ARTICLE VIII:

Gift Acceptance Policy

 

Grace Episcopal Church has established an Endowment Fund (the “Fund”) for its long-term endowment and investment assets.  The Endowment Committee of Grace oversees the Fund and has developed and approved these Gift Acceptance Policies for ratification by the Vestry of Grace.

 

The purpose of these Gift Acceptance Policies is to provide guidance to the Vestry, Endowment Committee, and any other relevant committees, as appropriate, in connection with the review and acceptance of new gifts to the Fund.  

1. Gift Acceptance Guidelines

1. 1. Purpose

1. 1. 1. These gift acceptance guidelines are intended to guide representatives of the Church, potential donors, and any outside advisors in connection with gifts to the Church or its endowment or other funds.  These guidelines are not intended as professional advice.  The Vestry, Endowment Committee, or any other relevant committee should follow any review procedures described below, but the Vestry has the discretion to accept or reject any specific gift.  Donors are encouraged to obtain their own legal, tax and financial advice before completing a gift.  

1. 2. Ad Hoc Gift Review Committee or Endowment Committee Roles

1. 1. 1. The Vestry may establish an Ad Hoc Gift Review Committee when it deems it necessary or  may establish permanently if circumstances justify.  Alternatively, the Vestry may delegate review of any gift(s) to the Endowment Committee, in which case they will be responsible for performing the functions of the Gift Review Committee as identified herein.  The Committee, whether formed temporarily or permanently, shall consist of the members of the Endowment Committee, including ex-officio members without votes, unless otherwise established by the Vestry.  On behalf of the Church, the Vestry must review and approve or reject all gifts to the Church or any endowment, investment or other fund.  The Gift Review Committee shall provide information, advice or recommendations to the Vestry as set out in these guidelines or otherwise requested.  The Vestry shall refer all questions relating to the review and acceptance of gifts to the Gift Review Committee during any term in which it is established and may consult with the Gift Review Committee as needed or desired.   

1. 3. Cash

1. 1. 1. The Vestry shall accept all gifts made by check without regard to amount.  All checks must be payable to Grace Episcopal Church and in no event may be payable to an individual who represents Grace in any capacity.

1. 4. Publicly Traded Securities

1. 1. 1. The Vestry may accept readily marketable securities, such as those traded on an exchange.  The value of a gift of such securities is the average of the high and low prices on the date of the gift.  Typically, a gift of such securities is liquidated immediately. 

1. 4. 2. A gift of securities to the Church is usually liquidated immediately.  However, if the form or designation of the gift allows the possibility that it will be directed to the Endowment Fund or any sub-fund therein, a decision regarding liquidation of the securities will be deferred until that determination is made.  If the funds are to be directed to the Endowment Fund or sub-funds, the certificates will be given to the Fund’s Investment Manager who shall then act on the Endowment Committee’s decision whether to sell, transfer or hold the securities.   (See Appendix D).

1. 5. Closely Held Securities

1. 1. 1. The Vestry may accept non-publicly traded securities after consultation with the Gift Review Committee or the Endowment Committee.  The value of a gift of such securities is the value used by the donor in preparation of the donor’s tax return.  Prior to acceptance, the Gift Review Committee or Endowment Committee shall explore methods for the liquidation through sale or redemption and shall try to determine (a) any restrictions on transfer and (b) if and when an initial public offering is expected.  No commitment for the repurchase of closely held securities may be made prior to the completion of the gift of such securities. 

1. 6. Real Estate

1. 1. 1. The Vestry must refer any gift of real estate to the Gift Review Committee or Endowment Committee.  All gifts of real estate must be appraised by an independent professional, typically at the expense of the donor.  The appraisal must be based on a personal visit and internal and external inspection and, if possible, include documented values of comparable properties in the same area.  The appraisal should contain photographs of the property, the tax map number, the assessed value, the current asking price, a legal description of the property, the zoning status, and complete information regarding all mortgages, liens, litigation, or title disputes as well as, if requested, an environmental assessment.

1. 6. 2. If the Vestry accepts the gift of real estate, it must be transferred to Grace before any formal offer or contract for purchase.  The Vestry may ask the donor to pay in full or in part the cost of maintenance, insurance, real estate taxes, and broker’s commission or any other cost of sale.  The value of the gift is the appraised value of the real estate, which may be reduced by the cost of maintenance, insurance, real estate taxes, broker’s commission, and other expenses of sale.

1. 7. Life Insurance

1. 1. 1. The Vestry must refer any gift of a life insurance policy to the Gift Review Committee or Endowment Committee.  The Vestry may accept a gift of ownership of a life insurance policy only if Grace is named both the owner and beneficiary of 100% of the policy.  If the policy is fully paid up, the value of the gift is the replacement cost of the policy.  If the policy is partially paid up, the value of the gift is the policy’s cash surrender value or interpolated terminal reserve value.  Grace may also be named a full, partial or contingent beneficiary of a life insurance policy. 

1. 8. Tangible Personal Property

1. 1. 1. The Vestry may accept gifts of tangible personal property after review by the Gift Review Committee or Endowment Committee.  Tangible personal property may include jewelry, artwork, collections, equipment or software, among other examples.  The Gift Review Committee or Endowment Committee must assess the value to Grace of any such property, which may be sold or used by Grace in connection with its exempt purpose.  The Gift Review Committee or Endowment Committee may ask a qualified outside appraiser to determine the value of a gift of tangible personal property.  The Vestry shall adhere to all IRS requirements relating to the value and disposition of gifts of tangible personal property and will provide appropriate forms to the donor and the IRS.

1. 9. Deferred Gifts

1. 1. 1. The Vestry encourages deferred gifts to Grace or any endowment, investment or other fund.  Deferred gifts may be made in various ways including:

• Bequests
• Beneficiary designations
• Retained life estates
• Charitable gift annuities
• Pooled income funds
• Charitable remainder trusts
• Charitable lead trusts
• Donor advised funds

1. 9. 2. The Church, or any agent of the Church, shall not act as executor or personal representative for a donor’s estate.  A staff member serving as personal representative for a member of the Church does so in a personal capacity and not as an agent of the Church.  The Church, or an agent of the Church, shall not act as trustee of any charitable remainder trust.  

1. 9. 3. The Church may invite donors to consider gift vehicles offered by the Episcopal Church Foundation, including charitable gift annuities, pooled income funds, charitable remainder trusts and donor advised funds.  Gift illustrations or form documents are provided at no cost.

1. 9. 4. The following disclaimer should be included in any materials, documents, illustrations, letters or other correspondence related to deferred or planned gifts:

Grace Episcopal Church strongly urges you to consult with your attorney, financial advisor and/or tax advisor to review this information provided without charge or obligation.  This information in no way constitutes legal, financial or tax advice.

1. 9. 5. The Church, its staff, the Vestry, the Gift Committee, the Endowment Committee, and volunteers shall hold in strictest confidence all information from or about donors and potential donors.  The name of any donor, as well as the amount or conditions of any gift, will not be published without the express written or oral approval of the donor and beneficiary.

1. 9. 6. The Vestry may seek qualified professional counsel in connection with the consideration and execution of all deferred or planned gift agreements and will offer appropriate remuneration for professional services. 

1. 9. 7. The Vestry, upon the advice of the Gift Review Committee or Endowment Committee, may decline any deferred or planned gift that does not further the mission of the Church or that would impose an unreasonable administrative burden or require the Church to incur excessive expenses.