The entity in which gifts must be recorded is generally determined by how the check is made payable, unless adequate written documentation (gift solicitation, communications, or other adequate written support) is provided to support the donor’s intent to deposit into a specific/different legal entity.
In order for funds to be deposited with a specific foundation, the solicitation must clearly indicate that the intent is for it to go into the foundation. Examples include a donor letter of intent, signed Gift Agreement/MOU, copy of pledge, or donor correspondence (including email), stating the purpose of the fund and the entity in which the fund will be established.
Any gift or devise to NC State University, including units, departments, colleges, programs, etc., must be recorded in a University fund (ledger 7). Additionally, Distinguished Professorship endowments that will receive a match from the Distinguished Professors Endowment Trust Fund must reside in the University Endowment Fund.
If a proposal is submitted to a donor/grantor (i.e. for a nonspecific grant), the proposal must be submitted in the name of the entity to which the funds will be deposited.
Additionally, the donor should be directed to make the check payable to the entity into which the funds are to be solicited and deposited. It is critical that funds are properly deposited to the entity into which they belong so that there is not any appearance of diversion of state funds. If the donor for some reason did not make the gift check payable to the correct payee, documentation from the donor must be provided indicating that the gift was intended for the foundation. Please do not return checks for incorrect payee issues, instead deposit to the entity designated as payee and then obtain written documentation to move to the entity of the donor’s wishes.
For more information, please see the Gifts, Grants, and Contracts 3d Memo and FAQs for Foundation & Endowment Fund Chartfield Requests.