IAHPC - Gift Acceptance Policy
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 unrestricted funds, restricted grants, donations of non-cash assets and endowment funds.
IAHPC solicits and accepts gifts that are consistent with its mission and that support its core programs, as well as special projects. IAHPC can raise money in the USA and abroad and receive grants from foreign individuals, governments, organizations and other sources, so long as the activities do not involve specifically banned sources and they align with the in compliance with IRS regulations for public charities.
To facilitate the receipts of gifts and bequests, IAHPC must be capable of responding quickly and in the affirmative where possible to all gifts offered by prospective donors. Unless stated otherwise, these policies apply to all gifts.
- The Chairperson of IAHPC, the Executive Director, any Board or staff member of the organization, have authority to solicit and/or accept gifts on behalf of IAHPC.
- The Chairperson of IAHPC may establish a Gift Review Committee responsible for recommending whether or not IAHPC should accept proposed gifts. The Chairperson shall have the authority to appoint to the Gift Review Committee board directors and/or employees of IAHPC and/or external advisers, on an ad hoc basis, who have special expertise that may be needed in order to make a decision on a specific gift.
- The Gift Review Committee may consider each gift according to its intended use, restrictions, liabilities and financial impact on IAHPC, now and in the future. Only gifts, grants, donations, bequests, devises, endowments, trusts and similar funds that are designated for the use of IAHPC consistent with the stated vision and mission of the organization will be considered for acceptance.
- The Executive Director or gift solicitor will refer to the Gift Review 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.
- The committee, and/or Executive Director shall request the opinion of legal counsel whenever necessary to make a decision on a gift.
Types of Gifts
- IAHPC will accept gifts in the form of cash, checks and credit cards, regardless of amount, unless:
- a question exists as to whether the donor has legal title to the asset; or
- a question exists as to the legal capacity of the donor to transfer funds.
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
- Gifts of closely-held securities must be first reviewed and approved by a Gift Review Committee. The Gift Review Committee shall consider the following criteria:
- There is a readily available market for their disposition.
- Accepting such securities will not create any potential liability to IAHPC.
- The closely held entity engages in no activities that would be inconsistent with IAHPC objectives.
- 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 corporation stock); securities that on investigation have no apparent value.
- IAHPC will accept gifts of life insurance policies only when IAHPC is named as the owner and 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 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 jewellery, artwork, collections, equipment, and software shall be accepted with approval by 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 staff and volunteers shall 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, a Gift Review Committee shall review any restrictions upon the gift and determine if it is in the best interests of IAHPC to accept the gift.
- 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.