Oswego YMCA

The Young Men’s Christian Association of Oswego

Gift Acceptance Policies and Guidelines

The Oswego YMCA (hereinafter referred to as the YMCA), a not for profit organization organized under the laws of the State of New York, encourages the solicitation and acceptance of gifts to the YMCA for the purposes that will help the YMCA to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to the YMCA for the benefit of any of its programs.

The mission of the YMCA is to put Christian principles into practice through programs that build healthy spirit, mind and body for all.

I. Purpose of Policies and Guidelines

The Board of Directors of the YMCA and its staff solicit current and deferred gifts from individuals, corporations and foundations to secure the future growth and mission of the YMCA. These policies and guidelines govern the acceptance of gifts by the YMCA and provide guidance to prospective donors and their advisors when making gifts to the YMCA. The provisions of these policies shall apply to all gifts received by the YMA for any of its programs and services.

II. Use of Legal Counsel

The YMCA shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for:

A. Closely held stock transfers that are subject to restrictions or buy-sell agreements.

B. Documents naming the YMCA a Trustee.

C. Gifts involving contracts, such as bargain sales or other documents requiring the YMCA to assume an obligation.

D. Transactions with potential conflict of interest that may invoke IRS sanctions.

E. Other instances in which use of counsel is deemed appropriate by the Board of Directors.

III. Conflicts of Interest

The YMCA will urge all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. The YMCA will comply with the Model Standards of Practice for the Charitable Gift Planner promulgated by the National Committee on Planned Giving (Appendix A) and endorses the Donor Bill of Rights (Appendix B).

IV. Restrictions on Gifts

The YMCA 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. The YMCA will not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violate the terms of the YMCA’s corporate charter, gifts that are too difficult to administer or gifts that are for purposes outside the mission of the YMCA.

All restricted gift agreements between the YMCA and the donor will include provisions for an alternate use if the restricted purpose cannot be achieved. Examples: If the restricted purpose of the gift can no longer be served, the donor agrees to let the YMCA use the gift for a similar purpose within the YMCA. If the Oswego YMCA no longer exists, the restricted gift will be given to a similar non profit organization for use similar to the donor’s original intention.

All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Board of Trustees.

Undesignated gifts of $10,000 or more will be directed toward capital improvements, major maintenance projects, an endowment fund or some other special purpose in order to invest in the future of the association.

V. Types of gifts

A. The following gifts are acceptable:

1. Cash (including checks)

2. Tangible Personal Property

3. Bequests

4. Securities

4-A. Publicly traded

4-B. Closely Held

5. Retirement Plan Beneficiary Designations

6. Life Insurance

7. Real Estate

8. Remainder Interests in Property (Life Estate)

9. Oil, Gas and Mineral Interests

10. Bargain Sales

11. Charitable Gift Annuities – Value Min.

12. Charitable Remainder Trusts – Value Min.

13. Charitable Lead Trusts – Value Min.

14. Pledges

15. Current Gifts

B. The following criteria govern the acceptance of each gift form, with the final determination on the acceptance of the gift being made by the Board of Trustees.

1. Cash: Cash is acceptable in any form. Checks should be made out to the Oswego YMCA and shall be delivered to the Executive Director in the YMCA’s administrative office.

2. Tangible Personal Property: All other gifts of tangible personal property shall be examined in light of the following criteria:

a. Does it fulfill the mission of the YMCA?

b. Is the property marketable and/or useable?

c. Are there any undue restrictions on the property?

d. Are there any caring costs for the property?

e. IRS and state donation acceptance and reporting requirements and valuation criteria

3. Bequests: Donors and members of the YMCA will be encouraged to make bequests to the YMCA in their wills and trusts. Such designations will not be recorded as gifts to the YMCA until such time as the gift is irrevocable.

4. Securities: The YMCA can accept both publicly traded securities and closely held securities.

a. Publicly Traded Securities: Marketable securities may be transferred to an account maintained at one or more brokerage firms or delivered physically with the transferor’s signature or stock power attached. As a general rule, all marketable securities shall be sold upon receipt unless directed by the Board of Trustees. In some cases marketable securities may be restricted by applicable securities laws; in such instance the final determination on the acceptance of restricted securities shall be made by the YMCA’s Board of Trustees with the advice of a securities expert.

b. Closely Held Securities: Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other ownership forms, can be accepted subject to the approval of the board of Trustees, with the advice of a securities expert. Gifts must be reviewed prior to acceptance to determine that:

(i) there are no restrictions on the security that would prevent the YMCA from ultimately converting those assets to cash,

(ii) the security is marketable, and

(iii)the security will not generate any undesirable tax consequences for the YMCA.

If potential problems arise on the initial review of the security, further review and recommendation by an outside professional will be sought before making a final decision on acceptance of the gift. The final determination on the acceptance of the closely held securities shall be made by the Board of Trustees.

5. Retirement Plan Beneficiary Designations: Donors of the YMCA will be encouraged to name the YMCA as beneficiary or contingent beneficiary of their retirement plans. Such designations will not be recorded as gifts to the YMCA until such time as the gift is irrevocable.

6. Life Insurance Beneficiary designations: Donors of the YMCA will be encouraged to name the YMCA as beneficiary or contingent beneficiary of their life insurance policies. Such designations will not be recorded as gifts to the YMCA until such time as the gift is irrevocable.

The YMCA may also accept irrevocable ownership of a life insurance policy and/or designation as a life insurance policy beneficiary. The gift is valued at its interpolated terminal value, or cash surrender value, upon receipt. If the donor continues future premium payments, the YMCA 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 YMCA may:

a. continue to pay the premiums

b. convert the policy to paid up insurance

c. surrender the policy for its current cash value

7. Real Estate: Gifts of real estate may include developed property, undeveloped property or gifts subject to a prior life interest. Prior to acceptance of real estate, the YMCA shall require an initial environmental review of the property to ensure that the property has no environmental damage. In the event that the initial inspection reveals a potential problem, the YMCA shall retain a qualified inspection firm to conduct an environmental audit. The cost of the environmental audit shall generally be an expense of the donor.

Prior to the acceptance of the real estate, the gift shall be approved by the YMCA’s Board of Trustees and by the YMCA’s legal counsel. Criteria of acceptance of real estate shall include, but not be limited to, the following:

a. Is the property useful for the purposes of the YMCA?

b. Is the property marketable?

c. Are there any restrictions, reservations, easements or other limitations associated with the property?

d. Are there carrying costs, which may include insurance, property taxes, mortgages or notes associated with the property?

8. Remainder Interests in Property (Life Estates): The YMCA may accept a remainder interest in a personal residence, farm or vacation property subject to the provisions of gifts of real estate. The donor or other occupants may continue to occupy the real estate property for the duration of the stated life. At the death of the lift estate beneficiary, the YMCA may use the property or reduce it to cash. Where the YMCA receives a gift of a remainder interest, expenses for maintenance, real estate taxes and any property indebtedness are to be paid by the donor or primary beneficiary.

9. Oil, Gas and Mineral Interests: The YMCA may accept oil and gas property interests, when appropriate. Prior to acceptance of an oil and/or gas interest, the gift shall be approved by the Board of Trustees using the following criteria:

a. Gifts of surface rights should have a value of $______ or greater.

b. Gifts of oil, gas and mineral interests should generate at least $_______ per year in royalties or other income (as determined by the average of the ______ years prior to the gift).

c. The property should not have extended liabilities or other considerations that make receipt of the gift inappropriate.

d. A working interest may only be accepted where there is a pan to minimize potential liability and tax consequences.

e. A property should undergo an environmental review to ensure that the YMCA has no current or potential exposure to environmental liability.

10. Bargain Sales: The YMCA may enter into a bargain sale arrangement when the bargain furthers the mission and purpose of the YMCA. Factors used in determining the appropriateness of the transaction include:

a. An independent appraisal substantiating the value of the property.

b. If the YMCA assumes debt with the property, the debt ratio must be less than ______ percent of the appraised market value.

c. The YMCA must determine that it will use the property, or that there is a market for sale of the property allowing sale within ______ months of receipt.

d. The YMCA must calculate the costs to safeguard, insure and expense the property (including property taxes, if applicable) during the holding period.

11. Charitable Gift Annuities

The YMCA will issue charitable gifts annuities meeting the following criteria:

a. All federal, state and local licensing requirements are met.

b. The minimum gift for funding is $_______.

c. The minimum age for life income beneficiaries of a gift annuity shall be _____

d. when a deferred gift annuity is offered, the minimum age for life income beneficiaries shall be ______.

e. No more than two life income beneficiaries will be permitted for any gift annuity.

f. Annuity payments may be made on a quarterly, semi-annual or annual schedule.

The YMCA will not accept real estate, tangible personal property or other liquid asset in exchange for current charitable gift annuities. The YMCA may accept real estate, tangible property or other liquid assets in exchange for deferred gift annuities so long as there is at least a _____ year period before the commencement of the annuity payment date, the value of the property is reasonably certain and the Board of Trustees approves the arrangement.

Funds contributed in exchange for a gift annuity shall be set aside and invested during the term of the annuity payments. Once those payments have terminated, the funds representing the remaining principal contributed in exchange for a gift annuity shall be transferred to the YMCA general endowment fund, or to such specific fund as designated by the donor.

12. Charitable Remainder Trusts: The YMCA may accept designation as a remainder beneficiary of a charitable remainder trust. The YMCA will not accept appointment as Trustee of a charitable remainder trust.

13. Charitable Lead Trusts: The YMCA may accept a designation as income beneficiary of a charitable lead trust. The YMCA will not accept an appointment as Trustee of a charitable lead trust.

VI. Miscellaneous Provisions

A. Securing appraisals and legal fees for gifts to the YMCA: It will be the responsibility of the donor to secure an appraisal and independent legal counsel (where required) for all gifts made to the YMCA.

B. Valuation of gifts. The YMCA will use consistent methods for recording gifts for financial development purposes and accounting purposes and follow defined gift criteria in the IRS code, and FASB rules.

C. Gift Acknowledgement and Management: The acknowledgement and management of all gifts made to the YMCA will comply with current IRS and local requirements and shall be the responsibility of the Executive Director.

1. Responsibility for IRS Filings upon sale of gift items. The YMCA is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within _______ years of receipt by the YMCA when the charitable deduction value is more than $_______. The YMCA must file this form within _______ days of the date of the sale or disposition of the asset.

2. Confidentiality: The YMCA will maintain the highest confidentiality standards for all donor files. Information in donor files may only be used for YMCA purposes.

3. YMCA Donor List: The YMCA will not sell, rent or otherwise authorize the use of its donor list to any individual or organization.

4. Discontinuing Contact for Solicitation upon Request: The YMCA will take active measures to discontinue contacting any person upon that person’s oral or written request directed to the YMCA, its professional fundraiser, or other agent.

VII. Changes to Gift Acceptance Policies

These policies and guidelines are reviewed and updated annually and accepted by the YMCA’s Board of Directors.

The YMCA’s Board of Directors must approve, in writing, any changes to or deviations from these policies.

Reviewed by the YMCA’s Legal Counsel:

Signature Date

Approved by the Board of Directors:

Signature Date

Chair of the Board of Directors

Signature Date

Chief Executive Officer

Attachments:

Appendix A: Model Standards of Practice of the Charitable Gift Planner

Appendix B: Donor Bill of Rights

Appendix A

Model Standards of Practice for the Charitable Gift Planner

Preamble

The purpose of this statement is to encourage responsible gift planning by urging the adoption of the following Standards of Practice by all individuals who work in the charitable gift planning process, gift planning officers, fund raising consultants, attorneys, accountants, financial planners, life insurance agents and other financial services professionals (collectively referred to hereafter as “Gift Planners”), and by the institutions that these persons represent. This statement recognizes that the solicitation, planning and administration of a charitable gift is a complex process involving philanthropic, personal, financial and tax considerations, and often involves professionals from various disciplines whose goals should include working together to structure a gift that achieves a fair and proper balance between the interests of the donor and the purposes of the charitable institution.

I. Primacy of Philanthropic Motivation

The principal basis for making a charitable gift should be a desire on the part of the donor to support the work of charitable institutions.

II. Explanation of Tax Implications

Congress has provided tax incentives for charitable giving, and the emphasis in this statement on philanthropic motivation in no way minimizes the necessity and appropriateness of a full and accurate explanation by the Gift Planner of those incentives and their implications.

III. Full Disclosure

It is essential to the gift planning process that the role and relationships of all parties involved, including how and by whom each is compensated, be fully disclosed to the donor. A Gift Planner shall not act or purport to act as a representative of the YMCA without the express knowledge and approval of the charity, and shall not, while employed by the YMCA, act or purport to act as a representative of the donor, without the express consent of both the YMCA and the donor.

IV. Compensation

Compensation paid to Gift Planners shall be reasonable and proportionate to the services provided. Payment of finder’s fees, commissions or other fees by the YMCA to an independent Gift Planner as a condition for the delivery of a gift is never appropriate. Such payments lead to abusive practices and may violate certain state and federal regulations. Likewise, commission-based compensation for Gift Planners who are employed by the YMCA is never appropriate.

V. Competence and Professionalism

The Gift Planner should strive to achieve and maintain a high degree of competence in his or her chosen