July 15, 2008 | Read Time: 1 minute
Colleges and universities that receive substantial gifts should consider adopting an overall gift policy that gives them some flexibility in how the gift is used if they don’t have one in place already.
That’s the message Harvey Dale, director of the National Center on Philanthropy and the Law at New York University, gave to advancement administrators attending a fund-raising gathering in New York today.
Mr. Dale said few institutions have such policies, which are increasingly important in today’s philanthropic environment, where some donors have publicly challenged how gifts are being used.
In the case of major gifts, colleges “need something more than just a handshake,” Mr. Dale said.
A sample of a gift agreement handed out at the discussion used this language: “If, as a result of changed conditions in the future, the distributions from this Fund shall not be needed for the original purpose set forth above, the university is authorized to use the distribution for such other purposes as nearly as possible akin to the original purpose as in its judgment will help advance the aims of the university.”
But Mr. Dale cautioned against universities using a boilerplate agreement and said individual institutions should work with their lawyers to craft an agreement specific to their needs.
He also said universities should have an agreement formally approved by the institution’s governing board to give it more weight.
