This policy serves as a guideline for the IAHPC staff and board members who assist in the gift planning and solicitation process, and for prospective donors who wish to make gifts to IAHPC of in the form of unrestricted funds, restricted grants, cash, donations of non-cash assets, bequests, devises, trusts and endowment funds, or any other form of gift (hereinafter referred to as “gifts”).
The goal of this policy is to encourage giving to IAHPC without encumbering IAHPC with gifts that are too difficult or too expensive to administer or that may generate conflict of interest. The goal is also to avoid gifts that the donor restricts in a manner inconsistent with the goals of IAHPC as stipulated in the mission and vision statements.
To facilitate the receipts of gifts, IAHPC must be capable of responding in a timely fashion and in the affirmative where possible to all gifts offered by prospective donors. Unless stated otherwise, this policy applies to all gifts.
IAHPC solicits and accepts gifts that are consistent with its mission and that support its core programs, as well as special projects. IAHPC is entitled to fundraise in the USA and abroad and receive gifts from foreign individuals, governments, organizations, and other sources, so long as the activities do not involve explicitly banned sources. The IAHPC does not accept gifts from pharmaceutical companies that manufacture, market, distribute or sell products that may generate a conflict of interest to the organization or its representatives.
- The following persons have the authority to solicit and/or accept gifts on behalf of IAHPC: The Chairperson, any Board member, the Executive Director, and any staff person.
- The IAHPC does not and will not provide any benefits, goods or services in return for gifts to the organization.
- The Executive Director will rely, as needed, on the recommendation of the Executive Committee of IAHPC as whether the organization should accept proposed gifts.
- The Executive Committee may consider each gift according to its intended use, restrictions, liabilities, and financial impact on IAHPC, now and in the future. Only gifts that are designated for the use of IAHPC consistent with the stated vision and mission of the organization will be considered for acceptance. The IAHPC does not receive gifts from the pharmaceutical industry.
- The Executive Director will refer to the Executive Committee, before acceptance, gifts that are given with unusual restrictions or designations, have the potential of jeopardizing the tax-exempt status, or violating IAHPC policies, local, state or federal laws.
- IAHPC will seek the advice of legal counsel in matters relating to the acceptance of gifts as appropriate.
Types of Gifts
- Cash gifts are acceptable in any form, including checks, money orders, credit or debit card donations, or on-line donations in any amount, unless there are questions regarding:
- the donor’s legal title to the asset; or
- the legal capacity of the donor to transfer funds.
- in which case IAHPC shall seek the advice of legal counsel
Checks shall be made payable to IAHPC, unless otherwise specified. In no event shall a check be made payable to an individual who represents IAHPC.
Publicly Traded Securities
- IAHPC can accept readily marketable securities, such as those traded on a stock exchange.
- Gift securities are likely to be sold immediately by IAHPC.
- For IAHPC’s gift crediting and accounting purposes, the value of the securities is the average of the high and low on the date of the gift, in accordance with IRS regulations.
Closely Held Securities
- The Executive Committee must first review and approve proposed gifts of closely held securities. The Executive Committee shall consider the following criteria:
- Existence of a readily available market for their disposition.
- Potential liability to IAHPC upon acceptance.
- Consistency of activities of the closely held entity with IAHPC mission and objectives.
- Potential of the security to generate unrelated business income taxes (“UBIT”).
- Gifts of closely held securities would be carried on IAHPC’s books at $1 in the absence of financial information that would enable determination of book value.
- Such securities will be carried at book value until audited financial statements are provided to IAHPC so that book value can be substantiated, or the donor provides a qualified appraisal in compliance with IRS regulations.
- An appraisal of securities may be conducted under the direction of IAHPC to determine both value and potential for sale.
- Gifts of securities that require a holding period will be accepted and sold when the holding period has expired.
- Gifts of securities that will not be accepted include: securities that are assessable or in any way could create a liability to IAHPC; securities that, by their nature, may not be assigned (such as “S” corporation stock); securities that on investigation have no apparent value.
- IAHPC will accept gifts of life insurance policies only when IAHPC is named as beneficiary of 100% of the policy.
- If the policy is paid-up, the value of the gift for IAHPC’s gift crediting and accounting purposes is the policy’s replacement costs.
- If the policy is partially paid up, the value of the gift for IAHPC’s gift crediting and accounting purposes is the policy’s cash surrender value.
Individual Retirement Accounts (IRAs)
- IAHPC welcomes the opportunity to be named as a beneficiary of a donor’s retirement plan. Such designation is considered to be a revocable gift and should not be recorded as revenue until the designation becomes irrevocable, typically at the death of the donor.
- IRA gifts should be in the form of a check made directly from the IRA account and payable to IAHPC.
Tangible Personal Property
- Gifts of tangible personal property to IAHPC should have a use related to IAHPC’s exempt purpose.
- Gifts of jewelry, artwork, collections, equipment, and software shall be accepted with approval by the Executive Committee of IAHPC. Other matters that will be taken into consideration by IAHPC before deciding on acceptable gifts of personal property include: transportation cost; storage cost; cost of selling; cost of maintenance and repairs; location of property; cost of insurance.
- Such gifts of tangible personal property defined above shall be used by or sold for the benefit of IAHPC.
- Depending upon the anticipated value of the gift, IAHPC shall have a qualified outside appraiser value the gift before accepting it.
- IAHPC adheres to all IRS requirements for disposing gifts of tangible personal property and filing appropriate forms.
Planned Gifts and Memorials
- The Chair, board members and/or staff members may encourage assets transferred through bequests that have immediate value to IAHPC, or that can be liquidated.
- IAHPC may accept and administer bequests and memorials designated for specific purposes.
- IAHPC shall at all times retain the right to refuse a gift from an individual or from an estate when it is not in the best interest of IAHPC to accept the gift.
- When IAHPC is the recipient of a gift from a will or trust, the Executive Committee shall review any restrictions upon the gift and determine if it is in the best interests of IAHPC to accept the gift.
- No IAHPC staff, officer or Board member shall act as an executor (personal representative) for a donor’s estate.
- No representative of IAHPC, the Executive Director or any other employee or board member of IAHPC shall provide legal, tax, accounting or financial advice to donors or prospective donors.
This Policy will be revised and approved annually by the IAHPC Board of Directors.