Standards promote accuracy and consistency in campaign reporting

The Campaign for Mississippi State -- Part of a Series

Recent years have brought multi-million dollar fund-raising campaigns at some of the nation's foremost universities, and those efforts have increased the visibility of educational fund raising in general and of campaigns in particular.

That rise in visibility has been accompanied by increased scrutiny, and sometimes skepticism, by prospective donors and the public toward campaigns, their announced results, and their eventual benefits, said Dr. Billy Ward, vice president for institutional advancement.

One source of confusion and difficulty in assessing the results of campaigns has been the lack of a uniform standard for reporting, Ward said. National standards are just now being developed and agreed on by colleges and universities.

The Campaign for Mississippi State is using existing standards of the Council for Advancement and Support of Education and the National Association of College and University Business Officers for gift valuation and reporting. No gift that is ineligible for inclusion in the annual Survey of Voluntary Support of Education by the Council for Aid to Education will be counted as part of the campaign total. These standards will allow meaningful comparisons with similarly conducted campaigns, Ward said.

Mississippi State's campaign standards provide that only gifts and pledges actually received or committed during the specified five-year period that constitutes the campaign will be counted in campaign totals. Officially, the campaign period is July 1, 1992, through June 30, 1997. Gifts and pledges counted as part of The Campaign for Mississippi State will not be counted as part of any future campaign.

Campaign results will be reported in at least three categories: the total of gifts and pledges received; the total of deferred commitments; and the grand total of all commitments—received, pledged, and deferred.

Contributions are reported as gifts received when assets are transferred irrevocably to the university, the Mississippi State University Foundation, or the Bulldog Club. Deferred gifts are counted and reported when documentation is received.

About 30 percent of campaign commitments received so far are in the form of pledges, which are payable within five years of the date of the commitment. Therefore, a pledge received on the first day of the campaign, on July 1, 1992, will be paid in full by mid 1997. A pledge committed on the last day of the official campaign period—June 30, 1997—would be completed by June 30, 2002.

Gifts actually received during the campaign period will be counted as gifts received even though they result from pledges or planned gifts made prior to the campaign. But pledges or planned gifts that existed prior to July 1, 1992, are not included in the campaign pledge totals or deferred gift totals. If a pledge for a period of more than five years is received, only the first five years will be counted for campaign purposes.

Gifts of securities are valued for reporting purposes at the average of the high and low market value on the date the donor relinquishes control of the assets.

Gifts of real and personal property or gifts-in-kind valued at $5,000 or more are reported at the fair market value placed on them by an independent appraiser. Gifts of property valued at less than $5,000 may be reported at the value declared by the donor.

A gift of life insurance may be counted when the university is made the irrevocable owner and beneficiary of the policy. Gifts that establish charitable remainder trusts, contributions to pooled income funds, and gift annuities are credited at fair market value of the assets donated. Charitable lead trusts are counted as the amount of income actually received during the campaign period, or as a pledge of the amount receivable within five years.

Trusts administered by others will be counted at the fair market value of assets placed in trust during the campaign period, provided the university has an irrevocable right to all or a specified part of the income.

No funds received from federal, state or local government sources will be counted. Grants from non-government agencies or organizations will be reported, but contract revenue will not, regardless of its source. The distinction between a grant and a contract is based on the intent of the giver and the legal obligation incurred by the university in accepting it. A grant is given voluntarily and without expectation of compensation; a contract establishes some performance in return on the part of the university.

Testamentary pledge commitments, or wills, are reported as campaign contributions in the deferred gifts category, provided the donor is age 60 or older, or the gift will be counted when the donor reaches age 60. If the commitment is to be realized only after the death of someone in addition to the donor, that person also must be age 60 in order for the gift to be counted in campaign totals at the time of receipt.

These standards may be changed only in the event of unforeseen circumstances that warrant an exception, which must be approved by the campaign cabinet and the university president. Any exceptions will be noted.