LAMAR EDUCATIONAL AWARDS FOUNDATION
GIFT ACCEPTANCE POLICIES AND GUIDELINES October 1, 2010
Lamar Educational Awards Foundation, a non- profit organization organized under the laws of the State of Texas, encourages the solicitation and acceptance of gifts to Lamar Educational Awards Foundation (hereinafter referred to as L.E.A.F.) for purposes that will help L.E.A.F. further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to L.E.A.F. or for the benefit of any of its programs.
The mission of L.E.A.F. is dedicated to securing and distributing resources to the students, staff and campuses of the Lamar Consolidated Independent School District that will supplement, enhance and enrich the quality of education.
The goals of our foundation are:
- To encourage creativity and innovation among employees, by supporting and providing resources for unique growth opportunities and teaching ideas.
- To encourage academic excellence by supporting and providing resources for programs for which funds are not available from federal, state, or local public sources.
- To create a perpetual source of resources that will ensure the long-term viability and success of the Lamar Educational Awards foundation.
- And to promote awareness and develop supportive relationship between the community and the school district.
I. Purpose of Policies and Guidelines
The Board of Directors of L.E.A.F. and its staff solicit current and deferred gifts from individuals,
corporations, and foundations to secure the future growth and missions of L.E.A.F.. These policies and guidelines govern the acceptance of gifts by L.E.A.F. and provide guidance to prospective donors and their advisors when making gifts to L.E.A.F. The provisions of these policies shall apply to all gifts received by the L.E.A.F. for any of its programs or services.
II. Use of Legal Counsel
L.E.A.F. shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for:
- Closely held stock transfers that are subject to restrictions or buy-sell agreements
- Documents naming the Lamar Educational Awards Foundation as Trustee
- Transactions with potential conflict of interest that may invoke IRS sanctions
- Other instances in which use of counsel is deemed appropriate by the Gift Acceptance Committee
III. Conflict of Interest
L.E.A.F. will urge all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences.
IV. Restrictions on Gifts
L.E.A.F. will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission, purposes, and priorities. L.E.A.F. will not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of L.E.A.F. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Gift Acceptance Committee of L.E.A.F.
V. The Gift Acceptance Committee
The gift acceptance committee shall consist of:
- The President of L.E.A.F
- The Treasurer of the L.E.A.F
- Two members of L.E.A.Fs Executive Board, appointed by the President
- Two members of L.E.A.F.™s Finance Committee, appointed by the President
- Such other members as appointed by the President of L.E.A.F.
- Ex-Officio members shall include the Executive Director and the Development Director of L.E.A.F.
The gift acceptance committee is charged with the responsibility of reviewing all gifts made to L.E.A.F., properly screening and accepting those gifts, and making recommendations to the Board on gift acceptance issues when appropriate.
- Amount of Gifts from the Lamar Educational Awards Foundation
Each fall L.E.A.F. will approve granting a minimum of 70% of L.E.A.F.™s net to fund grants only to the schools of Lamar CISD. Grants that score a 159 or higher on the grant score sheet, will be considered for funding. The remaining 30% of net funds will be invested by the Finance committee for additional gifting opportunities.
Policies Concerning Gift Acceptance
- Payment of commitments to L.E.A.F. may, in most circumstances, take the form of one or a combination of the following: cash, marketable securities, or real property that can be reasonably expected to be converted to cash within a reasonable time period (one to three years). Other forms of giving, such as irrevocable planned gifts, are acceptable and may offer qualified donors an attractive alternative, enabling them to significantly increase the level of their gifts, while taking advantage of meaningful commemorative or named gift opportunities.
- Commitments will be publicly recognized and/or commemorated consistent with the donor™s wishes and the guidelines approved by the Board of Directors.Requests by donors for anonymity will be honored.
- Permission to publicly recognize a donor and his/her gift will be assumed unless otherwise requested.
- Gifts will not be accepted where there is no charitable intent on the part of the donor.
- L.E.A.F. will pay no fees to any person in consideration of directing a gift or completing of a gift instrument to L.E.A.F.
- METHODS OF GIVING
- Cash Gifts: An outright gift of cash by a donor for which the donor receives an income tax deduction as prescribed by law. The valuation will be the amount of the cash. Note that pledging a gift of cash over a term of years may allow a donor to receive campaign credit for a more substantial gift while affording the donor an opportunity to adjust the timing and amount of each payment to achieve the most beneficial tax treatment.
- Appreciated Publicly Traded Securities: Outright stock or bond gifts which are (or will be) readily marketable. Marketable publicly traded securities will be receipted at the average of the high and low market value on the date the donor relinquishes control of the assets in favor of L.E.A.F. The deduction for outright gifts of appreciated long-term securities (held more than 12 months) is equal to the fair market value of the securities on the date the donor relinquishes control of the assets to L.E.A.F. None of the appreciation is taxable for capital gains purposes. Caution: Donors should not sell the stock. They should transfer it to L.E.A.F.to achieve the most advantageous treatment.
All contributions of appreciated publicly traded securities should take into account the following:
- In the case of the gift of or pledge payment in the form of marketable securities, the stocks will be sold immediately upon transfer of ownership and no less than 24 hours from the date and time of transfer.
- Any loss or gain in the value of the stock, resulting from the timing of the sale, will not be added or subtracted from the gift evaluation.
- It is understood that the donor, in transferring ownership of the stock, is making a charitable contribution and, as such, has no rights concerning the disposition, sale, or retention of any stocks given to L.E.A.F.
- Gifts of Closely Held Stock: An outright gift of stock from a private or family-held corporation. Gifts of closely held stock exceeding $10,000 will be receipted at the fair market value placed on them by a qualified independent appraiser as required by the IRS for valuing stock that is not publicly traded. Gifts of less than $10,000 may be valued at the per share cash purchase price of the most recent transaction. Normally, this will be the buy-back transaction of the donor. Any appraisal must take into account any encumbrance on the stock.Â Â Generally, gifts of closely held stock will be accepted only when conversion into cash within a five-year time frame is expected.
- Gifts of Real Estate: Almost any type of real property from personal or vacation homes and commercial buildings to farms or ranches and even undeveloped lots. The property may be donated outright, serve as the corpus of a trust arrangement or, if it is the donor™s personal residence, the donor and/or spouse may give the property with the right of lifetime tenancy. After transfer of titles, an immediate tax deduction is available and capital gains taxes may be avoided.
All property gifts received will be converted to cash at the earliest opportunity. Generally, property gifts will not be accepted byÂ L.E.A.F. where conversion to cash is not likely prior to five years unless the donor guarantees such a conversion.
Outright gifts of real estate, bargain sales, and/or partnerships will be credited, recognized, and/or commemorated at the fair market value at the time of transfer to the L.E.A.F.Complete transfer of ownership must occur.
- An independent, qualified appraiser paid by the donor shall determine the fair market value of the property.Â Â Appropriate environmental hazard appraisals are also required and paid for by the donor.
- Gifts of real property exceeding $5,000 in value shall be reported at the fair market value placed on them by an independent, expert appraiser at the time the donor relinquishes control in favor ofÂ L.E.A.F.Gifts of under $5,000 may be reported at the value declared by the donor.
- All real property gifts received by L.E.A.F. and disposed of within two years from the date of receipt will be duly reported to the IRS when required.
- Property encumbered by a mortgage or other indebtedness or cloud will not be accepted as a gift.
- Gifts of Tangible Personal Property and Gifts-In-Kind: Many types of new and used equipment, art works, antiques, etc. If L.E.A.F. uses a donated asset (for example a computer system), the donor is entitled to a charitable deduction equal to the fair market value of the asset as assessed by an independent appraisal.If L.E.A.F. does not use the donated asset, the charitable deduction is set at the donor™s cost basis in the property.
Outright gifts of tangible personal property, for which donors qualify for a charitable gift deduction under current IRS guidelines, will be credited, recognized, and/or commemorated at the appraised value of the property at the time it is transferred to L.E.A.F. Unless otherwise authorized, L.E.A.F.will seek to liquidate such assets in order to secure the cash and/or to invest such assets in ways consistent with the currently authorized investment strategies of L.E.A.F.
The following are general guidelines or consideration in connection with gifts of tangible personal property:
- Generally, L.E.A.F.™s acceptance of such gifts cannot involve significant additional expense for their present or future use, insurance, maintenance, or administration.
- Generally, L.E.A.F. cannot incur burdensome financial or other obligations, directly or indirectly.
- Gifts of personal property, such as land, houses, jewelry, paintings, sculptures, antiques, rare books, etc. exceeding $5,000 in value shall be reported at the fair market value placed on them by an independent, expert appraiser at the time the donor relinquishes control in favor of L.E.A.F. Gifts of under $5,000 may be reported at the value declared by the donor if deemed reasonable by the appropriate member of the L.E.A.F staff.
- All personal property gifts received by L.E.A.F and disposed of within two years from the date of receipt will be duly reported to the IRS when required.
- L.E.A.F will not accept gifts of tangible personal property, such as books, paintings, etc, if such gifts are made on the condition, understanding, or expectation that the gifted items will be loaned to the donor or to persons designated by the donor for life or for an extended period of time as determined by the donor.
- Any gift-in-kind that can be liquidated will be credited on an item-by-item basis. Gifts-in-kind of an undetermined value will be recorded at one dollar ($1.00) and acknowledged as received with no value stated.
- Service: Gifts of service are contributions of actual, billable service directly related to the business or profession of the provider. Gifts of services will be recognized at the level of actual expenses incurred but not to be paid. Evidence of a gift of service will be a voided or canceled invoice stating the date, type of service rendered, quantity cost, total cost, and amount to be contributed or forgiven.
- Irrevocable Planned Gifts: Gift annuities, charitable remainder trusts, and similar life income agreement commitments (whether administered by L.E.A.F or by others on behalf of L.E.A.F) will be credited, recognized and/or commemorated as follows:
- At the fair market value of the asset (on the date of transfer) being used to fund the life income agreement in the case of charitable remainder unitrusts, annuity trusts, and charitable gift annuities for donors age 70 and greater, and at the charitable remainder valued for donors younger than age 70.