Last Updated 9-22-16

Frankfort Education FoundationGift Acceptance Policy

Frankfort Education Foundation (FEF), a 501(c)(3) nonprofit organization organized under the laws of the State of Indiana, encourages the solicitation and acceptance of gifts to or for the benefit of FEF for purposes that will assist in fulfilling its mission.

The mission of FEF is to support the Community Schools of Frankfort'smissionof "Ensuring Excellence for Every Student Everyday" by awarding teacher grants and student scholarships through philanthropic investment and community engagement.

FEF reserves the right to refuse any gift that does not provide sufficient financial benefit or puts assets or reputation of the organization at risk. FEF will not accept any gift unless it can be used or expended consistently with the vision, mission, and strategic plan of the organization. All gift and gift consideration must meet all applicable local, state, and federal laws and regulations.

FEFis grateful for any contributions, however, there are some kinds of gifts that the organization simply cannot or may not want to accept (National Council of Nonprofits, n.d.). Furthermore, FEF may not be prepared to use some gifts, although generous, in a productive way (National Council of Nonprofits, n.d.). “Some gifts may even result in more hassle and expense than benefit to the organization” (National Council for Nonprofits, n.d.). Therefore, FEF has an approved “gift acceptance policy to manage the expectations of donors and also guide board and staff with a consistent practice for reviewing and accepting charitable contributions” (National Council of Nonprofits, n.d.).

No irrevocable gift, whether outright or life-income in character, will be accepted if under any reasonable set of circumstances the gift would jeopardize the donor’s financial security.

FEFwill accept donations of cash or publicly traded securities. Gifts of in-kind services, equipment, or supplies will be accepted at the discretion of FEF. Certain other gifts, real property, personal property, in-kind gifts, non-liquid securities, and contributions whose sources are not transparent or whose use is restricted in some manner, must be reviewed prior to acceptance due to the special obligations raised or liabilities they may pose for FEF.

FEFwill provide acknowledgments to donors meeting IRS substantiation requirements for property received by the charity as a gift. However, except for gifts of cash and publicly traded securities, no value shall be ascribed to any receipt or other form of substantiation of a gift received by FEF.

The most desirable gifts are those with the least restrictions, as unrestricted funds allow the organization the most flexibility to address its most pressing needs (Lawrence, Flynn, & Fletcher, 2007). FEFwill accept unrestricted gifts, and gifts for specified programs and purposes, provided that such gifts are consistent with its stated mission, purposes, and priorities. FEF will not accept gifts that are too restrictive in purpose. Gifts for purposes that are not consistent with FEF’ mission or consonant with its current or anticipated future programs cannot be accepted. Examples of gifts that are too restrictive are those that violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of FEF. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the FEF Board of Directors.

FEF follows the Association of Fundraising Professionals Code of Ethical Standards, Donor Bill of Rights, and eDonor Bill of Rights. FEF will respect the intent of the donor relating to gifts for restricted purposes and those relating to the desire to remain anonymous. With respect to anonymous gifts, FEF will restrict information about the donor to only those board members, staff members, and volunteers with a need to know.

In some cases, the FEF Board of Directors may seek independent legal counsel before accepting a non-standard, non-cash gift. Non-cash gifts will be accepted only when it is reasonably expected they can be converted into cash within a reasonable period of time or when the organization can utilize the property in its operation (Lawrence, Flynn, & Fletcher, 2007). All donors of non-cash gifts must acknowledge that FEF is not acting as a professional advisor, rendering opinions of the gift (Lawrence, Flynn, & Fletcher, 2007). All gifts of life insurance must comply with applicable state insurance regulations, including insurable interest clauses (Lawrence, Flynn, & Fletcher, 2007).

To avoid a conflict of interest, all donors and potential donors shouldseek independent professional legal, tax, estate planning, and/or financial planning advice before making a gift. In no instance will representatives of FEF(i.e., board members, volunteers, staff), provide legal, tax, estate planning, and/or financial planning advice to donors or potential donors.

The following types of gifts will be accepted without further approval:

  • Unrestricted, outright gifts via cash, check, credit card, and publicly traded securities

The following types of gifts may be accepted with Board approval:

  • Restricted gifts of cash, check, credit card, and publicly traded securities
  • Noncash gifts
  • Unrestricted or restricted gifts via cryptocurrency (e.g., Bitcoin) (For more information, visit:

The following types of gifts will not be accepted:

As recommended by Lawrence, Flynn, & Fletcher (2007), unless the board grants a specific exemption, FEF will not accept any gifts that:

  • Contain a condition that requires any action on the part of the organization that is unacceptable to administration
  • Contain a condition that the proceeds will be spent by the organization for the personal benefit of a named individual or individuals
  • Require the organization and its administration to employ or dismiss a specific person now or at a future date
  • Inhibit the organization from seeking gifts from other donors
  • Expose the organization to adverse publicity, litigation, or other liabilities
  • Require undue expenditures, or involve the organization in unexpected responsibilities because of their source, conditions, or purpose
  • Involve unlawful discrimination based upon race, religion, gender, sex, sexual orientation, age, national origin, color, disability, veteran status, or any other basis prohibited by federal, state, and local laws

FEF will not compensate, whether through commissions, finders’ fees, or other means, any third party for directing a gift or a donor to FEF (National Council on Nonprofits, n.d.).

Note:It is recommended that FEF gain initial and regular review of this policy by qualified legal counsel before approving the Gift Acceptance Policy. Maintenance of this policy is the responsibility of the Resource Development Strategic Area with annual review and approval by the FEF Board of Directors. FEF may consider establishing a Gift Acceptance Sub-Committee of the Resources Development Strategic Area. Once approved by the FEF Board of Directors, the IRS Form PF-990 will require the organization to indicate “Yes” to having a Gift Acceptance Policy, and may require additional documentation (e.g., Schedule M: Noncash Contributions). It is recommended to post the approved Gift Acceptance Policy on the FEF web site.

References

Association of Fundraising Professionals (n.d.). Code of ethical standards.Retrieved April 21, 2015, from

Association of Fundraising Professionals (n.d.). Donor bill of rights.Retrieved April 21, 2015, from

Association of Fundraising Professionals (n.d.). eDonor bill of rights.Retrieved April 21, 2015, from

Lawrence, B., Flynn, O., & Fletcher, K. (2007). The Nonprofit Policy Sampler (2nd ed.). Washington, D.C.: BoardSource.

Maine Island Trail Association. (n.d.). Gift acceptance policies and guidelines. Retrieved April 21, 2015, from

National Council of Nonprofits. (n.d.). Gift acceptance policies. Retrieved April 21, 2015, from

Resources

Association of Fundraising Professionals – Indiana Chapter:

Engel, B. (n.d.). Long Beach Nonprofit Partnership – Creating gift acceptance policies. Retrieved April 21, 2015, from

Grant Space. (n.d.). Knowledge base: What is a gift acceptance policy.Retrieved April 21, 2015, from

Indiana Youth Institute – Virginia Beall Ball Library – Fundraising for small nonprofits resources. Retrieved April 21, 2015, from

Nonprofit Risk Management Center. (n.d.). Sample gift acceptance policies. Retrieved April 21, 2015, from

Public Counsel. (n.d.). Form 990 policy series memorandum: Gift acceptance policy. Retrieved April 21, 2015, from

Schaumleffel, N. A. (2014, February). Nonprofit leadership like it oughta be: Normative perpetual mission-focused experience management cycle. Presentation conducted synchronously online via the High Impact Webinar Series of the Nonprofit Leadership Alliance, Kansas City, MO.

Technical Assistance Provided by Dr. Nathan A. Schaumleffel