Head Start of Yamhill County Gift Policies

 

Purpose: To provide a framework for the types and forms of gifts that will provide the maximum benefit both to the donor and to Head Start of Yamhill County.

    This overview addresses both current and planned gifts. The goal is to encourage support for Head Start of Yamhill County without encumbering the organization with gifts that may generate costs or liabilities in excess of the benefit provided, or that are restricted in a manner not consistent with the purpose, goals or policies of Head Start of Yamhill County.

GIFT ACCEPTANCE COMMITTEE

    In some cases, a proposed gift may require consultation by a Gift Acceptance Committee (GAC), which Gift Acceptance Committee shall consist of:

1.                   The Director of Head Start of Yamhill County;

2.                   The Finance Advisor/or Accountant;

3.                   The Chair of the Board of Directors;

4.                   Chair or other designated Representative from Friends of Head Start

5.                   Chair of the Policy Council; and

6.                   The Operations Manager and or legal advisor.

    These policies and procedures are to be reviewed annually to ensure that components are up to date. The GAC is responsible for initiating this review.

Authority to Accept Gifts:

1.         An outright, unrestricted cash gift of any amount may be accepted by the Executive Director, Development Director, or members of the Board.

2.         A non‑cash gift (including real property, stock, or a planned gift vehicle) may be accepted by the Executive Director or members of the Board, subject to a review by the GAC.

Professional Relationships:

    In dealing with legal, financial and planned giving advisors, ethical relationships will be established and maintained. If asked to recommend such advisors and professionals to donors, a list of three to five names will be presented and the choice of advisor will be made by the donor.

    Head Start of Yamhill County will not draft legal documents for any donor or planned gift.  In most cases, any and all fees associated with planned gift legal documents, appraisals or assessments will be paid by the donor before the gift is accepted. All documents submitted by the donor's advisors will be reviewed by Head Start of Yamhill County's legal counsel.

OUTRIGHT GIFTS

Cash:

1.         Gifts in the form of cash and checks shall be accepted regardless of amount unless there is a question as to whether the donor has sufficient title to the assets or is competent to legally transfer the funds as a gift to Head Start of Yamhill County.

2.         All checks must be made payable to Head Start of Yamhill County, and in no event shall checks be made payable to an employee, agent, or volunteer for the credit of Head Start of Yamhill County.

Publicly Traded Securities:

1. Securities which are traded on the New York or American Stock Exchanges, or other readily marketable securities, may be accepted and thereafter sold at the earliest opportunity. In no event shall an employee or volunteer commit to a donor that a particular security will be held, without the prior written authorization to do so by the GAC.

Closely Held Securities:

1.        Non‑publicly traded securities may only be accepted after approval of the GAC.

2.         Such securities may be subsequently disposed of only with the approval of the GAC.

3.         No commitments shall be made for the disposition of such securities prior to the completion of the gift.

Real Property:

1.           No gift of real estate shall be accepted without the prior written approval of the GAC.

2.         No gift of real estate shall be accepted without first being appraised by an independent party acceptable to Head Start of Yamhill County, who shall have no business or other relationship with the donor or Head Start of Yamhill County. The cost of such appraisal shall be paid by the donor.  If appropriate to the property, a Level I Environmental Site Assessment would be performed by a qualified geologist, engineer, or site assessment firm.

3.         A follow‑up Level II Site Assessment may be required, dependent on the initial study. Clean up of contamination would be required to be completed prior to the acceptance of the gift property.

4.         Head Start of Yamhill County will not accept real estate encumbered by a mortgage, unless special circumstances exist and with written authorization of the GAC.

5.         Gifts of real property valued at $5,000.00 and over must be evaluated by an independent appraiser and the appropriate IRS forms required will be completed.

Tangible Personal Property:

1.         No personal property shall be accepted unless there is reason to believe the property can be quickly disposed of. No personal property shall be accepted that obligates Head Start of Yamhill County to ownership in perpetuity.  No perishable property, or property which will require special facilities or security to properly safeguard, will be accepted without prior GAC approval.

2.  Property valued at $5,000.00 or more will be independently appraised and appropriate IRS forms completed.  For tax deduction purposes, the donor must obtain a written appraisal for inclusion on his/her tax form. Head Start of Yamhill County does not determine the value of donated personal property.

Planned Gift Types:

1.         The gift types include bequests, life insurance, irrevocable or revocable trusts, life estates, charitable remainder annuity and unitrusts, charitable lead trust (annuities). All planned gift vehicles will be reviewed by the GAC and Head Start of Yamhill County's legal counsel.

2.         Gift types can be funded with cash, marketable securities, closely held stock, real estate, notes, mortgages and contracts, and miscellaneous tangible personal property. The funding source for the planned gift will be reviewed according to the previous stated policy for outright gifts.

GIFT ACKNOWLEDGEMENTS

1.         All gifts to Head Start of Yamhill County are sincerely appreciated and shall be promptly acknowledged with a letter. The current IRS rulings and requirements will be adhered to concerning gifts of $250.00 or more, as well as gifts of $75.00 or more and providing goods and/or services to the donor

2.           Stock gifts are attributed the median price on the day received.

3.         The need for and appropriateness of gift clubs, or groupings, will be determined by the GAC, the Board of Directors, and Head Start of Yamhill County's legal counsel.

GIFT LEVELS

Requirements of gift minimums pertain mostly to planned and estate gifts, trusts and other gift vehicles. In setting and updating these gift amounts, the cost of administration and return shall be a factor.

1.         Trusts shall be established for a minimum of $250,000.00. Head Start of Yamhill County may serve as Trustee for charitable remainder trusts on the condition that the trust instrument give Head Start of Yamhill County the authority to delegate management of trust funds to a bank, investment advisor, or other financial institutions, as well as to remove or change such financial institution.  An appropriate management fee may be charged against the trust as normally required by the bank or financial institution.

2.         Bequest gifts of any amount may be received. Donors are encouraged to leave their charitable bequests by Will as unrestricted, rather than specific program areas, that may or may not be in existence in the future.  Unrestricted bequest over $10,000 will be split 75% to a board designated bequest fund and 25% to ongoing program operations.  If under $10,000, entire amount into program operations.

3.         In‑kind donations of goods and services are accepted from competent professionals wishing to assist Head Start of Yamhill County with its ongoing operation. Donors wishing to contribute tangible property such as appliances, clothing, and similar items, will have their donations accepted only if they can be currently used.  In‑kind gifts are assigned no value by Head Start of Yamhill County. It is the responsibility of the donor to do so for tax purposes.

GENERAL PLANNED GIFT POLICIES AND PROCEDURES

1.         Head Start of Yamhill County will involve itself only in recognized legal and approved forms of planned gifts which are authorized by the Internal Revenue Code and that are controlled by subsequent IRS regulations. Further, Head Start of Yamhill County will not engage in doubtful arrangements which could jeopardize the donor's tax advantage, or the exempt status and financial stability of Head Start of Yamhill County.

2.         The planned giving effort will follow these guidelines with the understanding that the GAC may recommend to the Development Team and Executive Committee variations when, it its best judgment, it is good for the donor and for Head Start of Yamhill County.

3.         In all gift arrangements, the interest and wishes of the donor come before that of Head Start of Yamhill County. Representatives of Head Start of Yamhill County will assist donors in making gifts and will always urge the donor to seek professional financial and legal counsel for their own situation. Likewise, all agreements that involve an on‑going responsibility on the part of Head Start of Yamhill County will be reviewed and approved by its own legal counsel, as well as the GAC.

4.         Head Start of Yamhill County will not engage in any form of commissioned fundraising or the payment of finder's fees for planned gifts.

5.         Head Start of Yamhill County will observe and respect the confidentiality of all donor negotiations and gift arrangements.

6.         The GAC, in concert with the Development Director and in consultation with the Executive Director and the Finance Committee, shall be responsible for the oversight, promotion, marketing and securing of any planned gifts.