Community College of Philadelphia Foundation
Gift Acceptance Policies and Guidelines
Community College of Philadelphia Foundation, a not-for-profit organization organized under the laws of the State of Pennsylvania, encourages the solicitation and acceptance of gifts to the Community College of Philadelphia Foundation (hereinafter referred to as the Foundation) for purposes that will help the Foundation to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to the Foundation or for the benefit of any of its programs.
The mission of the Foundation is to:
Support the mission of Community College of Philadelphia (the College) by raising funds and other resources from private sources, which would not otherwise be accessible to the College. These resources will be used to enhance and enrich the experiences of all those individuals, organizations, and communities that participate in and benefit from the activities of the College.
I. Purpose of Policies and Guidelines
The Board of Directors of the Foundation and its staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of the Foundation. These policies and guidelines govern the acceptance of gifts by the Foundation and provide guidance to prospective donors and their advisors when making gifts to the Foundation. The provisions of these policies shall apply to all gifts received by the Foundation for any of its programs or services.
II. Use of Legal Counsel
The Foundation shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for:
- Closely held stock transfers that are subject to restrictions or buy-sell agreements.
- Documents naming the Foundation as trustee.
- Gifts involving contracts or other documents requiring the Foundation to assume an obligation.
- Transactions with potential conflict of interest that may invoke IRS sanctions.
- Other instances in which use of counsel is deemed appropriate by the executive director or Foundation Board.
III. Conflict of Interest
The Foundation 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.
IV. Restriction on Gifts
The Foundation 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 Foundation will not accept gifts that are too restrictive in purpose, gifts that violate the articles of incorporation or bylaws, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of the Foundation. All final decisions on the acceptance or refusal of a gift, shall be made by the executive director and appropriate Board committee.
V. Types of Gifts
The following gifts are acceptable:
- Tangible Personal Property
- Real Estate
- Remainder Interests in Property
- Life Insurance
- Charitable Gift Annuities
- Retirement Plan Beneficiary Designations
- Life Insurance Beneficiary Designations
The following criteria govern the acceptance of each gift form:
Cash is acceptable in any form. Currency donations in excess of $500 will not be accepted. Checks shall be made payable to the Foundation and shall be delivered to the Foundation's administrative offices.
2) Tangible Personal Property.
All other gifts of tangible personal property shall be examined in light of the following criteria:
- Does the property fulfill the mission of the Foundation?
- Is the property marketable?
- Are there any undue restrictions on the use, display, or sale of the property?
- Are there any carrying costs for the property?
The Foundation can accept both publicly traded securities and closely held securities.
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 otherwise directed by the investment committee.
Closely Held Securities.
Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in limited partnerships and limited liability companies, or other ownership forms, can be accepted. However, gifts must be reviewed prior to acceptance to determine:
- there are no restrictions on the security that would prevent the Foundation from ultimately converting those assets to cash;
- the security is marketable; and
- the security will not generate any undesirable tax consequences for the Foundation.
If potential problems 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. Every effort will be made to sell non-marketable securities as quickly as possible.
4) 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 Foundation 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 Foundation 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.
When appropriate, a title binder shall be obtained by the Foundation prior to the acceptance of the real property gift.
Criteria for acceptance of the property shall include:
- Is the property useful for the purposes of the Foundation?
- Is the property marketable?
- Are there any restrictions, reservations, easements, or other limitations associated with the property?
- Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property?
- Does the environmental audit reflect that the property is not damaged?
5) Remainder Interests in Property.
The Foundation will accept a remainder interest in a personal residence, farm, or vacation property subject to the provisions of paragraph 4 above. The donor or other occupants may continue to occupy the real property for the duration of the stated life. At the death of the donor, the Foundation may use the property or reduce it to cash. Where the Foundation 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.
6) Life Insurance.
The Foundation must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. The gift is valued at its interpolated terminal reserve value, or cash surrender value, upon receipt. If the donor contributes future premium payments, the Foundation 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 Foundation may:
- Continue to pay the premiums;
- Convert the policy to paid up insurance; or
- Surrender the policy for its current cash value.
7) Charitable Gift Annuities.
The Foundation may offer charitable gift annuities. The minimum gift for funding is $5,000. The executive director, with approval from the Foundation president, may make exceptions to this minimum. The minimum age for life income beneficiaries of a gift annuity shall be 55. Where a deferred gift annuity is offered, the minimum age for life income beneficiaries shall be 45. No more than two life income beneficiaries will be permitted for any gift annuity.
Annuity payments may be made on a quarterly, semi-annual, or annual schedule. The executive director may approve exceptions to this payment schedule.
The Foundation will not accept real estate, tangible personal property, or any other illiquid asset in exchange for current charitable gift annuities. The Foundation may accept real estate, tangible personal property, or other illiquid assets in exchange for deferred gift annuities so long as there is at least a 5-year period before the commencement of the annuity payment date, and the value of the property is reasonably certain.
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 the gift annuity shall be transferred to the Foundation's general funds, or to such specific fund as designated by the donor.
8) Retirement Plan Beneficiary Designations.
Donors and supporters of the Foundation will be encouraged to name the Foundation as beneficiary of their retirement plans. Such designations will not be recorded as gifts to the Foundation until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value for that gift may be recorded at the time the gift becomes irrevocable.
Donors and supporters of the Foundation will be encouraged to make bequests to the Foundation under their wills and trusts. Such bequests will not be recorded as gifts to the Foundation 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.
10) Life Insurance Beneficiary Designations.
Donors and supporters of the Foundation will be encouraged to name the Foundation as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to the Foundation 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.
VI. Miscellaneous Provisions
Securing appraisals and legal fees for gifts to the Foundation.
It will be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel (if desired) for all gifts made to the Foundation.
Valuation of gifts for development purposes.
The Foundation will record a gift received by the Foundation at its valuation for gift purposes on the date of the gift.
Responsibility for IRS filings upon sale of gift items.
The Foundation is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within two years of receipt by the Foundation when the charitable deduction value of the item is more than $5,000. The Foundation must file this form within 125 days of the date of sale or disposition of the asset.
Acknowledgement of all gifts made to the Foundation and compliance with the current IRS requirements (IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions) are responsibility of the Foundation Board.
VII. Changes to Gift Acceptance Policies
These policies and guidelines have been reviewed and accepted by the Foundation Board. The appropriate committee of the Foundation must approve any changes to, or deviations from, these policies.