Policy on

GIFT ACCEPTANCE

Approved April 7, 2018

Purpose

This gift acceptance policy is a guideline to the following:

Diocesan staff, officers and clergy of the Episcopal Diocese of Iowa (“Diocese”) and its institutions.
Prospective donors who may wish to make gifts to the Diocese and/or its constituent programs.
Outside advisors who may assist prospective donors in the gift planning process.
This policy is intended as a guide and allows some flexibility on a case-by-case basis. However,

it is expected that the gift review process outlined here will be followed closely.

Gift Review and Acceptance

Diocesan officers and staff may accept undesignated and unrestricted gifts of cash or publicly traded securities and gifts of cash or publicly traded securities designated for existing diocesan ministry areas.
Other gifts shall be referred to the Board. The Board may designate a person or committee (hereafter “its designee”) to advise on questions that may arise in the review and acceptance of gifts to the Diocese.
The Board reserves the right to decline any gift that does not further the mission and ministry of the Diocese or that would create an administrative burden or cause the Diocese to incur excessive expenses.
Gifts received within the course of diocesan program activities may be retained within that program area.
Unless otherwise directed by the donor, the Diocese will treat gifts of an amount less than $10,000 as current income and gifts of $10,000 or more as endowment.

Conflict of Interest

All prospective donors shall be strongly urged to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences.

Cash Gifts

Gifts by check, cash, or credit card may be accepted by the Diocese regardless of amount.
Donors who are considering making a designated or restricted gift are encouraged to consult with the Diocese prior to placing such restrictions to insure that the Diocese is able to honor the intent of the donor.
Checks, whether for an unrestricted or restricted gift, shall be made payable to the Episcopal Diocese of Iowa. In no event shall a check be made payable to an individual who represents the Diocese or a church in any capacity.

Publicly Traded Securities

Readily marketable securities, such as those traded on a stock exchange, can be accepted by The Diocese.
The value of the gift of securities is the amount actually received upon sale.
A gift of securities to the Diocese will be liquidated as soon as administratively feasible.

Closely Held Securities

Non-publicly traded securities may be accepted after consultation with the Board or its designee.
The Board or its designee will explore methods for liquidation of the securities through redemption or sale prior to acceptance, and will try to determine:
a) An estimate of fair market value
b) Any restrictions on transfer
c) Whether and when an initial public offering might be anticipated
No commitment for repurchase of closely held securities shall be made prior to completion of the gift of the securities.

Real Estate

Any gift of real estate must be reviewed by the Board or its designee.
The donor is responsible for obtaining and paying for an appraisal of the property. The appraisal will be performed by an independent and professional agent.
The Diocese reserves the right to require a full environmental assessment of any potential real estate gift.
The property must be transferred to The Episcopal Diocese of Iowa prior to any formal offer or contract for purchase is made.
The donor may be asked to pay for all or a portion of the following:
a) Maintenance costs
b) Real estate taxes
c) Insurance
d) Real estate broker’s commission and other costs of sale
e) Appraisal costs
For gift crediting and accounting purposes, the value of the gift is the appraised value of the real estate. This value may be reduced, however, by the costs of maintenance, insurance, real estate taxes, broker’s commission and other expenses of sale.

Life Insurance

A gift of a life insurance policy must be referred to the Board or its designee.
The Diocese can be named a contingent beneficiary or the beneficiary of a percentage of a life insurance policy
The Board will accept ownership of a life insurance policy as a gift only if the Diocese is named as the owner and beneficiary of 100% of the policy.
If the gift is a paid-up policy, the value for gift crediting and accounting purposes is the policy’s replacement cost, normally a discounted present value of death benefit based on life expectancy.
If the policy is partially paid-up, the value for gift crediting and accounting purposes is the policy’s cash surrender value.

Tangible Personal Property

Any gift of tangible personal property shall be referred to the Board or its designee prior to acceptance.
Gifts of jewelry, artwork, collections, equipment and software shall be assessed for their value to the Diocese. Their value may be realized either by being sold or used in connection with the Diocese’s exempt purpose.
Depending upon the anticipated value of the gift, a qualified outside appraiser may be asked to determine its value.
The Diocese shall adhere to all IRS requirements relating to valuation and disposition of gifts of tangible personal property and will provide appropriate forms to the donor and IRS.

Deferred Gifts

The Diocese encourages deferred gifts in its favor through any of a variety of vehicles:
a) Charitable gift annuity (or deferred gift annuity)
b) Pooled income fund
c) Charitable remainder trust
d) Charitable lead trust
e) Bequest
f) Retained life estate
The Diocese (or its agent) shall not act as an executor (personal representative) for a donor’s estate. A member of the Diocese staff serving as personal representative for a member of the Diocese does so in a personal capacity and not as an agent of the Diocese.
The Diocese (or its agent) shall not act as trustee of any charitable remainder trust.
The Diocese may invite prospective donors to consider gift vehicles offered by The Episcopal Church Foundation (specifically, Charitable Remainder Trusts, Charitable Gift Annuities and the Pooled Income Fund).
When donors are provided planned gift illustrations or form documents, these will be provided free of charge. For any planned gift related documents, materials, illustrations, letters or other correspondence, the following disclaimer should be included:
The Diocese strongly urges you to consult with your attorney, financial and/or tax advisor to review this information provided to you without charge or obligation. This information in no way constitutes legal or financial advice.
All information obtained from or about donors/prospects shall be held in the strictest confidence by the Diocese staff and volunteers. Neither the name, the amount, nor the conditions of any gift shall be published without the express written or oral approval of the donor and/or beneficiary.
The Diocese will seek qualified professional counsel in the exploration and execution of all planned gift agreements. The Diocese recognizes the right of fair and just remuneration for professional services.

Compliance with IRS Requirements

Acknowledgement of Gifts: Acknowledgement of all gifts made to the Diocese and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of the Board. Reference IRS Publication 561 Determining the Value of Donated Property, IRS Publication 526 Charitable Contributions and IRS Publication 1771 Charitable Contributions - Substantiation and Disclosure Requirements.

Responsibility for IRS Filings upon sale of gift items: The Board and the Diocese are responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within two years of receipt by the Diocese where the charitable deduction value of the item was $5,000 or greater.

The Diocese must file this form within 125 days of the date of sale or disposition of the asset.