donor restrictions (as per agreements with donors)
HEA, Foreign Gift & Contract Support, 34 CFR 668, requires reporting of large donations or contracts from foreign sources
IRA Charitable Rollover, IRC Section 408(d)(8)
Internal Revenue Code, Substantiation and Disclosure Provisions, substantiation of donations made to non-profits
Philanthropy Protection Act of 1995
Uniform Prudent Management of Institutional Funds Act (UPMIFA)

11.v. GRAMA Requests

The public can request access to specific records maintained by Utah State University, through (Government Records Access and Management Act). Requests related to University Advancement are forwarded by the Office of General Counsel, along with relevant instructions. GRAMA requires that Utah State University respond as promptly as possible, but no later than ten business days after receiving a written request for records. Any records released will be provided in the format in which they are currently maintained by the university. For more information on GRAMA, click here. All GRAMA requests for donor biographical and giving information will be reviewed by the Vice President of Advancement, the AVP for Advancement Services, General Counsel and the President to determine compliance with the request.

11.w. Advancement Privacy Statement

The Office of Advancement at Utah State University (“we”) are committed to supporting the privacy of USU Students, Alumni, and Friends of the University. This privacy statement explains how we handle and use the personal information collected about our alumni and our past, present, and future supporters.

11.x. University Gift Investment Fee

Instituted on July 1, 2021, the gift investment fee improves our capacity to increase philanthropic giving to the university. Charitable giving is vital to sustaining USU as a thriving institution, as state support for higher education continues to diminish.

Our goal is to significantly increase the number of donors and amount of private charitable dollars supporting Utah State, and continuously improve the health of the university’s endowment. Doing so requires USU Advancement to upgrade its information and processing systems, support the growth and efficiency of fundraising operations, and increase the number of focused fundraising staff across our campuses. Each of these initiatives expands our capacity to encourage philanthropic support for Utah State among alumni and friends.

11.y. Using Email Lists from the University Advancement Office

Requests for email address lists for alumni and donors and scheduling on the email calendar can be made here. Requests must be made by university staff; lists will not be given to volunteers or students.

Solicitation Emails
Units, departments, and programs must coordinate all solicitations through their unit development officer and the Director of Annual Fund. An updated mailing, emailing and/or phone list for your constituent solicitation must be used to ensure accurate data and applicable communication restrictions are applied. All solicitations must be noted on the solicitation calendar at the time the request is made to coordinate fundraising efforts and ensure alumni and friends are not over solicited.

To ensure that USU is compliant with the CAN-SPAM Act of 2003, 16 CFR 316, the Office of Advancement Services must send all email communication for lists that have been generated from the Alumni and Donor Database to guarantee that emails are being sent properly.

Restrictions on the frequency of emails to a constituent are as follows:

There will be a minimum of two days between emails sent to the same constituent,
The same constituent should not receive more than two emails in one week,
The same constituent should not receive more than eight emails in one month, and
The number of email messages regarding a particular event is limited to one invite and up to two reminder messages.

Email messages should meet at least one of the following criteria:

Inform the recipient about general university information on or off campus,
Invite the recipient to an event,
Solicit the recipient for university support,
Present a call to action to the recipient,
Thank the recipient, or
Involve the recipient with Utah State University.

If the email request is for a solicitation, the Annual Fund Director will review each request to ensure the timing and content of the email message is appropriate as it relates to the overall strategies and objectives of University Advancement.
A copy of the email will be circulated and approved by the University Advancement email test group and requester before sending
Email address lists from the database will not be given to any University employee or volunteer to create their address book or shadow database for mass emailing. Any exception to this will be approved by the Vice President of Advancement.
Emails for specific Unit/Department events will only be allowed to have email addresses for alumni and donors from their unit/college. Unit/Departments are encouraged to advertise their events via social media, USU event page, and a call to action for alumni to spread the word.
All emails must abide by appropriate email communication restrictions noted in Millennium
All emails must display one of the approved USU logos prominently on the page in the header of the email.
Emails will contain a footer message and opt out message.
The subject line for each email should not exceed 25 characters and must be relevant to the message.
The sent and reply email address must be an official USU domain.
For emails that are plain text it is recommended to keep the message to a single page or less.
Emails with video or graphics are not recommended because servers often filter them out as spam and harmful emails but when they are used the size of the email should not exceed 30 MB for USU servers, this may be smaller for other systems.
It is recommended that attachments not be sent as email servers often filter those out as spam and harmful emails.
All embedded links in the email message must be complete links, please test each link to verify it is a properly formatted link.

Emails to USU Employees
University Advancement receives HR data on all employees to support fundraising efforts and event communications. When a college or unit wishes to send emails or mailings, they may contact only their own faculty and staff, not the entire university employee list. If they want to send an email to all employees, they must first obtain permission from the Office of the Vice President for Finance & Administrative Services. For requests to contact all faculty members, approval must be obtained from the Provost's Office.

Emails to current Student Population
University Advancement receives student data to support fundraising efforts and track student involvement. When a college or unit wishes to send emails or mailings to all USU students, they must seek permission from the Senior Vice President of Undergraduate Affairs and follow the provided instructions for obtaining and distributing the email or mailing list.