Gift Acceptance Policies And Guidelines

Faith World Outreach Church, a not for profit organization organized under the laws of the State of Illinois,encourages the solicitation and acceptance of gifts to Faith World Outreach Church (hereinafter referred to as theOrganization) for purposes that will help the Organization to further and fulfill its mission. The followingpolicies and guidelines govern acceptance of gifts made to the Organization or for the benefit of any ofits programs.The mission of the Organization is to:The vision of our church is to reach the world that is filled with people who are lost and separated from God and have no idea how to come to Him. We, who were once part of the lost, were touched by the Lord Jesus and the work of the Holy Spirit and were shown how to be reconciled with God.Our ministry now is to reach out to this world with the love and power of God and touch them with His abundant life. We want to take the life of God to them and show them that His Word is faithful and true, to intercede for their salvation and to meet their needs.As people become reconciled to God we will begin to see evidence of that through true praise and worship, love of the brethren that manifests itself in bearing one another’s burdens, a true “hunger” to reach the lost with the good news, a commitment to the family as a God ordained institution that should be the true foundation of society and a world view that is unwilling to accept less than the revealing of God’s righteous kingdom and glory on the earth.I. Purpose of Policies and GuidelinesThe board of directors of the Organization and its staff solicit current and deferred gifts fromindividuals, corporations, and foundations to secure the future growth and missions of the Organization.These policies and guidelines govern the acceptance of gifts by the Organization and provide guidance toprospective donors and their advisors when making gifts to the Organization. The provisions of thesepolicies shall apply to all gifts received by the Organization for any of its programs or services.II. Use of Legal CounselThe Organization shall seek the advice of legal counsel in matters relating to acceptance of gifts whenappropriate. Review by counsel is recommended for:1) Closely held stock transfers that are subject to restrictions or buy-sell agreements.2) Documents naming the Organization as Trustee.3) Gifts involving contracts, such as bargain sales or other documents requiring the Organizationto 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.The organization reserves the right to reject any gift within 45 days of receipt without recourse.III. Conflict of InterestThe Organization will urge all prospective donors to seek the assistance of personal legal and financialadvisors in matters relating to their gifts and the resulting tax and estate planning consequences.The Organization will comply with the Model Standards of Practice for the Charitable Gift Plannerpromulgated by the National Committee on Planned Giving, shown as an appendix to thisdocument.IV. Restrictions on GiftsThe Organization will accept unrestricted gifts, and gifts for specific programs and purposes, providedthat such gifts are not inconsistent with its stated mission, purposes, and priorities. The Organization willnot accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violatethe terms of the corporate charter (or trust document if Organization is established under trust), gifts thatare too difficult to administer, or gifts that are for purposes outside the mission of the Organization. Allfinal decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Organization.V. The Gift Acceptance Oversight (hereinafter, “Gift Acceptance Committee”)Gift acceptance oversight shall consist of any of the following:1) the president of the Organization;2) the vice-president of the Organization;3) the treasurer of the Organization;The gift acceptance committee is charged with the responsibility of reviewing all gifts made tothe Organization, properly screening and accepting those gifts, and making recommendations to theboard on gift acceptance issues when appropriate.VI. Types of GiftsThe following gifts are acceptable:o Cash.o Tangible Personal Property.o Securities.o Real Estate.o Remainder Interests in Property.o Oil, Gas, and Mineral Interests.o Bargain Sales.o Life Insurance.o Charitable Gift Annuities.o Charitable Remainder Trusts.o Charitable Lead Trusts.o Retirement Plan Beneficiary Designations.o Bequests.o 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 the Organization andshall be delivered either during a normal service offering or may be delivered to any office staff member in theOrganization’s administrative offices.2) Tangible Personal Property. All other gifts of tangible personal property shall be examined inlight of the following criteria:o Does the property fulfill the mission of the Organization?o Is the property marketable?o Are there any undue restrictions on the use, display, or sale of the property?o Are there any carrying costs for the property?The gift acceptance committee of the the Organization shall make the final determination on theacceptance of other tangible property gifts.3) Securities. The Organization can accept both publicly traded securities and closely held securities.Publicly Traded Securities. Marketable securities may be transferred to an accountmaintained at one or more brokerage firms or delivered physically with the transferor’ssignature or stock power attached. As a general rule, all marketable securities shall be soldupon receipt unless otherwise directed by the investment committee. In some cases marketablesecurities may be restricted by applicable securities laws; in such instance the finaldetermination on the acceptance of the restricted securities shall be made by the gift acceptancecommittee of the the Organization.Closely Held Securities. Closely held securities, which include not only debt and equitypositions in non-publicly traded companies but also interests in limited partnerships and limitedliability companies, or other ownership forms, can be accepted subject to the approval of thegift acceptance committee of the Organization. However, gifts must be reviewed prior to acceptanceto determine:o there are no restrictions on the security that would prevent the Organization from ultimatelyconverting those assets to cash;o the security is marketable; ando the security will not generate any undesirable tax consequences for the Organization.If potential problems arise on initial review of the security, further review and recommendationby an outside professional may be sought before making a final decision on acceptance of thegift. The gift acceptance committee of the the Organization and legal counsel shall make the finaldetermination on the acceptance of closely held securities when necessary. Every effort will bemade to sell non-marketable securities as quickly as possible.4) Real Estate. Gifts of real estate may include developed property, undeveloped property, orgifts subject to a prior life interest. Prior to acceptance of real estate, the Organization shall requirean initial environmental review of the property to ensure that the property has noenvironmental damage. Environmental inspection forms are attached as an appendix to thisdocument. In the event that the initial inspection reveals a potential problem, the Organization shallretain a qualified inspection firm to conduct an environmental audit. The cost of theenvironmental audit shall generally be an expense of the donor.When appropriate, a title binder shall be obtained by the Organization prior to the acceptance of thereal 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 gift acceptancecommittee of the Organization and by the Organization’s legal counsel. Criteria for acceptance of theproperty shall include:o Is the property useful for the purposes of the Organization?o Is the property marketable?o Are there any restrictions, reservations, easements, or other limitations associated with theproperty?o Are there carrying costs, which may include insurance, property taxes, mortgages, or notes,etc., associated with the property?o Does the environmental audit reflect that the property is not damaged?5) Remainder Interests in Property. The Organization will accept a remainder interest in a personalresidence, farm, or vacation property subject to the provisions of paragraph 4 above. The donoror other occupants may continue to occupy the real property for the duration of the stated life.At the death of the donor, the Organization may use the property or reduce it to cash. Where theOrganization receives a gift of a remainder interest, expenses for maintenance, real estate taxes, andany property indebtedness are to be paid by the donor or primary beneficiary.6) Oil, Gas, and Mineral Interests. The Organization may accept oil and gas property interests, whenappropriate. Prior to acceptance of an oil and gas interest the gift shall be approved by the giftacceptance committee, and if necessary, by the Organization’s legal counsel. Criteria for acceptanceof the property shall include:o Gifts of surface rights should have a value of $20,000 or greater.o Gifts of oil, gas, and mineral interests should generate at least $3,000 per year in royaltiesor other income (as determined by the average of the three years prior to the gift).o The property should not have extended lia bilities or other considerations that make receiptof the gift inappropriateo A working interest is rarely accepted. A working interest may only be accepted wherewhen there is a plan to minimize potential liability and tax consequences.o The property should undergo an environmental review to ensure that the Organization has nocurrent or potential exposure to environmental liability.7) Bargain Sales. the Organization will enter into a bargain sale arrangement in instances in whichthe bargain sale furthers the mission and purposes of the Organization. All bargain sales must bereviewed and recommended by the gift acceptance committee and approved by the board ofdirectors. Factors used in determining the appropriateness of the transaction include:o The Organization must obtain an independent appraisal substantiating the value of the property.o If the Organization assumes debt with the property, the debt ratio must be less than 50% of theappraised market value.o The Organization must determine that it will use the property, or that there is a market for sale ofthe property, allowing sale within 12 months of receipt.o The Organization must calculate the costs to safeguard, insure, and expense the property(including property tax, if applicable) during the holding period.8) Life Insurance. the Organization must be named as both beneficiary and irrevocable owner of aninsurance policy before a life insurance policy can be recorded as a gift. The gift is valued at itsinterpolated terminal reserve value, or cash surrender value, upon receipt. If the donorcontributes future premium payments, the Organization will include the entire amount of theadditional 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 lifeinsurance policy, the Organization may:o continue to pay the premiums;o convert the policy to paid up insurance; oro surrender the policy for its current cash value.9) Charitable Gift Annuities. The Organization may offer charitable gift annuities. The minimumgift for funding is $5,000. the Organization President may make exceptions to this minimum. Theminimum age for life income beneficiaries of a gift annuity shall be 55. Where a deferred giftannuity is offered, the minimum age for life income beneficiaries shall be 45. No more thantwo life income beneficiaries will be permitted for any gift annuity.Annuity payments may be made on a quarterly, semi-annual, or annual schedule. the OrganizationPresident may approve exceptions to this payment schedule.the Organization will not accept real estate, tangible personal property, or any other illiquid assetin exchange for current charitable gift annuities. the Organization may accept real estate, tangiblepersonal property, or other illiquid assets in exchange for deferred gift annuities so long asthere is at least a 5-year period before the commencement of the annuity payment date, thevalue of the property is reasonably certain, and the president of the Organization approves thearrangement.Funds contributed in exchange for a gift annuity shall be set aside and invested during the termof the annuity payments. Once those payments have terminated, the funds representing theremaining principal contributed in exchange for the gift annuity shall be transferred to theOrganization’s general endowment funds, or to such specific fund as designated by the donor.10) Charitable Remainder Trusts. The Organization may accept designation as remainder beneficiaryof a charitable remainder trust with the approval of the gift acceptance committee of theOrganization. The Organization will not accept appointment as trustee of a charitable remainder trust.11) Charitable Lead Trusts. The Organization may accept a designation as income beneficiary of acharitable lead trust. The board of the Organization will not accept an appointment as Trustee of acharitable lead trust.12) Retirement Plan Beneficiary Designations. Donors and supporters of the Organization will beencouraged to name the Organization as beneficiary of their retirement plans. Such designations willnot be recorded as gifts to the Organization until such time as the gift is irrevocable. When the gift isirrevocable, but is not due until a future date, the present value of that gift may be recorded atthe time the gift becomes irrevocable.13) Bequests. Donors and supporters of the Organization will be encouraged to make bequests to theOrganization under their wills and trusts. Such bequests will not be recorded as gifts to the Organizationuntil such time as the gift is irrevocable. When the gift is irrevocable, but is not due until afuture date, the present value of that gift may be recorded at the time the gift becomesirrevocable.14) Life Insurance Beneficiary Designations. Donors and supporters of the Organization will beencouraged to name the Organization as beneficiary or contingent beneficiary of their life insurancepolicies. Such designations shall not be recorded as gifts to the Organization until such time as thegift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the presentvalue of that gift may be recorded at the time the gift becomes irrevocable.VII. Miscellaneous ProvisionsSecuring appraisals and legal fees for gifts to the Organization. It will be the responsibility of thedonor to secure an appraisal (where required) and independent legal counsel for all gifts made tothe Organization.Valuation of gifts for development purposes.The Organization will record a gift received by theOrganization at its valuation for gift purposes on the date of gift.Responsibility for IRS Filings upon sale of gift items.The gift acceptance committee of the Organization is responsible for filing IRS Form 8282 upon thesale or disposition of any asset sold within two years of receipt by the Organization whenthe charitable deduction value of the item is more than $5,000. The Organization must filethis form within 125 days of the date of sale or disposition of the asset. Form 8282 withFiling Instructions is attached as an appendix to these policies.Acknowledgement of all gifts made to the Organization and compliance with the current IRSrequirements in acknowledgement of such gifts shall be the responsibility of the staff and/or volunteer staff of theOrganization. IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526Charitable Contributions are attached to these policies as an Appendix.VIII. Holdharmless, Indemnity, ArbitrationVIV. Changes to Gift Acceptance PoliciesThese policies and guidelines are subject to change at any time without notice.