4.4.1 Fundraising Approval and Priority-Setting
Formerly Known As Policy Number: 44
This Guide Memo sets forth University fundraising policy, outlines the procedure for requesting fundraising approval and priority, and describes the procedures by which fundraising requests are reviewed for academic merit, evaluated for fundraising potential, and, if approved, assigned priorities for fundraising. The aim of this Guide Memo is to establish a systematic and orderly approach to private funding sources, to maximize support from them, and to assure that support is directed toward University priorities.
1. Policy
Requests to raise gift funds are subject to review and approval under the procedures set forth in this Guide Memo. The procedure for obtaining clearance to approach and solicit specific prospective donors is set forth in Guide Memo 4.3.1: Operating Policies for Development.
2. Applicability
The procedures detailed in this Guide Memo apply whenever approval is sought to raise gifts from individuals, foundations, associations or corporations to support a project of $1,000,000 or more. Projects are defined broadly to include any program or activity of the University and/or its schools and units. Gifts are defined in Guide Memo 4.1.1: Gifts to the University. These procedures do not apply to the following:
a. Certain small projects
Projects for which the total fundraising requirement over the life of the project is less than $1,000,000 require only decanal or directorial approval if all of the fundraising will be handled within the school or unit by the faculty and/or school's or unit's development staff without assistance sought from the central Office of Development. However, (1) clearance to approach each specific prospect is still required under Guide Memo 4.3.1[2]: Operating Policies for Development; and (2) the proposed gift should be reviewed with central development staff if there are any unusual terms or circumstances relating to a particular gift, such as if the prospect has no prior relationship with Stanford, if the gift is to fund a new program or project or if any of the gift terms are unusual.
b. Facilities
Requests for approval to raise funds for facilities projects are handled as part of the Provost's Capital Plan process. Approval of a facilities project, including new construction and renovation projects, will include a careful consideration of potential funding sources. Facilities projects will be assigned a fundraising priority by the Provost after consultation with the Office of Development about those sources.
c. Sponsored Projects
Policy and procedures with respect to the preparation, review, and submission of sponsored project proposals are set forth in the Research Policy Handbook 14.1. Consult Research Policy Handbook Document 13.1 for the distinction between gifts and sponsored projects.
d. Industrial Affiliates Programs
Principles, guidelines, and procedures for the establishment and operation of industrial affiliates and related membership-supported programs are set forth in the Research Policy Handbook 13.4.
e. Specific Requirements for Certain Activities
Gift solicitations for activities involving human subjects, laboratory animals, radiological hazards, biologically infectious agents, or recombinant DNA techniques are also subject to review by the Sponsored Projects Office for compliance with University policies and external requirements.
3. Application and Review and Approval Procedures
a. Request
The Requestor initiates the process by completing the on-line Request for Fundraising Approval and Priority Form.
b. Development Officer Review
Based on the information provided by the Requestor, the cognizant Development Officer completes an assessment of fundraising feasibility and a recommendation regarding fundraising priority and routes the completed Request to the School Dean/Cognizant Officer.
c. School Dean/Cognizant Cabinet Officer Review
Approved Requests are routed to the Office of Development Cognizant VP leader.
d. Office of Development Cognizant VP Review
For Requests under $5,000,000, the cognizant Office of Development VP leader will route the Request to the Vice President for Development. Requests of $5,000,000 or more are brought to the Office of Development VP leadership team.
e. Office of the Vice President for Development Review
For Requests under $5,000,000, the Vice President for Development (or their designee) may approve the Request and the Requestor will be notified of the approval to fundraise at which point the Vice President for Development may appoint a fundraising coordinator for the project. For all Requests of $5,000,000 or more, or at the discretion of the Vice President for Development, the Request will be routed to the Office of the Provost.
f. Denied Requests or Requests Where Additional Information Is Needed
If the Request is denied, or returned for additional information, at any point, the Form will be routed back to the Requestor.
4. Provostial Review
The Provost or the Provost's designee, in consultation with such individuals and/or committees as the Provost may designate, will review the Requests submitted by the Officer of the Vice President for Development using the following criteria:
a. Academic justification
How closely does the project relate to the academic plans of the department, the school, and the University?
b. Budgetary impact
Would funding the project by means of gifts offset existing demands on general funds budgets? Would the project require general funds support, cost sharing, or other immediate financial obligations? Would the project place future financial obligations on the University once the gift or grant funds have expired?
c. Fundraising potential
How many prospective donors exist for the project and to what extent would it compete with other projects of interest to such donors?
5. Provostial Decision
After weighing these factors the Provost or the Provost's designee will (1) approve the Request with an assigned priority, (2) return the Request and ask for additional information, or (3) deny the Request. The designation of a priority determines the level of effort expected from the Development staff. Such priority designations will also assure that donors are presented with the University's most important projects.
a. Approved with High Priority
Funds for projects awarded this priority will be actively sought, both by school and unit development staff and by the central Office of Development. The Office of Development will work with school and unit development staff to identify and solicit prospects for high priority projects and will enlist volunteers and faculty support as needed, taking into account other project(s) in which prospects may also be interested.
b. Approved for Opportunistic Fundraising
Fundraising projects approved for opportunistic fundraising must not compete with fundraising for other projects. In most cases, this will mean that fundraising will be limited to prospective donors who have directly expressed interest in the project, noncompetitive “target of opportunity” prospective donors, or corporations and foundations that have an identified programmatic interest in the project. Fundraising must be handled exclusively by the school or unit, without any assistance from the central Office of Development.
c. Denied
No gifts may be solicited for projects for which fundraising approval has been denied. Requestors may wish to consider other funding sources as outlined in Guide Memo 4.5.1: Funding New Programs.
6. Development Action
After a project has been approved and assigned a priority, the Provost will send the Request for Fundraising Approval and Priority form describing the project to the Office of the Vice President for Development for distribution to the fundraising staff. At the discretion of the Vice President for Development, a fundraising coordinator for the project may be appointed. The Development Office will periodically review its list of approved and rated projects in order to recommend changes to the Provost based on fundraising results. Clearance to approach each specific prospect is still required under Guide Memo 4.3.1: Operating Policies for Development.