Gift Acceptance Policy

GIFT ACCEPTANCE POLICY

[ORGANIZATION NAME]

TABLE OF CONTENTS

1. Purpose
2. Gift Acceptance Committee
3. General Principles
4. Accepted Gift Types
5. Gifts Requiring Committee Approval
6. Gifts Not Accepted
7. Donor-Restricted Gifts
8. Planned Gifts
9. Naming Opportunities and Endowments
10. Gift Valuation and Acknowledgment
11. Donor Privacy
12. Legal and Ethical Considerations
13. Policy Review
14. Adoption and Certification
15. Sources and References

1. PURPOSE

This Gift Acceptance Policy establishes guidelines for the solicitation and acceptance of gifts by [________________________________________] (the "Organization"). The policy is designed to:

(a) Protect the Organization from gifts that could create financial, legal, or reputational risk;

(b) Provide guidance to staff and the Board regarding the types of gifts the Organization will accept;

(c) Ensure compliance with IRS requirements and state law; and

(d) Serve donors by providing clear information about giving opportunities.

2. GIFT ACCEPTANCE COMMITTEE

2.1 — Composition. The Gift Acceptance Committee (the "Committee") shall consist of:

• [________________________________________], [Title]
• [________________________________________], [Title]
• [________________________________________], [Title]
• Legal counsel (ex officio, non-voting)

2.2 — Authority. The Committee shall review and approve or decline gifts as set forth in Section 5. The Committee shall report all decisions to the Board of Directors.

2.3 — Meetings. The Committee shall meet as needed and may act by majority vote, including by electronic communication.

3. GENERAL PRINCIPLES

(a) The Organization shall not provide legal, tax, or financial advice to donors. Donors are encouraged to consult their own advisors.

(b) The Organization shall not assign a value to any non-cash gift for tax purposes. The donor is solely responsible for valuation (IRC § 170(f)(11)).

(c) No gift shall be accepted that would jeopardize the Organization's tax-exempt status under IRC § 501(c)(3).

(d) No gift shall be accepted if it would result in private inurement or an excess benefit transaction under IRC § 4958.

(e) Gifts with conditions that are inconsistent with the Organization's mission or values may be declined.

(f) The Organization reserves the right to decline any gift at its sole discretion.

4. ACCEPTED GIFT TYPES

4.1 — Gifts Accepted Without Committee Approval

The following gifts may be accepted by authorized staff without Committee review:

☐ Cash (currency, check, money order)

☐ Credit/debit card contributions (via approved payment processor)

☐ Electronic funds transfers (ACH, wire)

☐ Publicly traded securities — accepted at fair market value on the date of transfer (average of high and low trading prices per Treas. Reg. § 1.170A-13(c)(7))

☐ Bequests and beneficiary designations (subject to review upon maturity)

☐ Matching gifts (employer matching programs)

☐ In-kind goods and services valued under $[________] and useful to the Organization

4.2 — Gifts Accepted Subject to Committee Approval

See Section 5.

5. GIFTS REQUIRING COMMITTEE APPROVAL

The following gift types require review and approval by the Gift Acceptance Committee before acceptance:

☐ Real property (land, buildings, timeshares) — requires Phase I environmental assessment, title search, appraisal, and review of carrying costs (taxes, insurance, maintenance)

☐ Closely held / restricted securities — requires review of transfer restrictions, valuation, and marketability

☐ Tangible personal property valued over $[________] — requires review of storage, insurance, and relevance to mission

☐ Life insurance policies — Organization must be named as both owner and beneficiary; donor must commit to premium payments or policy must be paid-up

☐ Cryptocurrency / digital assets — requires review of volatility risk and compliance with anti-money laundering (AML) requirements; policy is to convert to cash within [____] business days of receipt

☐ Charitable remainder trusts (CRT) — IRC § 664 requirements apply; Organization may serve as trustee only if appropriately staffed and insured

☐ Charitable lead trusts (CLT) — requires review of income stream and administrative obligations

☐ Retirement plan assets / IRA distributions — including qualified charitable distributions (QCDs) under IRC § 408(d)(8)

☐ Bargain sales — IRC § 1011(b); Organization must review allocation of sale price between gift and sale

☐ Gifts with donor restrictions or conditions beyond standard designation

☐ Gifts from foreign persons or entities — requires OFAC screening and compliance review

☐ Gifts of intellectual property (patents, copyrights, royalties) — IRC § 170(m) may limit initial deduction

☐ In-kind goods or services valued over $[________]

6. GIFTS NOT ACCEPTED

The Organization shall not accept the following:

(a) Gifts of property with known environmental contamination or hazardous materials

(b) Gifts that would require the Organization to engage in activities inconsistent with its mission or tax-exempt status

(c) Gifts conditioned upon the Organization hiring or retaining a specific individual

(d) Gifts conditioned upon the Organization taking a specific political or legislative position

(e) Gifts from donors subject to government sanctions (OFAC Specially Designated Nationals list)

(f) Gifts from sources that would bring the Organization into disrepute, as determined by the Committee

7. DONOR-RESTRICTED GIFTS

7.1 — Restrictions. The Organization will accept gifts restricted to a specific program, purpose, or time period, provided the restriction is consistent with the Organization's mission and operationally feasible.

7.2 — Variance Power. If a restricted gift can no longer be used for its designated purpose, the Board may, to the extent permitted by applicable law (including UPMIFA and the cy pres doctrine), redirect the funds to the most closely related purpose.

7.3 — Documentation. All donor restrictions shall be documented in writing, signed by the donor, and maintained in the Organization's records.

7.4 — Minimum Gift Amounts for Named Funds:

8. PLANNED GIFTS

The Organization encourages planned gifts, including:

☐ Bequests (specific, residuary, percentage, or contingent)

☐ Charitable remainder trusts (CRT — annuity trust or unitrust) — IRC § 664

☐ Charitable lead trusts (CLT)

☐ Charitable gift annuities (if licensed in the applicable state)

☐ Retained life estates (IRC § 170(f)(3)(B))

☐ Beneficiary designations (life insurance, retirement accounts, bank accounts)

☐ Qualified charitable distributions (QCD) from IRAs — IRC § 408(d)(8) (donors age 70½+)

9. NAMING OPPORTUNITIES AND ENDOWMENTS

9.1 — Naming Opportunities. The Board may approve naming of programs, facilities, or funds in honor of donors. Naming is subject to the Organization's naming policy and may be revoked if the named donor's actions bring the Organization into disrepute.

9.2 — Endowment Gifts. Endowment gifts shall be managed in accordance with UPMIFA and the Organization's investment policy. The Board shall establish a spending rate not to exceed [____]% of the endowment's trailing [____]-quarter average market value.

9.3 — Endowment Agreement. All endowment gifts shall be documented with a written endowment agreement specifying the donor's intent, any restrictions, the spending policy, and the treatment of the gift if the stated purpose ceases to exist.

10. GIFT VALUATION AND ACKNOWLEDGMENT

10.1 — Valuation. The Organization shall not value noncash gifts. The donor is responsible for determining fair market value per IRS Publication 561 and obtaining qualified appraisals where required (IRC § 170(f)(11)).

10.2 — Acknowledgment. The Organization shall provide written acknowledgment of all contributions in compliance with IRC § 170(f)(8), including:

(a) The name of the Organization and EIN;

(b) The date and amount of cash contributions;

(c) A description (but not value) of noncash contributions;

(d) A statement regarding whether goods or services were provided in exchange; and

(e) A good faith estimate of FMV of any goods or services provided (IRC § 6115).

10.3 — Form 8283. The Organization shall sign Part V of IRS Form 8283, Section B for noncash contributions claimed by the donor at more than $5,000, acknowledging receipt of the property only (not agreeing to the donor's stated value).

10.4 — Form 8282. If the Organization disposes of donated property within 3 years of receipt (for items the donor claimed a deduction of more than $5,000), the Organization must file IRS Form 8282 within 125 days of disposition.

11. DONOR PRIVACY

The Organization shall protect donor privacy and shall not share, sell, or trade donor lists or personal information without express donor consent, except as required by law.

12. LEGAL AND ETHICAL CONSIDERATIONS

(a) Staff shall not serve as executor, trustee, or personal representative for donors, except as approved by the Board.

(b) The Organization shall not serve as trustee of a charitable remainder trust unless it has appropriate staff, insurance, and legal support.

(c) Gifts involving potential conflicts of interest (from directors, officers, or their families) shall be reviewed under the Organization's conflict of interest policy.

(d) The Organization shall comply with all applicable state and federal laws regarding charitable solicitation and gift acceptance.

13. POLICY REVIEW

This policy shall be reviewed and updated by the Board of Directors at least annually. The most recent review date shall be recorded below.

14. ADOPTION AND CERTIFICATION

This Gift Acceptance Policy was adopted by the Board of Directors of [________________________________________] on [__/__/____].

Board Chair:

Signature: ___________________________________________

Name: [________________________________________]

Date: [__/__/____]

Secretary:

Signature: ___________________________________________

Name: [________________________________________]

Date: [__/__/____]

SOURCES AND REFERENCES

• National Council of Nonprofits, "Gift Acceptance Policies," https://www.councilofnonprofits.org/running-nonprofit/fundraising-and-resource-development/gift-acceptance-policies
• IRS Publication 526, "Charitable Contributions"
• IRS Publication 561, "Determining the Value of Donated Property"
• IRS Form 990 Schedule M Instructions (Noncash Contributions)
• Internal Revenue Code §§ 170, 408(d)(8), 664, 2522
• Uniform Prudent Management of Institutional Funds Act (UPMIFA)
• Double the Donation, "Gift Acceptance Policies," https://doublethedonation.com/gift-acceptance-policy/