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GIFT ACCEPTANCE POLICIES

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Colesville Rotary Community Foundation Inc. (“CRCF”), a not-for-profit organization organized under the laws of the State of New York, encourages the solicitation and acceptance of gifts to or for the benefit of CRCF for purposes that will help CRCF to further and fulfill its mission. 

 

The mission of CRCF is to provide a way for those who care about the quality of life for all people in Town of Colesville--today and in the future--to make tax deductible charitable gifts that address areas of greatest need.

 

CRCF’s Directors have a fiduciary duty to assure that CRCF’s assets are used efficiently and protected from potential liabilities and diversion to purposes other than those that further CRCF’s goals. The following policies and guidelines govern acceptance of gifts made to CRCF or for the benefit of any of its programs. 

 

I. Purpose of Policies and Guidelines 

 

The Board of Directors of CRCF and its staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of CRCF. We appreciate donors’ consideration of any gift to CRCF. In all matters involving current and prospective donors, the interest of the donor is important to CRCF. Please call CRCF’s President at 207-206-4434 if you have any questions or if you wish to discuss any aspect of this Policy.

 

These policies and guidelines govern the acceptance of gifts by CRCF and provide guidance to prospective donors and their advisors when making gifts to CRCF. The provisions of these policies apply to all gifts to CRCF for any of its programs. Gifts will be accepted only if they do not interfere with CRCF’s mission, purpose and procedures.

 

CRCF shall accept only such gifts as are legal and consistent with organizational policy. While CRCF does not provide tax advice, every effort will be made to assist donors in complying with the intents and purposes of the Internal Revenue Service in allowing charitable tax benefits. 

 

Key principles include safeguarding the confidentiality of the donor relationship, providing full disclosure to the donor, and ensuring that gifts are recorded, allocated and used according to the donor intent and designation.

 

II. General Policies Relevant to All Gifts

 

A. Use of Legal Counsel

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CRCF shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for: 

  1. Closely held stock transfers subject to restrictions or buy-sell agreements. 

  2. Documents naming CRCF as Trustee. 

  3. Gifts involving contracts, such as bargain sales or other documents requiring CRCF to assume an obligation. 

  4. Transactions with potential conflict of interest that may involve IRS sanctions. 

  5. Other instances in which use of counsel is deemed appropriate by the gift acceptance committee.

             

B. Conflict of Interest 

 

CRCF will urge all prospective donors to seek the assistance of independent personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. CRCF and its employees and agents are prohibited from advising donors about the tax consequences of their donations. Gifts are also subject to the provisions of other CRCF policies, including adopted Conflict of Interest policies. 

 

CRCF makes every effort to ensure accepted gifts are in the best interests of the organization and the donor. CRCF works to follow The Donor Bill of Rights adopted by the AAFRC Trust for Philanthropy, the Association of Fundraising Professionals and other professional organizations.  CRCF will comply with the Model Standards of Practice for the Charitable Gift Planner, promulgated by the National Committee on Planned Giving, shown as an appendix to this document. 

 

C. Restrictions on Gifts 

 

CRCF will accept unrestricted gifts, and gifts for specified programs and purposes, provided that such gifts are consistent with its stated mission, purposes, and priorities. CRCF will not accept gifts that are too restrictive in purpose. Gifts for purposes that are not consistent with CRCF’s 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 CRCF. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Executive Committee of the CRCF. 

 

  1.  Establishing the Value of Donated Property

 

It is the policy of CRCF to comply fully with the valuation rules set out in Publication 561 of the Internal Revenue Service and the relevant income, gift and estate tax laws and regulations. Copies of Publication 561 are available at www.irs.gov . 

 

Property contributed to CRCF that has a value in excess of $5,000 must be accompanied by an appraisal unless it consists of (i) cash, (ii) marketable securities, (iii) closely held securities with a value of $10,000 or less, (iv) a vehicle or boat, the value of which will be determined by its sale, (v) intellectual property such as a copyright or patent, (vi) stock-in-trade, inventory or other property that would otherwise be held by the donor for sale to customers in the ordinary course of the donor’s business or (vii) property contributed by a corporation that constitutes a “qualified contribution,” as described in Section 170(e)(3)(A) of the Internal Revenue Code of 1986, that will be used for the care of the ill, needy or infants.

 

The fee for the appraisal may not be based on the value of the appraised property, and the appraiser must be “qualified,” as that term is used in IRS Publication 561. A “qualified appraiser” is one who is ordinarily in the business of appraising similar property, has appropriate educational and experiential background, who performs appraisals for many different people and purposes (and not primarily either for CRCF or for the donor) and who is not employed by CRCF, the donor, any relative of the donor or any entity controlled by the donor or members of the donor’s family. Duplicate originals of each appraisal should be prepared, one for CRCF and one for the donor. 

 

CRCF reserves the right to alter the value of property contributed to it on the books and records of CRCF for accounting, tax-reporting, annual fund record-keeping or any other purpose if developments after the completion of the gift or information that comes to the attention of CRCF after the gift is completed are determined, in the discretion of the Executive Committee or CRCF’s auditors, to merit such an alteration. 

 

  1. Tax Compliance

 

CRCF’s policy is to comply with Internal Revenue Service reporting requirements and all other aspects of state and federal tax law.

 

III. Types of Gifts 

 

The following gifts are acceptable but not intended to represent an exclusive list of appropriate gifts: 

  • Cash

  • Tangible Personal Property, including automobiles or boats

  • Securities

  • Real Estate

  • Life Insurance

  • Charitable Remainder Trusts

  • Retirement Plan Beneficiary Designations

  • Bequests

  • Life Insurance Beneficiary Designations

 

The Executive committee of CRCF shall make the final determination on the acceptance or rejection of gifts of all forms and inform the Board of CRCF of such determinations in a timely manner. 

 

The following criteria govern the acceptance of each gift form: 

 

  1. Cash. Cash refers to cash equivalents, including checks, money orders, currency/coin, and credit card payments. Checks or money orders shall be made payable to “Colesville Rotary Community Foundation Inc.”, shall appropriately identify the donor or donors and be delivered to CRCF’s administrative offices. Wire and Electronic Funds Transfer (EFT) can usually be arranged with the CRCF staff. If a matching gift company or workplace giving company wants to send ACH/EFT every week instead of a check, these must be authorized by the Treasurer of CRCF before the enrollment form is sent back to the constituent.

 

  1. 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 CRCF? 

  • 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? 

 

  1. Securities. CRCF 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 rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Executive committee. In some cases, marketable securities may be restricted by applicable securities laws; in such instance the final determination on the acceptance of the restricted securities shall be made by the Executive Committee of CRCF. 

  • 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. Such gifts, however, must be reviewed prior to acceptance to determine that:

    1. There are no restrictions on the security that would prevent CRCF from ultimately converting it to cash; 

    2. the security is marketable; and 

    3. the security will not generate any undesirable tax consequences for CRCF. 

 

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. The Executive Committee of CRCF, with the advice of legal counsel, shall make the final determination on the acceptance of closely held securities when necessary. Every effort will be made to sell non-marketable securities as quickly as possible. 

 

  1. 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, CRCF shall require an initial environmental review of the property to ensure that the property has no environmental damage or potential liability. In the event the initial inspection reveals a potential problem, CRCF shall retain a qualified inspection firm to conduct an environmental audit. Non-residential properties shall definitely require a Phase I audit. The cost of environmental audits shall generally be an expense of the donor. 

 

When appropriate, a title insurance binder shall be obtained by CRCF prior to the acceptance of the real property gift. The cost of this title binder shall generally be an expense of the donor. Prior to acceptance of real property, the gift shall be approved by the Executive Committee with the advice of CRCF’s legal counsel. Criteria for acceptance of the property shall include: 

  • Is the property useful for the purposes of CRCF? 

  • 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? 

 

 

  1. Life Insurance. CRCF will generally accept life insurance, but it 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. Whether any policy is accepted will depend on the economics of the transfer.  If the donor contributes future premium payments, CRCF will include the 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, CRCF may: 

  • continue to pay the premiums. 

  • convert the policy to paid up insurance; or 

  • surrender the policy for its current cash value. 

 

  1. Charitable Remainder Trusts. CRCF may accept designation as remainder beneficiary of a charitable remainder trust with the approval of the gift acceptance committee. CRCF will not accept appointment as Trustee of a charitable remainder trust. 

 

  1. Deferred Compensation/Retirement Plan Beneficiary Designations. CRCF generally accept gifts designating CRCF as a beneficiary of the donor’s retirement plans including, but not limited to, IRA’s, 401(k)’s, 403 (b)’s, and other plans. Such designation will not be recorded as a gift to CRCF 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. 

 

  1. Bequests. Donors and supporters of CRCF will be encouraged to make bequests to CRCF under their will and trust. Such bequests will not be recorded as gifts to CRCF 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. The criteria for the acceptance of the gift or bequest will be the same as provided herein.

 

  1. Life Insurance Beneficiary Designations. Donors and supporters of CRCF will be encouraged to name CRCF as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to CRCF 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. 

 

IV. Miscellaneous Provisions 

 

  1. Securing appraisals, environmental review, assessment or remediation costs and legal fees for gifts to CRCF. The cost to secure an appraisal, environmental review, assessment or remediation (where required) and independent legal counsel for any gift proposed to be made to or for the benefit of CRCF are generally the Donor’s responsibility.

 

  1. Fees and Commissions

 

 CRCF generally does not pay “finder’s fees” or commissions to third parties in connection with any kind of gift to CRCF. CRCF does, however, pay commissions and fees to properly negotiate and transfer assets, including automobiles or boats. No officer, employee or agent of CRCF is or will be compensated in a manner that is dependent on the size or nature of gifts made to CRCF by any person. If CRCF engages legal counsel, accounting professionals, appraisers or environmental consultants, their fees and expenses will be determined by the time they spend engaged in CRCF’s work and not by reference to any particular gift in connection with which they are retained. 

 

  1. Trips and Special Events

 

When trips or special events involve a charitable contribution, the fair market value and the charitable contribution amount for each participant will be stated specifically in the promotional literature and donor acknowledgment letter. Donations given to offset the costs of a special event must be recorded as gift income, rather than as a credit to an expense account.

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  1. Changes to Gift Acceptance Policies 

These policies and guidelines have been reviewed and recommended to the Board by the Executive Committee of CRCF. The Board of CRCF must approve of any changes to these policies. The policies will be regularly reviewed.

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Approved by the CRCF Foundation Launch Work Group on September 15, 2025. These guidelines will be reviewed and acted upon by the Foundation's Board of Directors during the first quarter of 2026. 

 

Albert Dauphinais

Chair, CRCF Launch Work Group

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