| PURPOSE
To ensure its accountability
to donors, the Diocese has adopted the following gift acceptance policy.
This policy will serve as a guide to those involved in making, securing,
structuring, receiving and administering gifts to the Diocese of East
Tennessee. Because the Diocese expects to operate in perpetuity, wise
stewardship of the funds entrusted to it is essential to the Diocese's
mission.
This policy is designed
to protect all parties involved while helping to ensure that gifts are
used in the manner intended by the donor. The review and acceptance
process outlined herein, however, is to be closely followed because
of the legal, economic and administrative liabilities possible with
some gifts.
GIFT REVIEW
COMMITTEE
The Diocese shall establish
a Gift Review Committee, composed of five confirmed persons who are
knowledgeable in the areas of giving, finance, planned giving and the
laws surrounding such gifts. Such committee shall be appointed annually
by the Bishop and Council. The purpose of this committee shall be to
review those gifts which are referred to it under this policy and any
not specifically mentioned by this policy.
ACCEPTANCE
PROCEDURES
The following procedures
relate to unrestricted gifts to the Diocese, gifts restricted to established
endowment funds, gifts in memory of or in honor of other persons but
without other substantial restrictions and gifts to campaigns or projects
of the Diocese as undertaken from time to time.
All other gifts, including
gifts with restrictions, gifts to establish new funds, gifts for new
purposes, gifts with debt involved, gifts of land, gifts that carry
requirements for future funding, gifts with uninsurable liabilities,
and similar gifts which may bring ethical, legal, financial, political,
theological or public relations circumstances potentially detrimental
to the Diocese must be reviewed by the Gift Review Committee before
acceptance.
Gifts other than those to
be reviewed by the Gift Review Committee shall be subject to the following
guidelines:
Cash
- The Diocese shall accept
checks in any amount from reputable sources. All checks must be payable
to the Diocese with an indication of the purpose of the gift. Cash
gifts of $10,000 or more must be referred to the Gift Review Committee
and properly reported to the government, if accepted.
- The Diocese recognizes
the role of donors and their gifts to the Diocese in achieving its
religious purposes. The Diocese will recognize and acknowledge donors
in appropriate ways both publicly and privately. The Diocese will
issue a proper receipt for cash gifts as well as gifts by check in
a form that complies with IRS regulations on substantiation.
Marketable Securities
Publicly traded marketable
securities may be accepted in one of the following forms:
- In a physical certificate
registered in the name of the Diocese.
- In a physical certificate
in the name of the donor with properly executed stock powers attached
with signatures properly guaranteed.
- By transfer to an
account of the Diocese from a bank, brokerage firm or similar financial
institution.
- Such gifts shall be liquidated
immediately.
- Stock controlled under
SEC Rule 144 will be held until the restriction on sale expires and
then will be immediately sold.
- The gift shall be recorded
in the books of the Diocese at the average of the high and low prices
on the date of the gift. The Diocese shall provide the donor with
an IRS form 8283 and substantiation letter as required by IRS regulations.
RESTRICTED GIFTS
The following types of restricted
gifts shall always be referred to the Gift Review Committee:
Closely Held Stock
- The Gift Review Committee
shall explore methods and timing of liquidation of the security. It
shall review any restrictions, financial exposure, timing of sale
and any of the conditions which might impact its desirability. Internal
Revenue Service rules require a qualified appraisal to be performed
to establish the value of the stock
- No stock shall be accepted
which is subject to a formal repurchase agreement at the time of the
gift. The Diocese shall issue IRS form 8283 and a substantiation letter
to the donor as required by IRS regulations.
Real Estate
All real estate gifts
must be reviewed by the Gift Review Committee and the Property Committee.
- Unencumbered real property
will be accepted upon approval by both committees and must have at
least one qualified appraisal. In most cases, a single appraisal paid
for by the donor will be adequate. In some instances, the Diocese
will obtain a second appraisal to eliminate any question of conflict
of interest.
- Real property that is
encumbered by debt shall not be accepted unless there are assets provided
to service or retire the debt.
- Before acceptance of
real property as a gift, the donor must agree in writing on arrangement
for paying expenses associated with the property such as taxes, assessments,
appraisal fees, environmental evaluations, tinder's fee, maintenance
costs and insurance coverage. The Diocese will not make advances for
the payment of such expenses. The donor is responsible for these expenses
prior to the acceptance of the property as a gift.
- If not previously completed,
an appropriate environmental analysis will be completed on any proposed
gift of real property and related assets of the property in order
to avoid potential liability for environmental cleanup and toxic and
hazardous waste issues.
- The donor is required
to execute and acknowledge the Diocese's real property inquiry form
which outlines background information, conditions, restrictions, allowances,
expenses and income from the property.
- The committee shall not
provide the donor with a market value of the gift. The Diocese shall
place a value on the property on its records of the lower of the appraisal
or the donor's claimed charitable deduction if the amount seems appropriate.
The Diocese shall issue IRS form 8283 and a substantiation letter
to the donor to comply with IRS regulations.
Life Insurance
- The Diocese may be named
as primary or contingent beneficiary of a life insurance type product.
For the donor to receive a charitable deduction, the Diocese must
be named as owner and beneficiary of the policy.
- The Diocese will accept
no responsibility for the payment of future premiums unless the funds
are provided for such purpose.
- The gift will be booked
by the Diocese at the Cash Surrender Value of the policy at the time
of the gift. The Diocese shall provide the donor with IRS form 8283
and appropriate substantiation letter.
Tangible Personal
Properly
- All gifts of tangible
personal property shall be reviewed by the Gift Review Committee.
- Such property may include
works of art, jewelry, automobiles, household effects, collections
and similar property.
- The committee must determine
if the assets can be used for a related purpose within the Diocese
or if the assets are readily marketable. The Committee must consider
transportation costs, storage and insurance costs, maintenance costs,
fees or other costs related to the acquisition, storage, protection
and sale or use of such assets.
- The Diocese and the donor
must comply with Treasury regulations for obtaining and reporting
qualified appraisals.
- The Diocese shall give
no indication of the fair market value of the assets to the donor.
The Diocese shall issue IRS form 8283 and a substantiation letter
to the donor in an appropriate form to comply with IRS regulations.
Deferred Gifts
Pooled Income Funds,
Charitable Remainder Trusts and Charitable Lead Trusts
The Diocese may receive
and should encourage deferred gifts. These types of vehicles pay income
or the remainder to the Diocese. The following guidelines should be
observed with these types of gifts:
- Because of the complexity
of the vehicles, competent representatives of the Diocese shall review
each document, if possible, to ensure that the ultimate purpose of
the gift is understood.
- These vehicles carry
no legal liability to the Diocese other than to follow the donor's
wishes when the funds are received. All such gifts, when known, shall
be reported to the Gift Review Committee and considered for membership
in the Bishop Tharp Legacy Society.
Charitable Bequests
Charitable bequests may
be unrestricted or restricted. Unrestricted bequests may be accepted
without review by the Gift Review Committee while restricted bequests
will require such review. Membership in the Bishop Tharp Legacy Society
should be considered with this type of gift.
Retained Life Estates
It may be in the donor's
best interest to deed an asset to the Diocese but retain the use of
the property during the donor's lifetime. All such gifts shall be reviewed
by the Gift Review Committee for possible costs and liability. Donor
shall maintain property and pay taxes, insurance and any other costs
associated with the upkeep of the property during donor's lifetime.
Charitable Gift Annuities
- Charitable Gift Annuities
are general obligations of a charity and subject to the terms of an
annuity agreement.
- All such agreements
with the Diocese must be reviewed by the Gift Review Committee and
the Chancellor of the Diocese, and, if recommended by those entities,
sent to the Bishop and Council for final approval.
- Competent legal help
must be sought where needed. Neither the Diocese nor its employees
may act as counsel, serve as executor, trustee, administrator or in
any other fiduciary role. All information concerning the donor shall
be held in the strictest confidence.
It is the policy of this
Diocese to accept gifts which further the mission and goals of the Diocese
and decline gifts which would create unacceptable administrative burdens,
assumption of unacceptable risk or costs or do not further the mission
and goals of the Diocese. In all activities, forms, reports and letters
shall be produced which meet both the legal and tax needs of the donor
as well as the legal, tax and donor relation needs of the Diocese.
May the gifts received under
this policy be used to the Glory of God and the furtherance of His Kingdom
in the Diocese of East Tennessee.
Adopted this_____day
of____________, 2000.
By: _________________________________
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