Gift Acceptance and Administration Policies
It is the policy of Together We Stand, Inc. (hereinafter referred to as “TWS”), to offer donors the opportunity to make both unrestricted and designated or restricted gifts. It is the policy of TWS to provide acknowledgment of all gifts meeting Internal Revenue Service substantiation requirements. The purpose of establishing these Gift Acceptance and Administration Policies are:
1. To provide parameters within which the TWS staff shall function in promoting gifts that are acceptable to TWS.
2.To provide parameters within which the Gardens staff shall discuss such gifts with interested donors.
3.To identify limitations for gifts offered to TWS and identify the risks associated with certain classes of gifts. Exceptions and/or revisions may be made to these Gift Acceptance Policies by a majority of the members of the Board of Trustees upon the advice of the Finance Audit and Investment Committee.
PRIORITY OF DONOR’S INTEREST AND CONFIDENTIALITY No irrevocable gift, whether outright or life-income in character, will be accepted if, under any reasonable set of circumstances, the gift would jeopardize the donor’s financial security. Agents or representatives of TWS must make full disclosure to the donor on all aspects of benefits and liabilities of which they are aware that may reasonably be expected to influence the decision of the donor to make gifts to TWS. Notwithstanding the foregoing, gifts of a nature that would be inconsistent with the goals and objectives of TWS are not to be accepted.
DONOR RECOGNITION unless a donor requests anonymity, gifts will be recognized according to the policies of TWS.
CONFLICT OF INTEREST DISCLOSURE Each member of the TWS’s Board of Directors must notify the President of the Board of any conflict of interest between the Trustee and a contract or transaction under consideration by the Trustees. The interested Trustee shall make full disclosure of all information known to the Trustee concerning such transaction and the member shall abstain from any vote pertaining to such matters. Trustees and TWS staff also will disclose to donors any conflict of interest involving the donor’s gift and/or its management.
DONOR’S PROFESSIONAL COUNSEL Recognizing the array of professional expertise required to plan a charitable gift and avoiding even the appearance of a conflict of interest, TWS staff members will always encourage donors to seek their own professional counsel. TWs may sometimes provide gift planning information that first addresses the needs of the donor and assists the donor’s professional advisors. That information may include sample documents and financial projections for specific gift options. To protect TWS from potential claims that a gift was incompetently presented and/or solicited with undue influence, the donor will be encouraged, in writing, to finalize any documents and review all projections with his or her own advisors to ensure that the donor is receiving proper income tax, gift and/or estate planning advice. In all cases, the TWS’s representatives will seek the opportunity to emphasize that their client is the Gardens, and that they do not represent the donor. Furthermore, TWS’s representatives will refrain from engaging in any activity which may be construed as the unauthorized practice of law, i.e., preparation of trust documents, deeds of transfer, or other documents normally prepared by appropriate legal counsel unless specifically authorized to do so by a vote of the Gardens.
CASH GIFTS
- Any TWS employee or TWS Director Board member is authorized to accept gifts of cash for TWS.
- All cash gifts should be forwarded immediately to TWS for timely deposit and/or safe keeping.
- TWS will provide Donor acknowledgment meeting Internal Revenue Service substantiation requirements.
GIFTS OF TANGIBLE PERSONAL PROPERTY
- Gifts of tangible personal property will be subject to advance approval by the Board of Trustees upon the recommendation of the Finance Audit and Investment Committee.
- While exceptions may be considered, TWS requires that gifts such as art, furniture, computers, boats, automobiles, medical equipment, and other forms of tangible personal property, must satisfy each of the following before acceptance: The item to be received can be used by TWS can sell or otherwise dispose of the property in a timely and practical manner; the item to be received is not encumbered by high transportation costs, storage costs, or unusual maintenance; and the item to be received is not encumbered by debt.
- Prior to any gift of tangible personal property, TWS will advise all donors or prospective donors to seek proper legal guidance on possible related or unrelated uses of the property.
- Upon acceptance of a gift, TWS will provide a letter of acknowledgment and appreciation to the donor meeting Internal Revenue Service substantiation requirements. If the gift has a value in excess of $5,000, TWS will require from the donor a qualified appraisal of the property from a qualified appraiser.
- In general, when a donor contributes property (other than publicly traded securities) for which a charitable deduction in excess of $5,000 is claimed, in order to obtain the benefit of a charitable deduction, the Internal Revenue Service will require the donor to
- 1) Complete IRS Form 8283,
- (2) Obtain a “qualified appraisal” of the property from a qualified appraiser,
- (3) Attach a fully completed appraisal summary to the tax return in which the deduction is first claimed, and
- (4) Maintain records of certain information listed in Treas. Reg. 1.170A-13(b )(2)(ii).
- These obligations rest upon the donor and do not affect TWS’s acceptance of the donated property. Upon presentation and acceptance of the gift, however, TWS will sign an acknowledgment for such gift contained in Form 8283, if requested to do so by the donor.
- Donors will be encouraged to furnish TWS with a current written independent appraisal of property to be given to the Gardens. Any gift received by TWS accompanied by a written independent appraisal acceptable to the Finance Audit and Investment Committee of TWS shall be credited to the appropriate fund at the appraised value. In the absence of such an appraisal, the gift will be carried on the books of TWS in the manner deemed most appropriate by a representative of the Gardens.
- In general and with exceptions, TWS will not seek to receive tangible property gifts from estates or trusts in kind. TWS will seek the proper sale of tangible property by the appropriate fiduciary in order to receive cash proceeds from the estate or trust. H. TWS will not seek gifts of art that require display, and no commitment will be made to the donor to display the art. The decision whether or not to display the art will rest with the administration of TWS as appropriate.
GIFTS OF SECURITIES
- Unless otherwise approved by the Finance Audit and Investment Committee, gifts of securities that should not be accepted include: securities that could create a liability to TWS; securities that by their nature may not be assigned; and securities that, on investigation, have no apparent value.
- Gifts of bonds that require a holding period generally should be accepted and liquidated when the holding period has expired.
- Gifts of interests in closely-held entities (including, but not limited to, corporations, limited partnerships, limited liability companies and similar entities) may be accepted only with the approval of a majority of the Board of Trustees upon the advice of the Finance Audit and Investment Committee of TWS and only when an investigation reveals no significant potential liability for TWS in receiving the gift.
- To determine the fair market value of the gift of stock for TWS’s purposes, TWS will use the average of the high and the low value of the stock as listed on the applicable stock exchange in the Wall Street Journal or any other comparable reporting periodical for the appropriate date of receipt of the stock (as discussed above).
- Upon acceptance of a gift, TWS will provide a letter of acknowledgment and appreciation to the donor meeting Internal Revenue Service substantiation requirements.
- TWS will instruct its financial services provider to liquidate all security gifts immediately upon receipt of the gift in the TWS’s account. The financial services provider will hold the proceeds in cash or cash equivalents until further instructions from a duly authorized officer of TWS. Exceptions may be made by the Board of Trustees upon the advice of the Finance Audit and Investment Committee and/ or an Investment Committee. In no instance will TWS allow a donor to direct investments of a completed gift to the Gardens.
GIFTS OF REAL PROPERTY AND MINERAL INTERESTS
- All gifts of real property and mineral interests will be subject to advance approval by the majority of the Board of Trustees upon advice of the Finance Audit and Investment Committee of TWS.
- TWS seeks to minimize and, when possible, avoid environmental liability arising from the ownership or control of real property by taking actions that are reasonably appropriate to determine the extent of any environmental contamination before accepting ownership or control of the real property.
- In most instances, the donor will have gifts of real property appraised by a qualified appraiser to establish a fair market value for the donor’s purposes. Unless otherwise recommended by the Finance Audit and Investment Committee and approved by a majority of the Board of Directors of the TWS, TWS will not pay for such an appraisal.
- In general, it is the policy of TWS not to accept contributions of property subject to any form of indebtedness or other liability in order to prevent TWS from becoming responsible for the payment thereof.
- In general, TWS will not accept a gift involving real property that makes TWS a principal in a real estate partnership, joint venture, or business activity in which TWS participates fully in the risks of the operation and has more than limited liability for the conduct of the business (e.g., as a general partner, principal in a joint venture or as an owner of a working interest).
- In general, TWS will not seek to receive real property gifts from estates or trusts in kind. TWS will seek to ensure the proper sale of real estate by the appropriate fiduciary in order to receive cash proceeds from the estate or trust.
ENVIRONMENTAL ASSESSMENT POLICIES
- The Finance Audit and Investment Committee of the TWS, with the advice and assistance of outside legal counsel, should evaluate and recommend the Board of Directors accept real property only after thorough review of a completed Inspection Checklist and Environmental Questionnaire.
- If, after inspection of the real property, the staff member determines that the real property is contaminated by hazardous materials or other substances, or there is a substantial likelihood that the real property is contaminated by hazardous materials or other substances, the real property generally should not be accepted unless no reasonable possibility exists that any environmentally related liability to TWS could arise out of, or from, the actual or potential contamination. Notwithstanding the foregoing, a gift of real property may be accepted even if a reasonable possibility exists that environmentally related liability to TWS could arise out of, or from, any activity or condition on, in, under, or of the real property if the Board of Trustees upon the advice of the Finance Audit and Investment Committee of the TWS, with the advice and assistance of outside legal counsel and a certified environmental specialist, if necessary, determines that the exposure can clearly be contained and the cost of remediation is reasonable.
- In addition to environmental issues, any acceptance of real estate will be contingent upon thorough vetting of the property for outstanding liabilities, lack of marketability, indebtedness or tax liabilities, or other conditions that may result in liability for the Gardens.
TESTAMENTARY GIFTS (BEQUESTS)
- TWS employees, officers and Trustees do not prepare wills. Exceptions may be authorized only by the President/CEO of TWS and only to Board of Directors members who are authorized to practice law. In no event will a TWS employee prepare a will, trust, or other document containing testamentary provisions. Appropriate staff will, upon request, provide suggested gift clauses to the donor’s attorney for inclusion in wills prepared by the donor’s attorney.
- Whenever possible, an authorized officer of TWS will review in advance any restrictions or conditions placed on a charitable bequest and confirm that the legal name of TWS is accurately stated.
- TWS may not serve as executor of estates, trustee, or attorney-in-fact. Officers and Trustees of TWS may not serve as executors of estates, Board of Trustees or as attorneys-in-fact in their capacity as TWS officers and Trustees under ordinary circumstances. In some instances, officers and Trustees may serve as such, but only with the permission of the Board of Directors of TWS, and when all or substantially all of the estate passes to TWS or when the testator is a family member, domestic partner, or recognized close acquaintance of the acting Board of Trustees Member. The interested officer or Trustee shall abstain from any vote pertaining to these matters.
- As a general rule, TWS will not bear any cost associated with creating or amending a will or revocable trust. Exceptions to this rule can be made at the discretion of the Board of Directors of TWS.
- Bequest expectancies will be classified as either documented, known, or possible as follows:
- Documented
TWS has a copy of the will or that portion of the will pertaining to the gift to the - Gardens.
Known; the donor has informed a representative of TWS that there is a bequest for - TWS in their will
Possible; a third party informs a member of the TWS that an individual has included TWS in his/her will.
- Documented
GIFTS OF RETIREMENT PLANS AND IRA BENEFITS
- TWS may be named as a primary, secondary, partial, or contingent beneficiary of a retirement plan, IRA, or other type of retirement plan.
- TWS may consult with legal counsel, if necessary, in order to ensure that the beneficiary designation form for a retirement plan or IRA payable to TWS is properly worded to ensure completion of the gift.
- Upon the donor’s death, TWS will instruct the plan or IRA trustee to make the distribution in cash rather than in-kind.
GIFTS OF REMAINDER INTERESTS IN CHARITABLE REMAINDER TRUSTS (CRT)
- In working with prospective charitable trust donors, care will be taken to assure that the person creating the trust fully understands that the trust is irrevocable and understands the nature of the payments that will be made to the trust beneficiaries. All prospective donors will be urged to seek advice of their own legal and/or tax counsel. The relevant TWSs development staff member will communicate clearly to the prospective donor that he or she represents the and not the donor in this transaction.
- No CRT will be solicited if under any reasonable set of circumstances, the gift would jeopardize the donor’s financial security. TWS development staff member will make every practical effort to meet personally with prospective charitable trust donors and will only proceed with solicitation of a CRT if satisfied the donor has received adequate counsel.
- TWS will not serve as Trustee of any CRT and will, instead, seek only to be a remainder interest in such trust. TWs will defer to the donor, donor’s legal counsel or other outside professional advisor to properly draft, execute, fund, administer, comply, and account for the trust during the income beneficiary interest(s). Nonetheless, TWS does not waive its right to review and challenge the annual accountings of the trust in which it has a vested interest. It is TWS’s desire to ensure that the remaining interest has been adequately considered in any and all decisions regarding the administration and investment of the trust. Administration and investment of the trust.
GIFTS OF INCOME INTEREST IN CHARITABLE LEAD TRUSTS (CLT)
- In working with prospective CLT donors, care will be taken to assure that the person creating the trust fully understands that the trust is irrevocable and understands the nature of the payments that will be made to the Gardens. All prospective donors will be urged to seek advice of their own legal and/or tax counsel. The relevant TWSs development staff member will communicate clearly to the prospective donor that he or she represents TWS and not the donor in this transaction.
- No CLT will be solicited if under any reasonable set of circumstances, the gift would jeopardize the donor’s financial security. TWS development staff members will make every practical effort to meet personally with prospective CLT donors and will only proceed with solicitation of a CLT if satisfied the donor has received adequate counsel.
- TWS will not serve as Trustee of any CLT and will, instead, seek only’ to be the lead income interest in such trust. TWS will defer to the donor, donor’s legal counsel or other outside professional advisor to properly draft, execute, fund, administer, comply, and account for the trust during the lead income interest(s). Nonetheless, TWS does not waive its right to review and challenge the annual accountings of the trust in which it has a vested interest. It is TWSs desire to ensure that the remaining interest has been adequately considered in any and all decisions regarding the administration and investment of the trust.
7 GIFTS OF LIFE INSURANCE OR ANNUITIES
- TWS will accept life insurance gifts determined to be: ⁃a gift of a paid-up insurance policy, ⁃or a gift of a new or existing insurance policy, for which the donor intends to continue making payments so that the policy does not lapse.
- In either case, the donor must name TWS as both the owner and the beneficiary of the insurance policy.
- TWS will make payments on a policy if the donor makes annual gifts at least equivalent to the amount of the premium.
- TWS is under no obligation but may continue to pay the premiums if the donor does not make the equivalent annual gift.
- TWS may be designated as beneficiary and accept the proceeds from an Annuity Contract. In the event a donor wishes to contribute an Annuity Contract during the lifetime of the annuitant, TWS will accept that gift only after it is satisfied that the donor has sought appropriate tax and legal advice.
For more information or to share details about your planned gift, contact: John Mears Exec. Director of Together We Stand Inc., 3350 N 57Dr Hollywood, FL 33021. Phone 954.275-4055.