GIFT ACCEPTANCE GUIDELINES
IMMACULATE HEART COMMUNITY (IHC)
Immaculate Heart Community Goal Statement
We, the members of the Immaculate Heart Community, rooted in Jesus Christ and united with the people of God, commit ourselves to build relations in society which foster access of all persons to truth, dignity, and full human development, and to strategically change practices and situations which impede such access. With reverence for all creation, in our choice of work and living style, and in our use of time, talent, and money, we hold ourselves accountable to God and to one another for effecting this goal and supporting one another in this effort.
Immaculate Heart Community (IHC), a not-for-profit organization organized under the laws of the State of California and exempt as a public charity under Section 501 ( c) (3) of the Internal Revenue Code, encourages the solicitation and acceptance of gifts for purposes that will assist IHC to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to IHC or for the benefit of any of its programs.
I. Purpose of Policies and Guidelines
The purpose of this document is to provide general guidelines to ensure that all gifts accepted by IHC are structured to provide maximum benefit to the donor and to IHC and its works. In addition, it provides policies and guidelines for the Board of Trustees and Development Directors of IHC in soliciting current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of IHC. The provisions of these Policies shall apply to all gifts received by IHC for any of its programs or services. From time to time, as needed, more specific policies may be formulated and approved in order to take into consideration special needs of the various IHC ministries, including capital campaigns and planned giving.
II. Legal Counsel
IHC will seek the advice of qualified legal counsel, as needed, in matters pertaining to gift transfers, including any agreements, contracts, trusts and other legal documents. In addition, donors shall be routinely advised to seek legal counsel from their personal advisors on all aspects and terms of their gifts.
III. Restrictions on Gifts
IHC 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. IHC will not accept gifts that are too restrictive in purpose; those that violate the charitable trust of IHC; giftsthat are accompanied by an improper economic benefit to the donor such as a gift that is conditioned on a commercial preference to the donor or affiliated company, or gifts that vest the donor with inappropriate control such as a gift that requires IHC to hire a specific person or take some other unacceptable position. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Board of Trustees.
IV. Types of Gifts
a. Cash - Outright gifts will be accepted by IHC in the form of cash, credit card or check.
b. Marketable Securities - Readily marketable securities, such as those publicly traded on a stock exchange, shall be accepted by IHC. IHC shall normally sell donated securities as soon as possible. However, securities may be held as IHC deems appropriate. c. Closely Held Stock - Non-publicly traded securities may be accepted by IHC at its discretion. If accepted, the donor is responsible for obtaining and paying for a fair market valuation of the securities. The nonprofit needs to determine that: The security is not restricted, the security is marketable, and the security will not generate undesirable tax consequences for the nonprofit.
d. Tangible Personal Property - Gifts of tangible personal property, such as jewelry, art, collections, antiques, or vehicles may be accepted by IHC at its discretion. If accepted, the donor is responsible for obtaining and paying for any appraisal according to IRS requirements. IHC shall adhere to all IRS requirements related to the disposition of gifts of tangible personal property.
e. Real Estate - IHC may accept gifts of land, homes, vacation properties, apartments and other real estate at its discretion. Prior to acceptance the donor is required to obtain and pay for an appraisal according to IRS requirements. To reduce IHC's liability, a professional environmental review is recommended before a gift of real estate is accepted. IHC shall adhere to all IRS requirements related to the disposition of gifts of real estate.
f. Bargain Sales - A bargain sale is a sale of property for less than the property's fair value. It should be determined whether the bargain sale is in the best interest of the organization. This transaction constitutes part sale and part charitable gift. The donor is entitled to a charitable tax deduction for the difference between the fair market value and the sales price.
g. Life Insurance - IHC may accept the gift of a life insurance policy, provided that IHC is the owner and the irrevocable beneficiary of the policy. If the policy is not fully paid-up, the donor shall be encouraged to make annual gifts to IHC sufficient to cover additional premiums. IHC shall have the right to retain the life insurance policy, cash it in, or otherwise make use of its value.
h. In-Kind Gifts - In-Kind gifts are acceptable if approved by the President of IHC. In-Kind contributions include gifts of supplies, equipment, services and the like which are beneficial to IHC. Costs incurred as a result of accepting the gift, such as transportation and storage, must be approved by the President. The President shall report all in-kind gifts to the Board.
i. Bequests, Retirement Plan Beneficiary Designations, and Life Insurance Beneficiary Designations - Donors should be encouraged to name the nonprofit as beneficiary of retirement plan designations, life insurance designations, and estate bequests.
J. Pledges - Pledges will be accepted by IHC from a donor. Pledges provide donors the opportunity to make substantially greater contributions to a campaign than if they were limited to making gifts to be paid all at once. Pledges will be accepted from a donor upon receiving a signed agreement stating the amount pledged and the payment schedule to be followed. Pledges are reported at the full value of the stated commitment.
k. Charitable Gift Annuities (CGAs) - The minimum gift for funding is $5,000. The minimum age for life income beneficiaries of a gift annuity shall be 55.
l. Charitable Remainder Trusts (CRTs) - IHC may accept designation as remainder beneficiary of a charitable remainder trust with the approval of the Gift Acceptance Committee of IHC or the Board of Trustees (if no committee). IHC will not accept appointment as Trustee of a charitable remainder trust.
m. Charitable Lead Trust - IHC may accept a designation as income beneficiary of a charitable lead trust. The Board of IHC will not accept an appointment as Trustee of a charitable lead trust.
IHC shall accept all bequests of real estate unless the Board of Trustees determines otherwise. IHC shall review all proposed inter vivos gifts of real estate and shall consider such factors as sale and holding costs, current and expected future value, encumbrances, liabilities, title, restrictions, and any potential environmental issues prior to acceptance. Prior to accepting an inter vivos gift of real estate, the following steps will generally be taken:
a. Complete a profile of the property.
b. Obtain a copy of the deed, any encumbrances, leases, and current tax bill.
c. Obtain a title report.
d. Inspect the property.
e. Consult with a real estate advisor as to marketability.
f. Evaluate the potential for any environmental liabilities. Consult with an environmental engineer or comparable advisor if necessary.
V. Miscellaneous Provisions
a. President of Immaculate Heart Community - Except as provided in Article III above, the President, in consultation with the Treasurer, shall have discretion and authority to accept unrestricted gifts, allowable under these Policies and Guidelines, of a value up to $100,000. As to restricted gifts, the President, in consultation with the Treasurer, shall have the discretion and authority to accept restricted gifts of a value up to $50,000. Gifts above those amounts may be accepted only by the Board of Trustees.
b. Valuation of gifts for development purposes - IHC shall record a gift received by IHC at its valuation for gift purposes on the date of the gift, following generally accepted accounting principles (GAAP).
c. Responsibility for IRS filings upon sale of gift items - IHC is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold by IHC within two years of receipt when the charitable deduction value of the item was $5,000 or greater. IHC must file such form within 125 days of the date of sale or disposition of the asset.
d. Written acknowledgment - Written acknowledgment of all gifts made to IHC and compliance with the current IRS requirements in acknowledgment of such gifts shall be the responsibility of IHC.
These Gift Acceptance Guidelines were adopted by the Board of Trustees on September 4th, 2010.