Purpose. This policy applies to all Gifts offered to [PARTY A] for any of its programs or services or for general operating needs, listing the conditions for[PARty A] accepting gifts and providing guidance to prospective donors.
"Gift" Defined. For the purpose of this agreement, "Gift" means a voluntary transfer of assets from any person or organization to [PARTY A] where no goods or services are expected, implied, or owed from that person or organization, usually taking the form of cash, securities, real property or personal property, and generally identifiable by the following criteria:
A Gift is motivated by charitable intent, and not generally subject to an exchange or expectation of consideration or other contractual duties between [PARTY A] and the donor, except for certain deferred gifts;
A Gift is an irrevocable transfer of assets with no obligation on behalf of [PARTY A] to it to the donor, except that [PARTY A] may return the asset if [PARTY A] is unable to comply with the donor's intent, if the gift was not intended to be delivered to [PARTY A], or if [PARTY A] otherwise decides to return the assets;
For a Gift that includes services, no period of performance is specified;
A Gift does not require that a formal financial accounting be delivered to the donor, but the donor may request a general report regarding the utilization or impact of the Gift; and
Generally, funds received from individuals, closely held corporations, and family foundations will be classified as Gifts, and funds received from corporations, corporate foundations, and major foundations will be presumed as Gifts, unless the grant requires performance or other consideration.
Right of Refusal. [PARTY A] may refuse any gift it believes has too restrictive a purpose or is not in [PARTY A]'s best interest.
Questionable Gifts. The Committee shall make all decisions regarding whether to accept a questionable gift or to fulfill a donor's questionable request, taking into account [PARTY A]'s mission and preserving its good standing in the community.
Gift Acceptance Procedure. [PARTY A]'s [Executive Director] shall be responsible for ensuring compliance with this policy.
Gift Acceptance Committee
Committee's Responsibility for Non-Traditional Gifts. [PARTY A]'s gift acceptance committee (the "Committee") shall be responsible for reviewing, accepting, and rejecting non-traditional gifts, including
publicly traded securities,
personal property valued at $[10,000] or more, and
other non-cash gifts.
Committee Members. The Committee will be composed of [PARTY A]'s [LIST EXECUTIVE POSITIONS TO SERVE ON THE COMMITTEE].
Committee Decision-Making. In deciding whether to accept or reject a non-traditional gift, the Committee shall
review all information it deems necessary to make a final decision, and
make all final decisions by majority vote.
Evaluation of Costs Associated with Acceptance of Certain Gifts. The Committee shall be responsible for evaluating the costs associated with accepting any non-traditional gifts and gifts-in-kind and determining whether potential costs incurred by accepting a Gift makes the gift inappropriate, including
closing cost payments for real property gifts,
paying off debts secured by real property gifts,
physical changes to the property necessary to assure safety or control environmental hazards, and
any costs need to retrofit [PARTY A] property and provide utilities necessary to make a proposed gift of equipment usable.
Gift Acknowledgement. Within a reasonable time after receiving a Gift, [PARTY A] shall furnish the applicable donors with
a gift acknowledgement letter,
for Gifts of $250 or more, receipts prepared in accordance with IRS requirements, including, as [PARTY A] can ascertain using reasonable efforts, the gift date, amount of cash given or description of property received, and any goods or services given in exchange for the Gift and good faith estimate of the fair market value of those goods or services, and
where appropriate a token of appreciation for the Gift.
Acceptance and Administration of Restricted Gifts. If a donor requires that [PARTY A] uses their gift in a particular way, the Committee shall be responsible for
determining whether it is consistent with [PARTY A]'s mission and objectives for it to accept the Gift according to the donor's restrictions and requirements, and
if the Gift is accepted, ensuring that [PARTY A]'s use of the Gift complies with the donor's restrictions and requirements.
Use of Legal Counsel. [PARTY A] shall seek the advice of its legal counsel in matters relating to the acceptance of gifts when appropriate, including Gifts involving
closely held stock transfers that are subject to restrictions or buy-sell agreements,
contracts, including bargain sales, or other documents requiring [PARTY A] to assume an obligation, and
transactions with potential conflicts of interest that could reasonably be expected to invoke IRS sanctions.
Appraisals. [PARTY A] shall hire a qualified independent appraiser to determine the value of a Gift, at no expense to the donor of the Gift,
if the donor of the Gift requests an appraisal to determine the tax deductibility of their donation to [PARTY A],
if a claimed deduction for an item is $[5,000] or more, and
for all Gifts of real property.
Confidentiality Obligation. [PARTY A] shall hold in confidence all information it receives from or learns about a donor in connection with reviewing, accepting, and using the donor's Gift ("Confidential Information").
Use Solely for Purpose. [PARTY A] may use a donor's Confidential Information only for the Purpose or reviewing, accepting, and using the donor's Gift.
Non-Disclosure. [PARTY A] will not disclose Confidential Information to a third party without the applicable donor's written consent.
No Copies or Recording. [PARTY A] may not copy, record, or otherwise reproduce Confidential Information without the applicable donor's written consent.
Donor Conflict of Interest. [PARTY A] shall encourage donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences before making any donation to [PARTY A]
Review of Gifts. [PARTY A]'s acceptance of the following gifts is subject to the conditions and guidelines.
Cash. [PARTY A] may accept cash gifts in the form of currency, coin, checks, money orders, or bank drafts, and checks, money orders, and bank drafts should be made payable to "[ORGANIZATION]," stating the donor's designation of the gift, if any.
Securities. [PARTY A] may accept both publicly-traded and closely-held securities.
Sale. [PARTY A] shall use reasonable efforts to sell any Gifts of publicly-traded securities as soon as reasonably possible after receiving them.
Use of Funds. [PARTY A] shall use the funds received from any of these sales of publicly-traded securities, minus any transaction costs from the sale, directed to the appropriate program.
Gift Date. [PARTY A] shall record the gift date for Gifts of publicly-traded securities as the day the securities are officially transferred to [PARTY A], either directly to [PARTY A]'s brokerage account, or in person with signed certificates or stock power attached.
Acceptance. [PARTY A] shall consult its legal counsel before accepting any closely-held securities, including debt and equity positions in non-publicly-traded companies and interests in limited liability partnerships (LLP) and limited liability corporations (LLC).
Review. Before accepting a Gift of closely-held security, [PARTY A] shall review these Gifts to determine that
there are no restrictions on the securities that would prevent [PARTY A] from converting them to cash in a timely manner,
the securities are marketable, and
the securities will not generate any undesirable tax consequences for [PARTY A].
Repurchase. No commitment for repurchase of closely-held securities will be made before completion of the gift of closely-held securities.
Ability to Accept. Before [PARTY A] accepts any Gifts of real property, the Committee shall consider all relevant factors, including marketability of the property, any carrying costs (taxes, mortgages, etc.), and any risks [PARTY A] could incur by accepting the property.
Conditions to Acceptance. The following conditions must be met before [PARTY A] accepts any Gift of real property:
[PARTY A] must have received from the donor the property's address, parcel number, description, title history, current survey, along with information on any existing leases, taxes, carrying costs, and any other information [PARTY A] requests;
information regarding the value of the property and current market conditions;
a Representative of [PARTY A] must have made an initial visual inspection of the property to determine its condition;
[PARTY A] must have received from the donor written certification that
the donor is not aware of any actual or potential environmental problems within the area where the property is located, or,
if aware the donor is aware of these problems, the nature and scope of any the problems;
[PARTY A] must have received certification from the donor that there are no encumbrances on the property or other restrictions that would restrict [PARTY A]'s ability to sell or dispose of the property; and
[PARTY A] and the donor must have agreed in writing who will bear the expenses related to the conveyance of the property.
Tangible Personal Property
Acceptance. [PARTY A] may accept typical gifts of tangible personal property, including art, coins, and other collectibles, jewelry, furniture, equipment, boats, and vehicles, and unusual gifts of tangible personal property, including frequent flyer miles and savings bonds.
Conditions to Acceptance. [PARTY A] will accept these tangible personal property gifts only if the property is saleable and the donor agrees that [PARTY A] has sole discretion to sell or use the Gift.
Bequests. [PARTY A] may accept bequests through donors' wills, trusts, and other testamentary documents, recording it as a Gift when the bequest becomes irrevocable.
Life Insurance. [PARTY A] will accept gifts of life insurance only if
[PARTY A] is named as both beneficiary and irrevocable owner of the insurance policy, and
the donor agrees to pay, before due, any future premium payments owing on the policy.
Retirement Plan Beneficiary Designations. [PARTY A] may accept Gifts of retirement plans, by being designated as the beneficiary of the plan, and
record it as a Gift when it becomes irrevocable,
if it is irrevocable but not due until a future date, record its present value at the time it becomes irrevocable.
Charitable Remainder Trusts. [PARTY A] may accept designation as the remainder beneficiary of a charitable remainder trust.
Trusteeship of Remainder Trusts. [PARTY A] [may / may not] accept appointment as trustee of a charitable remainder trust.
Charitable Lead Trusts. [PARTY A] may accept designation as an income beneficiary of a charitable lead trust.
Trusteeship of Lead Trusts. [PARTY A] [may / may not] accept appointment as trustee of a charitable lead trust.
Charitable Gift Annuities
Minimum Gift. The minimum gift accepted to establish a charitable gift annuity is $[MINIMUM GIFT FOR CHARITABLE GIFT ANNUITY].
Number of Beneficiaries. There may not be more than two beneficiaries on a charitable gift annuity.
Limits. No income beneficiary for a charitable gift annuity can be younger than 60 years old.
Fees. Administrative fees will be paid from the income earned on a charitable gift annuity.
Payment Rates. [PARTY A] shall offer the current payment rates suggested by the American Council on Gift Annuities.
Ability to Purchase Bargain Sale Property. [PARTY A] may purchase property on a Bargain Sale basis if it receives approval of its [President] and legal counsel, with the value of the property over the sale price representing a contribution.
Subject to IRS Rules. [PARTY A] may make the deduction for a bargain sale allowed under the IRS rules relating to Bargain Sales.
Bargain Sale Definition. "Bargain Sale" means a sale of property to [PARTY A] for an amount less than the property's current fair market value.
Oil and Gas Rights. Before accepting Gifts including oils and gas property interests, the Committee shall evaluate the desirability of the interests, including
the value of the interests, favoring surface rights worth $[20,000] or greater, and oil, gas, and mineral interests generating at least $[3,000] per year in royalties or other income,
whether the property has extensive liabilities or encumbrances making it inappropriate for [PARTY A] to receive the Gift,
in the case of working interests, whether there is a plan to minimize potential liability and tax consequences, and
the same environmental auditing and evaluation process as for other gifts of real property.
Amendment. This policy can be amended only by the Committee.