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. The Most Convenient Fundraising Idea With over 750 retailers, electronic and reloadable gift cards, MyScripWallet, and an online payment system, scrip … 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. 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. b. You agree to the gift. By allowing “nominal” stipends, the law recognizes that nonprofits routinely show appreciation to their volunteers with small amounts of money or benefits: This might look something like this example from Kathryn Miree and Associates (it has been edited to fit our animal welfare sample organization): [Animal welfare organization] holds all communications with donors and information concerning donors and prospective donors in strict confidence, subject to legally authorized and enforceable requests for information by government agencies and courts. 1 0 obj 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. 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. 2. Your program can share your rebate earnings with you so you can put them toward any organization fees or expenses. 9 0 obj Physical assets can include cars, clothes, toiletries, food, etc. endstream A gift range chart is a simple planning tool you can use for any fundraising campaign. Refer to section 9 in this template for more detail. We also have a sample Gift Agreement Template you can check out. Approved on ___________________(mm,dd, yyyy), _______________________________ Chair, [animal welfare organization] Board of Directors. Please see section 5 in this template for a reminder of the organization’s mission. 12. Each Entity planning to purchase and distribute gift cards must submit their written policy to the Deputy Secretary for Operations for approval. ���� JFIF ` ` �� ZExif MM * J Q Q �Q � �� ���� C The matching gift is allocated to the same purpose as the original gift or the purpose designated by the company or organization. Depending on the size of your organization, you might consider the following groups, individuals, and committees be present when the gift acceptance policy is written and/or reviewed: If your organization is larger, or tends to receive more unconventional or planned gifts, you may decide to create a Gift Exceptions Committee specifically to vet gifts and ensure that the policy is up-to-date and being upheld. As you work to put together a gift acceptance policy for your own organization, you can refer to these examples from the Nonprofit Risk Management Center, as well as this more in-depth example from the Association of Fundraising Professionals. ",#(7),01444'9=82. 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. Here are a few examples of times when review by counsel might be necessary: *Fill in any points that make sense for your organization when establishing whether legal council is necessary. <> [Animal welfare organization] reserves the right to refuse any gift that it deems too restrictive in purpose, or not in the organization’s best interest. 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. If you do accept such donations, keep in mind that as a matter of policy, most nonprofits will want to sell digital assets upon receipt, particularly because the price of these assets can be extremely volatile. 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. If that is not the case with your organization, it can be your board of directors or planned giving committee’s job to uphold the policy. This template may not be detailed enough. *You might also include a note about any special treatment for first-time, monthly, or major donations made. University faculty and staff occasionally want to use gift cards or gift certificates to compensate individuals such as event volunteers or research study participants. Gift card recipients can choose from hundreds of worthwhile projects that might not get off the ground without community support. Any gifts that violate federal, state, or local law, statute, or ordinance, Any gifts that contain unreasonable conditions or partial interest in property, Any gifts that are made with conditions that state the proceeds will be spent by [animal welfare organization] for the personal benefit of a named individual, Any gifts that could expose [animal welfare organization] to liability, Cash (check, credit/debit card, ACH, online payment processing, cash, etc. 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. There is a reason. 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. other gift offers will be reviewed by the Gift Committee (GC) as described on page 1. Extra details, stipulations, or legalese will still be included in your gift acceptance policy and can be referenced if needed. (Law firms in some communities provide pro-bono services for smaller nonprofits and may be willing to review personnel and other policy and organizational documents for your organization.) 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. The [animal welfare organization] Board of Directors must approve any changes or amendments to this policy. Your nonprofit could avoid a situation like the following: You’ve just been hired onto the development team of a nonprofit that you’re really excited about. Keep an up-to-date personnel file for employees documenting a) changes to employee compensation or benefits; b) use of vacation and other leave; c) copies of job descriptions, evaluations, incident reports, … Marketable Securities. They are cash. In this example, [animal welfare organization] refers to its board to ensure the policy is current and gifts are being vetted when necessary. How long or comprehensive your policy is depends on how your nonprofit operates and what kind of gifts you accept. According to Eisenhower Carlson, creating and upholding a gift acceptance policy will help your nonprofit in these four ways: maintain discipline, provide education, preserve donor relationships, and instill best practices. ]�"x�Z}��� Marketable securities may be transferred electronically to an account %PDF-1.7 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. If your organization has decided that it will not accept cryptocurrency, that decision should be clearly set forth in your gift acceptance policy. In the instance of creating a gift acceptance policy, it can also be a good idea to include a line or two about your donors’ privacy to give them peace of mind. General content sources used in this template. Conclusion. Contact the Clover sales team to find out … For example, [animal welfare organization] also accepts donations in the form of supplies for the animals they care for. ), Life insurance, life insurance beneficiary designations, or bequests, Tangible personal property, including in-kind gifts, Publicly traded and closely held securities, convert the policy to paid up insurance, or, surrender the policy for its current cash value, Chair, [animal welfare organization] Board of Directors, Volunteer Lawyers & Accountants for the Arts, Making the Most of Microlearning for Your Nonprofit, Fundraisers: Don’t Look In Other People’s Wallets, Perfect Your Nonprofit Pitch: How to “Tell Your Story” in 20-Seconds or Less. endobj Drafting a gift acceptance policy helps your nonprofit handle these situations and others that may arise when accepting gifts and donations. These rules and requirements must be followed and communicated to those involved before purchase or distribution of any gift cards. 1. 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. Establishing a strong donor base and a good relationship with donors is a valuable asset to your nonprofit. Your policy might be one page long or it might be twenty. The gift acceptance policy supplies important information for donors and enables the development 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. [Animal welfare organization] will seek advice from legal counsel in relation to gift acceptance when appropriate. You check out pictures of the home online. 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. 2 0 obj [Animal welfare organization] uses their annual report as their premiere donor recognition tool. A gift is more than just a monetary donation. 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. Reference to the sample organization used in this template will be denoted as [animal welfare organization]. An important note on research and content. }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 This sample policy is designed for a small animal welfare organization. endobj Finally, gifts and gift cards/certificates given … At the end of the day, there’s no downside to creating a gift acceptance policy for your nonprofit, but there can be a big upside. However, it’s important for them to set guidelines on what kind of supplies are appropriate and even how many. Set limits for all card users of what can be charged without preapproval. Donor communications & acknowledgement. %���� You don’t want to involve your nonprofit in any unauthorized practice of law, so it’s important to include this language in your gift acceptance policy. Changes to your gift acceptance policy. You take title to the home and immediately put it on the market, only to find out that it’s infested with snakes. GlobalGiving: GlobalGiving is a crowdfunding community for nonprofits. Determining the amount that will avoid creating a taxable event can be complicated, but one rule is simple: An appreciation gift of cash or a cash equivalent, such as a $25 gift card, is always taxable in the view of the IRS – regardless of the amount. The policies surrounding volunteers are also scrutinized closely during an audit of nonprofits. … 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. Then, out of the blue a donor calls and offers to give you a nice house in a great local neighborhood. 8 0 obj Once you hear the estimated value of the home you know this gift would help you meet and exceed your fundraising goal. Providing gift cards allows the non-profit to restrict the use of the funds provided to the beneficiary to the purchase of eligible products rather than just handing over cash that might be used for items not covered … [Animal welfare organization] will encourage donors to seek their own tax or legal counsel before making a gift. <> A gift acceptance policy could have prevented this. When gift cards are distributed, they must be distributed in accordance with the guidelines set forth in this policy. Here’s an example of extra parameters for an acceptable “life insurance” gift from a sample policy by Kathryn Miree and Associates (it has been edited to fit our animal welfare sample organization): [Animal welfare 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. These gifts may come from a customer, vendor, supplier, potential employee, or potential vendor or supplier. Refer to section 6 in this template to determine which party will provide counsel for your organization. endobj An Entity's written policy must address the purchase, distribution, security, and tracking of cards, and include: As cash-equivalent instruments, gift cards are governed by tax rules and internal control requirements. The IRS sees it as a taxable event that the nonprofit and volunteer must report. Other circumstances in which use of counsel is deemed appropriate by [animal welfare organization’s] Board of Directors. Company credit card policy sample. endobj 7 0 obj In the case of [animal welfare organization], the board’s discussion should be guided by consistency with the mission and an attempt to preserve the organization’s goodwill in their community. members as sales agents in transactions, leases of gift property to staff or Board, etc. At the end of the day, this should be what the donor and your organization care about the most, and the relationship with that particular donor doesn’t need to get hostile if dealt with in an appropriate way with the policy front and center. Nonprofits are giving fundraisers, donors, staff and volunteers money. It can also be a good idea to include your organization’s mission in your gift acceptance policy as it may need to be referenced as a basis for restrictions on gifts. Yes, you heard correctly. 4 0 obj The acceptance of a questionable gift or any decision to fulfill a questionable request from a donor will be brought in front of the Gift Exceptions Committee if the organization has one, or the board of directors if not. 10 0 obj The gift policy defines who may give a gift to company employees. <> This company credit card policy helps you set up guidelines for employees who have the right to hold a company card. 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.   <>/Metadata 1783 0 R/ViewerPreferences 1784 0 R>> Some gifts may lead to legal obligations that the nonprofit is not otherwise ready to handle. For non-employees, the value of all gifts and gift cards/certificates in an aggregate amount of $600.00 or more per calendar year must be reported to the IRS on Form 1099-MISC as other compensation. Organizations with planned giving programs should consult with legal counsel and draft a more extensive policy. What is a gift acceptance policy and why do you need it? Maybe that bouquet of flowers, rather than a $50 gift card, would be more appreciated as an appreciation gift! 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. It’s a bad one, but it’s a reason. 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. All donors contributing $XXX amount or more will be recognized in the [animal welfare organization] annual report. If you’re soliciting gifts other than unconditional cash gifts, you should put thought and time into a written gift acceptance policy. This is where the written gift acceptance policy can come into play and help you preserve those relationships with current and prospective donors. 3 0 obj Rationale for Adoption of the Policy Despite the tempting application of the adage, “Don’t look a gift-horse in the mouth,” a nonprofit organization should adopt a written gift acceptance policy to The above policies and guidelines have been reviewed and approved by the [animal welfare organization’s] Board of Directors. Entity's Gift Card Policy . <> 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. <> vaSMh3�df�����fc�t![-���Ǒ2{)H8. Eighty percent of your fundraising campaign results come from twenty percent of your donors. It should also be thoroughly discussed and reviewed before being submitted to your board for approval. <> Cash gifts are acceptable in any form, including by check, money order, credit card, or on-line. Fast forward a few months and you’re two thirds of the way into your fiscal year and you haven’t even come close to meeting your fundraising goal. Gift cards allow nonprofit organizations and charities to support individuals and families in a number of areas of life. All gifts intended for USMA must be proffered and accepted in accordance with applicable U.S. Army laws and regulations. Feel free to modify this policy based on your organization’s specific needs. The house was built on top of a garter snake den and it will cost thousands of dollars to bring in a professional to safely trap and remove all the snakes. endobj An example is a CPA who performs services for the 501(c)(3) at no charge. Not what you thought you were looking for? This policy spells out how to handle gifts with strings attached, the specific types of gifts you do and don’t accept, what financial position of the donor is required, and how to handle gifts offered with ulterior motives. Gift cards are cash. <>/ExtGState<>/XObject<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 612 792] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> An organization should consider publishing its gift acceptance policy on its website and annual report. If necessary, include a note about any special recognition for planned gifts or major gifts that go above and beyond. 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. <> Other acceptable gifts your nonprofit might consider adding to your policy: Once you add and go through each acceptable item on your list, it’s a good idea to add extra detail and parameters on what exactly each acceptable gift means or looks like to your organization. Not only does this put you out thousands of dollars, but you you’re stuck with a house of horrors on your hands that no one wants to buy. 4. 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. <> 6. Who makes decisions about the policy and what gifts are acceptable? Why would they do that? 100% tax-deductible to the purchaser of the gift card. In 2011, the Incentive Research Foundation (IRF) published a study on the surge in incentive professionals' use of gift cards. x����j�@����ÿ�B�9s̀��R� X*t! It's often called the 80/20 rule. 6 0 obj Donor anonymity requests will be honored. Subsequently, listing out donor recognition and acknowledgement guidelines in your policy are a good idea and can make it easier for your organization to stick to those stipulations. All other requests for or releases of information concerning a donor or a prospective donor will be granted only if permission is first obtained from the donor. stream 3. <> A larger organization will likely have more policies and stipulations around gift guidelines than the small animal welfare organization example used in this template. endobj A gift of donated services is generally “ recognized” if the services (a) create or increase the value of a nonfinancial asset, or (b) require specialized skills, are given by a donor possessing them, and are of a type that would need to be purchased in any event. $.' stream Before Purchasing A Gift Card Or Gift Certificate, Ask The Following Questions 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. As in—money. 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.