Department of Athletics: Policies on and Procedures for Trade and Gifts-in-Kind

This Policy is intended to provide the University of North Carolina at Chapel Hill's Department of Athletics with acceptable procedures regarding Gifts-in-Kind and Trade inventory.

Unit Policy and Procedure

Title

Department of Athletics: Policies on and Procedures for Trade and Gifts-in-Kind

A. Purpose

This Policy is intended to provide the University of North Carolina at Chapel Hill's Department of Athletics with acceptable procedures regarding Gifts-in-Kind and Trade inventory. This Policy should be construed to supplement, not so as to contradict, applicable NCAA, ACC, University of North Carolina at Chapel Hill, and University of North Carolina General Administration policies, as well as the laws and regulations of the State of North Carolina and the United States of America. Please contact the appropriate Department of Athletics Executive Team member if there is a perceived conflict between this Policy and any other governing policy, regulation, or law.

B. Definitions

For purposes of this Policy, the definitions below shall apply.

1. "ACC" shall mean the Atlantic Coast Conference.
2. "CFO" shall mean the Chief Financial Officer of the Department of Athletics.
3. "Department" or "Department of Athletics" shall mean the Department of Athletics of UNC.
4. "Executive Team" shall mean the executive leadership of the Department of Athletics, as determined by the Director of Athletics.
5. "Gift-in-Kind" shall mean a non-monetary donation of property or service(s) of value. Such donations may include, but are not limited to, donations of: real estate, automobiles, furnishings, artwork, printing services or materials, floral arrangements, catering services, office supplies, building supplies, and access to lodging, food, or entertainment.
6. "Multimedia Rights Partner" shall mean any organization(s) authorized by the Department to sell, barter, or otherwise procure compensation in exchange for the Department's media rights and/or media, online, signage, ad placements, and other sponsorship assets.
7. "Policy" shall mean these Department of Athletics Policies and Procedures Regarding Trade and Gifts-in-Kind.
8. "Trade" shall mean consideration provided to the Department or organization acting in an official capacity on behalf of the Department as part of an agreement with an individual, business, or corporation by which goods, services, or any consideration besides monetary funds is provided in exchange for something of value from the Department. Under such agreements, individuals, businesses, or corporations may provide to the Department of Athletics or its Multimedia Rights Partner, for example, consideration including, but not limited to: furnishings, clothing or apparel, rounds of golf, food and beverage, air travel, lodging accommodations, artwork, printing services or materials, floral arrangements, catering services, or entertainment. In some instances, the Trade provided may be a specified allotment or amount of any of the aforementioned items or other goods or services. In exchange for such Trade, the Department or its Multimedia Rights Partner may provide tickets to UNC Athletics events, sponsorship or advertising inventory, promotional opportunities or other goods or services associated with the Department of Athletics.
9. "UNC" or "University" shall mean the University of North Carolina at Chapel Hill.

C. Trade

1. Purpose

The purpose of Trade agreements is to reduce costs incurred by the Department and its sport programs by accepting necessary goods or services in exchange for assets of the Department of Athletics.

2. Compliance and Tax-Exempt Status

All Trade agreements must be created and used in accordance with all applicable laws, regulations, rules, policies, and procedures of the United States of America, State of North Carolina, University of North Carolina System, University of North Carolina at Chapel Hill, Department of Athletics, NCAA, and ACC.

3. Establishing Trade Agreements

Trade agreements shall only be established to help further the mission of the Department of Athletics through legitimate business means. Trade agreements may only be created by members of the Department acting in an official capacity who have been authorized to do so by the Director of Athletics or by the Department's Multimedia Rights Partner using inventory made available to them in the current contract governing the Department's relationship with such Multimedia Rights Partner.

4. Notice and Review

1. Any Trade agreement involving any ticket, complimentary admission, parking pass, or credential for any UNC Athletics event shall be reviewed in advance by the Department of Athletics Executive Team member responsible for oversight of the Ticket Office.
2. All proposed Trade agreements must be reported to the CFO prior to creation by any member of the Department of Athletics. The Department staff member proposing creation of the applicable Trade agreement shall be responsible for informing the CFO of such proposed Trade agreement. Upon receiving such notice, the CFO shall review the proposed Trade agreement to ensure it is consistent with applicable University regulations and conducive to furthering the Department's mission.
3. The Department staff member designated by the Director of Athletics as the liaison to the Department's Multimedia Rights Partner shall ensure that such Multimedia Rights Partner reports to the Department's CFO no less than quarterly all Trade agreements established by the Multimedia Rights Partner using Department of Athletics inventory.

5. Use of Trade

Unless an exception is approved in advance by the Director of Athletics, deductions from Trade accounts may only be made and Trade may only be used by:

1. Department of Athletics staff members authorized to do so by the Director of Athletics; and
2. Appropriate staff members of the Department's Multimedia Rights Partner.

Trade may only be used for legitimate Department business purposes which help further the Department's mission and minimize cost(s) to the Department.

6. Reporting of Trade Usage

Promptly after any use of Trade by a Department of Athletics staff member, such staff member shall provide to the CFO:

1. An itemized receipt detailing deductions from the balance of the applicable Trade account;
2. A list of all individuals involved in the use of the Trade; and
3. The legitimate Department business purpose for usage of the Trade.

Similarly, the Department's designated liaison to the Department's Multimedia Rights Partner shall ensure that all usage of Trade by the Department's Multimedia Rights Partner is reported at least quarterly to the Department's CFO with, at a minimum, the information specified above in this Section.

Upon receipt of this information, the Department's CFO shall ensure that the Department of Athletics Compliance Office is promptly notified of the usage.

7. Accounting and Review of Trade Usage

The Department of Athletics Business Office shall maintain an accounting of all Trade agreements and Trade usage. Such data can help the Department analyze ways to better optimize fiscal performance. Therefore, no less than quarterly, the CFO shall present to the Director of Athletics and Department of Athletics Executive Team an accounting of:

1. All Trade agreements and the corresponding balance of each account; and
2. All use of Trade during the applicable fiscal year, including the individual(s) responsible for each usage of Trade and the corresponding legitimate Department business purpose(s) of such uses of Trade.

This accounting shall also include usage by the Department's Multimedia Rights Partner and anyone else outside of the Department. Such information can then be analyzed to determine any potential opportunities to enhance the fiscal efficiency of the Department.

D. Gifts-in-Kind

1. Purpose

Gifts-in-Kind may be provided from time to time by donors or other external supporters wishing to assist the Department in the fulfillment of its mission through non-monetary means of support.

2. Compliance

All Gifts-in-Kind must be accepted and utilized in accordance with all applicable laws, regulations, rules, policies, and procedures of the United States of America, State of North Carolina, University of North Carolina System, University of North Carolina at Chapel Hill, Department of Athletics, NCAA, and ACC.

3. Acceptance of Gifts-in-Kind

Gifts-in-Kind shall only be accepted to help further the mission of the Department of Athletics through legitimate business means. Gifts-in-Kind may only be accepted in accordance with the policies and procedures of the University's Development Office.

4. Use of Gifts-in-Kind

Gifts-in-Kind may only be used by Department of Athletics employees who have been authorized to do so by the Director of Athletics. Such use must comply with all policies and procedures of the University's Development Office.

E. Violations of this Policy

Violation of this Policy by any Department of Athletics staff member may result in such individual's loss of authorization to use Trade or other actions set forth by University policies or determined at the discretion of the Director of Athletics, up to and including termination of employment.

Publication Details

Policy Number: 00087904

Date Last Reviewed: Spring 2020

Date of Next Review: July 2023

Responsible for Review: Department of Athletics Business Office