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The John and Ann Show

Featuring

John Taylor and Ann Kaplan

� Yes, but not every year.

� Yes, we always participate.

� No, we have not participated.

� I don’t know.

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� Objective means to measure fundraising performance

� Avoid inaccurate comparisons

� Strengthen philanthropy� Protect nonprofit

credibility

� Currently most widely-accepted standards – heck, they are the ONLY standards for national reporting on educational and nonprofit fundraising!

� Required for submission of the annual CAE/VSE Survey and the CASE Campaign Survey

� Must evolve to stay relevant

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So Totally Cool!

Actually the 4th

name change in 4 editions – for good

reasons!

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� Changes affect new (starting in 2008) multi-year campaigns. Annual, national (VSE), counting report is unchanged – those standards have been generally static for 30+ years!

� Changes result in greater transparency� Call for breaking out several categories of gifts

for separate reporting� Allow for the better tracking of trends in

fundraising campaigns� Recognize and address the more common

historical departures from the CASE Standards

� Changes affected only new (starting in 2008) multi-year campaigns. Annual, national (VSE), counting remain unchanged– those standards have been generally static for 35 years!

� Changes result in greater transparency� Call for breaking out several categories of gifts

for separate reporting� Allow for the better tracking of trends in

fundraising campaigns� Recognize and address the more common

historical departures from the CASE Standards

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� Gifts & Grants are synonymous (for CASE and CAE reporting purposes)

� A gift is the irrevocable transfer of property or money to a qualified organization and has no donor-imposed restrictions, conditions, or control

� You cannot un-gift a gift!

� The determination of whether to classify certain revenues as a gift, grant, or contract can vary according to each institution’s general accounting policies

� CASE’s goal is to ensure that institutions report only those transactions that involve true philanthropic intent

� For CASE reporting purposes, there is no need to distinguish between a gift and a grant

� In its continuing efforts to ensure that fundraising reports are as consistent as possible across institutions, CASE provides the following general definitions:

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� A contribution received by an institution for either unrestricted or restricted use in the furtherance of the institution for which it has made no commitment of resources or services other than, possibly, committing to use the gift as the donor specifies

� The contribution is a nonreciprocal transfer in that there is no implicit or explicit statement of exchange, purchase of services, or provision of exclusive information

� If the donor receives benefits in return for the contribution, the amount of the gift recorded and reported is reduced by the fair market value of all benefits given, according to U.S. Internal Revenue Service regulations

� The institution has no obligation to report to the donor how the gift is used or invested, but institutions are not prevented from providing such reports as part of donor stewardship

� A contribution received by an institution for either unrestricted or restricted use in the furtherance of the institution that typicallycomes from a corporation, foundation, or other organization, not an individual. An institution may determine that what a donor calls a grant is, for internal record-keeping, a gift. Grants normally fall in 1 of 2 categories:

1. Nonspecific grants: grants received by the institution that did not result from a specific grant proposal. The institution does not commit specific resources or services, nor is it required to report to the donor on the use of the funds. It is this category of grant that many institutions may opt to regard as gifts for internal accounting purposes

2. Specific grants: grants received by the institution resulting from grant proposals submitted by the institution. The institution commits resources or services as a condition of the grant, and the grantor often requests an accounting of the use of funds and of results of the programs or projects undertaken. Note: The grantor’s requirement of regular status reports or other reports does not negate the philanthropic (and countable) nature of a specific grant

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� An agreement between the institution and another entity to provide an economic benefit for compensation

� The agreement is binding and creates a quid pro quo relationship between the institution and the entity

� Contracts should be excluded from an institution’s fundraising totals

� This definition is not intended to address gift annuity contracts or similar charitable instruments

Gifts of Cash, Stock, or Property (IncludingRealized Bequests)

Newly Established:Charitable Remainder TrustsGift Annuities, Pooled-Income Funds

Private and Community Foundation Grants + Corporate Gifts or Grants

Gifts of IRAsLife Insurance (at Cash Surrender Value)When Institution is Both the Owner and Beneficiary Plus Future PremiumPayments the Donor Makes.

Net Proceeds from Events or Charitable Portion of Event Fees

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Tuition, Room and Board

Non-Charitable Portion of Event Fees

Donated Space, Hotel Rooms, or Airline Tickets

ContractedSponsoredResearch

DonatedServices

GovernmentGrants

Pouring Rights

SponsorshipsSoftware

Pledges

Sales

� Advertising revenue� Alumni membership dues/fees� Appraisal costs and other expenses

associated with conveying a gift� Contract revenues (including clinical

trial funds)� Contributed services� Partial interest� Standard discounts on purchases (does

not include true bargain sales)� Earned income transfer payments from

money earning programs/businesses� Gifts or pledges counted before;

payments on pledges or bequests made before

*Applies to Campaigns AND VSE

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� Gifts to social organizations� Governmental funds – ALL kinds� Oral pledges (except telethon!)� Written-off pledges� Investment earnings on gifts – includes

gains/losses on sales of stock/other property� Funds from exclusive vendor relationships:

Affinity credit cards, pouring rights, royalties, or other contractual obligations

� Non-gift portion of QPQ transactions� Surplus income from ticket-based operations

*Applies to Campaigns AND VSE

� Intellectual Property & Patents

� Book only the revenue stream, if any, the IP or patent generates as it is received over time

� While permanent donations of intellectual property and patents can be tax-deductible, their value to the qualified recipient organization might be impossible to predict and will rarely equal the deduction a donor might be able to claim

� A donor's appraised value should never be used when determining the value an institution uses for counting purposes

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� Conservation Easements� Usually, do not count easements in annual or campaign

surveys. Only if revenue is realized should that amount be recognized as a gift

� Only in rare circumstances does the recipient organization realize revenue from accepting an easement. While conservation of land is a noble endeavor, counting of the appraised value of these easements in fundraising totals artificially inflates those totals

� Because an easement cannot be monetized, except in very rare circumstances, it is improper to add its value to fundraising totals even if some programmatic use for it can be found

� Corporate Partnerships� None of the income or cost-savings resulting from

corporate partnerships should be included in fundraising totals

� Common examples of these partnerships are the donations of software systems to an institution for specific use in training students in the use of that particular software, wherein the institution is exempted from paying annual license or maintenance fees

� Other examples of corporate partnerships include exclusive pouring rights, food service contracts, and credit card affinity programs in which selection of a specific vendor is made with the understanding that the vendor will pay the institution fees in exchange for its selection

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Educational Fundraising Awards

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MINIMAL SURVEY FULL SURVEY

Gving by Source Giving byPurpose

S O U R C E S

P

U

R

P

O

S

E

S

Foundations

Alumni

Corporations

Nonalumni Individuals

Other Organizations

Fundraising Consortia

Religious Organizations

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Current Operations(Restricted)

Endowment (IncomeRestricted)

Property, Buildings,Equipment

Current Operations(Unrestricted)

Endowment (IncomeUnrestricted)

Deferred Gifts and LoanFunds

Alumni ofRecord

AlumniSolicited

Alumni Donors

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• Number

• Dollar Amount

• Charitable Gift Annuities

• Charitable Remainder Trusts

• Pooled Income Funds

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• Individuals (living)

• Realized Bequests (wills)

• Foundations

• Corporations

You can choose to answer all the optional questions or select one or

more from the full set.

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• Pledges and Bequest Intentions• Nonalumni Constituent Participation• Governing Board Giving• Gifts of Property• Indirect (soft-credit) Giving from, DAFs, Family

Foundations, Closely Held Companies, etc.• Forms of Corporate Giving, Including Matching

Gifts• Details on Purposes of Restricted Endowment

Gifts (e.g. scholarships, faculty compensation, research, etc.)

• Athletic Giving Details