Gift Allocation & Use

Disposition of Gifts
The Arkansas State University  System  Foundation, Inc. serves as the vehicle for receiving all private donations for the benefit of Arkansas State University. Exceptions include contributions  to athletics through the Red  Wolves  Foundation  and gifts in which the donor specifically requests or requires that the gift go directly to the university. Upon receipt of gifts by the ASU  System  Foundation, Inc., the following disposition shall be made:    

 

 

 

 Unrestricted gifts will be placed in the  university  unrestricted account to be used according to foundation policies.   

 

 

 

 

 

 

 Designated gifts, meaning those gifts which may be used for unrestricted purposes within a college, department, or program  designated  by the donor, will be  established  in separate accounts, invested according to foundation policies, and dispersed upon approval of the designated fund controller.   

 

 

 

 

 

 

 Restricted cash gifts for specific purposes such as scholarships are used as designated.   

 

 

 

 

 

 

 Individual endowment and quasi-endowment funds are held in the foundation and invested.    

 

 

 

 

 

 

 Non-cash gifts that may eventually be converted to cash  generally are  held by the foundation. Disposition of such gifts, however, will vary on a case-by-case basis.   

 

 

 

 Revised:  04/08/2026   

 

 Effective Date: 07/01/91     Number: 06-07     Section: University Advancement Subject: Disposition of Gifts  

Restricted Gifts
All restricted gifts for the benefit of Arkansas State University shall be reviewed by the  vice chancellor of University Advancement,  in conjunction with the unit  designated  to receive the gift, as well as the ASU  System  Foundation.   

 Acceptance of a gift imposes a legal obligation to  comply with  the terms  established  by the donor. Therefore, the nature and extent of this obligation must be clearly understood.  Accordingly , the terms of each restricted gift will be reviewed carefully to ensure that they do not hamper the usefulness and desirability of the gift for the benefit of the university. If a gift is  deemed  unacceptable because of restrictions the donor has placed on its use, the donor shall be counseled to remove or  modify  the restrictions.    

 Gifts shall be refused or returned when the purpose:    

 

 

 

 I s inappropriate or not conducive to the best interest of the university,   

 

 

 

 

 

 

 I s clearly commercial, or   

 

 

 

 

 

 

 W ould  obligate  the university to undertake responsibilities, financial or otherwise, that it may not be capable of meeting during the period required by the terms of the gift.   

 

 

 

 Restricted gifts which are unacceptable are those:    

 

 

 

 Restricted in use based on race, color, religion, creed, nationality, or sex.   

 

 

 

 

 

 

 Restricted in beneficiary to relatives or descendants.   

 

 

 

 

 

 

 Reserving the designation of beneficiary of gift to the donor or his or her assigns: i.e., scholarships, fellowships, professorship. (Such "gifts" restrict donor tax consequences.)   

 

 

 

 

 

 

 Restricted to the future employment of the recipient of any gift.   

 

 

 

 

 

 

 Restricted by interest rates and conditions for repayment of loans.   

 

 

 

 All gifts received for restricted endowment purposes, when accepted, shall be accepted only on the condition that should the purpose for which the funds are provided cease to exist, the Foundation Board shall reallocate the income from those funds to purposes relating as closely as possible to the original intent of the donor. Such provisions should be provided in all wills and other planned giving instruments and devises as far as possible.    

 Revised:   04/08/2026   

 Effective Date: 07/01/91     Number: 06-09     Section: University Advancement     Subject: Restricted Gifts