Gift Acceptance Policies Procedures Policies Procedures Let all

Gift Acceptance Policies & Procedures

Policies & Procedures “Let all things be done decently and in order. ” -1 Corinthians 14: 40 KJV

Learning Outcomes: • Understand the need for your organization’s Gift Acceptance Policies. • Determine what types of gifts your organization is willing to receive. • Determine what types of gift your organization is not willing to receive and be able to articulate your reasons for not doing so to a potential donor. • Carry out the proper procedures for accepting gifts of cash, securities, real estate, personal property.

Purpose and Role for Gift Acceptance Policies & Procedures (GAPPs) • Provides Discipline • Defines types of assets that are acceptable • Establish the gift forms that are acceptable • Define the organization’s role in gift administration

Benefits of Setting Up Policies • Educates staff and board about critical issues triggered by certain gifts. • Allows staff and board to work through practical issues, such as costs associated with certain gifts. • Helps focus and strengthen the gift administration program. • Helps introduce planning ideas to board members who may have not considered certain gift options. • Better able to set up consistent policy without a pending gift blinding collective judgment.

What is the difference? Policies • Broad statements • Consistent with the values and objectives of your organization • Brevity is good Procedures • Detailed steps, rules and processes for execution of policy • Directed to those responsible for gift acceptance operations • User’s manual customized to your organization

Drafting and Adopting GAPPs • Gift Acceptance Committee can draft and recommend GAPPs to Board of Directors • PG staff, Officer(s), Board Member(s), Professional Advisor(s) • Cumulative knowledge/guidance • Customize to the organization • Board of Directors should adopt • Educate the board and staff in the process of gift evaluation

Drafting and Adopting GAPPs • Adoption creates organizational consistency • Educate staff, board, and even donors • Include in board and staff orientation • Annual review • Maintain customization by fine-tuning • Allow new gifts or restrict or expand manner of current gifts forms

Suggested GAPPs Contents • Mission and Purpose • Purpose of GAPP • Use of Legal Counsel • Conflict of Interest Statement • Restrictions on Gifts • Gift Acceptance Committee

Suggested GAPPs Contents • Types of planned gifts your organization accepts • Assets your organization encourages • Payment of Fees • Appraisal Fees • Legal and Professional Fees • Gift documentation and gift recognition • Sample forms/checklists

Types of Planned Gifts Your Organization Accepts • Bequests • Beneficiary Designations • Charitable Gift Annuities • Real Property • Charitable Remainder Trusts • Charitable Lead Trusts

Types of Planned Gifts Your Organization Accepts • Donor Advised Funds • Pooled Income Fund • Retained Life Estate • Testamentary Life Income • Bargain Sale

Assets Your Organization Encourages • Cash • Marketable Securities • Life Insurance • Personal Property • Real Estate • Savings Bonds

Assets Your Organization Encourages • Retirement Plans • Business Interests • Oil, Gas, and Mineral Interests • Intellectual Property Rights (Patents) • Grain, Livestock

Assets Your Organization Should Be Leery Of • Time Share Interests • Burial Plots • Beanie Babies, Stamps, Mink Coats • Partnership Interests

Conclusion • Written policies and procedures are crucial to managing risk and allocating resources • Important elements in effective governance and operation of your organization • Include routine or anticipated issues that could potentially “threaten” the viability of the organization • One size does NOT fit all • Objective should be to encourage gifts, not to discourage them

Procedures for Accepting Cash Forms of Cash Donations • Cash • Check (Personal, Bank, or Cashier’s) or Money Order • Credit Card

Methods of Delivering Cash is deductible when it is transferred to the charity Reg. 1. 170 A-1 1. Mail: Amazing Facts P. O. Box 1058 Roseville, CA 95678 2. Hand Deliver: 1203 W. Sunset Blvd Rocklin, CA 95765 to a Ministry Partner Representative or 3. Electronic Fund Transfer: Contact Planned Giving Office for EFT Instructions at 800 -436 -2695

Methods of Delivering Checks or Money Orders If the donor mails or delivers a check, the gift is completed on the date of mailing or delivery. Reg. 1. 170 A-1(b). 1. Make checks payable to: Amazing Facts 2. Mail: Amazing Facts O. Box 1058 CA 95678 P. Roseville, 3. Hand Deliver: 1203 W. Sunset Blvd Rocklin, CA 95765 or to a Ministry Partner Representative

Methods of Making a Credit Card Donations Credit cards are deductible when the charges are made on the card owner's account Rev. Rul. 78 -38. 1. Phone: 877 -506 -1751 Processing your donation with a donor relations representative 2. Online: give. amazingfacts. org 3. Mail: Amazing Facts P. O. Box 1058 Roseville, CA 95678 4. In Person: 1203 W. Sunset Blvd Rocklin, CA 95765

Acknowledging the Donor’s Gift Substantiating Gifts of Cash Options 1. System Generated Receipt 2. Personalized Thank-You Letter or Note 3. Telephone Call and By Whom

Procedures for Accepting Securities Options for Accepting Securities 1. Hand Delivery 2. Mail Delivery 3. Electronic Funds Transfer

Hand Delivery of Securities 1. Sign “Irrevocable Stock or Bond Power” form without signing the certificate(s) itself. The signature must read exactly as that on the stock certificate 2. The form requires your signature to be guaranteed. A bank officer who knows you may guarantee the signature 3. DO NOT fill in the charity as the recipient on the stock power form. This requires two transactions before a sale can be made instead of one because the stock must first be put in Ministry’s name and then transferred to the next buyer

Hand Delivery of Securities 4. Recipient (representative of Ministry) will list the securities on a receipt including name of security, certificate number, number of shares, and purpose of gift 5. Recipient signs receipt and gives it to you 6. If you have already signed (endorsed) the back of the certificate(s), the transfer forms are not needed. Signed certificates are negotiable as cash and should be handled accordingly. We prefer that you not name the Ministry as the new owner on the certificate because we will most likely sell the security and this just adds to the paperwork 7. Effective gift date is the day the physical transfer of paper is made

Mail Delivery of Securities 1. Mail unsigned certificates by certified mail (return receipt requested) to Amazing Facts, Inc. , Attn: Planned Giving, P. O. Box 1058, Roseville, CA 95678. You should enclose a cover letter stating your name and address and the designation of the gift. 2. In a separate envelope, mail a signed stock transfer form (“Irrevocable Stock or Bond Power”) with a copy of the cover letter to the same address.

Mail Delivery of Securities 1. If an endorsed certificate, naming the Ministry as the transferee is mailed (which is risky), the packet should be insured for the fair market value of the stock and return receipt should be requested. This is the most expensive way to transfer stock 2. Effective gift date is the date of the postmark on the envelope containing the certificate

Electronic Funds Transfer of Securities 1. The donor can notify their broker in writing to transfer a specific number of shares (generally those with the lowest cost basis) to the Ministry’s account. Our most active account is with Charles Schwab. DTC (Depository Trust Company) to Charles Schwab, DTC #0164, code 40, for further credit to Amazing Facts, Inc. ’s account #1119 -2403. Deliver to Amazing Facts, Inc. ’s brokerage firm: Charles Schwab, 3741 Douglas Blvd, Roseville, CA 95661, PH: (916) 789 -2120, TF: (800) 435 -4000.

Electronic Funds Transfer of Securities 2. If the donor has a particularly close relationship with a broker they may wish to make the transfer within that company. They may contact the Ministry at (800) 4362695 for further information about any additional brokerage accounts. *Please note: Only the Ministry can issue a sell order for stock transferred to us. 3. A new account in the Ministry’s name can be established easily when necessary, but is not preferred. The Charity’s tax ID number will be required.

Electronic Funds Transfer of Securities 4. The donor should notify the Ministry of an impending or completed transfer. Brokerage firms often do notify transferee until the next monthly statement date which may cause the Ministry to lose money on a timely sale of the securities 5. Effective gift date is the date on which the transfer is actually made by the broker. If the donor wants the transfer made to take advantage of current market prices, they should clearly specify this to their broker

Electronic Transfer Authorization Form EFT For Securities

Sample Acknowledgment Letter Language Securities Received Via EFT

Analysis of Gifts of Real Estate 1. Is the property useful for the purposes of the nonprofit? 2. Is the property marketable? 3. Are there any restrictions, reservations, easements, or other limitations associated with the property? 4. Are there carrying costs, such as insurance, property taxes, mortgages, or notes, etc. , associated with the property? 5. Does the environmental audit show that the property is not damaged?

Procedures for Accepting Real Estate

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Residential Environmental Inspection Checklist Page 1 of 3

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Analysis of Gift of Personal Property 1. Does the property fulfill the mission of the nonprofit (related use)? 2. Is the property marketable? 3. Are there any undue restrictions on the use, display, or sale of the property? 4. Are there any carrying costs for the property (insurance, lease, space, maintenance to preserve value, appraisal for sale purposes)?

Procedures for Accepting Personal Property

Sources • “Understanding and Drafting Nonprofit Gift Acceptance Policies. ” Article by Kathryn W. Miree, J. D. • “Gifts Can Be Dangerous. ” Presentation by Cathy R. Sheffield, MBA, CFRE, CSPG.

Making Case by Case Decisions Can Lead to • Inconsistencies • Clouded Judgement • Mixed Messages to Donors • Donors making mistakes