1.  Supplemental Funding of the UCSD Development Office, NOTICE, 5/4/84.

2.  Letter from Vice President Baker, dated February 13, 1987, regarding U.C. policy on Use of General Funds for Development.

3.  UCSD Policy and Procedure Manual (PPM)

   150-35	Classification, Acceptance, and Administration of Awards from Private Sources
   410-1	Solicitation, Acceptance, and Administration of Gifts to the University
   410-2	Solicitation, Acceptance, and Administration of Gifts to the U.C. San Diego Foundation
   410-4	Policy and Guidelines for Minimum Gift Levels and Naming Opportunities

BACKGROUND

UCSD has made a commitment to a comprehensive development effort in order to meet increasing demands for private support to the institution. The amount of private support to UCSD has increased substantially in recent years and the benefits to our academic programs have been evident. University policy precludes using General Funds for fund raising efforts by Development. In order to recover a portion of the increasing costs of the private fund raising effort at UCSD, a flat rate administrative fee will be assessed on all gifts to UCSD or UC San Diego Foundation.

Fund raising at UCSD includes not only the direct costs of soliciting contributions by Development Officers and other campus representatives, but also includes processing, accounting, and monitoring of those funds.

The administrative fee is not designed to be in lieu of applicable UCSD indirect cost recovery rates for sponsored research. Departments should refer to PPM 150-35 to ensure an award is appropriately classified as a gift.

POLICY

Effective July 1, 1993, all gifts, made to either UCSD or the U.C. San Diego Foundation, will be assessed an administrative fee of 4% for the purpose of partially defraying development program and related administrative costs. New cash gifts and payments on pledges are subject to the fee as of the effective date. The fee percentage may be reviewed and revised periodically. The options for methods of payment of the fee are described below. Departmental correspondence regarding interpretation of this Policy should be submitted through the originating department's Vice Chancellor to the Vice Chancellor-Development and University Relations.

PROCEDURES

1. Methods of Payment

   1. Deduct the 4% fee from the gift principal, except gifts for endowed chairs and minimum endowed fund naming opportunity gifts (see PPM 410-4). For these exceptions, the fee will be deducted from the first available endowment income rather than principal, in order to ensure the minimum principal for an endowed chair or naming remains intact. Donors may elect to provide for the fee by making an additional gift equivalent to the fee.

   2. The academic unit benefiting from the gift has the option of paying the fee from another discretionary departmental funding source, rather than the fee being deducted from the gift principal. This fee payment method can be used when the terms of the award specifically disallow fees or cost recovery. Gift Administration will hold the gift in an undistributed cash account until notified in writing by the originating department of the Index and Fund to be charged with the fee.

   3. If special circumstances dictate, Vice Chancellors may submit to the Vice Chancellor-Development and University Relations, a written request that the gift be held until sufficient earnings have accrued to pay the fee. Once the fee is earned, the award will be transferred to a fund and made available for program purposes.

2. Disclosure to Donors

   Disclosure of the fee policy is made to donors on all donation receipts. However, written or oral disclosure of the fee to donors is encouraged at the time of solicitation. Fee information should be included in any printed fund raising literature issued to prospective donors. Appropriate disclosure language for fund raising literature can be obtained from University Relations, Gift Administration Office.

3. Exemptions

   Non-cash gifts made to the University which are to become inventoried useable assets of the University are not subject to this policy.

   Awards for fellowships are exempt from the fee when made to specifically named individual graduate and postdoctoral students via an application process, and which attach to the individual and may move with them to another institution by virtue of the terms of the award. Student status must be verifiable through UCSD's Office of Graduate Studies and Research.

   Any gift agreements executed prior to the effective date of this policy which specifically disclosed that the gift was exempt or subject to only a 2% fee under the prior policy will be honored.

RESPONSIBILITIES

1. Departments

   1. Submit each award to University Relations, Gift Administration Office for processing after proper classification has been determined and documentation obtained, in accordance with University policies and procedures.

   2. Communicate in writing to Gift Administration if the fee is to be paid from a source other than the gift itself.

2. Departments and Development Officers

   1. Inform potential donors of the fee via solicitation materials or verbal discussion.

3. U.C. San Diego Foundation or UCSD Extramural Funds

   1. Deduct the fee from the principal of all gifts, except endowed chair and minimum endowed fund naming opportunity gifts, unless other written payment instructions have been received from the department. Deduct the fee on gifts that are the exceptions from endowment income.

4. University Relations, Gift Administration Office

   1. Process all gifts in accordance with University policies and procedures.

   2. Issue donation receipts with the statement informing donors of the fee policy.