CHILD HAVEN, INC.

Gift Acceptance Policies and Guidelines

 

Child Haven, a not for profit organization organized under the laws of the State of California, encourages the solicitation and acceptance of gifts to Child Haven (hereinafter referred to as the Organization) for purposes that will help the Organization to further and fulfill its mission.  The following policies and guidelines govern acceptance of gifts made to the Organization or for the benefit of any of its programs.

Child Haven is dedicated to providing intensive therapeutic and developmental services for children and their families with the belief that early intervention, education, and targeted professional services will help children heal and families thrive.

I.           Purpose of Policies and Guidelines

The Board of Directors of the Organization and its staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission  of the Organization.  It is the purpose of these policies and guidelines to govern the acceptance of gifts by the Organization and to provide guidance to prospective donors and their advisors when making gifts to the Organization.  The provisions of these policies shall apply to all gifts received by the Organization for any of its programs or services unless otherwise noted.

The Organization recognizes that the principle basis for making a charitable gift should be a desire on the part of the donor to support the work of the Organization.  No charitable gift, trust agreement, contract, or commitment may be urged upon any donor or prospective donor to benefit the Organization at the expense of the donor’s intent.

II.         Use of Legal Counsel

The Organization shall seek the advice of legal counsel in matters relating to acceptance of gifts where appropriate.  Review by counsel is recommended for:

· Review of closely held stock transfers that are subject to restrictions or buy-sell agreements.

· Review of documents naming the Organization as Trustee.

· Review of all gifts involving contracts, such as bargain sales or other documents requiring the Organization to assume an obligation.

· Review of all transactions with potential conflict of interest that may invoke IRS sanctions.

· And such other instances in which use of counsel is deemed appropriate by the Gift Acceptance Committee.

· Conflict of Interest

All prospective donors making charitable gifts for the endowment or which may result in tax or estate planning implications shall be strongly urged to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences.  The Organization will comply with the Model Standards of Practice for the Charitable Gift Planner promulgated by the National Committee on Planned Giving, shown as an appendix to this document.

IV.        Restrictions on Gifts

The Organization will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission, purposes, and priorities.  The Organization will not accept gifts that are too restrictive in purpose.  Gifts that are too restrictive are those that violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of the Organization.  The Organization’s Board of Directors following a review and recommendation by the Gift Acceptance Committee shall make all final decisions on the restrictive nature of a gift, and its acceptance or refusal.

V.          The Gift Acceptance Committee

The Gift Acceptance Committee shall consist of the existing Finance Committee until such time that a specific, separate Gift Acceptance Committee is determined necessary by the Board of Directors:  At such time, it is suggested, but not mandatory, that the new Gift Acceptance Committee should consist of:

· The Chair of the Organization’s Board of Directors.

· One member of the Fundraising Committee, appointed by the Chair.

· One member of the Investment Committee, appointed by the Chair.

· Such other members as appointed by the Chair of the Organization.

· Ex-Officio members shall include the Executive Director of the Organization and other staff as appropriate.

 

The Gift Acceptance Committee is charged with the responsibility of reviewing all non-excepted gifts made to the Organization, properly screening and accepting those gifts, and making recommendations to the Board on gift acceptance issues where appropriate.

VI.        Types of Gifts

The following gifts are acceptable:

Cash    ●    Charitable Gift Annuities    ●    Tangible Personal Property    ●   Charitable Remainder Trusts

Securities      ●    Retirement Plan Beneficiary Designations    ●    Real Estate    ●  Remainder Interests in Property

Oil, Gas, and Mineral Interests    ●    Bargain Sales    ●    Life Insurance    ●    Charitable Lead Trusts

Bequests    ●    Life Insurance Beneficiary Designations

The following criteria govern the acceptance of each gift form:

1.  Cash:  Cash is acceptable in any form.  Checks shall be made payable to

Child Haven and shall be delivered or mailed to  Executive Director, Child Haven, 801 Empire Street, Fairfield, CA., 94533.

Exception:  Cash received for the purpose of supporting general operations or program specific activities that are approved in the annual or capital budget do not require approval of the Gift Acceptance Committee or Board.  The executive director will provide the board with financial documentation of all cash gifts received and the donor with a receipt documenting the value of their gift.

2.  Tangible Personal Property:  All other gifts of tangible personal property shall be examined in light of the following criteria:

Does the property fulfill the mission of the Organization?

Is the property marketable?

Are there any undue restrictions on the use, display, or sale of the property?

Are there any carrying costs for the property?

 

The Organization’s Board of Directors following a review and recommendation by the Gift Acceptance Committee shall make all final decisions regarding the acceptance of other tangible property gifts.

Exception:  Tangible Personal Property valued at under $5,000 per donor, donated to support general operations of the organization, a board approved fundraising activity, or to be given as gifts to the organization’s clients do not require approval of the Gift Acceptance Committee or Board.  For all gifts valued at $50 or more, the executive director will provide the Board with financial documentation of donations received and the donor with a receipt documenting the contribution.

3.  Securities:  The Organization can accept both publicly traded securities and closely held securities.

4.  Publicly Traded Securities:  Marketable securities may be transferred to an account maintained at one or more brokerage firms or delivered physically with the transferor(s) signature or stock power attached.  As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Investment Committee of the Organization.  In some cases, marketable securities may be restricted by applicable securities laws; in such instance the final determination on the acceptance of the restricted securities shall be made by the Gift Acceptance Committee of the Organization.

5.  Closely Held Securities:  Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other ownership forms, can be accepted subject to the approval of the Gift Acceptance Committee of the Organization.  However, gifts must be reviewed prior to acceptance to determine that:

There are no restrictions on the security that would prevent the Organization from ultimately converting those assets to cash.  The security is marketable.  The security will not generate any undesirable tax consequences for the Organization.

If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift.  The final determination on the acceptance of closely held securities shall be made by the Gift Acceptance Committee of the Organization and legal counsel where necessary.  Every effort will be made to sell non-marketable securities as quickly as possible.

6.  Real Estate:  Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest.  Prior to acceptance of real estate, the Organization shall require an initial environmental review of the property to insure that the property is not contaminated with environmental damage.  In the event that the initial inspection reveals a potential problem, the Organization shall retain a qualified inspection firm to conduct an environmental audit.  The cost of the environmental audit shall generally be an expense of the donor.

A title binder shall be obtained by the Organization prior to the acceptance of the real property gift.  The cost of this title binder shall generally be an expense of the donor.

Prior to acceptance of the real property, the gift shall be approved by the Gift Acceptance Committee of the Organization and by the Organization’s legal counsel.  Criteria for acceptance of the property shall include:

Is the property useful for the purposes of the Organization?

Is the property marketable?

Are there any restrictions, reservations, easements, or other limitations associated with the property?

Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property?

Does the environmental audit reflect that the property is not damaged?

7.  Remainder Interests In Property:  The Organization will accept a remainder interest in a personal residence, farm, or vacation home or property subject to the provisions of paragraph 4. above.  The donor or other occupants may continue to occupy the real property for the duration of the stated life.  At the death of the donor, the Organization may use the property or reduce it to cash.  Where the Organization receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or primary beneficiary.

8.  Oil, Gas, and Mineral Interests:  The Organization may accept oil and gas property interests, where appropriate.  Prior to acceptance of an oil and gas interest the gift shall be approved by the Gift Acceptance Committee, and if necessary, by the Organization’s legal counsel.  Criteria for acceptance of the property shall include:

Gifts of surface rights should have a value of $20,000 or greater. Gifts of oil, gas, and mineral interests should generate at least $3,000 per year in royalties or other income (as determined by the average of the three years prior to the gift).  The property should not have extended liabilities or other considerations that make receipt of the gift inappropriate.  If the interest is a working interest, the Gift Acceptance Committee should determine the impact on the Organization so that it may develop a plan to minimize that impact, if accepted.  The property should undergo an environmental review to ensure that the Organization has no current or potential exposure to environmental liability.

9.  Bargain Sales:  The Organization will enter into a bargain sale   arrangement in instances in which the bargain sale furthers the mission and purposes of the Organization.  All bargain sales must be reviewed and recommended by the Gift Acceptance Committee and approved by the Board of Directors.  Factors used in determining the appropriateness of the transaction include:

The Organization may obtain an independent appraisal substantiating the value of the property.  If the Organization assumes debt with the property, the debt ratio should be less than 50% of the appraised market value.  The Organization should determine that it will use the property, or that there is a market for sale of the property allowing sale within 12 months of receipt.  The Organization should calculate the costs to safeguard, insure, and expense the property (including property tax, if applicable) during the holding period.

10.  Life Insurance:   The Organization must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift.  The gift is valued at its interpolated terminal reserve value, or cash surrender value, upon receipt.  If the donor contributes future premium payments, the Organization will include the entire amount of the additional premium payment as a gift in the year that it is made.

If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, the Organization may:  Continue to pay the premiums; Convert the policy to paid up insurance; Surrender the policy for its current cash value.

11.  Charitable Gift Annuities:  The Organization may offer charitable gift annuities.  The minimum gift for funding shall be $5,000. 

The Organization’s Executive Director may make exceptions to this minimum.  The minimum age for life income beneficiaries of a gift annuity shall be 55.  Where a deferred gift annuity is offered, the minimum age for life income beneficiaries shall be 45.  No more than two life income beneficiaries will be permitted for any gift annuity.

Annuity payments may be made on a quarterly, semi-annual, or annual schedule.  The Board of Directors Chair of the Organization may approve exceptions to this payment schedule.

The Organization will not accept real estate, tangible personal property, or any other illiquid asset in exchange for current charitable gift annuities.  The Organization may accept real estate, tangible personal property, or other illiquid assets in exchange for deferred gift annuities so long as there is at least a 5 year period before the commencement of the annuity payment date, the value of the property is reasonably certain, and the Board of Directors Chair of the Organization approves the arrangement.

Funds contributed in exchange for a gift annuity should be set aside and invested during the term of the annuity payments.  Once those payments have terminated, the funds representing the remaining principal contributed in exchange for the gift annuity may be transferred to the Organization’s operating, capital, or general endowment funds, or to such specific fund as designated by the donor.

12.  Charitable Remainder Trusts:   The Organization may accept designation as remainder beneficiary of a charitable remainder trust with the approval of the Gift Acceptance Committee of the Organization.  The Organization may consider appointment as Trustee of a charitable remainder trust.

13.  Charitable Lead Trusts:   The Organization may accept a designation as income beneficiary of a charitable lead trust.  The Board of Directors of the Organization will not accept an appointment as Trustee of a charitable lead trust.

14.  Retirement Plan Beneficiary Designations:   Donors and supporters of Child Haven should be encouraged to designate the Organization as beneficiary or contingent beneficiary of their retirement plans.  Such designations shall not be recorded as gifts to the Organization until such time as the gift is irrevocable.  Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

15.  Bequests:   Donors and supporters of the Organization should be encouraged to make bequests to the Organization under their wills and trusts.  Such bequests shall not be recorded as gifts to the Organization until such time as the gift is irrevocable.  Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

16.  Life Insurance Beneficiary Designations:   Donors and supporters of the  Organization should be encouraged to designate the Organization as beneficiary or contingent beneficiary of their life insurance policies.  Such designations shall not be recorded as gifts to the Organization until such time as the gift is irrevocable.  Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

 

VII.       Miscellaneous Provisions

Securing appraisals and legal fees for gifts to the Organization:  It is the responsibility of the donor to secure an appraisal (where required) and independent legal counsel for all gifts made to the Organization.

Valuation of gifts for development purposes:  The Organization shall record the value in compliance with IRS guidelines.

Responsibility for IRS Filings upon sale of gift items:  The Gift Acceptance Committee of the Organization is responsible for filing IRS Form 8282 upon the sale of disposition of any asset sold within two years of receipt by the Organization where the charitable deduction value of the item was $5,000 or greater.  The Organization should file this form within 125 days of the date of sale or disposition of the asset.  Form 8282 with Filing Instructions can be found at www.irs.gov/pub/irs-pdf/f8282.pdf.  Form 8283 for donor organizations can be found at www.irs.gov/pub/irs-pdf/f8283.pdf. 

Acknowledgement of all gifts made to the Organization and compliance with the  current IRS requirements in acknowledgement of such gifts is the responsibility of the Board of the Organization.  IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions can be found at www.irs.gov/pub/irs-pdf/p561.pdf and www.irs.gov/pub/irs-pdf/p526.pdf respectively.

 Members of the Board of Directors will be able to engage in legal and professional services on behalf of the Organization, provided conflict of interest is disclosed.

Effective Date:  The gift will not be transferred into the managed account until it is converted into cash.  The administrative fee will be billed to the amount of the contribution from the time of its receipt.  

Publicity:  No public media exposure with respect to his or her gift will be given to any donor without the donor’s consent.  Donors will be asked to allow their “gift stories” to be told to encourage others to consider similar gifts.

Confidentiality:  All information concerning donors and prospective donors, including names, names of beneficiaries, amount of gift, size of estate, etc. should be kept strictly confidential by the Organization and its authorized personnel unless permission is granted by the donor to release such information.

Changes to Policies:  These policies and guidelines have been accepted by the Organization’s Board of Directors.  It is recommended that these policies and guidelines be reviewed annually by the Investment Committees of the Organization and may be amended from time to time as per Board approval upon the recommendation(s) of such by the Investment Committee.  Any changes or deviations from these policies except as outlined above should first be approved by the Organization’s acting Gift Acceptance Committee.

 

Approved by the Board of Directors on the 22nd day of October, 2008.

 

Arthur Geis, PhD

Chairman, Board of Directors

Child Haven