To identify the policies and issues surrounding the acceptance of illiquid gifts
May, 2021Responsible Office
The following factors should be reviewed by the appropriate Development Officer in coordination with Trust Administration for gifts which cannot be readily liquidated (liquidated within one week). Note that in all cases, the donor should be informed that his/her gift credit is the realized sale proceeds.
Purpose of the Gift:
Endowment: An illiquid gift is generally acceptable.
Building Fund: Acceptable only if the school/center and the Vice President for Finance and Treasurer determine it meets funding requirements for the building.
Current Fund: An illiquid gift is generally acceptable.
Scholarship Fund: An illiquid gift is acceptable only if the securities generate income or if awards are made following liquidation of the securities.
For limited partnerships or other commingled vehicle investments, Trust Administration must seek a review by the Office of General Counsel to determine if there are any other potential liabilities associated with the investment.
If there are no potential liabilities:
If there are no other potential liabilities, coordinate with Trust Administration on the following:
Hedging restricted stock gifts