ST. GEORGE COMMUNITY DEVELOPMENT CORPORATIONGIFT ACCEPTANCE POLICY
1. Policy and Purposes
This policy of the St. George Community Development Corporation regarding solicitation and acceptance of gifts was adopted by its Board of Directors on June 21, 2018.
The St. George Community Development Corporation (the “CDC”) is organized as a public benefit corporation under the Maine Non-Profit Corporation Act exclusively for charitable, scientific or educational purposes within the meaning of Section 501(c) (3) of the InternalRevenue Code of l986, as amended. Its mission is to help make the town of St. George and its villages—Tenants Harbor and Port Clyde—livable for all residents by leading and funding innovative projects that both reflect the heritage and enhance the resiliency of the community.
The CDC’s Board of Directors (the “Board”), Development Committee and staff solicit current and deferred gifts from individuals, corporations, foundations, and others for the purpose of furthering and fulfilling the CDC’s mission. This policy is adopted to offer guidance for the Board, officers, and staff with respect to their responsibilities concerning gifts to the CDC and to inform prospective donors and their professional advisors contemplating gifts to the CDC. The provisions set forth herein shall apply to all gifts received by the CDC. Notwithstanding the foregoing, the CDC reserves the right to revise or revoke this Policy at any time and to make exceptions to it in appropriate circumstances.
The CDC shall strictly follow its internal Conflict of Interest policy in regard to any gift in which the donor is a Corporation Official or an Interested Person, as those terms are defined in such Conflict of Interest policy.
2. Policy Regarding Specific Types of Gifts
A. Gifts Generally Accepted Without Review
The CDC will accept unrestricted gifts of cash without prior review, provided that, for donations of $20,000 or more, the identity of the donor has been vetted with respect to any reputational or policy issues. Unrestricted gifts of cash are acceptable in any form. Checks shall be made payable to the St. George CDC.
B. Gifts Subject to Review Prior to Acceptance
All gifts, other than unrestricted gifts of cash, must be reviewed by the Board prior to acceptance unless the Board authorizes the Executive Director (“ED”) to accept certain de minimis gifts or categories of gifts without its review. Following are additional details about the policy as it applies to certain types of gifts:
(1) Tangible Personal Property: The Board will review and decide whether
to accept gifts of tangible personal property by considering the following factors:
a. Whether the property furthers the mission of the CDC;
b. Whether the donor wishes to place restrictions on the use, display, or sale of the property;
c. The marketability of the property, and
d. Carrying costs and possible liability associated with the property.
(2) Marketable Securities:
a. Unrestricted marketable securities may be transferred to an account maintained by the CDC at one or more brokerage firms or delivered physically with the transferor’s signature or stock power attached. All marketable securities shall normally be sold as soon as practical following receipt unless otherwise directed by the Board.
b.If the marketable securities sought to be donated are restricted by applicable securities laws, the Board shall make the final determination on the acceptance of the restricted securities.
(3) Closely-Held Securities:
Closely-held securities, including debt and equity positions in non-publicly traded companies, interests in LLPs and LLCs, or other ownership forms, may be accepted subject to the approval of the Board. The Board shall review and decide whether to accept closely held securities based on the following factors:
a. Restrictions on the security that would prevent the CDC from ultimately converting the securities to cash;
b.The marketability of the securities; and
c. Any potential undesirable consequences for the CDC from accepting the securities. If necessary, review and recommendation by an outside professional may be sought before the Board decides whether to accept a gift of closely-held securities. Final determination shall be made by the Board with advice of legal counsel when deemed necessary.
(4) Bequests:
Donors may make bequests to the CDC under their wills and trusts. A bequest will not be recorded as a gift until the gift is irrevocable. When the gift is irrevocable but is not due until a future date, the gift will be recorded in accordance with GAAP.
(5) RealEstate:
Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest.
Environmental Review.
Prior to acceptance of real estate, the CDC shall require an initial environmental review of the property to ensure that the property has no environmental problem. If the initial inspection reveals potential problems, the CDC shall retain a qualified consultant to conduct a more detailed environmental investigation. The cost of the detailed environmental investigation shall be borne by the donor.
Good Title.
A title search shall be performed and a title insurance commitment showing noun permitted encumbrances shall be obtained by the CDC prior to the acceptance of the real property gift when appropriate. The cost of the title search and title insurance shall be borne by the donor.
Factors for Acceptance
The Board, with assistance from its legal counsel, shall base its decision on whether to accept real property on the following factors:
a. Whether the property is useful for the purposes of the CDC;
b. If it is not useful in its current condition, the cost to make it so;
c. The marketability of the property;
d. Any encumbrances, leases, restrictions, reservations, easements, or other limitations associated with the property;
e. Any carrying costs associated with the property, including insurance, property taxes, mortgages, notes or other costs,
f. Any concerns revealed by the environmental investigation.
(6) Remainder Interests in Property:
TheCDC will accept a remainder interest in a personal residence, farm, or vacation property subject to the above-stated general conditions and restrictions regarding gifts of real property and in accordance with the following provisions:
a. The donor or other permitted occupants may continue to occupy the real property for the duration of the stated life.
b. At the death of the life tenant(s), the CDC shall have discretion to use the property or sell it.
c. During the donor’s lifetime and the life term, all expenses for maintenance, real estate taxes, and any property indebtedness shall be paid by the donor or life tenant.
(7) Charitable Remainder Trusts:
The CDC may accept designations as remainder beneficiary of a charitable remainder trust. However, the CDC shall not accept appointment as trustee of a charitable remainder trust.
(8) Charitable Lead Trusts:
The CDC may accept designations as income beneficiary of a charitable lead trust. However, the CDC shall not accept appointment as trustee of a charitable lead trust.
(9) Retirement Plan Beneficiary Designations:
The CDC may accept designations as beneficiary of donors’ retirement plans. Designations will not be recorded as gifts until the gift is irrevocable. When the gift is irrevocable, the gift will be recorded in accordance with GAAP.
(10) Life Insurance:
The CDC may accept designations as a beneficiary (primary or contingent)or as the owner of a life insurance policy. The life insurance policy will be recorded as a gift once the CDC is named as both beneficiary and irrevocable owner of a life insurance policy. The gift shall be valued in accordance with GAAP rules. If the donor contributes future premium payments, the CDC 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 CDC may:
a. Continue to pay the premiums;
b. Convert the policy to paid-up insurance, or
c. Surrender the policy for its current cash value.
(11) Charitable Gift Annuities:
The CDC may offer charitable gift annuities in the future. The minimum gift anticipated for funding is $10,000. The minimum age for life income beneficiaries of a gift annuity shall be 62. Where a deferred gift annuity is offered, the minimum age for life income beneficiaries shall be 55. No more than two life income beneficiaries will be permitted for any gift annuity. The Board may make exceptions to these minimums, in its discretion.
Payment Schedule.
Annuity payments may be made on a quarterly, semi-annual, or annual schedule.
Illiquid Assets.
The CDC shall not accept real estate, tangible personal property, or any other illiquid asset in exchange for current charitable gift annuities. The CDC may accept real estate, tangible personal property, or other illiquid assets in exchange for deferred gift annuities if there is at least a five(5) year period before the commencement of the annuity payment date, the value of the property is reasonably certain, and the Board approves the arrangement.
Handling of Funds.
Funds contributed in exchange for a gift annuity shall be segregated from other funds and invested during the term of the annuity payments. Once the annuity payments terminate, the funds representing the remaining principal contributed in exchange for the gift annuity shall be transferred as directed by the donor, and if no particular fund has been so designated, to the CDC’s general fund.
(12)Oil, Gas, and Mineral Interests:
The CDC may accept oil and gas property interests in appropriate circumstances.The Board and its legal counsel shall review and decide whether to accept oil, gas, and mineral interests subject to the following limitations:
a. Gifts of surface rights shall have a value of $20,000 or more;
b. Gifts of oil, gas and mineral interests should generate at least$3,000 per year in royalties or other income, determined by averaging the royalty or other income for the three years prior to the gift;
c. The property should not have extended liabilities or other considerations that would make receipt of the gift inappropriate;
d. A working interest will not be accepted, and
e.An environmental review shall be required to ensure that the CDC would have no current or potential environmental liability exposure.
(13) Restricted Gifts:
A gift with restrictions will be accepted only if the restrictions are approved by the Board.
(14) Named Funds:
A donor, or group of donors, may contribute and name a fund and restrict the use of the income or principal of the fund. Named funds shall require a minimum contribution of $5,000 and their terms are subject to Board approval in the same manner as any other restricted gift.
3. General Policy
Final decisions on the acceptance or refusal of gifts shall be made by the Board. TheBoard shall have discretion to deviate from the dollar minimums set forth in this policy provided it documents its reasons for doing so. The Board shall under no circumstances accept a gift that would:
A. Violate the terms of the CDC’s governing documents;
B. Jeopardize the CDC’s status as a tax-exempt organization under federal or state law;
C. Have potential to be difficult or expensive to administer;
D. Have purposes/uses that do not further the CDC’s objectives; or
E. Have potential to damage the reputation of the CDC.
4.Legal Counsel
A. The CDC. The CDC shall seek the advice of legal counsel in matters relating to acceptance of gifts when the Board deems appropriate.
B.Donor. For non-standard gifts, in order to avoid potential any conflicts or potential conflicts of interest, the CDC shall require prospective donors to seek the assistance of their own legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences.
5. Additional Provisions
A.Gift Agreements.
Where appropriate, the CDC shall enter into a written gift agreement with the donor, specifying the terms of any restricted gift, which may include provisions regarding donor recognition.
B.Pledge Agreements. Acceptance by the CDC of pledges by donors of future support of the CDC (including by way of matching gift commitments) shall be contingent upon the execution and fulfillment of a written charitable pledge agreement specifying the terms of the pledge, which may include provisions regarding donor recognition.
C.Fees. The CDC will not accept a gift unless the donor agrees to be responsible for
(1) the fees of independent legal and/or tax counsel retained by donor for completing the gift;
(2) appraisal fees;
(3) environmental investigations;
(4) title searches and title insurance commitments for real property, and
(5) all other third-party fees associated with the transfer of the gift to the CDC.D.Valuation of Gifts. The CDC shall record gifts received at their valuation on the date of gift, except that, when a gift is irrevocable, but is not due until a future date, the gift may be recorded at the time the gift becomes irrevocable in accordance with GAAP.E.IRS Filings upon Sale of Gifts. To the extent applicable, the Board shall file IRS Form 8282 upon the sale or disposition of any charitable deduction property sold within three (3) years of receipt by the CDC. “Charitable deduction property” means any donated property (other than money and publicly traded securities) if the value claimed by the donor exceeds $5,000per item, or a group of similar items, donated by the donor to one or more donee (e.g., the property listed in Section B on Form 8283). The CDC shall file this form within 125 days of the date of sale or disposition of the asset.F.Written Acknowledgement. The Board of the CDC shall provide written acknowledgement of all gifts made to the CDC and comply with current IRS requirements regarding acknowledgment of the gifts.
G.Changes to or Deviations from Policy.
The CDC’s Board has the sole power to change this Policy or approve any deviations here from, which amendments or agreements to deviate shall be in writing.
H.Confidentiality.
In general, donations shall be confidential unless otherwise directed by the donor. Adopted by the Board of Directors on, 2018. Certified by: Robert T. Kelley Chair, Board of Director