INLAND SEAS EDUCATION ASSOCIATION
GIFT/FUNDRAISING POLICY
The Inland Seas Education Association(“Organization”)encourages the solicitation and acceptance of gifts to further and fulfill its mission and tax-exempt 501(c)(3) purposes. The following policies and guidelines govern the solicitation and acceptance of gifts made to the Organization or for the benefit of any of its programs.
Section I- General Procedures
1.Oversight. All fundraising activity for the Organization will be coordinated and directed by the Executive Director, a Board Fundraising (Development) Committee, or other persons designated by the Board, subject to Board supervision.
2.Fundraising Professionals. The Organization will not use professional fundraisers unless authorized by the Board with representation evidenced by written agreement. Any third party fundraisers must be registered with appropriate state and local authorities and used in a manner consistent with law. The Organization will keep all expenditures on fundraising to a reasonable amount.
3.Truth and Accuracy in Solicitation. The Organization strives to employ fundraising methods that are ethical and honest and encourage donors to give voluntarily, based on their interest and knowledge of the purpose, programs and achievements of a nonprofit. All solicitation and fundraising materials and other communications to donors and the public will be accurate and truthful and will not be misleading. If a solicitation is for an unrestricted donation, the Organization will strive to clearly indicate that on the solicitation. If donations are limited to a specific project, all solicitations shall identify that the Organization will receive the contribution and clearly describe the purpose or programs for which the contributed funds will be used.
4.Solicitation of Funds. The Organization will make good faith efforts to actively solicit funds from residents of states in which it has registered to solicit funds, if legally required by the state. If the Organization solicits funds on the website, it will place a disclaimer on the website similar to the following: The Organization is actively soliciting funds from residents of [Michigan, Florida, and Ohio]. If you are a resident of another state and are interested in learning more about how you can support the Organization, please contact us prior to making your donation.
5.Donor Acknowledgment. The Organization shall provide all donors with specific acknowledgments of charitable contributions in accordance with legal requirements for proper donor substantiation and the Organization's disclosure.
A.Donor Acknowledgments will state the name of donor, date received, restrictions if applicable, and a description of the gifted property.
B.Donor acknowledgements will be sent as soon as practicable after the gift is received and no later than January 15 of the year following the year the donation was received.
C.If the donor received something of value in exchange for the gift, the receipt will state the value of the item received; otherwise, the receipt shall state: “No goods or services were received in exchange for this gift.”
6.Donor Privacy. The Organization will provide a secure environment for collecting donations and maintain internal controls ensuring the safekeeping of all confidential donor financial and personal information. The Organization shall publish a privacy policy on its website and explain upon request how donor information is collected and used. The Organization allows donors to “opt-out” of making their private information available.
7.Record Keeping. Gift records reflecting the name of the donor and details of the gift will be maintained in an electronic database. The Executive Director, Board of Directors and/or others as they may designate are responsible for maintaining gift records.
8.Securing appraisals and legal fees for gifts to the Organization. It will be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel for all gifts made to the Organization.
9.Valuation of gifts for development purposes. The Organization will record a gift received by the Organization at its valuation for gift purposes on the date of gift.
10.Sale of gifts. The Executive Director,staff and/or Board of Directors of the Organization are responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within two years of receipt by the Organization when the charitable deduction value of the item is more than $5,000. The Organization must file this form within 125 days of the date of sale or disposition of the asset. Form 8282 with Filing Instructions is attached as an appendix to these policies.
Section II
Gift Acceptance Policies and Guidelines
1.Purpose of Policies and Guidelines. These policies and guidelines govern the acceptance of gifts by the Organization and provide guidance to prospective donors and their advisors when making gifts to the Organization. The provisions of these policies shall apply to all gifts received by the Organization for any of its programs or services.
2.Use of Legal Counsel. The Organization shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for documents naming the Organization as Trustee, gifts involving contracts requiring the Organization to assume an obligation, and transactions with potential conflict of interest that may invoke IRS sanctions.
3.Conflict of Interest. The Organization 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.
4.Restrictions on Gifts. The Organization 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. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Board of Directors. The Organization WILL NOT accept gifts in the following instances:
A.Gifts that violate the terms of the Organization’s articles of incorporation;
B.Gifts that do not fit within the stated mission of the Organization;
C.Gifts that are too difficult to administer;
D.Gifts that are for purposes outside the Organization’s mission and tax-exempt purposes;
E.Gifts that are too restrictive in purpose;
F.Gifts with a potential conflict of interest that may invoke IRS sanctions; or
G.Gifts that are for illegal or unethical purposes.
5.Types of Gifts. The following gifts will be accepted subject to the terms in this policy:
A.Cash. Cash is acceptable in any form. Checks shall be made payable to the Organization.
B.Tangible Personal Property: All other gifts of tangible personal property shall be examined in light of the following criteria:
i.Does the property fulfill the mission of the Organization?
ii.Is the property marketable?
iii.Are there any undue restrictions on the use, display, or sale of the property?
iv.Are there any carrying costs for the property?
C.Real Estate. Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to acceptance of the real property, the gift shall by approved by the Board of Directors. Criteria for acceptance of the property shall include:
i.Is the property useful for the purposes of the Organization?
ii.Is the property marketable?
iii.Are there any restrictions, reservations, easements, or other limitations associated with the property?
iv.Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property?
D.Charitable Remainder or Charitable Lead Trusts. The Organization may accept designation as remainder beneficiary of a charitable remainder or charitable lead trust with approval of the Board of Directors. The Organization will not accept appointment as Trustee of a charitable remainder trust.
E.Bequests. Donors and supporters of the Organization will be encouraged to make bequests to the Organization under their wills and trusts. Such bequests will not be recorded as gifts to the Organization 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.
F.Property Naming. On occasion, the Organization seeks to recognize the efforts and contributions of individuals by the naming of buildings, portions of buildings, rooms, vessels, fixed furniture, trees, open spaces, fields, and equipmentcollectively referred to as "property." This policy establishes a uniform and consistent procedure to review,approve, and record namings for all Organization property. The primary intent of the naming process is to allow the Organization to recognize the importance of/and or efforts of an individual or family to the Organization or of someone who represents the ideas of the Organization. The Executive Director shall process all written naming requests and make a recommendation to the Board for approval. Board approval is required before the naming of any Organization property. The Executive Director and Board shall consider the following when deciding to recommend or approve a naming request:
i.Certainty of the gifts to be donated to the Organization and their future value to the Organization;
ii.Likelihood of the donor having a “change of heart”;
iii.Estimated present value of the gift;
iv.Donor’s connection to the Organization and local community;
v.Donor’s giving history;
vi.Donor’s record of service to the Organization or local community; and
vii.Donor’s general reputation.
The Organization reserves the right to decline any request for property naming that is inconsistent with the mission and purposes of the Organization and would not be in the best interest of the Organization. Further, the Organization reserves the right to revoke any property naming where a donor subsequently exhibits public behavior or states values that are contrary to the mission and values of the Organization.
All property naming shall be memorialized in a written agreement between the donor and Organization. Gift agreements will clearly articulate what is being named and the parameters around the gift including the gift amount, payment schedule, and any restrictions placed on the gift by the donor. It should also state the term of the naming right (perpetuity, limited number of years, number of generations, etc.) and the basis and process for changing or terminating naming rights. The agreement will include a morality clause addressing the Organization’s rights in regard to donor behavior or values that run contrary to the Organization’s mission and values.
G.Other Forms of Gifts. Other forms of gifts may be accepted by the Executive Director orBoard of Directors, so long as the Executive Director or Board ensures that all relevant legal and ethical considerations are taken into account before the gift is accepted.
Adopted by Board Resolution on ______, 2016
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