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.
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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.
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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;
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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.
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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,
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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.
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I. Appendix and Attachments
1. Model Standards of Practice of the Charitable Gift Planner
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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) ________________ ____________________________________________________________________________________
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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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