Trust Administration

December 10, 2014

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Trust Information

• December is the peak giving month of the year

• Donors are increasing looking for ways to support UVA, while taking advantage of legal & tax structures that• help reduce or eliminate capital gains taxes• help reduce or eliminate gift and estate taxes• provide immediate tax savings

• Common structures that provide tax benefit to donors:• Planned Gift• Bequests• Life Income Gifts• Charitable Gift Annuity

- - - - - - - - >Trusts

• Reference: http://giving.virginia.edu/trustsandestates/wp-content/uploads/sites/10/2013/09/giftPlanningWhitepaperLoRes_0810.pdf

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Two Categories of Trusts

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UVA Managed Trusts Externally Managed Trusts

Quantity & Amount 180 Trusts / $77 Million * 118 Trusts / $228 Million (DuPont is $92M)

Beneficiary UVA UVA (partial or sole)

Trustee UVA External Party

Charitable Lead Trust (CLT) Charitable Lead Trust (CLT)Types of Trust Charitable Remainder Trust (CRT) Donor Advised Funds

Pooled Income Fund (PIF) Perpetual Trust

Gift Annuity Charitable Remainder Trust (CRT)

Nature Irrevocable Revocable and Irrevocable

Invested UVIMCO's Long-Term Pool UVIMCO-recommend Mutual Fund

various, as determined by trustee or donor

Administered

UVA outsources to BNY Mellon Private Wealth Management - accountable for all decisions made related to the trust - compliance with legal, financial and tax regulations - address intergenerational matters with multiple beneficiaries

various (banks, individuals, attornys, CPAs)

On Balance Sheet Yes No; Disclosure Note Only

Trust History at UVA

• Trust responsibility has been decentralized and fragmented within the University

• Multiple departments have various roles and “touch-points” on Trusts

• No formal policy or procedures for Trust administration exists

• Trust records were held in multiple departments• Accounting – records distributions & receives some statements• Gift Planning – some original trust instruments & some statements• Development – some original trust instruments & some statements• Treasury – some statements• Schools – donor communications and receives some income payments 4

Externally-Held Trust ManagementProcess Improvement Plan

1.) Form Work Group May 15, 2014 - Treasury - UVIMCO - UVIMCO - Gift Accounting - Gift Planning - Financial Reporting

2.) Redefine Process (see Appendix A) June 30, 2014

3.) Inventory All Trusts (see Appendix B) July 30, 2014

4.) Advisor review of select high-profile trusts; Sept. 30, 2014

5.) Implement New Roles/Process 1st Qtr FY 2015

6.) Implement Periodic Review Meetings 1st Qtr FY 2015 5

Implementing New Roles / Process

• If a Donor indicates they would like to give using a Planned Giving Structure or Trust:

1) Contact Your Development Officer2) Contact UVA Office of Gift Planning (Jason Chestnutt)

• Gift Planning will work with Department to ensure• gift meets donors financial and philanthropic goals

• gift is recorded properly on UVA’s books• trust instrument is received and properly archived at UVA• receipt of trust statements and required filings are met

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Do Discussions with Donor Sometimes Feel Like This?

Questions & Contacts

Jason ChestnuttDirector of Planned Giving PO Box 400807434-924-1016jrc5d@virginia.eduhttp://www.virginia.edu/giftplanning

Julie RichardsonDirector, Treasury ManagementPO Box 400897434-243-8672jwr7n@virginia.eduhttp://www.virginia.edu/treasury 8

Appendices

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