Best Practices in

Gift Administration

Deb CunninghamVP of Administration, CAO

UConn FoundationJuly 24, 2015

AgendaDo the initials “PCI” make you shudder?

Does your institution’s approach to using (or not using) a Lockbox make sense?

Evolution of Third Party Giving

PCI Compliance

Payment Card Industry Standards

PCI began as five different programs (credit card based – AMEX, VISA, etc.)2004: 5 programs aligned – Payment Card Industry Standards Council (PCI SSC)

PCI DSS• Data Security Standards

PCI P2PE• Point to Point Encryption• Third party vendors (Cybersource, Paypal)

PCI PTS• Pin Transaction Security• Applies to equipment for processing cards

Payment Card PCI DSS 12

FirewallDO NOT use vendor supplied passwordsProtect Stored Data Encrypt Data TransmissionUPDATE anti-virus software

Isolate Card Processing

Who processes cards in your organization?Can they surf on the same machine?Is any data stored locally?Is data encrypted when processing?Any manual transmission of data? DESTROY UPON COMPLETION!

Solid Policies and Procedures

Documented breach response proceduresStandard confidentiality agreement for vendors, system users, volunteersDocument PCI compliance for third party vendorsVendor data security questionnaireMANDATORY TRAINING

Lockbox Management

Lockboxes – good, bad and ugly?

Transaction VolumeTimely processing - VIP – same day?Sufficient staff in-house?Cost – benefit analysis?What system do you currently use for scanning? Data retention? In-house imaging and related technology options?

Cost Benefit AnalysisStaffing CostsStorage CostsTechnology (hardware and software)SecurityDo you carry a large operating account with a bank (potential for deep discounts)Is there a lockbox facility in your state?

So….analysis says “Lockbox!”

How many do we need – sorting is key!Wholesale, Retail, Wholetail!!OCR capabilities? At what cost? Quality?Redaction?Accessibility to files and at what cost?In State vs. out-of-state?Due Diligence…..Impact on current staff

about that ugly….Credit card processing“unbankables” – its all about terminology“Return to Sender” – mail forwarding not so simpleStaying on top of it all

Third Party Gifts

Third Party Giving – our Future

Since 1991, Fidelity Charitable has helped donors support over 190,000 nonprofit organizations with more than $20 billion in grants.

Vanguard, 17 years, total charitable impact, $5,321,800,682

Tracking Third Party Giving

Donor Advised FundCrowdfundingText-to-GiveMatching Gifts Community FundFamily FoundationsThe “Buddy” system

To be considered…..Donor recognition ReportingPledges and PaymentsReceipting and acknowledgement processes

Recording DAF Pledge Payments

What do you do when donor makes standard pledge and pays with DAF funds?What happens to the pledge?What happens to current year reporting – cash vs. pledge payment

A whole new game…..You receive a check for $760Matching Gifts from 3 Donors:May just provide names –Possible amounts – minus fee (or not minus fee)Fees applied to line items not specified

Questions? Discussion?