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Community Foundation of Lafayette Gift Policy and Procedures

The Community Foundation of Lafayette 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. Any questions which may arise in the review and acceptance of gifts to the Community Foundation will be referred to the Executive Committee, unless otherwise determined by the Board of Directors. The Community Foundation will not accept gifts that are too restrictive in purpose.  Gifts that are too restrictive are those that:

  • violate the charitable trust of the Community Foundation of Lafayette
  • to incur excessive expenses;
  • are accompanied by an improper economic benefit to the donor such as a gift that is conditioned on a commercial preference to the donor or affiliated company;
  • vest the donor with inappropriate control such as a gift that requires the Community Foundation of Lafayette to hire a specific person or take some other unacceptable action.

All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Board of Directors after review and recommendation by the Executive Committee. The Board of Directors reserves the right to decline any gift that does not further the mission or goals of the Community Foundation of Lafayette.

TYPES OF GIFTS:

Cash or Cash Equivalents

  • All gifts of cash or by check shall be accepted by the Community Foundation of Lafayette regardless of amount; provided that checks shall be made payable to the Community Foundation of Lafayette and in no event shall a check be made payable to an individual who represents the Community Foundation of Lafayette in any capacity.

Publicly Traded Securities

  • Readily marketable securities, such as those traded on a stock exchange, can be accepted by the Community Foundation of Lafayette. The Community Foundation of Lafayette shall promptly sell any contributed securities in accordance with the Community Foundation of Lafayette’s investment policies.
  • For gift crediting and accounting purposes, the value of the gift of securities is the average of the high and low prices on the date of the gift.

Closely Held Securities and Other Intangible Assets

  • Non-publicly traded securities may be accepted after review by the Executive Committee.
  • Community Foundation of Lafayette shall not accept securities and other intangible assets which may not be sold, have no value, or may result in additional liability to the Community Foundation of Lafayette.
  • Prior to acceptance, the Executive Committee will explore methods and timing of liquidation of the securities through redemption or sale. the Executive Committee will try to determine: an estimate of fair market value, any restrictions on transfer and whether and when a liquidity event (e.g. an initial public offering of the securities) might be anticipated.
  • No commitment for repurchase of closely held securities shall be made prior to completion of the gift of the securities.

Tangible Personal Property and In-Kind Gifts

  • Any gift of tangible personal property must be reviewed by the Executive Committee prior to acceptance to determine whether the gift can be used to advance the mission of the Community Foundation of Lafayette or can be readily converted to cash. If there is any question as to whether the contribution meets the above stated criteria, the Executive Committee shall make a recommendation to the Board of Directors who shall make the ultimate determination as to whether to accept such a gift.
  • Community Foundation of Lafayette shall not offer to value the contributed property and cannot offer tax advice.  It is the responsibility of the donor to determine the fair market value of the contribution.  Note: The value is for Community Foundation of Lafayette internal gift reporting purposes only; the donor’s receipt and/or acknowledgement will not indicate value in any way that could be construed as an endorsement of its value.
  • Community Foundation of Lafayette will not accept any property subject to a restriction on the Community Foundation of Lafayette’s ability to use, sell, or otherwise deal with the property as it deems necessary.
  • The donor shall sign a statement of ownership and disclose any liens on the property.
  • If the item is the personal property of the donor and the market value is more than $5,000, the donor must obtain a certified appraisal. The appraisal cannot be dated more than 60 days from the date of the donation. The appraisal must be prepared, signed and dated by a qualified appraiser. Federal law requires that the donor pay for the appraisal. The value will only be used for gift reporting purposes.
  • For gifts with values exceeding $5,000, the donor must complete the appropriate section/s of IRS Form 8283 (as may be amended) before submitting it to the Community Foundation of Lafayette for processing.
  • If the Community Foundation of Lafayette has a signed IRS Form 8283 and then sells, exchanges or otherwise transfers the gift within two years from the date of the gift, the Community Foundation of Lafayette must, in most circumstances, file IRS Form 8282, within 125 days of disposing of the property.  Community Foundation of Lafayette will also advise the donor if such a transaction occurs as it may affect the charitable tax deduction for which the donor qualifies.

Real Estate

  • Any gift of real estate must be reviewed by the Executive Committee prior to acceptance.
  • The donor normally is responsible for obtaining and paying for an appraisal of the property. The appraisal will be performed by an independent and professional agent.
  • The appraisal must be based upon personal visitation and internal inspection of the property by the appraiser. Also, whenever possible, it must show documented valuation of comparable properties located in the same area.
  • The formal appraisal should contain photographs of the property, the tax map number, the assessed value, the current asking price, a legal description of the property, the zoning status, and complete information regarding all mortgages, liens, litigation or title disputes.
  • Community Foundation of Lafayette reserves the right to require an environmental assessment of any potential real estate gift.
  • The property must be transferred to Community Foundation of Lafayette prior to any formal offer or contract for purchase being made.
  • The donor may be asked to pay for all or a portion of the following:
  1. Maintenance costs;
  2. Real estate taxes;
  3. Insurance;
  4. Real estate broker’s commission and other costs of sale; and
  5. Appraisal costs
  • For gift crediting and accounting purposes, the value of the gift is the appraised value of the real estate; however, this value may be reduced by costs of maintenance, insurance, real estate taxes, broker’s commission, and other expenses of sale.

Life Insurance

  • A gift of a life insurance policy must be reviewed by the Executive Committee prior to acceptance.
  • Community Foundation of Lafayette will accept a life insurance policy as a gift only if Community Foundation of Lafayette is named as the owner and beneficiary of 100% of the policy.
  • If the gift is a paid-up policy, the value for gift crediting and accounting purposes is the policy’s replacement cost.
  • If the policy is not fully paid-up, the donor shall be encouraged to make annual gifts to Community Foundation of Lafayette sufficient to cover additional premiums.
  • Community Foundation of Lafayette shall have the right to retain the life insurance policy, cash it in, or otherwise make use of its value.

Deferred Gifts

  • Community Foundation of Lafayette encourages deferred gifts in its favor through any of a variety of vehicles subject to review by the Executive Committee prior to acceptance:
  1. Charitable gift annuity (or deferred gift annuity);
  2. Pooled income fund;
  3. Charitable remainder trust;
  4. Charitable lead trust;
  5. Bequest; and
  6. Retained life estate.
  • Community Foundation of Lafayette (or its agent) shall not act as an executor (personal representative) for a donor’s estate.  A member of the staff of the Community Foundation of Lafayette or Board of Directors serving as personal representative for a donor or does so in a personal capacity, and not as an agent of the Community Foundation of Lafayette.
  • Community Foundation of Lafayette (or its agent) shall not act as trustee of a charitable remainder trust.
  • Donors should be strongly urged to consult with their attorney, financial and/or tax advisor to review and approve any donation of this kind.
  • Community Foundation of Lafayette will seek qualified professional counsel in the exploration and execution of all planned gift agreements.  Community Foundation of Lafayette recognizes the right of fair and just remuneration for professional services and, subject to approval of the Executive Committee, authorizes staff to incur such reasonable and documented fees.

GENERAL POLICIES

  • Upon receipt of a gift, or if approval is required, acceptance by  of the gift, the Community Foundation of Lafayette should provide an immediate written and sincere expression of gratitude on behalf of the Community Foundation of Lafayette.
  • Unless otherwise expressly provided for herein, the Community Foundation of Lafayette shall record a gift received by the Community Foundation of Lafayette at its valuation for gift purposes on the date of gift, following generally accepted Community Foundation of Lafayette accounting principles (GAAP).
  • Prior to accepting a gift other than cash and cash equivalents or publicly-traded securities. the Community Foundation of Lafayette will ask the donor to complete a Gift form. If the donor is unwilling or unable to complete the form, the Community Foundation of Lafayette may complete the form and write “N/A” as the estimated fair market value and indicate that the form was completed by a representative of the Community Foundation of Lafayette on behalf of the donor. In the event the donor does not provide a fair market value, the Community Foundation of Lafayette will record the gift and offsetting expense for $1.00. Once the form has been completed, an authorized representative of the Community Foundation of Lafayette must present it to the Chair of the Executive Committee or its designee for processing.
  • Unless otherwise expressly provided for herein, the Community Foundation of Lafayette shall record a gift received by the Community Foundation of Lafayette at its vacation for gift purposes on the date of the gift., following generally accepted accounting principles (GAAP).
  • The Community Foundation of Lafayette will promptly issue an acknowledgement to the donor along with a copy of the Gift form. The acknowledgement will contain only a description of the contribution and will not include a statement as to the value of the contribution. The acknowledgement will also contain a statement as to what, if any, goods or services were given in exchange for the contribution. The Community Foundation of Lafayette cannot accept contributions that cannot be readily used or converted to cash. Note: The value determined by the donor is for the Community Foundation of Lafayette internal gift reporting purposes only; the donor’s receipt and/or acknowledgement will not indicate value in any way that could be construed as an endorsement of its value.
  • All information obtained from or about donors/prospects shall be held in the strictest confidence by the Community Foundation of Lafayette, its staff and volunteers.  Neither the name, the amount, nor the conditions of any gift shall be published without the express written or oral approval of the donor and/or beneficiary.
  • The Executive Director may seek the advice of legal counsel where appropriate and shall seek the advice of legal counsel in all matters pertaining to the acceptance of a gift which may have adverse legal, ethical, or policy consequences to the Community Foundation of Lafayette.

RECOGNITION

Recognition will be given at the market value of the gift as determined in accordance with the policies herein or as otherwise determined by the Executive Committee at the time of the acceptance of the gift.