About Us | Gift Acceptance Policy
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LaGrange County
Library has two permanently endowed funds at LCCF to provide financing
for the future. |
The purposes of the gift must fall within the broad charitable purposes of the LaGrange County Community Foundation. (See mission statement on About Us page.) In addition, the foundation board and staff must be able to assure that gifts accepted by the foundation do not place other assets of the foundation at risk, and that they can be easily converted into assets that fall within the foundation’s investment guidelines. The foundation must also assure that it can administer the terms of the gift in accordance with the donor’s wishes.
Foundation Responsibilities
Foundation staff should disclose to all prospective
donors the benefits and liabilities that could reasonably be expected
to influence the donor’s
decision to make a gift to the foundation. Donors will be encouraged
to consult with their own legal counsel and financial advisors in making
a decision. In particular, donors should be aware of:
- The irrevocability of a gift;
- Prohibitions on donor restrictions;
- Items subject to variability (market value, investment return and income yield);
- The foundation’s responsibility to provide periodic financial statements on donor funds;
- The foundation’s responsibility to make available a donor bill of rights.
The role of foundation staff shall be to inform, guide and assist a donor in fulfilling his or her philanthropic wishes, but never to pressure or unduly influence a donor’s decision.
Gift Acceptance Committee
The foundation’s board chair and the executive director constitute
the Gift Acceptance Committee. In circumstances where a clear determination
cannot be made by the committee, the matter will be addressed by the board
of directors or will be submitted to legal counsel or to other professionals.
Forms of Gifts to the Foundation
Gifts Requiring Committee Review
- Tangible personal property that is not readily marketable
- Real property
- Closely-held and S corporation stock
- Partnership interests
- Accounts receivable (gifts of loans, notes, mortgages, etc.)
- Gifts of intellectual property, mineral reserves, precious metals and other types of assets carrying their own challenges
- Gifts whose structure fall outside the ordinary purposes, bylaws and procedures of the foundation
- Life insurance policies requiring future premium payments by the foundation
Gifts Not Requiring Committee Review
- Cash or cash equivalents
- Checks
- Marketable securities
- Gift of personal property for use in foundation offices or programs
- Life insurance policies except as noted
Gifts Declined
The foundation reserves the right to refuse any gift it
believes is not in the best interests of promoting a healthy, caring community.
Acknowledgement
Donors shall receive an expression of sincere thanks and
gratitude from the foundation and an acknowledgement of the gift in accordance
with federal regulations.
Publicity
No public media exposure with respect to a donor’s gift
will be generated without the consent of the donor.
Restrictions
In conformance with the Treasury Department regulations governing
community foundations, gifts to the foundation may not be directly or
indirectly subjected by a donor to any material restriction or condition
that prevents the foundation from freely and effectively employing the
transferred assets or the income derived therefrom, in furtherance of
its exempt purposes.
Acting As Trustee
By opinion of Legal Counsel, the foundation may not
serve as a trustee. Further,
no employee shall serve as a trustee, conservator, executor, or personal
representative for one of the foundation’s donors or prospects unless
specifically approved by the foundation board chair. The board of
directors will be made aware of such trusteeships. All officers
shall report such relationships to the board of directors.
Investment of Gifts
It is the policy of the foundation to convert all gifts to cash as soon
as possible. LaGrange County Community Foundation reserves the right
to make any or all investment decisions regarding gifts in accordance
with its Investment Policy.
In making a gift to the foundation, donors give up all rights, title, and interest to the asset contributed. In particular, donors give up the right to choose investments and investment managers, brokers, or to veto investment choices for their gifts.
However, when the size of a fund warrants separate investment consideration, the foundation will endeavor to accommodate requests from donors for separate investment of fund assets, or use of a particular investment manager, broker or agent in accordance with the Investment Policy, and may consult with donors on investment options for such funds.
Costs of Accepting and Administering Gifts
Generally, costs associated
with the acceptance of a gift such as attorney fees, accounting fees,
other professional fees as well as other costs to establish a gift such
as appraisal, escrow, evaluation and environmental assessment fees will
be borne by the donor.
The direct costs of administering outright and planned gifts of the foundation will be borne from the assets of the individual funds, except for those special circumstances as determined by the Gift Acceptance Committee. Custodial, investment and administrative fees will be paid from the respective funds in accordance with the foundation’s guidelines and fee schedules.
Confidentiality
Foundation staff shall maintain strict control over files
and information received from or about donors or prospective donors so
as to maintain confidentiality of such information.
Public Fund Raising
Fundraising undertaken by donors in connection with
funds of the foundation require special consideration. .
Authority to Negotiate
The foundation representatives authorized to accept
letters of direction and amendments and to negotiate and sign charitable
giving agreements with prospective donors are:
- Chairman of the LCCF Board of Directors
- LCCF Executive Director
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LaGrange County Community Foundation
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