The Power of Unrestricted Giving
Ninety-seven percent of gifts received by the Health System are restricted, meaning they are designated for specific needs. For example, a gift may be earmarked to endow a scholarship or research project, for capital improvements, or any program that fits the personal goals and values of the donor. Such support is extremely valuable and essential to our missions.
Yet, there is also a great need for unrestricted funding. As advances are made in the science (and art) of healthcare, new priorities and needs emerge. Unrestricted funds allow the deans of the School of Medicine and School of Nursing and the CEO of the Medical Center to meet new challenges as they arise and plan strategically for the future. See examples of how unrestricted funding might be used.
In order to meet this growing need, the Health System and its affiliates have adopted a gift assessment policy. Five percent of each gift installment will be designated for unrestricted operating funds of the School of Medicine, School of Nursing, or the Medical Center.
Frequently Asked Questions
- Is my gift subject to the assessment?
- What gifts are not assessed?
- What about planned gifts?
- How will this money be used?
- Do other schools or institutions assess the gifts they receive?
Is my gift subject to the assessment?
The assessment applies to restricted gifts to the UVA Health System (School of Medicine, School of Nursing, and Medical Center) that are received through Rector & Visitors, the UVA Health Foundation, the Medical School Foundation, Medical Center Finance, the UVA Foundation, and the UVa Fund (Alumni Hall).
A gift is considered "restricted" when it is designated for a specific purpose, i.e., a particular center, program, research project, or scholarship fund. Ninety-seven percent of gifts to the UVA Health System fall into this category.
What gifts are not assessed?
The following types of gifts are not subject to the assessment:
- Unrestricted annual fund gifts to the Schools of Medicine and Nursing and to the University Medical Center
- Payments on pledges booked before March 1, 2009
- Gifts made to endowed accounts established before March 1, 2009
- Gifts-in-kind
- Gifts of life insurance
All other gifts to the Health System are considered restricted, and therefore subject to the assessment.
What about planned gifts?
We encourage you to include assessment language in your planned gift agreement, giving future UVA Health System leadership the tools to respond to emerging opportunities and challenges with flexibility and innovation.
To discuss options for providing future support to the UVA Health System, please contact the UVA Health Foundation.
How will this money be used?
The funds generated by the assessment will be available for the unrestricted use of the deans of Medicine and Nursing and the CEO of the Medical Center.
Some examples of possible uses include:
- Pilot funding for innovative teaching projects
- Seed money for budding research initiatives
- Financial aid for students
- Bridge funding for programs impacted by a decline in federal funds
- Start-up packages for new recruits
- Retention packages for stars being recruited away to other institutions
- Institutional commitments to leverage outside funding
Funds will benefit the unit receiving the original gift, e.g. if a gift is made to a department or center within the School of Medicine, the assessment will be available for the use of the dean of the School of Medicine.
Do other schools or institutions assess the gifts they receive?
This type of assessment is a common practice at academic medical centers, universities, and other nonprofits in Virginia and across the U.S. The size of the assessment at these peer organizations varies, ranging from 5% to 20%. The UVA Health System assesses restricted gifts at 5%.