Receipt of Gifts and Grants Procedure - 61.05.01
College Policy Number/Title:
A gift is a donation that is the voluntary, non-reciprocal transfer of money or property from a donor to the Howard Community College Educational Foundation, Inc. (HCCEF). The donor does not expect anything in return other than recognition and a charitable tax deduction per IRS guidelines. The donor does not have direct control over expenditures. A gift may meet the interest of the donor and can be restricted or unrestricted.
Gifts to the college must be made through the HCCEF. The HCCEF has the right to refuse gifts that are deemed to be of no value or benefit to the HCCEF or the college.
Donations made to the HCCEF are generally non-refundable. Once a charitable contribution has been made, the funds enter into the public trust and must be used toward the public good as it pertains to the HCCEF’s mission. Funds may only be returned in unusual circumstances and with the approval of the HCCEF board of directors.
A grant is generally the transfer of money or property from a granting entity to Howard Community College or the HCCEF for a specific purpose such as, but not limited to, instructional development, research, or a service project. A grant typically requires performance of predetermined duties, budget reporting, progress reporting, and return of unused funds within a specific time period.
Grants from either public or private entities may be made directly to the college or the HCCEF depending on the requirements of the granting entity. For example, a granting entity may be required to donate through a 501(c)(3) organization, which would require that the grant be made to the HCCEF.
The cost center manager works closely with the college’s grant accountant and compliance officer, the grants coordinator/writer, and the HCCEF accountant for all grants through the HCCEF, to ensure that grants are developed and administered in compliance with applicable policies and requirements.
To ensure compliance with all applicable laws and regulations, the college and the HCCEF adhere to the following guiding principles for the protection of the donor and organization:
- External funds are awarded to either the college or HCCEF, and not to individuals.
- Only officers of the HCCEF or their authorized representatives have the legal authority to apply for and accept gifts on behalf of the HCCEF.
- Only officers of the college and the HCCEF or their authorized representatives have the legal authority to apply for and obligate the organization through execution of grant documentation on behalf of the college or the HCCEF.
- The college and HCCEF are obligated to comply with all applicable state and federal laws, and rules and regulations governing institutions of higher education and recipients of public support.
- The grant manager or cost center manager is responsible for overseeing every aspect of the grant and is expected to become knowledgeable about all regulations guiding the grant.
- Funding received may not be used to circumvent policies or rules and regulations by engaging in activities or making expenditures that the college has denied for other than purely financial reasons.
- Careful records will be maintained to document compliance with all specifications of the funding source and all applicable regulations through the earliest proposal planning stages to the close of the gift or grant.
- An annual audit of the HCCEF’s fiscal affairs will be conducted. Additionally, all grants received by the college are subject to a fiscal and compliance audit as a component of the college’s annual external audit.
- All financial activities related to gifts and grants will be maintained in financial systems that follow generally accepted accounting principles.
- Annual audits, report of donors, major activities, fiscal position, and officers of the HCCEF will be made available to the public through the college website.
Effective Date: 02/11/22
President's Office Use: PRES