Fundraising and Gift Acceptance

1.0 Scope 

This procedure applies to all fundraising, gift solicitation, acceptance, acknowledgement, and related stewardship activities undertaken by NPC and its affiliated nonprofit entity, NPC Friends & Family, Inc. (the “Foundation”). It covers private donations (cash and non-cash) to the College or the Foundation, the coordination of donor solicitations, the processing of gifts, and the management of donor records.

2.0 Purpose 

The purpose of this procedure is to ensure that all private contributions to NPC or the Foundation are handled in a consistent, transparent and legally compliant manner that advances the College’s mission, protects the non-profit status of the Foundation, and fosters positive relationships with donors. This procedure establishes clear guidelines for solicitation, acceptance, processing, restriction management, acknowledgement, and refusal of gifts.

3.0 Definitions

3.1 Gift / Donation - A voluntary transfer of cash or non-cash assets to the College or Foundation, without expectation of direct return, used to support the mission and goals of the College or Foundation.  

3.2 Restricted Gift - A gift for which the donor has specified an intended use or placed limitations on how the gift may be used (e.g., a scholarship for a specific program).  
3.3 Unrestricted Gift - A gift which the donor gives without limitations on its use, other than those generally required by law or the Foundation’s governing documents.  

3.4 Gift-in-Kind / Non-cash Gift - A contribution of non-monetary value (e.g., real property, equipment, stocks, artwork) offered to the College or Foundation.  

3.5 Donor Solicitation - Any request initiated by College administrators, faculty, staff or students to a prospective donor, for a contribution to the Foundation or College.  

3.6 Governing Documents - The Articles of Incorporation, Bylaws, policies and procedures of the Foundation and the College that govern charitable fundraising, gift acceptance and stewardship.  

3.7 Nonprofit Status - The tax-exempt status of the Foundation under federal and state law (e.g., IRS regulations) which requires that its operations align with its charitable purpose and maintain appropriate controls over contributions.  

3.8 Gambling (under Arizona law) - As defined in A.R.S. § 13-3301(4), risking something of value for an opportunity to win a benefit awarded by chance; unless excluded by statute, gambling is illegal in Arizona.  

3.9 Auction / Raffle / Phone-a-thon - Those fundraising activities which may trigger special legal or tax obligations (e.g., classification as gambling or gaming under state law) and therefore require additional review prior to implementation.

4.0 Procedure

4.1 Oversight and Leadership

The President of Northland Pioneer College (the College) is charged with oversight and supervision of all fundraising undertaken by the College and NPC Friends and Family, Inc. (Foundation).  All private donations to the College or Foundation will be received by the Foundation and distributed to advance the mission and goals of the College and Foundation. Foundation activities and support include but are not limited to:  

•    Raising money for student scholarships and educational programs for students of the College;  
•    Helping to foster a better public understanding of the College and secure wider participation in cultural and community activities;  
•    Encouraging potential students to attend the College;  
•    Promoting the academic programs and services of the college;  
•    Undertaking any other activities that may be to the benefit of the College and its community, within the terms of the Foundation Articles of Incorporation and Bylaws.

4.2    Coordination of Fundraising Activities  

The College President and the Executive Director of the Foundation provide the leadership for all fundraising activities on behalf of the College. All gifts from private sources are received and processed by the Foundation on behalf of the College, unless otherwise stipulated by a grantor.  

Donor Solicitation: College administrators, faculty, staff and students must seek approval for any and all donor solicitations. If the proposed solicitation aligns with the fundraising priorities of the College and Foundation, the Executive Director of the Foundation will approve and may assist in the solicitation. Faculty and staff who are interested in seeking program funding from government or private corporations or foundations must get approval from the College President. Administrators, faculty and staff must notify the Foundation of any unsolicited donations that come to their attention, so the Foundation can for vet and process them.  

Special Fundraising Guidelines: Certain fundraising activities, such as auctions and phone-a- thons have special guidelines. IRS and legal requirements must be considered before planning these types of fundraising activities. Gambling is defined in Arizona Revised Statutes (“A.R.S.”) § 13-3301(4) to require risking something of value for an opportunity to win a benefit, which is awarded by chance. As provided by A.R.S. § 13-3302, all gambling is illegal in Arizona unless a statute excludes it as legal. Per these Arizona Revised Statutes, the Foundation will not facilitate raffles by faculty, staff or student groups.  

Gift Acknowledgement: The Executive Director of the Foundation maintains active contact with all who support the Foundation. The Foundation coordinates all communications with donors and donor prospects. Acknowledgements are drafted by the Foundation and signed by the Executive Director of the Foundation or his/her designee.  In certain cases, it may be appropriate for College administrators, faculty, or staff to send a thank-you letter in addition to the Foundation’s official acknowledgement for special gifts received by a particular department or faculty member. Copies of this correspondence are to be forwarded to the Foundation for retention in the donor files.  

Reports and Donor Record Files: Reports of gift income by source and purpose are maintained by the Executive Director of the Foundation. All these activities are performed in keeping with the strictest levels of confidentiality.

4.3 Gift Acceptance  

Donor Gift Designation: Donors will direct all gifts to the Foundation. Donors may designate and restrict their gifts to specific programs of the College or Foundation. Any restrictions placed on donations will be maintained in the Foundation’s official records. The Foundation Board may redirect a gift to other Foundation purposes if, at any time in the future, the original purpose of a gift is no longer feasible.  For scholarship gifts, the donor may not designate the recipient but may participate in the anonymous selection of recipients as part of the scholarship selection committee, or designate criteria for selection of scholarship recipients provided that the criteria are in accord with the Foundation’s and/or the College’s mission or purpose, would not endanger the Foundation’s non-profit status, are not so narrowly tailored so as to apply to only a single potential recipient, and otherwise comply with local, state and federal laws.  

Donor Recognition: Gifts will be recognized in accordance with the gift level recognition guidelines of the Foundation. Annual and endowed funds may be named for individuals, businesses or organizations with the approval of the Foundation Board of Directors.  

Gift Acceptance or Refusal: All cash and gift-in-kind donations will be directed to the Foundation. The Executive Director of the Foundation will consider accepting gifts in accordance with the Gift Acceptance criteria of the Foundation. The Foundation will comply with donor-established guidelines, local, state and federal laws, and IRS requirements.  The Foundation maintains the right to refuse a gift, which, in the view of the Executive Director and the Board of Directors, is not in keeping with the Foundation’s and/or the College’s mission or purpose or would endanger the Foundation’s non-profit status. Complicated potential gifts involving multiple donors, multiple transactions, operating businesses, or unusual assets or conditions will generally be avoided, as the time requirements often involve more expense than the potential gain.  

Non-cash or In-kind gifts: All non-cash or in-kind gifts to the College will be accepted through the Foundation only after receipt of documentation that the item(s) are needed from the appropriate College administrator, and the approval of the College President. Valuation of any such gifts will be the responsibility of the donor in compliance with IRS regulations.

Based on Policy #1921; New 07/01/2021