POLICY NUMBER: 52 MUSC Foundation Policy on SOLICITATION PIECE PROCEDURES, 2007 Responsible Executive Officer, Chief Financial Officer

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1 MEDICAL UNIVERSITY OF SOUTH CAROLINA FOUNDATION PROCEDURE FOR USING THE SOLICITATION PIECE (FOR SPECIAL EVENTS) POLICY NUMBER: 52 MUSC Foundation Policy on SOLICITATION PIECE PROCEDURES, 2007 Responsible Executive Officer, Chief Financial Officer PROCEDURES: The "Solicitation Piece" form was created to facilitate the MUSC Foundation in processing incoming donations specifically related to a special event. The Development Officer in charge of the event is requested to complete the Solicitation Piece form (sample attached) in its entirety to the Foundation. In addition to the form, provide a sample of any other event solicitations to the MUSC Foundation prior to doing a mass mailing for the event.

2 SOLICITATION PIECE FORM Prior to sending out your mass mailing of solicitation pieces, please complete the entire form, attach it to the sample solicitation piece, and then forward to the MUSC Foundation so that we can be aware of incoming donations. This will aid us in the preparation of processing donations. Also, in an effort of tracking the various fundraising special events that are held by Development or MUSC Department, please specify below if this solicitation is a result of such. Contact Name & Phone #: ****FUNDRAISING SPECIAL EVENT(S): yes OR no (circle one) ****Special Event: (If yes, please provide name of event, and attach sample form) Name of Solicitation Piece: Name of Raisers Edge Campaign: Raisers Edge Fund Name: Raisers Edge Fund number: Raisers Edge Appeal Code Name: Raisers Edge Appeal Code Number: Raisers Edge Package ID Name: Raisers Edge Package code Number: Date mailing will be sent out: Special Instructions: Quid Pro Quo Donations: For Special Events and/or Sponsorships solicitation pieces that are "Quid Pro Quo" contributions provide the following information: Description of Goods/Services: Good-Faith Estimate Fair Market Value: Should there be several items of goods/services that are provided at various amounts and/or sponsorship levels, i.e. HCC Golf Tournament, please provide a list that shows the breakdown of the items along with its assigned good-faith estimated fair market value amount. For 'Quid Pro Quo' contributions, it is the responsibility of the Development Officer and/or MUSC Department's representative that is in charge of the Event to properly acknowledge/receipt the donors. A sample of your acknowledgement/receipt letter is to be provided to the MUSC Foundation prior to the date of the event for review as to assist with ensuring that it meets IRS guidelines. 18 Bee Street MSC 450 Charleston, SC Tel (843) Fax (843)

3 SPECIAL EVENTS - The Medical University of South Carolina Foundation is to be informed in advance of all special events, such as Golf Tournaments, CHF Holiday Cards sales, etc., that are considered as "Quid Pro Quo Contributions". MUSCF must be provided the following information to process checks: Complete the MUSCF form entitled, "Solicitation Pieces Mass Mailing" Attach samples of the solicitation piece(s) to the form before distribution to donors Fund designation Raiser's Edge gift appeal code for tracking of the special event. The breakdown of the fair market value for each item of goods and services that the donor receives in exchange for the contribution. (Sec "Sample: Golf Tournament Breakdown of Valuation for Goods or Services") Development Officer in charge of the special event, should we have questions. For further information regarding "Quid Pro Quo Contributions", please review the following. "QUID PRO QUO CONTRIBUTIONS" A "quid pro quo contribution" is defined as a pavment made partlv as a contribution and partlv as payment for goods or services provided to the contributor. A charity provides goods or services in consideration for a contributor's payment if, at the time that contributor make the payment, he or she receives or expects to receive goods or services in exchange for that payment. Example of a "quid pro quo contribution": The donor gives a charity $ contribution in consideration for a concert ticket valued at $ The contribution would be $ It is the responsibility of the Development Office to provide to the donor a good faith estimate of the value of such goods or services rendered. Written Disclosure Requirements: As of January 1, 1994, IRS tax rules require charities to inform donors, in writing, of the value of any benefits received in exchange for contributions. Charities must furnish the disclosure statements in a timely manner - with either the solicitation of the quid pro quo contribution or the receipt of the quid pro quo contribution. ([he MUSC Foundation will forward to the Development Officer in charge of the special event, draft copies of the acknowledgement/receipt cards, which will be printed on while paper along with a line drawn through them voiding the receipts, as standard procedures jar properly acknowledging "quid pro quo" contributions.) The written documentation prepared by the Development Office must state that the deduction is limited to the excess of the contribution over the value received, and provide a description of the quid pro quo goods (concert ticket). This documentation is required when a donor contributes $75.00 or more and receives goods or services more than a minimal amount. (See "Sample: Acknowledgement for Contribution for Goods or Services Returned to Donor Exceeding $75.00 or more") The quid pro quo reporting requirements does not apply if the goods or services received by the donor are considered to be insubstantial if the payment occurs in the context of a fund-raising campaign in which a charitable organization informs the donor of the amount of the contribution that it is a deductible contribution. Be sure to review the IRS rules/guideline for updated information regarding the current percentage.

4 The fair market value of the benefits received does not exceed the lesser of 2 % of the payment or $107.00, whichever is smaller, or The payment is at least $53.50, the only items provided bear the organization's name or logo (e.g., calendars, mugs, or posters), and the cost of these items is within the limits for "low-cost articles," which is $ Example of a token exception: If a charitable organization gives a coffee mug bearing its logo and costing the organization $10.70 or less to a donor who contributes $53.50 or more, the organization may state that no goods or services were provided in return for the $53.50 contribution. The $53.50 is fully deductible. Free, unordered low-cost articles are also considered to be insubstantial. Membership Benefits Exception - An annual membership benefit is also considered to be insubstantial if it is provided in exchange for an annual payment of $75.00 or less and consists of annual recurring rights or privileges, such as: Free or discounted admissions to the charitable organization's facilities or events Discounts on purchases from the organization's gift shop Free or discounted parking Free or discounted admission to member-only events sponsored by an organization, where a per-person cost (not including overhead) is within the "low-cost articles" limits. Example of a membership benefits exception: If a charitable organization offers a $75.00 annual membership that allows free admission to all of its weekly events, plus a $20.00 poster, a wtitten acknowledgment need only mention the $20.00 value of the poster, since the free admission would be considered insubstantial and, therefore, would be disregarded. Keep in mind that these amounts can change every year. The dollar amounts are for Guideline amounts are adjusted for inflation. Contact IRS Exempt Organization Customer Account Services at (877) for annual inflation adjustment information. Or, visit the web site at Penalty: A penalty is imposed on charities that do not meet the written requirement. The penalty is $10.00 per contribution, not to exceed $5, per fund raising event or mailing. An organization may avoid the penalty if it can show that failure to meet the requirements was due to reasonable cause.

5 Sample: Golf Tournament Breakdown of Valuation for Goods or Services Updated Golf Tournament Benefits& Non-Deductible Valuations $1,500 Foursome (Contributed portion is S600. Non-deductible is $900.) Cost of Tournament Golf Clinic Rounds of Golf Team Photos Special Gift Boxed Lunch Cocktails & Awards Reception Total non-deductible 0.00 $140.00/person $ I 0.00/person $15.00/person All food & beverages $60.00/person $225/person X4 $900/team Sponsorships Platinum Sponsor - $10,000 (Contributed portion is $7, Non-deductible is 2, ) Accommodations at Kiawah Island Inn (up to eight; restrictions apply) Eight rounds of golf Recognition in Tournament Program Sponsor sign at Clubhouse Tee signage + $1,500 Foursome Benefits listed above: Total $225 $1,280 $26.50 = $159/6 sponsors $23.00/per sponsor $15.00 $900 per sponsor $2,469.50/sponsor Gold Sponsor - $7,500 (Contributed portion is $5, Non-deductible is $2, ) Eight rounds of golf Recognition in Tournament Program Sponsor sign at Clubhouse Tee signage + $1,500 Foursome Benefits listed above: Total $1,280 $26.50 = 159/6 sponsors $23.00/per sponsor $15.00 $900 per sponsor $2,244.50/sponsor

6 Sample: Quid Pro Quo Acknowledgement for Goods or Services Returned to Donor Date: Ms. April May Manager, Corporate Plant and Sales Corporation No Where, SC Dear Ms. May, The Medical University of South Carolina Foundation would like to thank the Flower Plant and Sales Corporation for its corporate sponsorship contribution in the amount of $10, for the Fun Land Golf Tournament, which was received on April 12, As recognized as an organization exempt from Federal income tax under section 501(c)(3) of the Internal Revenue Code, and in order to comply with the Omnibus Budget Reconciliation Act of I 993 (OBRA), IRS asks that we inform you that we have provided to you goods or services in exchange for this contribution. The good-faith estimate value of goods or services provided to you is $ for the purchase of dinner tickets. The charitable deduction is limited to the excess, if any, of your contribution over the value of the goods or services. Therefore, $9, is recognized as your charitable contribution. Please retain this document for tax purposes. It is an important document necessary for any available federal income tax deductions for this contribution as it is deductible to the fullest extent of the law. On behalf of the Medical University of South Carolina, please accept my sincere thank you for Flower Plant and Sales Corporation's continuing support. Sincerely,

7 REASON FOR POLICY Assure proper handling of the Solicitation Piece for Special Events. WHO SHOULD READ THIS POLICY APPENDIX None POLICY None RELATED DOCUMENTS None CONTACTS If you have any questions concerning this policy, please contact the MUSCF Administrative Coordinator (data entry). Subject Telephone Contact Procedures Questions (data entry) Policy Clarification MUSCF Chief Financial Officer Latest Change Date: Effective Date: //06 Review Date: 3/29/17 Approval Signature: Chief Financial Officer, MUSCF