POLICY AND GUIDELINES FOR ACCEPTANCE OF CHARITABLE GIFTS
Furnishing Dignity is a 501(c)(3) nonprofit organization incorporated under the laws of the State of Arizona. The following policies and guidelines govern solicitation and acceptance of gifts made to Furnishing Dignity nonprofit organization for the benefit of any of its programs.
Furnishing Dignity will adhere to all federal, State of Arizona, and local statutes relating to charitable organizations and nonprofit corporations. Furnishing Dignity will follow generally accepted accounting standards and practices relating to the accounting and crediting of all contributions. Furnishing Dignity will make available upon request its most current IRS Form 990.
The mission of Furnishing Dignity is to transform lives through community, compassion and essential home furnishings. Furnishing Dignity encourages the solicitation and acceptance of gifts for purposes that will help Furnishing Dignity implement its programs and services and thereby further and fulfill its mission.
A gift is defined as a voluntary transfer of assets from a person or organization to Furnishing Dignity where no goods or services are expected, implied or forthcoming for the donor. Gifts usually take the form of cash, checks, securities, real or personal property, or deferred gifts.
Use of Legal Counsel
Furnishing Dignity shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for:
• Real Estate
• Closely held stock transfers that are subject to restrictions or buy-sell agreements
• Documents naming Furnishing Dignity as trustee
• Gifts involving contracts or other documents requiring Furnishing Dignity to assume an obligation
• Other instances in which use of counsel is deemed appropriate by the Executive Director or Board of Directors
Donor Communications and Relationships
Furnishing Dignity 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.
Furnishing Dignity must accurately describe its mission, accomplishments, funding sources and expenditures in all donor communications and solicitations. The Board or its designated committee will monitor any information presented to the public in any fundraising material. This includes case statements, brochures, annual giving and direct mail appeals, and capital or endowment campaigns.
Neither an employee nor a volunteer may make any promise to a donor, nor expect any favoritism from a donor, nor agree to any donor-directed changes in the mission and/or programs of Furnishing Dignity as a result of a solicitation or contribution.
Exceptional care must be taken in the handling of memorials and bequests. This does not preclude offering the opportunity for memorial gifts on an on-going basis, but survivors should not be solicited for such memorial gifts during their time of grieving.
Restrictions of Gifts
Furnishing Dignity will accept unrestricted gifts and gifts restricted for specific programs and purposes, provided that such gifts are consistent with the organization’s stated mission, purposes, and priorities. Gifts will not be accepted if they are too restrictive in purpose, too difficult to administer, or gifts that are for purposes outside the mission of Furnishing Dignity. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Board of Directors of Furnishing Dignity.
Permanently restricted gifts will be invested and held permanently for the income derived.
The Board of Directors is charged with the responsibility of reviewing gifts presented to it by the Executive Director or board assigned committee. The Board shall have sufficient time before voting on any such gift, to review the evidence and weigh the merits of the gift. A quorum to vote shall be no less than 75% of the Board, whether in person, in writing or by proxy. A simple majority of the Board, once a quorum is met, may accept or refuse the gift.
Furnishing Dignity may choose to decline a gift if one or more of the following conditions are known:
1. There are conditions to a gift and its designation that are not consistent with the purpose, values, and objectives of the Organization.
2. The gift could financially jeopardize the donor or Furnishing Dignity.
3. The gift or terms are illegal.
4. Furnishing Dignity does not have the resources to honor the terms of the gift.
5. An appropriate Fair Market Value cannot be determined, or will result in unwarranted or unmanageable expense to Furnishing Dignity.
6. There are physical or environmental hazards.
7. The gift could jeopardize the tax-exempt status of Furnishing Dignity.
8. The gift could improperly benefit any individual.
Types of gifts accepted:
1. Cash (US or foreign currency)
2. Tangible Personal Property/Collectibles
4. Life Insurance
5. Life Insurance Beneficiary Designations
6. Charitable Remainder Trusts
7. Charitable Lead Trusts
The following criteria govern the acceptance of each gift type:
1. Cash: Cash is acceptable in any form, such as checks or money orders.
2. Tangible Personal Property/Collectibles: All gifts of tangible personal property shall be examined in light of the following criteria:
• Does the property fulfill the mission of Furnishing Dignity?
• Is the property marketable?
• Are there any undue restrictions on the use, display, or sale of the property?
For any gift with an assumed value over $5,000, the donor is responsible for obtaining a qualified appraisal for tax purposes. Furnishing Dignity shall not pay for the insurance or other costs until it has accepted ownership of the gift and donor shall pay for all carrying costs until gift is accepted.
Furnishing Dignity reserves the right to sell any and all tangible property or collectibles donated to it.
3. Securities: Furnishing Dignity 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 doing so would create a negative circumstance. In some cases marketable securities may be restricted by applicable securities laws; in such instance the final determination of the acceptance of the restricted securities shall be made by the Board of Directors. Publicly traded securities are valued at mean trading price the day of receipt.
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, FLPs and LLCs or other ownership forms, can be accepted subject to the approval of Furnishing Dignity’s Board of Directors. However, gifts must be reviewed prior to acceptance to determine that:
• There are no restrictions on the security that would prevent Furnishing Dignity from ultimately converting those assets to cash.
• The security is marketable.
• The security will not generate any undesirable tax consequences or liability for Furnishing Dignity.
If questions arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. The final determination on the acceptance of closely held securities shall be made by the Board of Directors and legal counsel when necessary unless determined by vote of the Board of Directors of Furnishing Dignity. All Closely Held Securities shall be sold.
4. Ownership of Life Insurance Policies: Furnishing Dignity must be named as a beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. The gift is valued at cash surrender value, upon receipt. Premium payments may be made and Furnishing Dignity may:
• Continue to pay the premiums
• Convert the policy to paid up insurance
• Surrender the policy for its current cash value
5. Life Insurance Beneficiary Designations: Donors and supporters of Furnishing Dignity’s programs and services will be encouraged to name Furnishing Dignity as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
6. Charitable Remainder Trusts: Furnishing Dignity may accept designation as remainder beneficiary of a charitable remainder trust with the approval of the Board of Directors. Furnishing Dignity will not accept appointment as a Trustee of a charitable remainder trust.
7. Charitable Lead Trusts: Furnishing Dignity may accept designation as income beneficiary of a charitable remainder trust. Furnishing Dignity will not accept appointment as a Trustee of a charitable lead trust.
8. Bequests: Donors and supporters of Furnishing Dignity will be encouraged to make bequests to Furnishing Dignity under their wills and trusts. Such bequests will not be recorded as gifts until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
Any proposed gift that falls outside the above categories shall be presented to Furnishing Dignity’s Board of Directors for their consideration before they can be accepted.
1. Securing appraisals and legal fees for gifts: It will be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel for all gifts made to Furnishing Dignity.
2. Valuation of gifts for development purposes: Furnishing Dignity will record a gift at its valuation for gift purposes on the date received, except that cash, checks, or securities may be recorded on the date stamp on the envelope.
3. Compliance with IRS and other taxing authority rules and regulations: Furnishing Dignity will comply with all income tax rules and regulations related to acceptance of
a gift. This compliance includes, when applicable, 1) completing the Donee Acknowledgment portion of Form 8283, Noncash Charitable Contributions, for the donor, and 2) preparing and filing Form 8282, Donee Information Return. When receiving gifts of property potentially valued at more than $5,000, other than cash or marketable securities, Furnishing Dignity will consult with its legal counsel and tax advisor to insure that it complies with the latest rules and regulations. 4. Responsibility of Acknowledgment: Acknowledgment of all gifts made to Furnishing Dignity and compliance with the current IRS requirements in acknowledgment of such gifts shall be the responsibility of the Executive Director or the Board of Directors.
Changes to Gift Acceptance Policies
Furnishing Dignity Board of Directors must approve changes or deviations from these policies.
This policy (updated to reflect new mission on page 1) was presented to the Board of Directors of Furnishing Dignity on the 12th day of February 2019, and was passed.