THE GREATER KANAWHA VALLEY FOUNDATION
Gift Acceptance Policy
Adopted by the Board of Trustees March 22, 2000
Amended March 19, 2003
Amended March 21, 2007
The purpose of a gift to The Greater Kanawha Valley Foundation, its affiliates, and supporting organizations is to further the Foundation’s charitable purpose and mission by maximizing financial support for the Foundation, its affiliates, supporting organizations, and other charities it supports. Such financial support may be in the form of outright current gifts or deferred gifts. Specifically, the Foundation seeks to: (1) help donors meet their charitable goals by making gifts tailored to suit their individual circumstances; (2) encourage gifts to the Foundation that benefit the Foundation and other charities in our community; and (3) increase the permanent endowment funds of the Foundation, thereby providing a growing charitable resource for future generations in our community.
The purpose of a gift to The Greater Kanawha Valley Foundation, its affiliates, and supporting organizations must fall within the mission of the Foundation. The purpose of the gift must be defined in a written fund agreement or deferred gift instrument signed by the donor, or his or her appointed representative, and if appropriate, an authorized representative of the Foundation. Standard fund agreements, as approved by legal counsel and foundation trustees will be used. Fund agreements will be prepared and reviewed by staff and legal counsel of the Foundation. In most cases, additional gifts may be made to existing funds 0f the Foundation without restating the original purpose of the gift.
The minimum required to create a named, active, unitized fund in The Greater Kanawha Valley Foundation is $10,000.00. The direct cost of administering outright and planned gifts of the Foundation will not be borne by the general funds of the Foundation. The cost of administering such gifts will be reimbursed from the assets of the funds.
Named incubator or start-up funds may be opened with a minimum of $500 with the understanding that the fund must meet or exceed the sum of $10,000 within three years. In the event that the incubator fund does not meet or exceed the $10,000 within the three-year period, the funds will revert to the Foundation for use in the discretionary grant program. Incubator or start-up funds established as agency funds or as a result of planned gifts will be exempt from these requirements.
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The Foundation reserves the right to accept or reject any gift as it sees fit. All gifts to The Greater Kanawha Valley Foundation will be ultimately received by the President on behalf of the Board. The President will finalize their terms, restrictions and conditions and give expeditious, yet thorough consideration to each gift. The President will receive gifts in accordance with the gift acceptance policy. Any potential gift that is not covered by this policy must be reviewed by the Executive Committee and approved by the Board prior to final acceptance.
Gifts received in the following forms may be accepted by the President and will not require prior review and approval of the Executive Committee:
- Marketable securities
- Gifts of personal property for the Foundation’s offices or programs
Gifts that require review or approval by the Executive Committee include:
- Gifts whose purposes fall outside the purposes, bylaws and procedures of the Greater Kanawha Valley Foundation
- Tangible personal property
- Real property
- Closely held stock
- Partnership interests
- Accounts receivable (gifts of loans, notes, mortgages, etc.)
In conformance with Treasury Department regulations governing community foundations, gifts to The Greater Kanawha Valley Foundation may not be directly or indirectly subjected by a donor to any material restriction or condition that prevents the Foundation from freely and effectively employing the transferred assets, or the income derived there from, in furtherance of its exempt purposes.
All gifts to a Donor Advised Fund (as defined in Section 4966(d)(2) of the Internal Revenue Code, as amended) which constitute an interest in a business enterprise (whether stock or securities, partnership share, or other interest) shall be reviewed prior to acceptance to ensure that acceptance of such gift will not violate the prohibitions against excess business holdings by a Donor Advised Fund, as set forth in Section 4943 of the Internal Revenue Code, as amended.
- Current Gifts – Gifts to The Greater Kanawha Valley Foundation take a variety of forms. Many are outright gifts by living donors, either on a one-time or a periodic basis.
Cash – Gifts of cash should include a statement of purpose, or identify the specific fund to which the contribution is being made.
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Checks – All checks should be made payable to The Greater Kanawha Valley Foundation and should not be made payable to an employee or volunteer for credit to the Foundation. All checks are deposited in the ordinary course of business. No employee shall be authorized to delay deposit.
Securities – Securities that are traded on the New York, American Stock Exchanges, or NASDAQ market or other readily marketable securities may be accepted by The Greater Kanawha Valley Foundation. Securities accepted by the Foundation will generally be sold as soon as practicable, unless it is decided by the Executive Committee to hold the securities as investments of the organization. No agreements shall be made with a donor prior to or subsequent to a gift that such securities will be held for any period of time.
At no time will The Greater Kanawha Valley Foundation allow a Donor Advised Fund to have “excess business holdings” within the meaning of Section 4943 of the Internal Revenue Code, as amended.
Personal Property – The Greater Kanawha Valley Foundation may accept jewelry, artwork, collections and other personal property. Establishing the value of the gift is the responsibility of the donor. If the value exceeds $5,000, the donor must have a qualified appraisal performed and submitted on the appropriate IRS form. Personal property may not be accepted where the Foundation is obligated to maintain ownership of it in perpetuity or to retain it for a specific period of time. Gifts of personal property that cannot readily be sold or that require unusual expenses prior to sale are discourage. If a lengthy selling period is anticipated, the Foundation may refuse the gift or request that the donor cover the expenses with a cash gift.
Real Property – Real property may be accepted as a gift only if the Foundation is free to do whatever it chooses with the property and only if there is a reasonable certainty that the property will be sold within one (1) year. For more specific Foundation policies regarding gifts of real property, please see Appendix A.
Other Property – Other property such as mortgages, notes, copyrights, royalties, easements, whether real or personal, will be considered subject to review by the Executive Committee.
- Deferred Gifts – The Greater Kanawha Valley Foundation’s planned giving program encompasses all types of gifts whose benefits do not fully accrue to the Foundation until some future time (such as death of the donor or other income beneficiaries, or the expiration of a predetermined period of time), or whose benefits to the Foundation are then followed by the interests of noncharitable beneficiaries. All deferred gifts to the Foundation will be coordinated through the President. This office serves as primary liaison with any outside parties to the transaction, or to a given transaction, (bank trust departments, probate court, executor/administrator of the estate, estate counsel and other advisors). All donors contemplating a deferred gift should consult their own financial, legal and tax advisors.
Requests – The Greater Kanawha Valley Foundation may receive bequests from people who direct in their wills or trusts that certain money or property be transferred to the Foundation. Acceptance of such money or property will be subject to the applicable sections of this policy.
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Remainder and Lead Trusts – The Greater Kanawha Valley Foundation encourages those interested in doing so to establish Charitable Remainder Unitrusts, Charitable Remainder Annuity Trusts, or Charitable Lead Trusts for the benefit of the Foundation. It is understood that Charitable Remainder Trusts and other deferred gifts will be encouraged as vehicles, the primary purpose of which are to make gifts to the Greater Kanawha Valley Foundation. Such trusts will not be marketed as tax avoidance devises or as investment vehicles, as it is understood such activity may violate federal and state securities regulations.
The Greater Kanawha Valley Foundation will not serve as Trustee of Charitable Remainder or Lead Trusts. The Foundation may, if necessary, assist in the selection of an appropriate and independent Trustee. Upon the death of the life income beneficiaries and the transfer of the remaining principal to the Foundation, the minimum fund size policies will apply.
The minimum age of beneficiaries and size of gift for all life income gifts is subject to negotiation. However, generally the minimum age will be fifty-five (55) years at the time payments begin and the minimum contribution will be fifty thousand dollars ($50,000). The charitable contribution should be at least ten thousand ($10,000). The maximum payment limitations will be dependent upon the ages of the beneficiaries and economic conditions. There will be no more than two generations of income beneficiaries.
Generally, the annual distributions to The Greater Kanawha Valley Foundation from Charitable Lead Trusts should be $10,000 or more during the entire trust term.
Pooled Income Funds – At the present time, the Foundation has not established a pooled income fund. It reserves the right, however, to review or change this policy at a future date.
Charitable Gift Annuities – At the present time, the Foundation does not issue Charitable Gift Annuities. It reserves the right, however, to review or change this policy at a future date.
Gifts of Life Insurance – A donor may make a gift of life insurance to The Greater Kanawha Valley Foundation by irrevocably designating the Foundation as the exclusive beneficiary for life insurance policies owned by the donor or be designating the Foundation as a percentage beneficiary.
Life Estate Agreements – A donor may contribute a personal residence or farm to the Foundation and retain a life estate, or the right to occupy the properly until death. Upon the donor’s death, the Foundation will own the entire interest in the property. Gifts of life estate are subject to Foundation policies on gifts of real property. Please refer to Appendix A for specifics.
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Disclosures to Donors
The Foundation staff should disclose to all prospective donors the benefits and liabilities that could reasonably be expected to influence the donor’s decision to make a gift to the Foundation but shall indicate that in all such matters, the donor should rely upon its legal or financial advisor. In particular, donor should be made aware of:
- the irrevocability of the gift,
- prohibitions on donor restrictions, and
- items subject to variability (market value, investment return, and income yield.)
Confidentiality regarding all gifts and gift review will be strictly maintained.
Investment of Gifts
The Greater Kanawha Valley Foundation reserves the right to make any or all investment decisions regarding gifts received. In making a gift to the Foundation, donor give up all right, title, and interest to the assets contributed. In particular, donors give up the right to choose investments and investment managers, brokers, or to veto investment choices for their gifts.