Assessment of Gifts to the School of Medicine

Date: May 29, 2024
Number: 1.525
Status: Final

Contact Office
Controller
Dean’s Office, School of Medicine
PO Box 8007968
Charlottesville, VA 22908
phone: 434-924-8412

Oversight Executive
Chief Operating Officer
PO Box 800793
Charlottesville, VA 22908
Phone: 434-297-7492

Applies to
All gifts except gifts-in-kind and gifts designated by the donor for unrestricted use by the Dean.

Private grants that are managed by the Office of Sponsored Projects are not subject to this policy.

Reason for Policy
To increase the unrestricted funds that are available for the Dean to invest in School of Medicine operations and programs.

Definition of Terms
Gifts-in-Kind are non-cash gifts of goods or services. Examples in the SOM include gifts of equipment from manufacturers, artwork, or books donated to the Claude Moore Health Sciences Library.

Restricted gifts, for the purpose of this policy, are any gifts that are neither unrestricted nor gifts-in-kind. These include gifts designated for a specific purpose, such as a research fund, capital project, or endowment; or for use by a department, division, or center. All restricted gifts are subject to the assessment.

Unrestricted gifts are made at the SOM level (not at the department or center level) and are available for the Dean’s immediate discretionary use. They are not subject to the gift assessment.

Policy Statement
All gifts to the School of Medicine (“SOM”) that are $10 million or less will be assessed 5%. All gifts to the SOM that are greater than $10 million will be assessed 2.5% for the amount above $10 million. Thus, a gift of $25 million would have an assessment of 5% on the $10 million and 2.5% on the $15 million that exceeds that initial $10 million.

The assessment will apply regardless of which foundation (Rector and Visitors, UVA Health Foundation, UVA Fund, or Medical School Foundation) receives the gift.

The assessment will be payable as an outright assessment from the original donor gift (e.g., for a $100,000 gift, the assessment is $5,000 and $95,000 is directed toward the designated purpose). In rare circumstances, the assessment may (a) be paid from department discretionary funds, in which case 100% of the donor’s restricted gift is directed toward the designated purpose, or (b) held in investment until the amount of the assessment accrues, if the holding of the gift is documented in the gift agreement.

This policy does not affect the University’s minimum endowment levels. Thus, if a donor contributes $3 million for a professorship, it is considered fully funded even though the gift is assessed 5%.

Revision History
Implemented 3/1/09; administrative updates 1/26/15; revised 2/4/20; revised 5/29/24.

Approved by
Melina Kibbe, MD
Dean