New Gift Policy Process
The Board is preparing to adopt a new policy with regard to Gift Acceptance. This policy spells out, for the first time, what types of gifts the church can accept, and the process for making the decision to accept a gift if the decision is not automatic. One primary reason for this policy is that some types of gifts are problematic, and can cause issues that the Church would do best to avoid. Most nonprofit organizations have some type of gift acceptance policy.
The process for adopting or changing a Board Policy is to introduce it at one Board meeting, announce it in the Newsletter, and adopt or reject it at the following Board meeting. This provides an opportunity for general review and comment. Since this policy is too long for publication in the Newsletter, it can be found in printed form at the church office, and on the Church website at the following address:
To comment on the policy, send your comment, prior to the next Board meeting on February 9, 2012, to jwagner@efn.org or Treasurer@uueugene.org
UUCE Gift Acceptance Policy
V10, 12/20/11
PURPOSE
GIFT.1 The purpose of this policy is to establish guidelines for evaluating and accepting charitable gifts in an efficient, ethical, legal and professional manner.
CHURCH FUNDS
GIFT.2 The General Fund refers to the Annual Operating Budget and Unrestricted Net Assets of UUCE. The Endowment is a permanently restricted fund created to “provide for the long-term health and survival of the Congregation.” The Capital Fund was created initially to fund the purchase and renovation of the Church property at 13th and Chambers. The Capital Fund exists to provide for this and other capital needs. Designated gifts can be made to the Unitarian Universalist Church in Eugene (UUCE) Endowment, to the Capital Fund, or to other funds as established by the Board.
GIFT.2.1 All contributions given to the UUCE are the ultimate property of the UUCE. UUCE will make every good faith effort to use funds as designated by the donor for a reasonable period of time (up to two years). If designated funds cannot be used for their originally specified purpose, UUCE shall endeavor to find a complementary use, or shall reserve the right to expend the gift. No agreement made at the time of donation shall supersede UUCE's right to ultimate determination of the use of contributions.
GIFT ACCEPTANCE CRITERIA
GIFT.3.1. Unless otherwise designated or restricted by purpose or time, all gifts to UUCE will go to the General Fund.
GIFT.3.2 Any gift accepted by UUCE must be consistent with the policies and purposes of UUCE.
GIFT.3.3 The UUCE may only accept gifts from individuals, corporations, trusts, foundations and others that:
3.3.1 fit with UUCE’s mission, goals, programs and activities;
3.3.2 provide measurable benefit to UUCE; and
3.3.3 do not present significant economic or non-economic drawbacks.
GIFT.3.4 In addition, UUCE will not accept gifts that:
3.4.1 Violate our tax-exempt status
3.4.2 Violate laws or are otherwise unethical, including gifts that discriminate based upon race, color, sex, sexual orientation, gender identity, class, creed, ethnic or national identity, physical ability, or age;
3.4.3 Inhibit the procurement of gifts from other donors;
3.4.4 Lack charitable intent or disproportionately benefit the donor as compared to UUCE; or
3.4.5 Cost UUCE more than they benefit UUCE.
GIFT.3.5 Final authority to accept or decline gifts rests solely with the Board of Trustees (BoT) and/or their designees; hereafter referred to as “the Committee.” The Committee may accept certain gifts without prior board review and approval as follows.
GIFT.3.6 UUCE BoT or the Committee will initially examine whether a proposed gift complies with these criteria and the rest of this policy. If the gift will clearly not comply, the donor should be informed quickly and politely that UUCE will not be able to accept the gift.
GIFT.3.7 The Committee may accept the following types of gifts without prior review and approval of Board so long as the gift is unrestricted or restricted to a purpose or fund that the Board has previously approved and it complies with the criteria in section 3.
3.7.1 Cash. Cash gifts are acceptable in any form, including checks, money orders, credit cards, or when available, on-line donations.
3.7.2 Marketable Securities. Marketable securities may be transferred electronically to UUCE through a broker or other Financial Institution. It is the Policy of UUCE to liquidate gifted securities expediently unless the Board specifically approves retention.
3.7.3 Bequests. Currently UUCE may accept bequests including gifts in Wills or beneficiary designations under trusts, life insurance policies, commercial annuities, retirement plans or other assets for which a beneficiary may be legally named.
GIFT.3.8 Administrative Costs and Expenses. It is the objective of UUCE that direct costs of administering deferred gifts will not be borne by the general fund, since to do so would require subsidization by unrestricted gifts from others. Therefore, costs incurred by UUCE directly shall be reimbursed out of the assets of the gift.
GIFT.3.9 Memorial Gifts. UUCE encourages the contribution of unrestricted memorial gifts and bequests. Gifts with specified restriction are subject to Board review per these policies.
GIFT.3.10 Tangible Personal Property. UUCE may accept gifts of tangible personal property valued at under $5,000 which are easily put to use for UUCE’s charitable purpose and over which UUCE has complete control including discretion to retain or liquidate.
GIFTS WHICH REQUIRE PRIOR REVIEW AND ACCEPTANCE BY THE BOARD
GIFT.4 The following types of contributions may only be accepted by the Board after careful review:
GIFT.4.1 Tangible Personal Property. Tangible personal property valued at over $5,000, or which the donor is requiring UUCE to retain, or the use of which is not related to UUCE’s charitable purpose.
GIFT.4.2 Life Insurance Policies. Gifts of life insurance where UUCE is named as both beneficiary and irrevocable owner of the insurance policy. The donor must agree to pay, before due, any future premium payments owing on the policy.
GIFT.4.3 Real Estate. UUCE encourages liquidation of all real property assets before contribution. All gifts of real estate must be carefully and fully investigated to determine if the property is marketable; if it is suitable for UUCE’s mission, goals and needs; costs of evaluation, management and liquidation; whether the property presents environmental or other liabilities or risks; and other economic and noneconomic factors.
GIFT.4.4 Gifts Involving Trusteeship, Fiduciary other Legal Duties. UUCE may not serve as a trustee, personal representative, executor or other fiduciary without specific approval of the Board and legal review of the gift and the accompanying duties.
PLEDGES
GIFT.5 UUCE may accept written promises from donors to pay money or donate other assets. Pledges are tracked and reported through a pledge database and pledge statements are generated for the donor at least annually. Pledge revenue is recorded when received in accordance with Generally Accepted Accounting Principles.
DONOR RESTRICTIONS
GIFT.6 UUCE may accept gifts temporarily restricted to a particular time or purpose. All restrictions must comply with the requirements of this Gift Acceptance Policy. Donor restrictions must be acknowledged in writing. By law, solicitation materials prepared by UUCE also create binding restrictions if the materials specifically solicit for a particular purpose or purposes.
ACCOUNTING PRACTICES
GIFT.7 A separate project code is established in the chart of accounts for restricted funding sources which utilize line item budgets. Expenses which fulfill the restrictions of the donor are recorded in that donor’s project code. Separate bank or other financial institution accounts are not required for each restricted funding source. UUCE may at times choose to establish designated investment accounts to facilitate management of the funds.
USE OF LEGAL COUNSEL
GIFT.8 UUCE will seek legal counsel in matters relating to acceptance of gifts whenever appropriate as determined by the BoT or the Committee. UUCE strongly encourages all prospective donors to consult with their own legal and financial advisors in matters relating to their gifts and any tax implications.
BOARD REVIEW AND ACCEPTANCE PROCEDURES
GIFT.9 The evaluation process for each gift begins prior to solicitation. BoT members, Committee members, or other designees should consider, prior to solicitation, whether gifts in response to the solicitation would be consistent with these policies and beneficial to UUCE.
GIFT.9.1 The procedure of evaluating each potential gift shall be as follows although steps may be taken out of order as necessary:
9.1.1 Whenever review is required by the policy, UUCE leaders will present the gift to the Committee for evaluation. The Committee may determine whether to accept or decline the gift in accordance with this policy or present the gift to the BoT for further discussion.
9.1.2 If the gift is presented by the Committee for BoT consideration, the BoT will determine whether to accept or decline the gift by carefully reviewing the details of the gift and applying the criteria in section 3. The BoT’s determination will be recorded in the minutes of the meeting at which the gift was accepted.
9.1.3 If the BoT declines the gift, the donor will be informed quickly and politely that UUCE will not be able to accept the gift and any delivered gifts will be returned.
VALUATION AND MANAGEMENT
GIFT.10 All gifted assets will be valued in accordance with IRS regulations, including those requiring donors to provide their own valuation for tax deduction purposes, and Generally Accepted Accounting Principles. All gifted assets will be managed in accordance with Gift Agreements, the Financial Policies of UUCE, all applicable laws and regulations and Generally Accepted Accounting Principles.
ACKNOWLEDGMENT
GIFT.11 Upon receiving a signed gift agreement and appropriate documentation of the will, insurance policy, transfer of interest, etc., UUCE will acknowledge the gift in a manner acceptable to both parties.
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