Gift Acceptance Policy
I. MISSION STATEMENT & VISION
Like many of the great universities that have established multi-billion dollar endowments as a critical financial base to ensure future programming and operations, we have an exciting opportunity to advance the saving mission of Jesus Christ - to nurture the spiritual lives of the body of Christ, to care for those who are hurting, to teach young people and to reach out to the poor in resources and spirit. By inviting major endowment gifts, bequests, charitable gift annuities, trusts and other legacy gifts from the people of God served by the Church throughout their lives, we can accomplish this vision with the help of God's grace and the leadership of those called to help fulfill this vision.
The future holds tremendous promise for donors, and those who will be served through their selfless generosity. Through the Foundation, we will match the passions of our donors with the needs of the Church and its people. Our legacy is one of the most important things that we will leave behind. Through the Catholic Community Foundation, individuals and their families will know that those ministries and institutions that they hold most dear will continue to thrive for generations to come.
II. PURPOSE OF GIFT ACCEPTANCE POLICIES
The CCF solicits gifts to advance its broad charitable purposes. These gift acceptance policies define the considerations and processes through which the CCF assesses the desirability of accepting a potential gift and determines whether to accept a gift as offered. In addition, these policies specify how particular types of gifts may be made. These policies are intended to be a resource to CCF Trustees, officers, committee members and staff, as well as prospective donors and their advisors.
III. AUTHORITY TO ACCEPT GIFTS
Except as otherwise noted herein, the Executive Director of the CCF shall have the authority to accept gifts on behalf of the CCF. When appropriate, the Executive Director shall consult with the Executive Committee on matters of gift acceptance and shall make regular reports to the Board of Trustees concerning accepted gifts. The Executive Director, on behalf of the CCF, shall seek the advice of legal counsel when appropriate.
The CCF reserves the right to refuse any gift, including gifts that are inconsistent with the CCF's stated mission, purposes and priorities or that would impose an unreasonable burden on or risk to the CCF.
IV. CONFLICT OF INTEREST
The CCF will urge all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to gifts to the CCF and the resulting tax consequences. In all cases, CCF representatives shall emphasize that they do not represent the donor.
The CCF 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.
V. TYPES OF ASSETS
Cash is acceptable in any form. Checks shall be made payable to the Catholic Community Foundation of the Archdiocese of Baltimore, Inc., and shall be delivered to the CCF at 320 Cathedral Street, Baltimore, Maryland 21201.
2. Publicly-Traded Securities
The CCF can accept securities that are traded on the New York and American Stock Exchanges, as well as other major U.S. and foreign exchanges and the NASDAQ, corporate bonds, government issues, and agency securities. In general, all marketable securities shall be sold as soon as possible after their receipt unless otherwise determined by the Executive Committee, after consultation with the Investment Committee. The CCF may not agree to hold, sell through a specific broker or trade on instruction of the donor a particular publicly-traded security without the approval of the Executive Committee.
Securities may be physically delivered to the CCF in person or by mail or may be wired to a designated CCF brokerage account. If the donor mails securities, certificates should be sent unsigned and by registered mail. Signed stock/bond powers should be sent separately to the CCF by registered mail. It is imperative that the signature on the stock/bond power exactly match the name on the certificate.
3. Closely-Held Securities
Interests in closely-held or non-publicly traded entities, including, without limitation, sole proprietorships, general and limited partnerships, corporations, real estate investment trusts (REITs), and limited liability companies, may be accepted only after prior review and approval by the Executive Committee, after consultation with the Investment Committee and legal counsel, if appropriate. Such review shall consider the marketability of the interest, any restrictions on its sale, any potential liability associated with the holding of such interest, and any tax consequences for the CCF related to the holding and/or disposing of such interest. In general, such securities shall be sold as soon as possible following their receipt.
4. Registered Securities
The CCF may accept restricted securities (also known as unregistered securities, investment-letter stock, control stock or private placement stock). Because of the complexity in transferring ownership and determining the fair market value of restricted stock, such gifts may be accepted only after review and approval by the Executive Committee, after consultation with the Investment Committee and legal counsel, if appropriate.
5. Tangible Personal Property
Gifts of tangible personal property, including but not limited to art, antiques, collections, manuscripts, books, vehicles, marine vessels, and computer hardware may be accepted only after review and approval by the Executive Committee.
A gift of tangible personal property should be accepted only when a review indicates that the property is readily marketable. No personal property shall be accepted under conditions that obligate the CCF to continue to own the property in perpetuity. In addition, no perishable property or property that would require special facilities or security to be properly safeguarded shall be accepted.
Tangible personal property given to the CCF shall be sold as soon as possible following receipt. The CCF's intention to sell the property shall be communicated to the donor when the CCF receives notification of the donor's intent to make a gift of personal property.
6. Real Estate
Gifts of real estate, both improved and unimproved, may be accepted only after review and approval by the Executive Committee after consultation with legal counsel, if appropriate. Due to the expenses associated with gifts of real property, only gifts with a current fair market value in excess of $50,000 will generally be considered. No gift of real estate may be accepted until all mortgages, deeds of trust, liens and/or other encumbrances have been discharged.
It is the CCF's general policy to dispose of all gifts of real estate as expeditiously as possible. This policy will be communicated to a donor when the CCF receives notification of the donor's intent to make a gift of real estate.
Before accepting a gift of real estate, the CCF shall obtain:
a. a title insurance commitment showing marketable title in the donor, free and clear of unacceptable encumbrances, issued by a reputable title insurance company;
b. an MAI appraisal by a qualified appraiser (not older than 60 days);
c. a Phase I environmental audit by a qualified engineer indicating that ownership will not expose the CCF to environmental liability;
d. a market feasibility study for purposes of liquidation (when appropriate);
e. an on-site evaluation by the Executive Director or his designee (or if the property is located in a geographically isolated area, a local real estate broker acceptable by the Exec. Dir.);
f. a structural engineering report (when appropriate);
g. a review of leases (for commercial property);
h. evidence of compliance with the Americans with Disabilities Act (when applicable);
i. a disclosure statement from the donor reflecting any and all carrying costs, including but not limited to taxes, insurance, association dues, membership fees and transfer charges.
All costs related to the environmental impact study, title search, appraisal, marketability study and any other related study shall be borne by the donor.
7. Life Insurance
The CCF will accept gifts of life insurance policies of which it is named the irrevocable owner and beneficiary. The CCF may accept a "paid-up" policy (i.e., no additional premiums will be required, regardless of changing rates or dividends) or a new or existing policy for which the donor intends to continue to make payments so that the policy does not lapse. The CCF will not accept a policy with any term insurance component.
The CCF will make premium payments on a donated policy if the donor makes annual gifts at least equivalent to the amount of the premium. The CCF may, but is under no obligation to continue to pay the premiums if the donor elects not to continue to make gifts to cover premium payments. In that instance, the CCF may allow the policy to lapse, convert the policy to paid-up insurance or surrender the policy for its current cash value.
8. Other Property
Other property of any description (e.g., mortgages, notes, copyrights, royalties, etc.) may be accepted only with the approval of the Executive Committee. The difficulty inherent in establishing the acceptability of this class of assets places additional importance on a thorough review of such gift proposals. In particular, the Executive Committee shall review the marketability of the gift, the carrying costs associated with it and the potential exposure of the CCF to tax and other liabilities. Depending on the value of the proposed gift, consideration should be given to encouraging the donor to dispose of the property and donate the proceeds to the CCF.
VI. GIFT VEHICLES
1. Outright Gifts
The CCF accepts current, outright gifts of property that are consistent with these policies.
A bequest to the CCF is made in the donor's Will or Revocable Trust. The donor can direct that a specific dollar amount, specific assets, a percentage of the donor's estate or trust, or the remainder of the donor's estate or trust be distributed to the CCF. While all bequests are contingent, in that the donor can change his/her Will or Revocable Trust prior to the donor's death, the donor can further condition a bequest to the CCF upon the occurrence or non-occurrence of a particular event (e.g., survival of a named person, birth of a child, etc.). Accordingly, a bequest to the CCF is not "complete" until the death of the donor and, where applicable, the satisfaction of the condition.
Donors may also establish by will a charitable remainder trust or charitable lead trust (see below).
Bequests may be made to the CCF through the execution of a new Will or Revocable Trust or by a Codicil or Amendment, respectively, thereto.
3. Beneficiary Designations
The CCF may accept amounts it receives as a designated beneficiary (primary or contingent) of a life insurance policy, deferred annuity contract, IRA, defined benefit plan, 401(k) plan, profit-sharing plan or other qualified plan. If the CCF is anything other than an outright beneficiary of such assets, the prior review and approval of the Executive Committee shall be required.
4. Charitable Gift Annuities
The CCF is not currently registered to issue charitable gift annuities in any jurisdiction. However, the Archdiocese of Baltimore has agreed to issue charitable gift annuities, the remaining principal of which shall be distributed to the CCF upon the death of the last surviving annuitant. Minimum funding amounts, age(s) of annuitant(s), rates, and other terms of such charitable gift annuities shall be determined by the Archdiocese.
5. Charitable Remainder Trusts
A charitable remainder trust is established by an irrevocable gift to a trustee made during the donor's lifetime or upon the donor's death. The primary feature of a charitable remainder trust is that it provides for periodic payments of a fixed percentage (not less than 5%) of the value of the trust assets to the donor and/or another person specified by the donor, for life or a specified term of years (not to exceed 20), after which the trust assets pass to the CCF. The most common forms of charitable remainder trusts are Charitable Remainder Annuity Trusts (CRATs) and Charitable Remainder Unitrusts (CRUTs). The significant difference between a CRAT and a CRUT is that the annual payment from a CRAT is a fixed percentage of the initial value of the trust, while the payout from a CRUT is calculated by applying the fixed percentage to the value of trust, valued annually. Additional contributions may be made to a CRUT, but no additional contributions may be made to a CRAT.
The CCF may accept a designation as remainder beneficiary of a charitable remainder trust, provided that the gift does not violate any other provision of these policies as they relate to the types of assets or restrictions that may be accepted.
In general, the CCF will not serve as the Trustee or as a co-Trustee of a charitable remainder trust. Exception may be made with the prior approval of the Executive Committee. Factors to be considered in determining whether the CCF shall serve as the trustee of a charitable remainder trust shall include: the value of the initial contribution to the trust, the number of non-charitable beneficiaries, the ages of the non-charitable beneficiaries if the trust term is based on one or more lives, the present value of the CCF's remainder interest, and whether the designation of the CCF as the sole remainderman is irrevocable. In the event the CCF agrees to serve as Trustee or co-Trustee of a charitable remainder trust, gifts of any asset other than cash or unrestricted publicly-traded securities, or a combination of both, will not be accepted as funding for such trust. Any agreement pursuant to which the CCF consents to serve as Trustee or co-Trustee of a charitable remainder trust shall be reviewed and approved on behalf of the CCF by its legal counsel.
6. Charitable Lead Trusts
A charitable lead trust is a trust from which the income or "lead" interest is paid to the CCF for a set number of years (not to exceed 20), after which the remaining trust assets pass to one or more non-charitable beneficiaries designated by the donor. The amount paid to the CCF may be either a fixed sum (an "annuity" interest) or a percentage of the trust assets valued each year (a "unitrust" interest). Moreover, charitable lead trusts may be established during the donor's lifetime or upon the donor's death pursuant to a Will or Revocable Trust.
The CCF may accept a designation as remainder beneficiary of a charitable remainder trust with the approval of the Executive Director, provided that the gift does not violate any other provision of these Gift Acceptance Policies as they relate to the types or purposes of gifts that may be accepted.
The CCF will not serve as the Trustee of a charitable lead trust.
7. Retained Life Estates
The CCF may accept a gift of a personal residence or farm where the donor (and/or another person) retains the right to use the property for a term of years or for the life or lives of the donor and/or another person. Upon the expiration of the retained interest, the CCF may use or sell the property as it sees fit.
Such gifts are subject to the conditions and guidelines applicable to gifts of real estate. The gift is accomplished by the execution of a Deed to the CCF, pursuant to which the retained interest is expressly reserved. In addition, the donor must enter into a Retained Life Estate Agreement (RLEA) which provides that the donor and/or the life tenant shall remain responsible for maintenance, taxes, utilities, insurance and other costs associated with the property, unless other arrangements, approved by the CCF, are made for the payment of these expenses. The Deed and the RLEA shall be reviewed and approved by the CCF's legal counsel.
8. Bargain Sales
The CCF may enter into a bargain sale arrangement with respect to an unrestricted gift (i.e., not to a particular fund) only with the consent of the Executive Committee. Such arrangements are subject to the conditions and guidelines applicable to gifts of real estate.
VII. MISCELLANEOUS PROVISIONS
1. Appraisals and Legal Fees
It is the responsibility of the donor to secure and pay for an appraisal (when required) and independent legal counsel for all gifts made to the CCF.
The CCF and its Board of Trustees and committees shall hold all information concerning (prospective) donors and their proposed gifts in the strictest confidence. A donor may grant permission to the CCF to publicly announce any gift or feature of a gift to the public.
The CCF shall follow Internal Revenue Service regulations with respect to the acknowledgement of gifts. The donor retains sole responsibility for determining the date and value of a gift to the CCF.
4. IRS Filings Upon Sale of Donated Property
If the CCF sells, exchanges or otherwise disposes of any property (other than unrestricted publicly-traded securities) with a claimed charitable deduction value in excess of $5,000 within three years of the date the CCF originally received the property, or such amount or within such time as may be hereinafter required by the Internal Revenue Service, the CCF shall file IRS Form 8282, or its successor, and provide a copy to the donor.
5. Amendments to Gift Acceptance Policies
These policies have been reviewed and accepted by the Board of Trustees of the CCF. The policies shall be subject to periodic review and may be amended by the Board of Trustees from time to time.
This statement recognizes that the solicitation, planning and administration of a charitable gift is a complex process involving philanthropic, personal, financial, and tax considerations, and often involves professionals from various disciplines whose goals should include working together to structure a gift that achieves a fair and proper balance between the interests of the donor and the purposes of the charitable institution.
I. Primacy of Philanthropic Motivation
II. Explanation of Tax Implications
III. Full Disclosure
V. Competence and Professionalism
VI. Consultation with Independent Advisers
VII. Consultation with Charities
VIII. Description and Representation of Gift
IX. Full Compliance
X. Public Trust
Adopted and subscribed to by the National Committee on Planned Giving and the American Council on Gift Annuities, May 7, 1991. Revised April 1999.