Gift Acceptance Policies & Guidelines
The Ministry Village at Olive, Inc., a not for profit organization organized under the laws of the State of Florida, encourages the solicitation and acceptance of gifts to the Ministry Village at Olive, Inc. (hereinafter referred to as the Ministry Village) for purposes that will help the Ministry Village to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to the Ministry Village or for the benefit of any of its programs.
The mandate of the Ministry Village at Olive, Inc. is to express the love of Christ to all people through acts of service. The organization aims to increase access to quality care for those under-served in their emotional, financial, mental, medical, physical, spiritual and vocational needs. Individuals with limited or no access to aid will be assisted by committed volunteers serving with professional support and standards of excellence.
I. Purpose of Policies and Guidelines
The Board of Directors of the Ministry Village and its staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and missions of the Ministry Village. These policies and guidelines govern the acceptance of gifts by the Ministry Village and provide guidance to prospective donors and their advisors when making gifts to the Ministry Village. The provisions of these policies shall apply to all gifts by the Ministry Village for any of its programs or services.
II. Use of Legal Counsel
The Ministry Village may require board approval and may seek the advice of legal or other counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is required for:
- Closely held stock transfers that are subject to restrictions or buy-sell agreements.
- Gifts involving contracts, such as bargain sales or other documents requiring the Ministry Village to assume an obligation.
- Transactions with a potential conflict of interest that may invoke IRS sanctions.
- Real Estate
III. Conflict of Interest
The Ministry Village 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 Ministry Village 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.
IV. Restrictions on Gifts
The Ministry Village 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. The Ministry Village will not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of the Ministry Village. All final decisions on the restructure nature of a gift, and its acceptance or refusal shall be made by the Board of Directors of the Ministry Village.
V. Gift Acceptance Review
Gift Acceptance review will be made by the Board of Directors of the Ministry Village and Ex-Officio members who include the non-voting member and the Fund Development Director.
The parties listed above are charged with the responsibility of reviewing all gifts made to the Ministry Village, properly screening and accepting those gifts.
VI. Types of Gifts
The following gifts are acceptable
- Tangible Personal Property
- Real Estate
- Remainder Interests in Property
- Bargain Sales
- Life Insurance
- Charitable Remainder Trusts
- Charitable Lead Trusts
- Retirement Plan Beneficiary Designations
- Life Insurance Beneficiary Designations
The following criteria govern the acceptance of each gift form:
- Cash: Cash is acceptable in any form. Checks shall be made payable to the Ministry Village and shall be delivered to Stan Lollar or Dorothy Bare at the Ministry Village office.
- Tangible Personal Property: All other gifts of tangible personal property shall be examined in light of the following criteria:
- Does the property fulfill the mission of the Ministry Village?
- 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 final determination on the acceptance of other tangible property gifts shall be made by the Board of Directors of the Ministry Village or its designee.
- Securities: The Ministry Village 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 delivered physically with the transferor’s signature or stock power attached. As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Board of Directors. In some cases marketable securities may be restricted by applicable securities laws: in such instances the final determination on the acceptance of the restricted securities shall be made by the Board of Directors of the Ministry Village.Closely Held Securities: Closely Held Securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other form ownership forms, can be accepted subject to the approval of the Board of Directors of the Ministry Village. However, gifts must be reviewed prior to acceptance to determine that:
- There are no restrictions on the security that would prevent the Ministry Village from ultimately converting those assets to cash,
- The security is marketable, and
- The security will not generate any undesirable tax consequences for the Ministry Village.
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 final determination on the acceptance of closely held securities shall be made by the Board of Directors of the Ministry Village and legal counsel. Every effort will be made to sell non-marketable securities as quickly as possible.
- 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 Ministry Village 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 Ministry Village 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.When appropriate, a title binder shall be obtained by the Ministry Village 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 be approved by the Board of Directors of the Ministry Village and by the Ministry Village’s legal counsel. Criteria for acceptance of the property shall include:
- Is the property useful for the purposes of the Ministry Village?
- Is the property marketable?
- 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 environment audit reflect that the property is not damaged?
- Remainder Interests In Property: The Ministry Village 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, the Ministry Village may use the property or reduce it to cash. Where Ministry Village 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.
- Bargain Sales: The Ministry Village will enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of the Ministry Village. All bargain sales must be reviewed, recommended and approved by the Board of Directors. Factors used in determining the appropriateness of the transaction include:
- The Ministry Village must obtain an independent appraisal substantiating the value of the property.
- If the Ministry Village assumes debt with the property, the debt ration must be less than 50% of the appraised market value.
- The Ministry Village must determine that it will use the property, or that there is a market for sale of the property allowing sale within 12 months of receipt.
- The Ministry Village must calculate the costs of safeguard, insure and expense the property (including property tax, if applicable) during the holding period.
- Life Insurance: The Ministry Village 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 as valued at its interpolated terminal reserve value, or cash surrender value, upon receipt. If the donor contributes future premium payments, the Ministry Village 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 Ministry Village may:
- Continue to pay the premiums
- Convert the policy to paid up insurance, or
- Surrender the policy for its current cash value.
- Charitable Remainder Trusts: The Ministry Village may accept designation as remainder beneficiary of a charitable remainder trust with the approval of the Board of Directors of the Ministry Village. The Ministry Village will not accept appointment as Trustee of a charitable remainder trust.
- Charitable Lead Trusts: The Ministry Village may accept a designation as income beneficiary of a charitable lead trust. The Board of the Ministry Village will not accept appointment as Trustee of a charitable lead trust.
- Retirement Plan Beneficiary Designations: Donors and supporters of the Ministry Village will be encouraged to name the Ministry Village as a beneficiary of their retirement plans. Such designations will not be recorded as gifts to the Ministry Village 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 the gift may be recorded at the time the gift becomes irrevocable.
- Bequests: Donors and supporters of the Ministry Village will be encouraged to make bequests to the Ministry Village under their wills and trusts. Such bequests will not be recorded as gifts to the Ministry Village 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.
- Life Insurance Beneficiary Designations: Donor and supporters of the Ministry Village will be encouraged to name the Ministry Village as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to the Ministry Village 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 the gift may be recorded at the time the gift becomes irrevocable.
VII. Miscellaneous Provisions
- Securing the appraisals and legal fees for gifts to the charity: It will be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel for all gifts made to the Ministry Village.
- Valuation of gifts for development purposes: The Ministry Village will record a gift received by the Ministry Village at its valuation for gift purposes on the date of the gift.
- Responsibility for IRS Filings upon sale of gift items: The Board of Directors of the Ministry Village are responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within two years of receipt by the Ministry Village when the charitable deduction value of the item is more than $5,000. The Ministry Village must file this form within 125 days of the date of the sale or disposition of the asset. Form 8282 with Filing Instructions is attached as an appendix to these policies.
- Acknowledgement of all gifts made to the Ministry Village and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of the Board of Directors of the Ministry Village. IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions are attached to these policies as an Appendix.
VIII. Changes to Gift Acceptance Policies
These policies and guidelines have been reviewed and accepted by the Board of Directors of the Ministry Village. The Board of Directors of the Ministry Village must approve any changes to or deviations from the policies.These policies and guidelines have been reviewed and accepted by the Board of Directors of the Ministry Village. The Board of Directors of the Ministry Village must approve any changes to or deviations from the policies.
Approved on the 30th day of July, 2008.