Policy on Capital Gift Funding


Policy on Capital Gift Funding



To ensure that capital projects are fully funded at the outset of construction and partially shield against the inflationary costs of construction.

Scope of Applicability

This Policy applies to University administrators, fundraisers, and donors.


Policy Statement

This policy pertains to capital projects that are supported by fundraising - in particular, the policy provision for interest accrual on potential bridge loans to support outstanding pledge commitments.

Any school or department funding a construction project totally or partially through fundraising initiatives must collect 100% of the budgeted amount in cash before the construction project will be awarded. The cash supporting the pledges should be collected as far in advance of the construction date as possible so that interest earned on the cash may partially shield against the inflationary costs of construction.

In the event that central monies have to be used to pay invoices prior to the collection of pledge commitments ("bridge loan"), interest will be charged to the project based on the outstanding balance of the bridge loan at the University's blended rate, which is currently 5.03%. Interest will begin to accrue on the bridge loan upon the completion of construction (physical occupancy) and will continue to accrue on the outstanding balance until the bridge loan is repaid in full.


An exception to the above policy provision may be granted by the Facilities Planning Committee if the following three conditions have been met:

  1. the unit has collected at least 85% of the cash that the pledges represent before the construction is scheduled to begin,
  2. the balance either exists in the form of pledges and/or prospective pledges that will be collected before the end of construction period, and
  3. the Vice Chancellor for University Development confirms that the outstanding pledges and/or prospective pledges will be collected during the construction period.

Related Requirements

External Regulations and Consequences


University Policies, Standards, and Procedures

For more detail on policies and procedures related to capital projects and funding plans, please see Facilities Planning & Construction Policies.

Contact Information

Policy Contacts

Policy Contacts Table
Bridge Financing Brian T. Smith 919-843-6043 btsmith@unc.edu
Capital Gifts Cynthia Butler 919-962-3302 cfbutler@email.unc.edu
Project Costs and Funding Sources Steve Boone 919-843-2630 Steven.boone@fac.unc.edu


Article ID: 132150
Thu 4/8/21 9:24 PM
Sat 7/10/21 5:27 PM
Effective Date
If the date on which this document became/becomes enforceable differs from the Origination or Last Revision, this attribute reflects the date on which it is/was enforcable.
11/12/2020 11:43 AM
Issuing Officer
Name of the document Issuing Officer. This is the individual whose organizational authority covers the policy scope and who is primarily responsible for the policy.
Issuing Officer Title
Title of the person who is primarily responsible for issuing this policy.
Senior Associate Vice Chancellor for University Development
Last Review
Date on which the most recent document review was completed.
11/12/2020 11:43 AM
Last Revised
Date on which the most recent changes to this document were approved.
08/01/2019 12:00 AM
Date on which the original version of this document was first made official.
11/11/2009 11:00 PM
Responsible Unit
School, Department, or other organizational unit issuing this document.
Office of University Development