Donor Gift Policy

America’s Second Harvest of the Big Bend

Gift Acceptance Policy

Accepted and Approved by the ASHBB Board of Directors on September 21, 2017

 

Our Mission

“ To feed the hungry in the Big Bend through our network of partner agencies, and to educated and engage the community in the fight against hunger.”

 

It is the intent of America’s Second Harvest of the Big Bend (ASHBB) to encourage and celebrate the gifts of its donors in a way that adheres to the mission of Second Harvest as well as embracing and adhering to the Donor Bill of Rights and the Association of Fundraising Professionals (AFP) Code of Ethics.

This Gift Acceptance Policy endeavors to answer questions by donors as well as giving direction and guidance to ASHBB Staff and its Board in accepting, distributing and honoring gifts.  This policy is in no way comprehensive of all gift matters that may come up.  And as so, the policy may be amended and/or added to by the ASHBB Board at any time that is needed.  It will be the policy of the Development Committee of the ASHBB Board to review the Gift Acceptance Policy on a Bi-Annual basis to make recommendations to the full board on any updates or amendments.

America’s Second Harvest of the Big Bend Donor Restrictions

In its adherence to the Donor Bill of Rights and the AFP Code of Ethics, ASHBB believes firmly that donor intent is paramount to the trust between the donor and ASHBB.  ASHBB will encourage donors to make unrestricted gifts so that the board and staff can utilize gifts in areas that most benefit the goals and mission of the organization.

Realizing that some donors do wish to make gifts to particular programs, ASHBB also welcomes restricted gifts to established programs.  Restricted gifts can be part of specific ASHBB campaigns or budget areas.  It is suggested that donors who are considering a major or planned gift to ASHBB have a conversation with the Director of Philanthropy, the Executive Director, the Board Chair, or their representative, before restricting their gift to a particular program.

Gifts that cannot be readily transmitted into cash will only be accepted with approval of the Director of Philanthropy and/or Executive Director.

ASHBB reserves the right to determine the appropriateness and acceptability of a gift and to refuse a gift.  Individuals, companies or entities that prey upon the poor, inhibit the distribution or solicitation of food, or inhibit the quality of food will not be considered partners in our efforts to provide the best quality of food for the poor.

Donors to ASHBB are considered essential partners in our work, and we welcome their input into the overall issues facing the hungry in our community.   But donors do not have administrative or programmatic oversight into the day to day operations of ASHBB.

Businesses, individuals and/or organizations may not use their support of ASHBB in publicity without the written permission of ASHBB’s Executive Director.  And should only be used when adherence to ASHBB’s mission in the community.

 

Types of Acceptable Gifts to ASHBB

Payment of commitments to ASHBB may take the form of one or a combination of the following: cash, marketable securities, real property, other tangible property or services that can be reasonably expected to be converted into cash within a one-year time period.

It is hoped that donors who wish to translate appreciable items into gifts to ASHBB, take it upon themselves to sell those items and present ASHBB with the proceeds.  When that is not an option, appreciable gifts (over $5,000) such as real estate, motor vehicles, art and jewelry are only accepted after an independent appraisal, paid for by the donor, is presented to ASHBB.  Donors of real estate are also responsible for providing an environmental impact study as well as making sure the property is not encumbered with liens, HOA’s or any other action that would adversely  impact the agency.

When gifts of securities, insurance policies or appreciable property are intended for ASHBB’s Endowment Fund, The Community Foundation of North Florida will handle those transactions for ASHBB.

Donor Recognition

Commitments will be publicly recognized and/or commemorated consistent with the donors’ wishes and the policies approved by the Board of Directors. Requests by donors for anonymity will be honored.  Permission to publicly recognize a donor and his/her gift will be assumed unless otherwise requested by the donor.  Public recognition will occur after the gift occurs or with an irrevocable planned gift.

No verbal pledges will be recognized as having been made. Either a signed pledge form or letter of intent must be in possession of ASHBB before a pledge is recorded and/or acknowledged.

Permanent donor recognition will be based upon the full payment of pledge commitments.  This includes any building, truck or program naming opportunities. The Development Committee, Executive Director and/or Director of Philanthropy will provide naming opportunities with the gift amounts for all building, truck or program naming opportunities.  These will be strictly adhered to and published.

The Development Committee in conjunction with the Director of Philanthropy will prepare and publish all donor recognition opportunities for special event sponsorships.  Sponsors will receive only those recognition opportunities that are listed in the event materials.

Donors may be honored with whatever name of their company, entity or individual that they wish.  Religious or political statements may not be used in recognition of a gift

Individuals running for political office may use their campaign funds to support ASHBB, but may not promote their campaign by using their support of ASHBB in ads or campaign materials.  Elected officials currently holding office may use their title in any donor recognition.

Example:  Listing of donors for Blue Jeans & Blazers –  Rep. Josh Green

            Not Acceptable:  Listing of donors for Blue Jeans & Blazers – Josh Green for Congress

 

Gift Valuation

  • Cash – In cases where the gift is made in cash, the valuation is the total amount of the cash gift. (Less any amount that represents the value of goods or services received by the donor)
  • Non-cash gifts are valued at either the appraised value or current fair market value.
  • Publicity-Traded Securities – Gifts of securities will be valued at the average market value on the day the full interest in the transferred property is received.
  • Privately Held Securities – Gifts of closely held stock will be valued based on a qualified independent appraisal at the time of transfer. Generally, gifts of privately-held property will be accepted only when conversion to cash within a one-year time frame is expected.
  • Real Property – Per IRS regulations, gifts of real property will be reported based on the appraised value as determined by a qualified independent appraiser within 60 days of the date of transfer.
  • Life Insurance – Gifts of life insurance will be valued, for recognition purposes, based on the surrender value as of the date of transfer.
  • Whole Life Insurance Policies – purchased for ASHBB, with premiums paid for by the donor, will be honored for the full policy amount. Donors will be given a tax deduction for the premium amounts paid in the years when payments are made.    ASHBB will hold onto the policy documentation and can, if the donor does not fulfil the payments, make remaining payments so that the agency can realize the full policy amount.
  • 401K and/or Employee Benefit Programs – State, County and other applicable employees are encouraged to consider designating ASHBB for a percentage of their retirement or other benefits.
  • Services – Gifts of services are contributions of actual billable service directly related to the business or profession of the provider. Gifts of services will be recognized at the actual expenses invoiced but not to be paid. Evidence of a gift of service will be an invoice, letter or email stating the date, type of service rendered, quantity cost, total cost and amount contributed or forgiven.
  • Gifts In Kind – Are donated gifts of services, goods or items that are either budgeted expenditures for ASHBB for fundraising or other events or projects such as auction items, publicity, rental needs, entertainment, food and drink or other identified expenses that will either defray costs for the event or will enhance the experience or project for attendees.

 

Stock Transfers and Sales

In the event of a gift or pledge payment in the form of marketable securities, the stock will be sold as soon as practicable upon transfer of ownership.

  1. The gift will be evaluated on the basis of the average market value of the stock on the date of transfer. It is understood that the donor, in transferring ownership of the stock, is making a charitable contribution and, as such, has no rights concerning the disposition, sale or retention of any stocks given to ACFB.

Property Gifts

  1. In order for property gifts to be recognized, complete transfer of ownership must have occurred.
  2. All property gifts received will be converted to cash at the earliest opportunity. Generally, property gifts will not be accepted by ASHBB where conversion to cash is not likely prior to one year, unless the donor guarantees such a conversion.
  3. Associated expenses of any property gifts are to be borne by the donor, including environmental testing and appraisal fees.
  4. All property gifts received by ASHBB and disposed of (sold, etc.) will be duly reported to the IRS, as required.

Appraisal Requirements

As required by the tax code, gifts of property other than publicly-traded securities must be accompanied by an appraisal, if the estimated value exceeds $5,000. The appraisal must be provided by a qualified independent appraiser. The appraiser cannot be associated with ASHBB, the donor or any of its employees.

Donors of property gifts must seek their own legal and tax counsel in regard to all property gifts. ASHBB reserves the right to refuse gifts of property when it is determined that the donor has not complied with IRS appraisal requirements or the advice of an independent counsel is not being obtained.

All costs associated with obtaining a qualified appraisal will be borne by the donor.

Planned Giving

Planned Giving is an excellent way to leave a legacy of fighting hunger in our community.   Planned Gifts may be restricted to current ASHBB programs or be unrestricted.  ASHBB would like to encourage its donors to make their gifts unrestricted so that ASHBB can put them to the best use but understands that donors have particular programs that they wish to ensure has funding for years to come.  Both types of gifts are accepted by ASHBB.

ASHBB has a policy regarding unrestricted gifts that are realized through the bequests of donors.  That policy will be adhered to.

ASHBB has an existing endowment account with the Community Foundation of North Florida.  CFNF in partnership with ASHBB will be happy to help donors planning a gift to make the best decisions for themselves, their families and ASHBB.  Just contact our Director of Philanthropy for more information.

  • Information provided by ASHBB concerning gift planning is to be for illustrative purposes only and is not to be relied upon exclusively.
  • All potential or proposed planned gifts or restricted gifts may be individually reviewed by the CEO, the Director of Philanthropy or the Development Chair. Prospective donors are encouraged to request, and may expect to receive, a letter from the CEO regarding agreements to restrictions placed upon the proposed gift by the donor.
  • Although representatives of ASHBB will provide appropriate assistance, the ultimate responsibility regarding evaluations, tax deductibility, and/or legal issues is completely borne by the donor.
  • To avoid conflicts of interest, the unauthorized practice of law, the rendering of investment advice, or the dissemination of income or estate tax advice, all donors of property gifts must indicate the professional advisors rendering opinion(s) on the gift.
  • Donors are encouraged to consult their own planned giving consultant.

 

BEQUESTS

Assets transferred through bequests that have immediate value to Second Harvest Food Bank or can be readily liquidated shall be encouraged by the development staff.  Gifts that appear to require more cost than benefit shall be discouraged or rejected.

Donor restrictions and designations on the use of bequests will be followed under all reasonable circumstances.   Ultimately, decisions on use are made by the Board of Directors of Second Harvest of the Big Bend.   Where no restrictions or designations exist, the proceeds of wills and bequests will be utilized under ASHBB’s Windfall Policy.

Bequests will be honored in the fiscal year in which they are realized with appropriate recognition.

Life Insurance – Gifts of life insurance will be valued, for recognition purposes, based on the surrender value as of the date of transfer.

Whole Life Insurance Policies – purchased for ASHBB, with premiums paid for by the donor, will be honored for the full policy amount.  Donors will be given a tax deduction for the premium amounts paid in the years when payments are made.    ASHBB will hold onto the policy documentation and can, if the donor does not fulfil the payments, make remaining payments so that the agency can realize the full policy amount.

 

ENDOWMENT FUND

Second Harvest of the Big Bend accepts gifts and bequests restricted to its endowment.   The ASHBB Endowment Fund is maintained through the Community Foundation of North Florida.

Any sized gift is welcomed and will be added to ASHBB’s Unrestricted Endowment Fund.  To establish a restricted fund for a Geographic or Programmatic Area, a minimum gift of $25,000 is required to establish a fund.

It is ASHBB’s intent that the corpus in its Endowment Fund(s) shall not be used for operational or capital expenses.  The purpose of the Endowment Fund is to provide on-going revenue for the future of ASHBB.  The ASHBB Board will determine at what level its Endowment Fund(s) are to be before taking the annual disbursement.  Until that time, the annual earnings on the Fund(s) will be rolled back into the corpus.

Donors shall receive, upon request, an annual report detailing the investment performance and use of the fund.

ETHICAL ISSUES

Second Harvest of the Big Bend adheres to the AFP Code of Ethics and the Donor Bill of Rights.  Both documents are attached to this Donor Gift Policy and are part of the framework and ethical fundraising standards that ASHBB subscribes to.  More information about both documents is available either at the ASHBB Development Office or through the Association of Fundraising Professionals website.

Below are just a few items that pertain to this Donor Gift Policy:

  • ASHBB shall not act as an executor for a donor’s estate nor shall it act as a trustee for any trust other than in an appropriate circumstance such as a charitable remainder trust when ASHBB is the sole irrevocable remainder beneficiary.
  • ASHBB may accept a designation as income beneficiary of a charitable lead trust with approval of the Board of Directors. The Board of ASHBB will not accept an appointment as Trustee of a charitable lead trust.
  • ASHBB Staff Members or Board will not accept remuneration as executor or trustee of a donor’s estate. If a staff or board member is named as executor, they must provide those services to the estate on a pro bono basis and any contribution or payment will go to ASHBB.
  • ASHBB Staff, Board and/or its representatives take our roles as advocates very strongly. And as such we will not take advantage of relationships to coerce gifts to ASHBB.  We will also not take advantage of those who are either physically or mentally impaired and should not be making decisions regarding the disbursements of their personal funds.

OTHER SPECIFIC NOTES

Second Harvest is grateful and appreciative of all gifts to its programs to help Fight Hunger and Feed Hope.  In that spirit we hope that all donors who have pledged a gift to Second Harvest will be able to fulfill those promises.  But we do understand that sometimes circumstances are beyond the control of our donors.  It is our intent to help donors re-establish their pledges with terms that are more workable, but when that is not an option, we will release a donor from their pledge to ASHBB and remove any public recognition of the unfulfilled gift.  It is not our intent to prosecute or publically embarrass a donor when circumstances change.