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Gift Acceptance Policy

By Stanley Harrison,2014-07-10 16:29
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Gift Acceptance Policy ...

    Gift Acceptance Policy

    (Proposed)

    Endowment Fund of the

    Rocky Mountain Conference

    of the United Church of Christ

    The authors of this document wish to acknowledge the use of the article, “Understanding and Drafting Nonprofit

    Gift Acceptance Policies” by Kathryn W. Miree, JD, including Exhibit B, a sample policy. This sample policy

    served as the basis for this document. The source URL is http://www.pgdc.com/node/26663. The article was

    published on the web site www.pgdc.com and is maintained and operated by Planned Giving Design

    Center, LLC, a privately owned company headquartered in Matthews, North Carolina.

     Gift Acceptance Policy of the Endowment Fund of the Rocky Mountain Conference of the United Church of Christ

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Gift Acceptance Policy

A. Introduction:

    1. Names: This document is the “Gift Acceptance Policy”, hereafter called the ACCEPTANCE POLICY.

    Companion documents are: “Investment Policy,” and “Planned Giving and Endowment Fund Policy.”

    These are policies of a corporate entity and endowment fund whose name is ENDOWMENT FUND OF

    THE ROCKY MOUNTAIN CONFERENCE OF THE UNITED CHURCH OF CHRIST, hereafter called

    the FUND. This entity, which will or has applied for an IRS 501 (c) (3) designation, is a non-profit

    affiliate of the Rocky Mountain Conference of the United Church of Christ, hereafter called the RMC.

    2. Purpose of the ACCEPTANCE POLICY:

    The Trustees of the FUND, hereafter called TRUSTEES, shall solicit current and deferred gifts from

    individuals, corporations, and foundations to secure the future growth and mission of the FUND. These

    policies and guidelines govern the acceptance of gifts by the FUND and provide guidance to

    prospective donors and their advisors when making gifts to the FUND. The provisions of these policies

    shall apply to all gifts received by the FUND for any of its programs or services.

B. Use of Legal Counsel

    The FUND may seek the advice of legal counsel in matters relating to acceptance of gifts. Review by counsel

    is recommended for:

    1. Closely held stock transfers that are subject to restrictions or buy-sell agreements.

    2. Documents naming the FUND as Trustee.

    3. Gifts involving contracts, such as bargain sales or other documents requiring the FUND to assume

    an obligation.

    4. Transactions with potential conflict of interest that may invoke IRS sanctions.

    5. Other instances in which use of counsel is deemed appropriate.

C. Conflict of Interest

    So as to avoid conflicts of interest, the FUND will urge all prospective 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. The FUND will comply with the Model Standards of Practice for the Charitable Gift Planner

    promulgated by the National Committee on Planned Giving, shown as an appendix to this document.

D. Restrictions on Gifts

    1. The FUND will accept unrestricted gifts, and gifts for specific programs and purposes, provided that

    such gifts are not inconsistent with its stated mission, purposes, and priorities. Donors will be

    encouraged to consider giving to the accounts listed in the Planned Giving and Endowment Fund Policy,

    hereafter called POLICY.

    2. The FUND will not accept gifts that are excessively restrictive in purpose. Gifts that are too restrictive

    are those that violate the terms of the corporate charter, gifts that are overly difficult to administer, or

    gifts that are for purposes outside the mission of the FUND. All final decisions on the restrictive nature

    of a gift, and its acceptance or refusal, shall be made by the TRUSTEES.

    3. The FUND will not accept gifts that have excessive potential financial or legal liability. Final decisions

    on the extent of financial or legal liability shall be made by the TRUSTEES.

    4. The TRUSTEES shall ask donors of specifically restricted gifts to provide in writing that if the purpose of

    the gift in the future no longer fits the purpose of the POLICY or the mission of the RMC, the

    TRUSTEES are permitted to use the resources in a manner consistent with the objectives of the FUND

    and the mission of the RMC and in a manner most closely matching the original donor intent.

    5. If the intended goal of a restricted gift no longer exists, and if no authority was given by the donor to use

    the gift for an unrestricted purpose, the TRUSTEES shall follow applicable Colorado statutes to release

    the restrictions.

     Gift Acceptance Policy of the Endowment Fund of the Rocky Mountain Conference of the United Church of Christ

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     E. The Gift Acceptance Responsibility

    Gift Acceptance decisions will be made by a majority vote of the TRUSTEES. The TRUSTEES are charged

    with the responsibility of reviewing all gifts made to the FUND, properly screening and accepting those gifts,

    and making decisions concerning acceptance.

    F. Types of Gifts The following gifts to the FUND may be acceptable within the governing criteria stated below:

    ? Cash.

    ? Tangible Personal Property.

    ? Securities.

    ? Real Estate.

    ? Remainder Interests in Property.

    ? Oil, Gas, and Mineral Interests.

    ? Bargain Sales.

    ? Life Insurance.

    ? Charitable Gift Annuities

    ? Charitable Remainder Trusts.

    ? Charitable Lead Trusts.

    ? Retirement Plan Beneficiary Designations.

    ? Bequests.

    ? Life Insurance Beneficiary Designations.

The following criteria govern the acceptance of each gift form:

    1. Cash. Cash is acceptable in any form. Checks shall be made payable to The Endowment Fund of the

    Rocky Mountain Conference and shall be delivered to the Conference Minister of the Rocky Mountain

    Conference of the United Church of Christ at the principal office of the Conference.

2. Tangible Personal Property. All other gifts of tangible personal property (art, coins, equipment, cars,

    etc.) shall be examined in light of the following criteria:

    ? Does the property fulfill the mission of the FUND?

    ? Is the property marketable?

    ? Are there any undue restrictions on the use, display, or sale of the property?

    ? Are there any carrying costs for the property?

    The TRUSTEES of the FUND shall make the final determination on the acceptance of other

    tangible property gifts. Every effort will be made to sell all gifts of tangible property as soon as

    possible.

3. Securities. The FUND can accept both publicly traded securities and closely held securities.

    Publicly Traded Securities. Marketable securities may be transferred to an account maintained at one

    or more brokerage firms or by certificates delivered physically with the transferor's signature or signed

    stock power attached. As a general rule, all marketable securities shall be sold upon receipt unless

    otherwise directed by the TRUSTEES. In some cases marketable securities may be restricted by

    applicable securities laws; in such instance the final determination on the acceptance of the restricted

    securities shall be made by the TRUSTEES of the FUND.

    Closely Held Securities. Closely held securities, which include not only debt and equity positions in

    non-publicly traded companies but also interests in limited partnerships and limited liability companies,

    or other ownership forms, can be accepted subject to the approval of the TRUSTEES of the FUND.

    However, gifts must be reviewed prior to acceptance to determine:

    ? there are no restrictions on the security that would prevent the FUND from ultimately converting

    those assets to cash within a reasonable time;

     Gift Acceptance Policy of the Endowment Fund of the Rocky Mountain Conference of the United Church of Christ

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    ? the security is marketable; and

    ? the security will not generate any undesirable tax consequences for the FUND.

If potential problems arise on initial review of the security, further review and recommendation by an

    outside professional may be sought before making a final decision on acceptance of the gift. The

    TRUSTEES and legal counsel shall make the final determination on the acceptance of closely held

    securities when necessary. Every effort will be made to sell non-marketable securities as quickly as

    possible.

    4. Real Estate. Gifts of real estate may include developed property, undeveloped property, or gifts subject

    to a prior life interest. Prior to acceptance of real estate, the FUND shall require an initial environmental

    review of the property to ensure that the property has no environmental damage. Environmental

    inspection forms are attached as an appendix to this document. In the event that the initial inspection

    reveals a potential problem, the FUND shall retain a qualified inspection firm to conduct an

    environmental audit. The cost of the environmental audit shall generally be an expense of the donor.

If potential donations of real estate have ongoing use by the RMC and it is anticipated that it should be

    retained, the TRUSTEES will work with the donors to have the gift made directly to the RMC.

Every effort will be made to sell real estate accepted by the FUND as quickly as is reasonable.

When appropriate, a title binder shall be obtained by the FUND prior to the acceptance of the real

    property gift. The cost of this title binder shall generally be an expense of the donor.

Prior to acceptance of the real property, the gift shall by approved by the TRUSTEES of the FUND

    and by the FUND’s legal counsel. Criteria for acceptance of the property shall include:

    ? Is the property useful for the purposes of the FUND?

    ? Is the property marketable within a reasonable period?

    ? Are there any restrictions, reservations, easements, or other limitations associated with the

    property?

    ? Are there carrying costs, which may include insurance, property taxes, mortgages, or notes,

    etc., associated with the property?

    ? Does the environmental audit reflect that the property is not subject to unacceptable

    environmental conditions?

    5. Remainder Interests in Property. The FUND will accept a remainder interest in a personal residence,

    farm, or vacation property subject to the provisions of paragraph 4 above. The donor or other

    occupants may continue to occupy the real property for the duration of the stated life. At the death of

    the donor of other lifetime occupant, the FUND may use the property or reduce it to cash. Where the

    FUND receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any

    property indebtedness are to be paid by the donor or primary beneficiary.

    6. Oil, Gas, and Mineral Interests. The FUND will not accept oil and gas property interests, and would

    encourage the owners of such to liquidate the interests and give funds directly to the FUND.

    7. Bargain Sales. The FUND may enter into a bargain sale arrangement in instances in which the

    bargain sale furthers the mission and purposes of the FUND. All bargain sales must be reviewed and

    approved by the TRUSTEES. Factors used in determining the appropriateness of the transaction

    include:

    ? The FUND must obtain an independent appraisal substantiating the value of the property.

    ? If the FUND assumes debt with the property, the debt ratio must be less than 50% of the

    appraised market value.

    ? The FUND must determine that there is a market for sale of the property, allowing sale within

    12 months of receipt.

     Gift Acceptance Policy of the Endowment Fund of the Rocky Mountain Conference of the United Church of Christ

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    ? The FUND must calculate the costs to safeguard, insure, and expense the property (including

    property tax, if applicable) during the holding period.

    8. Life Insurance. The FUND must be named as both beneficiary and irrevocable owner of an insurance

    policy before a life insurance policy can be recorded as a gift. The gift is valued at its interpolated

    terminal reserve value, or cash surrender value, upon receipt. If the donor contributes future premium

    payments, the FUND will include the entire amount of the additional premium payment as a gift in the

    year that it is made.

    If the donor does not elect to continue to make gifts to cover premium payments on the life

    insurance policy, the FUND may:

    ? continue to pay the premiums;

    ? convert the policy to paid up insurance; or

    ? surrender the policy for its current cash value.

    9. Charitable Gift Annuities. Charitable gift annuities may be arranged through the United Church

    Foundation, hereafter called the UCF, with the FUND as recipient of the remaining principal after

    payments have terminated.

    10. Charitable Remainder Trusts. The FUND may accept designation as remainder beneficiary of a

    charitable remainder trust with the approval of the TRUSTEES. The TRUSTEES will not accept

    appointment as trustee of a charitable remainder trust.

    11. Charitable Lead Trusts. The FUND may accept a designation as income beneficiary of a charitable

    lead trust. The TRUSTEES will not accept an appointment as trustee of a charitable lead trust.

    12. Retirement Plan Beneficiary Designations. Donors and supporters of the FUND will be encouraged

    to name the FUND as beneficiary of their retirement plans. Such designations will not be recorded as

    gifts to the FUND until such time as the gift is irrevocable. When the gift is irrevocable, but is not due

    until a future date, the present value of that gift may be recorded at the time the gift becomes

    irrevocable.

    13. Bequests. Donors and supporters of the FUND will be encouraged to make bequests to the FUND

    under their wills and trusts. Such bequests will not be recorded as gifts to the FUND until such time as

    the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of

    that gift may be recorded at the time the gift becomes irrevocable.

    14. Life Insurance Beneficiary Designations. Donors and supporters of the FUND will be encouraged to

    name the FUND as beneficiary or contingent beneficiary of their life insurance policies. Such

    designations shall not be recorded as gifts to the FUND until such time as the gift is irrevocable.

    Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be

    recorded at the time the gift becomes irrevocable.

G. Miscellaneous Provisions

Securing appraisals and legal fees for gifts to the FUND. It will be the responsibility of the donor to

    secure an appraisal (where required) and independent legal counsel for all gifts made to the FUND.

Valuation of gifts for development purposes. The FUND will record a gift received by the FUND at its

    valuation for gift tax purposes on the date of gift.

Recognition of gifts. Gifts received by the FUND will be acknowledged through appropriate venues during

    the course of each year. This public recognition is meant to express appreciation and gratitude for the

    generosity of those individuals and institutions that have committed themselves to supporting the mission,

     Gift Acceptance Policy of the Endowment Fund of the Rocky Mountain Conference of the United Church of Christ

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programs and services of RMC. The FUND will honor donor’s wishes as to how published credit should

    appear and will honor those who wish for their contributions to be credited anonymously.

Acknowledgement of all gifts made to the FUND and compliance with the current IRS requirements in

    acknowledgement of such gifts shall be the responsibility of the TRUSTEES. IRS Publication 561

    Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions are available

    from the IRS web site http://www.irs.gov/formspubs/.

    Responsibility for IRS Filings upon sale of gift items. The TRUSTEES of the FUND are responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within two years of receipt by the FUND

    when the charitable deduction value of the item is more than $5,000. The FUND must file this form within 125

    days of the date of sale or disposition of the asset. Form 8282 with Filing Instructions is available from the

    IRS web site http://www.irs.gov/formspubs/.

H. Expenses

In addition to the places in these policies and guidelines where it is provided that a donor shall be responsible

    for certain expenses in connection with a gift, it will generally be accepted that a donor will be responsible for

    the FUND's costs for necessary outside professional services and other expenses incurred in connection with

    the review or acceptance of gift.

    I. Changes to Gift Acceptance Policies

These policies and guidelines have been reviewed and accepted by the TRUSTEES of the FUND. The

    TRUSTEES must approve any changes to, or deviations from, these policies by the affirmative vote of five (5)

    TRUSTEES at a meeting called specifically for this purpose, and with advance notice to the RMC Board of

    Directors.

     Gift Acceptance Policy of the Endowment Fund of the Rocky Mountain Conference of the United Church of Christ

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    I. Appendix and Attachments

    1. Model Standards of Practice of the Charitable Gift Planner

     Gift Acceptance Policy of the Endowment Fund of the Rocky Mountain Conference of the United Church of Christ

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2. Environmental Review Forms

    2.1 Environmental Interview

    This interview is designed for use with current and/or prior owners or managers of the property.

    Date of interview _________________________ Interviewer________________________________

    Person Interviewed________________________ Relation to Property_________________________

    Property Description _________________________________________________________________

    __________________________________________________________________________________

    __________________________________________________________________________________ Type of Property: Agricultural _______________________ Timber __________________________

     Commercial ______________________ Manufacturing_____________________

     Age of Buildings___________________ Undeveloped Land _________________

     Residential_______________________ Other____________________________

    Indicate prior uses of property __________________________________________________________ 1. Are you aware of any environmentally sensitive situations on the property? No______ Yes ______

     Describe _______________________________________________________________________ 2. For uses identified in question 1, has an environmental license ore permit ever been issued?

     No____________________ Yes ______________

    3. Are there any oil, fuel, or chemical storage tanks on the property located above or below ground?

     No____________________ Yes ______________

    4. Has an environmental assessment been previously conducted?

     No____________________ Yes ______________If yes, provide a copy of the report 5. If available, attach maps or surveys that describe the property.

     Attached_______________ Non available ________________

    If you are unable to furnish the information requested above, please advise us if there is a reliable source that may be able to furnish this information.

2.2 Property Inspection Checklist for Current Environmental Conditions

    Name of Inspector________________________ Date of Inspection_____________________________ Owner of Property ________________________ Estimated Size _______________________________ Location of Property _______________________ Current Use_________________________________ Number of years the current use has been in effect___________________________________________ Brief history of property use (list past use, former tenants, and source of information) ________________ ____________________________________________________________________________________

     Gift Acceptance Policy of the Endowment Fund of the Rocky Mountain Conference of the United Church of Christ

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2.3 Environmental Site Inspection Checklist

    1. An on-site inspection revealed the following: Yes No a. Stressed, denuded vegetation, or unusual barren areas ____ ____ b. Discoloration, oil sheens, or foul/unusual odors in water ____ ____ c. Dump site ____ ____ d. Tire/battery/chemical storage or disposal ____ ____ e. Storage drums ____ ____

    f. Above or below ground storage tanks, vent, or filler pipes ____ ____ g. Evidence of petroleum or oil products ____ ____ h. Evidence of PCBs (electrical transformers, capacitors) ____ ____

    i. Subject or adjoining property used for industrial purposes ____ ____

    j. Existing structures: If yes, indicate there is ____ ____

     Evidence of chemical spills/leaks?? ____ ____

     Evidence of asbestos?? ____ ____

     Any source of air emission? ____ ____ 2. Does property appear on National/State Hazardous Site list? ____ ____

     If “yes” to any of the above, describe: ____________________________________________

    __________________________________________________________________________

    __________________________________________________________________________

     Circle one Conclusions:

    Based on the evaluation of known, discovered, or observed environmental factors, there is no 3. evidence of environmental contamination on this or neighboring properties, and no further True

    action is recommended.

    Based on the evaluation of known, discovered or observed environmental factors, there is 4. evidence of possible environmental contamination on this or neighboring properties and True

    further investigation is recommended. (Complete "Evaluation of Known Environmental

    Factors Form" if this block is indicated true.)

____________________________________ ______________ _____________

    Person Completing Form Title Date

____________________________________ ______________ _____________

    Trustee Accepting Form Title Date

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2.4 Evaluation of Known Environmental Factors

    Check the appropriate response to each statement based on all sources of information, including the

    Environmental Site Inspection Checklist.

     Yes No This property (or adjacent property) appears on federal, state, or other environmental agency list of ____ sites identified for environmental investigation or cleanup. ____

     ____ ____This property is developed and used for an industrial or manufacturing purpose.

    This property is undeveloped land used for landfill or waste dump purposes. ____ ____ The prior, current, or proposed use of this property involves the generation, storage, treatment, or disposal of any potentially hazardous materials, oil/petroleum products, or other substances

    regulated by environmental laws and agencies. Specify: _________

    _______________________________________________________________________________

    ___________________________________________________________ ____ ____ Activities on adjacent properties may have contributed to the environmental

    contamination of the subject property. ____ ____ This property is near a flood plain, wetland, or ecologically sensitive area. ____ ____ The Environmental Site Inspection revealed evidence of possible environmental contamination. ____ ____ The donor has revealed potential sources or causes of environmental contamination. ____ ____ This property is used for agricultural purposes. ____ ____ Based on the evaluation of known environmental factors, there is no evidence of possible

    environmental contamination on this or neighboring properties and no further action is

    recommended. ____ ____ Based on the evaluation of known environmental factors, there is evidence of possible

    environmental contamination on this or neighboring properties and further investigation is

    recommended. ____ ____

Recommendations: _____________________________________________________________________

    ________________________________________________________________________________________

    __________________________________________________________________________________

____________________________________ ______________ _____________

    Person Completing Form Title Date

____________________________________ ______________ _____________

    Trustee Accepting Form Title Date

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