GIFT ACCEPTANCE POLICY

[ORGANIZATION NAME]

Adopted by the Board of Directors on: [DATE]

Last Reviewed/Amended: [DATE]

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ARTICLE I - PURPOSE AND SCOPE

1.1 Purpose

This Gift Acceptance Policy (the "Policy") provides guidance to staff, board members, and prospective donors regarding the acceptance of gifts to [ORGANIZATION NAME] (the "Organization"). The Policy ensures that:

(a) Gifts are consistent with the Organization's mission and exempt purposes;
(b) The Organization avoids accepting gifts that could jeopardize its tax-exempt status;
(c) Donors receive accurate information about the tax implications of their gifts;
(d) The Organization exercises sound fiduciary judgment in accepting and managing gifts;
(e) Gift acceptance decisions are made consistently and transparently.

1.2 Scope

This Policy applies to all gifts received by the Organization, including:
- Cash and cash equivalents
- Securities (publicly traded and closely held)
- Real property
- Tangible personal property
- In-kind gifts and services
- Planned gifts (bequests, trusts, life insurance, retirement assets)
- All other forms of charitable contributions

1.3 Mission Alignment

The Organization will accept gifts that support its mission to [BRIEF MISSION STATEMENT]. Gifts that conflict with the Organization's values, programs, or purposes will be declined.

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ARTICLE II - GIFT ACCEPTANCE AUTHORITY

2.1 Authority to Accept Gifts

Gift Type	Approval Authority
Cash gifts (unrestricted)	Executive Director
Cash gifts (restricted) under $[AMOUNT]	Executive Director
Cash gifts (restricted) $[AMOUNT] and above	Gift Acceptance Committee
Securities (publicly traded)	Executive Director
Securities (closely held)	Gift Acceptance Committee
Real property	Board of Directors
Tangible personal property under $[AMOUNT]	Executive Director
Tangible personal property $[AMOUNT] and above	Gift Acceptance Committee
Planned gifts	Gift Acceptance Committee
Gifts requiring special review (see Article III)	Gift Acceptance Committee or Board

2.2 Gift Acceptance Committee

The Gift Acceptance Committee shall consist of:
- [TITLE] (Chair)
- [TITLE]
- [TITLE]
- [EXECUTIVE DIRECTOR] (ex-officio)

The Committee shall meet as needed to review proposed gifts and make acceptance recommendations.

2.3 Gifts Requiring Board Approval

The following gifts require Board of Directors approval:
- Real property
- Gifts that would result in naming opportunities
- Gifts with significant restrictions or unusual terms
- Gifts valued at $[AMOUNT] or more
- Gifts from controversial sources

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ARTICLE III - CRITERIA FOR GIFT ACCEPTANCE

3.1 General Criteria

Before accepting any gift, the Organization will consider:

(a) Mission Alignment: Does the gift support the Organization's mission?

(b) Donor Intent: Are the donor's purposes and restrictions compatible with the Organization's programs?

(c) Financial Impact: Will the gift create net financial benefit or impose costs (carrying costs, management fees, disposal costs)?

(d) Legal Compliance: Can the gift be accepted without violating applicable laws or regulations?

(e) Reputational Risk: Could acceptance of the gift harm the Organization's reputation?

(f) Administrative Burden: Does the Organization have capacity to administer the gift appropriately?

3.2 Gifts Requiring Special Review

The following types of gifts require additional review before acceptance:

☐ Gifts from anonymous donors (over $[AMOUNT])
☐ Gifts with significant donor restrictions
☐ Gifts of partial interests in property
☐ Gifts encumbered by debt or liens
☐ Gifts of business interests or partnership interests
☐ Gifts that may generate unrelated business income
☐ Gifts requiring the Organization to assume obligations
☐ Gifts from donors whose values may conflict with the Organization's mission
☐ Gifts from industries that may pose reputational risk (e.g., [SPECIFY])

3.3 Gifts That Will Not Be Accepted

The Organization will not accept:

(a) Gifts that violate the terms of the Organization's charter or bylaws;
(b) Gifts that would jeopardize the Organization's tax-exempt status;
(c) Gifts that are too restrictive in purpose;
(d) Gifts that require expenditures beyond the Organization's resources;
(e) Gifts from sources that could damage the Organization's reputation;
(f) Gifts that involve unlawful discrimination;
(g) Gifts of property that cannot be used or readily sold;
(h) Gifts requiring unacceptable conditions or financial arrangements.

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ARTICLE IV - TYPES OF GIFTS

4.1 Cash and Cash Equivalents

Acceptance: Cash, checks, credit card payments, electronic transfers, and money orders are accepted without restriction.

Procedures:
- Gifts are deposited promptly (within [NUMBER] business days)
- Receipts are issued in accordance with IRS requirements
- Donor intent regarding designation is documented

4.2 Publicly Traded Securities

Acceptance: Publicly traded securities are generally accepted.

Procedures:
- Securities are transferred to the Organization's brokerage account at [BROKERAGE NAME]
- Valuation is based on the mean of high and low prices on the date of gift
- Securities are liquidated within [NUMBER] business days of receipt unless otherwise directed
- Receipts document the name, number of shares, and date of transfer

DTC Transfer Instructions:
[BROKERAGE NAME]
DTC #: [NUMBER]
Account #: [NUMBER]
Account Name: [ORGANIZATION NAME]

4.3 Closely Held Securities

Acceptance: Subject to Gift Acceptance Committee approval.

Review Factors:
- Marketability and liquidity
- Buy-back arrangements
- Applicable restrictions (buy-sell agreements, etc.)
- Potential unrelated business taxable income
- Valuation (independent appraisal required for gifts over $10,000)

4.4 Real Property

Acceptance: Subject to Board approval following due diligence.

Due Diligence Requirements:
☐ Phase I environmental assessment (Phase II if warranted)
☐ Appraisal by qualified independent appraiser
☐ Title search and title insurance
☐ Survey (if necessary)
☐ Property inspection
☐ Review of zoning, land use restrictions, and encumbrances
☐ Analysis of carrying costs (taxes, insurance, maintenance)
☐ Marketability assessment

The Organization will not accept:
- Property with environmental contamination
- Property with significant liabilities exceeding value
- Property that cannot be used or readily sold

4.5 Tangible Personal Property

Acceptance: Tangible personal property may be accepted if:
- The property can be used in furtherance of the Organization's mission; or
- The property can be readily sold.

Procedures:
- Items valued over $5,000 require a qualified independent appraisal by the donor
- The Organization does not provide valuations
- The Organization reserves the right to dispose of property as it deems appropriate

Items Generally Accepted:
- Art and collectibles (with marketability)
- Equipment useful to the Organization
- Auction items

Items Generally Not Accepted:
- Items with minimal value or no market
- Items requiring special storage, insurance, or maintenance
- Items with restrictions on sale or use

4.6 In-Kind Gifts and Services

Acceptance: In-kind gifts are accepted if useful to the Organization.

Important:
- In-kind services are generally NOT tax-deductible to the donor
- In-kind gifts are acknowledged but not valued by the Organization

4.7 Cryptocurrency

Acceptance: Subject to [Gift Acceptance Committee/Executive Director] approval.

Procedures:
- Cryptocurrency is liquidated immediately upon receipt
- Donations are processed through [PLATFORM/METHOD]
- Receipts are based on fair market value at time of donation

[// GUIDANCE: Cryptocurrency donations present volatility, valuation, and regulatory considerations. Consider developing detailed procedures if accepting cryptocurrency.]

4.8 Life Insurance

Acceptance: The Organization may accept life insurance policies if:
- The Organization is named as owner and irrevocable beneficiary; or
- The Organization is named as beneficiary.

Procedures:
- Donor assigns ownership to the Organization
- Donor is responsible for premium payments (or premium is paid from policy value)
- Gift is valued at cash surrender value (if owned by Organization)

4.9 Retirement Plan Assets

Acceptance: The Organization may be named as beneficiary of IRAs, 401(k)s, and other qualified retirement plans.

Procedures:
- Donor completes beneficiary designation form
- Organization provides documentation of tax-exempt status

4.10 Charitable Remainder Trusts

Acceptance: The Organization may serve as a remainder beneficiary of charitable remainder trusts (CRATs, CRUTs).

Policies:
- The Organization does not serve as trustee
- Minimum remainder interest: $[AMOUNT]
- Trust documents must be reviewed by legal counsel

4.11 Charitable Lead Trusts

Acceptance: The Organization may accept income interests from charitable lead trusts.

Policies:
- Trust documents must be reviewed by legal counsel

4.12 Bequests

Acceptance: The Organization encourages bequests and will work with donors and their advisors.

Suggested Bequest Language:
"I give, devise, and bequeath to [ORGANIZATION NAME], a nonprofit corporation organized under the laws of [STATE], having its principal office at [ADDRESS], [DESCRIBE GIFT: a specific amount, percentage, or residue] for its general purposes [or for the following purpose: (describe)]."

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ARTICLE V - DONOR RELATIONS

5.1 Gift Acknowledgment

All gifts will be acknowledged in writing in accordance with IRS requirements:
- Gifts of $250 or more: Written acknowledgment required
- Quid pro quo contributions over $75: Disclosure of fair market value required

Acknowledgments will be sent within [NUMBER] days of gift receipt.

5.2 Donor Privacy

The Organization will:
- Respect donor wishes regarding anonymity
- Not sell, trade, or share donor information without consent
- Maintain secure donor records

5.3 Donor Recognition

The Organization will recognize donors in accordance with its donor recognition program. Naming opportunities are subject to Board approval.

5.4 Tax Advice Disclaimer

The Organization does not provide tax, legal, or financial advice to donors. Donors are encouraged to consult their own advisors regarding the tax implications of their gifts.

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ARTICLE VI - RESTRICTED GIFTS

6.1 Acceptance of Restrictions

The Organization may accept gifts with donor-imposed restrictions, provided:
- The restriction is consistent with the Organization's mission;
- The Organization can fulfill the restriction;
- The restriction does not unduly burden the Organization.

6.2 Variance Power

When possible, gift instruments should include language permitting the Board to modify restrictions if they become impractical, wasteful, or impossible to fulfill.

6.3 Refusal of Restrictions

The Organization may decline gifts with restrictions that:
- Are too narrow or limiting;
- Do not align with organizational priorities;
- Would create administrative burden disproportionate to the gift;
- Require ongoing reporting or oversight the Organization cannot provide.

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ARTICLE VII - ETHICAL CONSIDERATIONS

7.1 Conflicts of Interest

Board members, staff, and volunteers must disclose any personal interest in a proposed gift and recuse themselves from related decisions.

7.2 Donor Capacity

If there is reason to question a donor's capacity or understanding, staff should:
- Encourage the donor to seek independent advice;
- Document conversations;
- Consult with the Executive Director or legal counsel.

7.3 Undue Influence

The Organization will not accept gifts if there is evidence of undue influence or duress.

7.4 Controversial Gifts

Gifts that may generate controversy will be reviewed by the Gift Acceptance Committee or Board.

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ARTICLE VIII - GIFT ADMINISTRATION

8.1 Gift Recording

All gifts will be recorded in the Organization's donor database with:
- Donor name and contact information
- Gift date, type, and amount
- Restrictions or designations
- Acknowledgment sent

8.2 Compliance

The Organization will comply with all applicable laws and regulations, including:
- IRS substantiation and disclosure requirements
- State charitable solicitation registration
- UPMIFA or applicable state law for endowments

8.3 Reporting

The Organization will file required IRS forms, including:
- Form 990 Schedule M (noncash contributions over $25,000)
- Form 8282 (disposition of donated property)
- Form 1098-C (vehicle donations)

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ARTICLE IX - POLICY REVIEW

9.1 Annual Review

This Policy shall be reviewed annually by the [Gift Acceptance Committee/Finance Committee/Board] and updated as necessary.

9.2 Amendment

This Policy may be amended by the Board of Directors at any time.

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ADOPTION

This Gift Acceptance Policy was adopted by the Board of Directors of [ORGANIZATION NAME] on [DATE].

_________________________________________
[NAME], Board Chair

_________________________________________
[NAME], Secretary

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AMENDMENT HISTORY

Date	Description	Approved By
[DATE]	Original adoption	Board of Directors
[DATE]	[DESCRIPTION]	Board of Directors

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[END OF DOCUMENT]