Gift Acceptance Policy

Union Presbyterian Seminary [“the Seminary”] is a non-profit organization under the laws of the State of Virginia, and a qualified 501(c)3 organization. All gifts accepted will support the Seminary’s mission by building and strengthening beneficial relationships, enhancing and promoting organizational reputation, and securing the resources necessary to meet annual and strategic goals. The Gift Acceptance Committee shall consist of the President, the Vice President for Finance and Administration, and the Vice President for Advancement. The Gift Acceptance Committee shall review, for the purpose of accepting or declining gifts, those that fall outside the stated guidelines. The Gift Acceptance Committee may, within its discretion, present its recommendation to the Board of Trustees.

In dealings with donors or potential donors, the Seminary prioritizes the interests of the donor. We will not recommend any commitment, program, agreement, trust, or contract that benefits the Seminary at the potential expense of the donor’s interests. Donors and prospective donors are encouraged to seek appropriate advice regarding their planned gifts, whether through outright donations, bequests, trust agreements, life income contracts, or other methods. This is especially important for matters related to tax implications and estate planning. The Seminary will maintain the confidentiality of information and research pertaining to donors or prospective donors, including details such as beneficiary names, gift amounts, and estate information, unless we have obtained the donor’s consent to disclose such information.

The Board of Trustees and staff of the Seminary actively seek current and deferred gifts from individuals, churches, foundations, and other organizations to support the institution’s mission and ensure its future development. These guidelines will govern the acceptance of gifts by the Seminary and offer guidance to prospective donors and their advisors when considering contributions to the institution. These provisions apply to all gifts received by the Seminary for any of its programs or services.

A. Guidelines

As a private graduate theological institution, Union Presbyterian Seminary relies on gifts and grants to support and enhance its programs and facilities. The Seminary welcomes both unrestricted gifts and those designated for specific projects or programs. However, the Seminary does not accept funds from any source that would hinder its commitment to its mission. The following priorities are considered when determining the acceptance and management of charitable gifts:

1) The gift must have charitable purpose consistent with the mission of the Seminary.

2) The gift must not impose restrictions that would jeopardize the Seminary’s 501(c)3 non-profit status.

3) The gift should be made after careful consideration by the donor and, if appropriate, in consultation with their own financial advisor and/or counsel regarding financial and tax consequences.

4) The gift must not impose legal liability or financial restrictions on the Seminary.

B. Gifts with Restrictions as to Use

Union Presbyterian Seminary accepts and manages restricted gifts according to the donor’s specifications if the intended purpose of the gift does not require the Seminary to change its programs or policies to meet the donor’s stipulations.

C. Cy Pres

The laws governing gifts, grants, wills, and trusts typically require Union Presbyterian Seminary to honor any conditions set by the donor, grantor, testator, or settlor regarding the use of funds. If the original purpose of a trust or endowment becomes impossible, impractical, or illegal to fulfill, the Board of Trustees may invoke the judicial doctrine of cy pres to allocate the funds toward a purpose that closely aligns with the settlor’s original intent and supports the mission of the Seminary. This provision protects the integrity of the donor’s wishes while allowing the Seminary to adapt to changing circumstances.

D. Gift Disclosures and Substantiation

Union Presbyterian Seminary complies with Internal Revenue Service guidelines in acknowledging all individual donors with a receipt indicating the amount of the gift and a statement indicating that no goods or services were received in exchange for the gift. Letters of appreciation, without the receipt and tax statement, are issued to churches and foundations for all gifts, including gifts of direct aid for students.

A. Unrestricted Gifts to the Annual Fund

Unrestricted gifts to the annual fund are counted within the fiscal year received and utilized in the current or following fiscal year to support the institution’s mission and operations.

B. Restricted Gifts

Restricted gifts are counted and, when possible, used within the fiscal year they are received to support specific programs designated by the donor. These gifts are temporarily restricted until the Seminary uses these funds for the intended purposes. The Seminary’s policy is to prioritize spending all restricted funds first. As a result, these restricted gifts typically do not increase the Seminary’s operating budget for that purpose each year, unless the total gifts for that purpose exceed the budgeted amount.

C. Gifts to Endowment

1) Endowment gifts are permanent, with the accumulated investment income being used for the donor’s designated purpose. The draw rate from the endowment is determined according to the policies set by the Union Presbyterian Seminary Board of Trustees.

a) Income from unrestricted endowment gifts supports the Seminary’s general operations.

b) Income from restricted endowment gifts is generally allocated to one of the following areas of Seminary support

i) Student Support and Enrichment

ii) Faculty Support

iii) Curriculum and Programming

iv) Campus and Seminary Operations

2) Named Endowment Funds are established when all the following criteria have been met:

a) All relevant correspondence and a fully executed (signed by the donor, the Vice President for Advancement, and the Vice President for Finance and Administration) “Fund Agreement” detailing the intent of the gift has been secured by the Seminary;

b) The Seminary is in receipt of a gift that meets the minimum stated amount to establish such a fund; and/or

c) The Seminary is in receipt of of a signed pledge to meet the minimum stated amount to establish such a fund within a specified period or by a specified date. In the event the stated minimum amount is not met by the specified time, the named fund will be dissolved, and the fund balance will be transferred to unrestricted endowment.

D. Planned and Deferred Gifts

Union Presbyterian Seminary accepts the following types of bequests:

1) General Bequests for a specific sum or a specific portion percentage of a gross taxable estate. (See Appendix C for suggested language)

2) Designated Bequests to be used for a particular area of concern or particular project.

3) Residuary Bequests for providing for the distribution of the residue of an estate after all specific bequests have been made.

4) Contingent Bequests that can provide a means of distribution as part of an estate if beneficiaries do not survive the testator.

5) Bequests to a Charitable Trust in which beneficiaries receive income from a trust established through the will of the donor. Upon the death of the last surviving beneficiary, all or part of the principal passes to the Seminary.

6) Charitable Gift Annuities create a contract between the Seminary and donor that provides the donor a fixed income for life in exchange for a donation. The Seminary’s annuities are managed by an outside financial institution on behalf of Union Presbyterian Seminary.

7) Gifts of Life Insurance offer several benefits for charitable giving, including the ease of transferring ownership, potential tax advantages, and the option to replace assets in the donor’s estate. The Seminary does not endorse specific insurance plans or carriers, nor does it work with particular agents or companies in promoting life insurance gifts.

All planned, deferred, and bequest gifts received by the Seminary, unless specifically designated by the donor, will be deposited into the Seminary’s unrestricted endowment. When questions arise regarding the terms of a will, they are typically resolved by a court of competent jurisdiction. Union Presbyterian Seminary does not engage in compromise settlements concerning the provisions of a will; such matters are resolved through a friendly suit filed in court.

A. Cash Gifts

Union Presbyterian Seminary accepts gifts in the form of cash and/or check. Checks must be made payable to Union Presbyterian Seminary and in no event be made payable to an employee, agent, or volunteer for the credit of the Seminary.

B. Credit/Debit Card Gifts 

Union Presbyterian Seminary accepts credit/debit card gifts, which can be made by mail, phone, or online through our website. To process a gift by credit/debit card, the donor must provide the card number, expiration date, security code, name on the card, and the gift amount. Recurring monthly gifts made by credit/debit card are also accepted and will be charged to the donor’s account on a consistent date specified by the donor.

C. Employee Payroll Deduction

Employees of the Seminary may give through payroll deduction by completing the appropriate form and submitting it to the Advancement office.

D. Wire Transfer

A donor may wish to initiate a wire transfer to facilitate a gift. This can be expected for large sums of money and particularly at the end of the calendar and fiscal years. Donors are asked to please notify the Vice President for Advancement before a wire transfer is made.

E. Gifts of Real Estate

Union Presbyterian Seminary is open to receiving gifts of real estate under specific conditions and restrictions. Typically, all or part of the received property is sold. To protect both the donor and the Seminary from any environmental or tax liabilities, the following guidelines must be followed before accepting gifts of real estate:

1) The donor must provide a letter of intent to make a real estate gift.

2) A representative from Union Presbyterian Seminary will visit and visually inspect the property.

3) The donor is responsible for obtaining a survey of the property at their own expense.

4) The donor must secure a valuation of the real estate from a qualified appraiser.

5) The appraiser must complete and provide all necessary tax documentation no earlier than 60 days (about two months) prior to the gift being made.

6) The donor must provide a report detailing the property being offered as a gift. This report should include a description of prior uses and information about any previous hazards, and indicate whether the property has had or currently has commercial/industrial zoning. If deemed necessary, the Seminary may require an environmental assessment of the property.

7) A Phase I Environmental Audit must be conducted at the donor’s expense for all real estate gifts. If any concerns arise from the Phase I audit, a Phase II Environmental Audit may also be required, again at the donor’s expense.

8) The property must be deemed currently marketable.

9) All real estate gifts must be reviewed and approved by the Gift Acceptance Committee.

F. Gifts of Securities

Union Presbyterian Seminary accepts gifts of securities under the following conditions and guidelines:

1) Typically, the Seminary does not retain received securities in its portfolio; they will be sold immediately and converted to cash upon receipt. Restricted securities will only be accepted with the approval of the Gift Acceptance Committee.

2) A gift of securities is considered executed when the securities pass unconditionally from the donor’s control.

3) The value of the securities, for the purpose of calculating the charitable deduction, is determined by the average of the highest and lowest quotations on the date the gift is made, as explained above

A. Corporate Matching Gifts

Union Presbyterian Seminary accepts corporate gifts intended to “match” an employee’s or retiree’s donation. Matching gifts will comply with the stipulations set by the corporation for the matching funds if those conditions do not conflict with the Seminary’s mission.

B. Direct Aid

A church or foundation may wish to provide direct financial support to a specific Seminary student. Such contributions are processed through the Advancement Office and credited to the student’s account in the Business Office. Direct aid to a particular student from an individual donor is not considered a charitable tax-deductible gift.

C. Honor and Memorial Gifts

Union Presbyterian Seminary welcomes and encourages honor and memorial gifts. Written acknowledgments will be sent to the individuals if the donor provides their contact information. The honoree and/or appropriate family members will be notified of each gift and giver but not the gift amount.

D. Pledges

Union Presbyterian Seminary accepts pledges, which must be fulfilled within five years with appropriate documentation signed by the donor. Exceptions to this time frame may be granted at the discretion of the Gift Acceptance Committee. The Seminary sends reminders for any outstanding balances and makes every reasonable effort to collect the remaining amount owed on these pledges.

E. In-Kind Gifts

1) Library Books

Gifts of personal ministerial libraries may, in consultation with the Seminary Librarian, be received as in-kind gifts to the Seminary. Books for donation should be relevant to religious studies education; free of mold, mildew, and excessive markings; and, except in the case of rare books, published within the last 30 years. Typically, the library staff retains any volumes appropriate for replacing or enhancing the library’s collection. Other volumes may be made available to other theological institutions or be offered for free to the public, including the Seminary community. Books that are not claimed will be recycled.

2) Tangible Personal Property

Gifts of tangible personal property, such as works of art or antiques, may be accepted by the Seminary. These gifts are typically received only if they directly support the educational mission of the Seminary. For tax deductibility purposes, it is the donor’s responsibility to determine the value of the gift; the Seminary does not assign monetary values to gifts of tangible personal property when acknowledging them. To make the gift, the donor must complete the “Deed of Gifts of Tangible Personal Property.” (See Appendix E)

3) In-Kind Services

Professional or personal services or time that is freely given that can easily be valued by its usual market cost. Gifts of services may be recognized by the Seminary but are generally not recognized by the IRS as being tax deductible. Examples of gifts of services are the donation of broadcast time by a radio station or legal services by an attorney.

4) Out-of-Pocket Expenses

Payments made by a donor to a vendor for material or services utilized on behalf of the Seminary. This includes unreimbursed expenses paid by a person while volunteering time to the Seminary. The expenses incurred by a donor sponsoring a dinner party to promote the Seminary are another example of such a gift.

5) Limited Use of Private Property

The right to rent-free use of a home, office, piece of equipment, or commercial property owned by a donor for a specific event for a specific period. Such gifts are only occasionally recognized by the Seminary but are generally not recognized by the IRS as being tax deductible. Examples include the rent-free use of office space, or the rent-free use of a vacation home to host a Seminary event.

A. Any gift, as determined by the Gift Acceptance Committee, that is counter to or that undermines the mission and values of the Seminary cannot be accepted.

B. Union Presbyterian Seminary prefers to receive donations in U.S. dollars.

1) Please consider exchanging foreign currency gifts to U.S. dollars before contributing.

2) Cryptocurrency gifts must be exchanged before a donation to the Seminary is made.

Union Presbyterian Seminary relies on an endowment built over time through the foresight and generosity of donors. This endowment consists of individual funds designated by donors for specific purposes related to the institution’s operations and programming or to support the school’s mission. The Seminary’s endowment is permanent, meaning the principal amount of each gift remains intact, is combined with other contributions to the endowment, and is invested as a pool. Investment income is allocated at a rate determined by the Union Presbyterian Seminary Board of Trustees to support the priorities specified by the donor.

Endowment plays a vital role in higher education and serves as an important indicator of an institution’s health, as it provides funding for operations and programming from sources other than tuition. This not only ensures stability for the Seminary but also enhances affordability for students by reducing reliance on tuition alone to fund its mission.

Effective management of the endowment is crucial. The Board of Trustees has a fiduciary responsibility to invest the Seminary’s assets wisely and to establish an endowment spending rate that adequately addresses the institution’s operational needs while preserving the endowment for long-term stability. The Seminary carefully stewards its endowment assets to ensure a perpetual source of revenue to fulfill its mission.

Therefore, there is always a need to strengthen the endowment, not only to maintain its spending power and keep pace with inflation, but also to address the evolving needs of the church.

Gifts of any amount are welcomed by the Seminary to the endowment and are normally undesignated, providing flexibility over time, or restricted to one of the following areas:

A. Student Support and Enrichment

Focused on students, this broadly designated area supports students in the most basic ways as they prepare for Christian service and leadership. This is an example of some of the ways in which gifts to the student support and enrichment endowment are used. To minimize educational debt, Union Presbyterian Seminary offers all students highly discounted tuition. In a vocation that is low paying, our tuition assistance scholarships allow Seminary graduates to accept calls based on their gifts rather than financial reward. The Seminary seeks to minimize student education-related debt. The Seminary delivers a high-quality and challenging post-graduate theological education that is designed to be transformative. In addition to traditional instruction, students receive pastoral care, regular worship opportunities, and other health-related support foundational to their well-being and preparation for a life in church leadership. Beyond the classroom, students are offered opportunities for domestic and international travel with professors to broaden their education. To gain real-life experience in the pastorate, students are also required to enroll in supervised ministry. During their seminary education, students are encouraged to participate in denominational affairs and are eligible for reimbursement of some conference registration fees and other related costs.

B. Faculty Support

Focused on faculty, this broadly designated fund supports faculty and their work in educating individuals for Christian leadership and supports their engagement in critical theological thought and research for the sake of the church. This is an example of how gifts to the faculty endowment are used. Union Presbyterian Seminary provides a variety of learning opportunities supported by faculty. A generous compensation package ensures that the Seminary can attract and retain the best in the field. Their work in the classroom is enriched by engagement with colleagues in their cohort “guild” or field of study, and faculty are encouraged by the Seminary to serve as thought leaders and researchers. Beyond academics, the Seminary faculty are also highly involved in the church. They preach and teach in constituency churches, and the Seminary faculty is encouraged to publish books and articles in service to the larger church. The faculty is the core of Union Presbyterian Seminary. They are available to students as teachers, mentors, and counselors, and in many cases, they become lifelong colleagues in ministry and friends.

C. Curriculum and Programming

Focused on instruction, this broadly designated fund supports the various educational components at the Seminary. This is an example of some ways gifts to the curriculum and programming endowment are used. The Seminary endeavors to make theological education accessible to a variety of learners, in a variety of ways, for those called to leadership in the church and Christian service. The Seminary offers a variety of educational programs. Throughout the academic year, the Seminary hosts esteemed academicians, well-known pastors, and other experts as guest lecturers for the benefit of the Seminary community, the greater church, and the public. All these programs depend on the support of institutional infrastructure such as library resources, current technology, and the latest educational delivery systems. Support of the academic initiatives, projects, Centers, and educational opportunities are supported by this area.

D. Campus and Seminary Community

Focused on the Seminary campuses and communities, this fund supports the physical plant and technological infrastructure that is essential to the mission of the Seminary. We believe campus and community support is critical to the education and training of theological leaders. Living, studying, worshiping, and fellowshipping in community lead to valuable conversations and relationships that are a microcosm of the church. To maintain the Seminary’s campuses is to nurture and maintain these relationships.

Named endowment funds are listed in perpetuity, by name, in the official books and records of Union Presbyterian Seminary. Donors wishing to establish an endowed fund bearing their name, or the name of one to be honored or memorialized, must meet the minimum amount as stated below:

Named Endowments $150,000

Named Scholarship $500,000

Named Faculty Chair $3,000,000

I. A bequest is a gift of any amount or form made to Union Presbyterian Seminary in a donor’s will. Bequests may provide for a specific dollar amount in cash, specific securities, or specific articles of tangible personal property liquidated by the estate.

II. The Seminary is pleased to be named as a charitable beneficiary in a donor’s will. Donors may make bequest provisions that name the Seminary as any of the following:

A. Sole beneficiary;

B. Beneficiary of a portion of the estate (e.g., 30%, 50%, etc.);

C. Beneficiary of the remainder of an estate or a portion of the remainder of an estate after specific needs have been fulfilled;

D. Beneficiary of a specific dollar legacy; or Contingent beneficiary.

E. Gifts can be made to the Seminary through the execution of a new will or through a codicil to an existing will.

III. Suggested Bequest Language

Donors and their legal counsel may consider the following in drafting a suitable bequest provision for a specific dollar amount or percentage:

A. Unrestricted Bequest: “I give and bequeath to the trustees of Union Presbyterian Seminary, a not-for-profit corporation existing under the laws of the Commonwealth of Virginia and located in Richmond, Virginia, and Charlotte, North Carolina, the sum of dollars ($ ) or ( %) of the residue and remainder of my estate) or (property described herein to be sold by my estate and donated as U.S. dollars) to be used to advance the mission of the Seminary for general purposes, as determined by the Board of Trustees.”

B. Upon the donor’s request, the Seminary can provide language to assist in establishing a restricted estate gift that would include something like this: “This designation represents a preferred use for these funds and is not an absolute restriction. Should the exact designation cease to be effective or practicable before or after the gift is received by the Seminary, the Board of Trustees is authorized to use this gift in an alternative way consistent with the general intent of this designation to fulfill the mission of Union Presbyterian Seminary.”

IV. Gifts received when the Seminary had no prior knowledge of the amount or nature of the gift are treated as if the language above had been included, unless legally impossible.

V. Retirement Plan Beneficiary Designations

The easiest way for a donor to donate retirement plan assets is to designate the Seminary as a primary beneficiary. Donors can contact the administrator of their plan to receive the correct forms to sign. For 401(k)s, if a donor is married, the spouse must waive his or her right to survivor benefits from the plan. Donors can specify an amount or percentage of the retirement plan assets to be gifted to the Seminary. Donors can also designate the Seminary as the secondary beneficiary. An alternative is to have retirement plan assets transferred at death to a charitable remainder trust.

Donors must obtain approval from the Gift Acceptance Committee and provide the following information before making a donation of tangible personal property.

Donor Name: __________________________

Donor Address: __________________________

Telephone: __________________________

Email: __________________________

Description of Property: _____________________________________________________

Subject to the terms and conditions hereinafter set forth,

1. I, (hereinafter referred to as “the Donor”), hereby give, donate, and convey to Union Presbyterian Seminary (hereafter referred to as “the Donee”) the property described above.

2. Legal title to the property shall pass to the Donee upon delivery.

3. The Donor hereby gives and assigns to the Donee all rights of ownership.

4. The Donor understands that the location and retention of the property is at the discretion of Union Presbyterian Seminary.

5. The responsibility of appraising property remains with the Donor. The Donee is not authorized by law to provide appraisals for tax purposes.

Signed (Donor): __________________________

Date: __________________________

The foregoing gift is accepted on behalf of Union Presbyterian Seminary, subject to the terms and conditions heretofore set forth.

Signed (Authorized Representative of Donee): __________________________