Establishing a strong donor base and a good relationship with donors is a valuable asset to your nonprofit. By arming their employees with a policy that dictates what gifts they can accept, they’ll be able to address any concerns before they become issues, while also showing the donor that there’s a legitimate reason their gift is being rejected. Before you get too far into creating your policy, it’s a good idea to take a step back to think about and define what a gift looks like for your nonprofit. Your gift acceptance policy should clearly state that your nonprofit encourages its donors to seek their own tax or legal counsel before making a gift, and that your nonprofit will make apparent any situation in which it must hire legal counsel to assist with a gift. Donors and prospective donors are strongly urged to seek the assistance of their own professional advisors in matters relating to their gifts and the resulting tax and estate planning consequences. They can only fit a certain number of supplies in their building before it becomes a fire hazard, and they’ve found that certain brands of food or medicine have caused reactions in several of the animals. The policies surrounding volunteers are also scrutinized closely during an audit of nonprofits. If necessary, include a note about any special recognition for planned gifts or major gifts that go above and beyond. You take title to the home and immediately put it on the market, only to find out that it’s infested with snakes. This template may not be detailed enough. b. 100% tax-deductible to the purchaser of the gift card. Although the instructions are not entirely clear on the point, it seems less like a check, which is essentially the equivalent of cash and would be treated as a cash contribution, and more like a bond or note redeemable by the issuer, which would be treated like a security and as a noncash gift. endobj How does your nonprofit define a “gift?”. Gift Cards or Certificates to Non-Employees Gift cards presented to Non-employees may be taxable and reportable income on form 1099-MISC to the recipient if they are over $600.00. Many nonprofits require all employees to seek explicit preapproval prior to incurring any credit card charge in order to comply with federal guidelines. An acknowledgement letter including a formal tax receipt for monetary donations will be sent to each donor when their gift is accepted. For example, [animal welfare organization] also accepts donations in the form of supplies for the animals they care for. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Gift cards can be used to: Cover prescription and health-related costs for the elderly and health-afflicted individuals Once a gift card or cash is given to a volunteer, no matter how nominal, on behalf of the organization, they are now considered an employee or independent contractor, with all of the requirements that employing an individual requires. endobj 9 0 obj 4 0 obj 12. Pro tip: to help alleviate any issues or hostility if the donor’s gift is rejected, it could be a good idea to include a high level list of what supplies or gifts your nonprofit can and cannot accept on your website or on signs in your building. <> All gifts intended for USMA must be proffered and accepted in accordance with applicable U.S. Army laws and regulations. Your development team can be prepared to handle negative reactions by showing a donor exactly where in the gift acceptance policy it states that their gift can’t be accepted and why. Here’s an example ‘Conflict of Interest’ section from a sample policy by Kathryn Miree and Associates (it has been edited to fit our animal welfare sample organization): [Animal welfare organization] does not provide personal legal, financial or other professional advice to donors or prospective donors. *You might also include a note about any special treatment for first-time, monthly, or major donations made. The purpose of this policy is to identify the circumstances under which gifts that are purchased with University funds can/cannot be given, the form of such gifts can/cannot take, and, where applicable, any tax withholding or reporting requirements related to giving such gifts. In addition, the following gifts will not be accepted by [animal welfare organization]: The following gifts may be considered for acceptance by [animal welfare organization]: *You might first want to consider if there are any undue restrictions associated with the property, any carrying costs, if the property is marketable, and whether it fulfills your mission. stream These rules and requirements must be followed and communicated to those involved before purchase or distribution of any gift cards. Your gift acceptance policy should clearly state that your nonprofit encourages its donors to seek their own tax or legal counsel before making a gift, and that your nonprofit will make apparent any situation in which it must hire legal counsel to assist with a gift. University faculty and staff occasionally want to use gift cards or gift certificates to compensate individuals such as event volunteers or research study participants. A gift acceptance policy establishes procedures for reviewing, accepting, and substantiating non-standard contributions. It’s important for your nonprofit to avoid the conflict of interest that would occur if it functioned as a donor’s advisor for gift giving. An important note on research and content. If you’re soliciting gifts other than unconditional cash gifts, you should put thought and time into a written gift acceptance policy. There is a reason. <> The most significant reasons to adopt a gift acceptance policy include: Accepting some types of gifts may run counter to the nonprofit's values - so a gift acceptance policy can be useful to underscore why the nonprofit cannot accept the gift. Gift cards allow nonprofit organizations and charities to support individuals and families in a number of areas of life. The purpose of this Policy is to set forth the guidelines and procedures for the purchase, use, distribution, and secured storage of gift cards and/or gift certificates purchased with College funds, grant funds, Community College of Philadelphia Foundation (“Foundation”) funds, and/or donated to the College to ensure compliance with the College’s tax withholding and reporting obligations. GlobalGiving: GlobalGiving is a crowdfunding community for nonprofits. Any gifts of patents or intellectual property, Certain gifts (like closely held stock transfers) that are subject to restrictions or buy-sell agreements. [Animal welfare organization] will seek advice from legal counsel in relation to gift acceptance when appropriate. 8 0 obj the policy as helpful as possible: • Discuss policy needs with your treasurer and finance committee or executive committee • Conduct an informal risk assessment • Draft the financial policy, followed by review and discussion by staff and board leadership • Present to board for adoption • Train staff on policy As cash-equivalent instruments, gift cards are governed by tax rules and internal control requirements. If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, [animal welfare organization] may: Once the policy is accepted, life insurance holdings will be reviewed annually to determine whether it is best to continue to pay the premiums, convert the policy to paid up insurance, surrender the policy for its current cash value, or change the underlying investment structure. 2 0 obj Nonprofits are giving fundraisers, donors, staff and volunteers money. It provides guidance to company employees about what is and is not appropriate to accept as a present, offering, advertisement, award, or token of appreciation. All gifts made to [animal welfare organization] will receive an acknowledgement from the [animal welfare organization] development department within one week of receipt of the gift, if possible. }P������8j���@ ���Rx��x͝���=O�E�J�[�8��P��1�z�7� gBt��v?�)��r)��L������Q�IMɟ>7c�tB���� |�[�sU6��5 kn��i�@%�a����L2lY ��$,�pQ���`�]-��H7o�{�f�6�m������v�}E��� W$U�W��0^x グ�W�0����UU���C�(z_ёm8 �����IUx�1����J��8Ǜĉ\B9s5���K8%L�N�������� �2����z��Ō�-N�/`tI If the donor contributes future premium payments, [animal welfare organization] will include the entire amount of the additional premium payment as a gift in the year that it is made. A gift is more than just a monetary donation. <> Your policy might be one page long or it might be twenty. <> 6 0 obj members as sales agents in transactions, leases of gift property to staff or Board, etc. We also have a sample Gift Agreement Template you can check out. The above policies and guidelines have been reviewed and approved by the [animal welfare organization’s] Board of Directors. All donors contributing $XXX amount or more will be recognized in the [animal welfare organization] annual report. x����j�@����ÿ�B�9s̀��R� X*t! Set limits for all card users of what can be charged without preapproval. Donors wishing to make a gift by credit card must provide the card type (e.g., Visa, MasterCard, American Express), card number, expiration date, and name of the card holder as it appears on the credit card. Refer to section 9 in this template for more detail. The language in this template is a good starting point for your nonprofit, but it should be adapted to fit your organization’s culture, strategy, and policies. Donors and prospective donors should be encouraged to seek their own professional or financial advisors and legal counsel in matters relating to their gifts, taxes, estate planning, etc. Financial Control Recommendations for Small Nonprofits Preserving charitable assets is one of the most important responsibilities of nonprofit board service Many organizations operating in Oregon experience asset losses related to thefts, embezzlements, or other diversions of assets and these trends are mirrored in charities throughout the country. endobj This is where the written gift acceptance policy can come into play and help you preserve those relationships with current and prospective donors. Cash gifts are acceptable in any form, including by check, money order, credit card, or on-line. Copyright © 2021 Bloomerang ® | All Rights Reserved, Planned giving staff (to deal with estate or legacy gifts), Program administration staff (may receive donations or donation requests specifically dealing with program needs), The Board of Directors or any board committees responsible for development, Administration of any estate in which [animal welfare organization] is named as a beneficiary, Any transactions with potential conflicts of interest, including the use of Board.
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