Gift Acceptance Policy of The Human Impact
(A Non-Profit Corporation)
The Human Impact, a registered 501(c)(3) non-profit corporation organized under the laws of the State of Texas, encourages the solicitation and acceptance of gifts to The Human Impact (the “Organization”) for purposes that will help the Organization to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to the Organization or for the benefit of any of its programs.
Article I. Overview
1.1. Mission. The mission of the Organization is to befriend the homeless and bridge the relational divide between people who are homeless and people who are not for the purpose of mutual transformation, or any other mission that is consistent with our mandate set forth in the Organization’s corporate governing documents.
1.2. Purpose. The purpose of this Gift Acceptance Policy (this “Gift Policy”) is to uniformly treat donors and their gifts with full disclosure and provide guidelines for the acceptance and stewardship of gifts. The provisions of this Gift Policy apply to all gifts received by the Organization for any of its programs or services. Specific gifts are considered on their merits and final action is taken on those as authorized by the Organization’s Board of Directors.
1.3. Approval. The Board of Directors of the Organization, with an understanding of its mission and responsibilities, has established and approved this Gift Policy. This Gift Policy governs the acceptance of gifts by the Organization and provides guidance to current and prospective donors and their advisors when gifting to the Organization.
1.4. Administration. The Organization shall utilize this Gift Policy to assess and accept gifts. This Gift Policy is intended to serve as a guide and to allow for flexibility on a case-by-case basis to accommodate a proposed gift or a circumstance that is unique.
1.5. Use of Legal Counsel. The Organization shall seek the advice of legal counsel in matters relating to the acceptance of gifts when appropriate. Review by counsel is recommended for the following types of gifts: (a) closely held stock transfers that are subject to restrictions or buy-sell agreements; (b) documents naming the Organization as Trustee; (c) gifts involving contracts, such as bargain sales or other documents requiring the Organization to assume an obligation; (d) transactions with potential conflicts of interest that may invoke IRS sanctions; and (e) other instances in which use of counsel is deemed appropriate by the Board of Directors.
1.6. Donor Relations. The Organization 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. The Organization, and every employee or person interacting with donors in the gift planning process on behalf of the Organization shall adhere to and comply with the Model Standards of Practice for the Charitable Gift Planner, promulgated by the National Committee on Planned Giving.
1.7. Conflict of Interest.
(a) The Board of Directors of the Organization will assure itself that the Organization’s employees, contractors, and other personnel are circumspect in all dealings with donors in order to avoid even the appearance of any act of self-dealing. The Board of Directors will consider a transaction in which the employee has a “material financial interest” with a donor to be an act of self-dealing. In reviewing self-dealing transactions, the Board of Directors shall consider financial interest “material” to an employee if it is sufficient to create an appearance of a conflict. This determination will be made on a case-by-case basis.
(b) Without limiting the generality of the foregoing, the Board of Directors will examine all acts of self-dealing including, but not limited to, prohibition against personal benefit. Those individuals who normally engage in the solicitation of gifts on behalf of the Organization shall not personally benefit by way of commission, contract fees, salary, or other benefits from any donor in the performance of their duties on behalf of the Organization. For purposes hereof, the definition of individuals includes all employees, contractors, and other persons working for the Organization in any way, as well as associations, partnerships, corporations, or other enterprises in which a member of the Organization’s personnel holds a principal ownership interest.
ARTICLE II. GIFTS
2.1. Restrictions on Gifts. The Organization will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are not inconsistent with the Organization’s stated mission, purposes, and priorities. The Organization will not accept gifts that are too restrictive in purposes. 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 the purposes outside the mission of the Organization. The Board of Directors shall make all final decisions on the restrictive nature of a gift, and shall have the independent authority to decline proposed gifts that are too restrictive in purpose.
2.2. Gift Designations. The Organization records each gift according to the designation indicated by the donor. If specific restrictions are indicated and the donor’s restrictions cannot be followed, the gift will not be accepted. To designate a gift to a specific program of the Organization, a donor must submit written notification to the Board of Directors or its designee.
2.3. Unacceptable Gifts. The Organization reserves the right to refuse any gift that is not consistent with its mission. In addition to, and without limiting the generality of the foregoing, the following gifts will not be accepted by the Organization under any circumstances:
(a) Gifts that violate any federal, state, or local statute or ordinance;
(b) Gifts that contain unreasonable conditions (i.e., a lien or other encumbrance) or gifts of partial interests in property;
(c) Gifts that are made with the condition that the proceeds will be spent by the Organization for the personal benefit of a named individual; and
(d) Gifts that could expose the Organization to unreasonable or unnecessary liability.
2.4. Types of Gifts. The Organization accepts the following types of gifts: (a) cash; (b) bequests; (c) retirement plan beneficiary designations; (d) life insurance and life insurance beneficiary designations; (e) securities or qualified appreciated stock; (f) real estate; (g) tangible personal property; (h) charitable remainder trusts; and (i) charitable lead trusts.
2.5. Criteria for Gifts. The following criteria govern the Organization’s acceptance of each type of gift:
(a) Cash. Cash is acceptable in any form. All credit card donations are made online via our website. All checks shall be made payable to “The Human Impact” and shall be delivered to the Organization’s headquarters at 9540 Garland Road, Suite 381-398, Dallas, Texas 75218, or to such other address or addresses designated by the Organization from time to time.
(b) Bequests. Donors and supporters of the Organization will be encouraged to make bequests to the Organization through their wills and trusts. Such bequests will not be recorded as gifts to the Organization until such time as the gift is irrevocable and the Organization has knowledge of such bequest. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
(c) Retirement Plan Beneficiary Designations. Donors and supporters of the Organization will be encouraged to name the Organization as beneficiary of their retirement plans. Such designations will not be recorded as gifts to the Organization until such time as the gift is irrevocable and the Organization has knowledge of such designation. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
(d) Life Insurance. Donors and supporters of the Organization will be encouraged to name the Organization as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to the Organization until such time as the gift is irrevocable and the Organization has knowledge of such designation. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
(e) Securities. The Organization can accept both publicly traded securities and closely held securities.
(i) Publicly Traded Securities. Marketable securities may be transferred to an account maintained at one or more brokerage firms or trust companies, commercial banks or delivered physically with the transferor’s stock power attached. As a general rule, all marketable securities will be sold upon receipt unless otherwise directed by the Board of Directors. In some cases, applicable securities laws may restrict marketable securities. In such instance, the Board of Directors shall make the final determination on the acceptance of the restricted securities.
(ii) Closely Held Securities. Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in limited partnerships and limited liability companies or other ownership forms, can be accepted subject to the approval of the Board of Directors. However, gifts must be reviewed prior to acceptance to determine:
(A) There are no restrictions on the securities that would prevent the Organization from ultimately converting those assets to cash;
(B) The securities are marketable; and
(C) The securities will not generate any undesirable tax consequence for the Organization.
In addition to the foregoing, to be accepted, closely held securities must have a qualified appraisal performed by an independent professional appraiser, generally at the expense of the donor. If potential problems arise on initial review of the securities, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. Following advice by legal counsel, the Board of Directors shall make the final determination on the acceptance of closely held securities. Every effort will be made to sell closely held securities as quickly as possible. If not immediately marketable, the stock will be kept in the safe deposit box until they can be redeemed.
(f) Real Estate. Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. The real estate being gifted must be titled to the donor(s). When appropriate, a title binder shall be obtained by the Organization prior to the acceptance of the real property gift. The cost of this title binder shall generally be an expense of the donor. Prior to acceptance of real estate, the donor is requested to advise the Organization of any environmental issues that may be readily identified. The Organization may require an initial environmental review of the property to ensure that the property has no environmental damage. Environmental inspection forms will be provided upon request. The Organization’s Board of Directors may, at its own discretion, waive the environmental inspection requirement. In the event that the initial inspection reveals a potential problem, the Organization shall retain a qualified inspection firm to conduct an environmental audit. The cost of the environmental audit shall generally be an expense of the donor, although the Organization will consider such expense at the advice of the Board of Directors. Prior to acceptance of the real property, the gift shall be approved by the Board of Directors of the Organization and by the Organization’s legal counsel. The Board of Directors, at its discretion, may refuse any gift of real estate. Criteria for acceptance of the property shall include:
(i) Is the property useful for the purposes of the Organization?
(ii) Is the property marketable?
(iii) Are there any restrictions, reservations, easements, or other limitations associated with the property?
(iv) Are there any carrying costs, which may include insurance, property taxes, mortgages, or notes associated with the property?
(v) Does the environmental audit, if required, reflect that the property is not damaged?
(g) Tangible Personal Property. The Board of Directors will make the final determination on the acceptance of other tangible property gifts, and all such gifts shall be examined in light of the following criteria:
(i) Does the property fulfill the mission of the Organization?
(ii) Is the property marketable?
(iii) Are there any undue restrictions on the use, display, or sale of the property?
(iv) Are there any carrying costs for the property?
(v) Can the property be sold easily?
(vi) Are there any costs associated with transportation, storage, selling, maintenance, and repair for the property?
(h) Charitable Remainder Trusts. The Organization may accept designation as remainder beneficiary of a charitable remainder with the approval of the Board of Directors. The Organization will not accept appointment as trustee of a charitable remainder trust.
(i) Charitable Lead Trusts. The Organization may accept a designation as income beneficiary of a charitable lead trust. The Board of Directors will not accept an appointment as Trustee of a charitable lead trust.
2.6. Classification of Donations. A donor may establish any of the types of funds set forth in this Section 2.6 within the Organization. Exceptions to these types of funds can be made only by written consent of the Board of Directors.
(a) Unrestricted Funds. These funds are broadly discretionary to the Organization and are available to meet operating and program needs, as determined by the Board of Directors.
(b) Named Endowed Funds. These funds can be for a general or specific purpose at the request of the donor, or established as part of the Organization’s general endowment. A minimum gift of One Hundred Thousand and No/100 Dollars ($100,000.00) is required for the establishment of named funds.
(c) Donor Advised Funds. These funds are created and are broadly discretionary to the Board of Directors of the Organization, but the input and advice from donors is sought in the distribution of grants from the fund. In many cases, the Organization provides suggestions to donors on specific needs in the communities it serves. All suggestions from donors are investigated and the Organization adheres to all procedures developed by the Internal Revenue Service in regard to the administration of donor advised funds. A minimum gift of One Hundred Thousand and No/100 Dollars ($100,000.00) is required for establishing a donor-advised fund.
(d) Special Project Funds. These may include funds accepted for broad general purposes that enhance or support the Organization’s mission in some manner. In some cases, groups requesting the creation of Special Project Funds may not previously have had a formal affiliation with the Organization. The Board of Directors must approve all proposed Special Project Funds prior to acceptance of the gift and creation of the fund. If the Board of Directors approves such funds, the funds must operate strictly as component funds of the Organization. As such, all fundraising conducted for such funds must be under the direct control of the Organization. For example, in advance of any fundraising, all proposals for events or efforts to raise money for such funds must be put in writing and approved by the Board of Directors of the Organization. The Organization’s name must be clearly prominent in all funds as the sponsor of the effort, so that proper State and Federal solicitation guidelines can be clearly maintained. All invoices, payments for expenses, and receipts must be directed to the Organization. Raffles and rummages are not permitted in any form. Auctions will be reviewed by legal counsel for the Organization on a case-by-case basis to determine their appropriateness and tax-deductibility.
(e) Restricted Funds. These funds have a donor-placed restriction as to the purpose or timing of the use of the funds. Donors may restrict their contributions to the Organization in any number of ways - to fund programs, for example, or to assist persons living in a particular area (the state of Texas), or to fund applications for a particular type of help (rental assistance). However, donors may not, under any circumstances, request that their contribution be restricted to a specific individual named by the donor, or to a specific application for assistance visible on the Organization’s website. The Organization cannot accept contributions carrying either of these types of restrictions. Additionally, acceptance of all restricted funds will be conditioned up an agreement by the donor that should the purpose for which the funds are provided cease to exist, the Organization may re-designate the purpose of the fund, and the distributions therefrom, or release such restriction, provided that the fund shall continue to bear the name of the donor and that the amended use shall adhere as closely as possible to the donor’s original intent.
ARTICLE III: MISCELLANEOUS
3.1. Donor Acknowledgement. Acknowledgement of all gifts made to the Organization, and compliance with the current IRS requirements in acknowledgement of such gifts, shall be the responsibility of the Board of Directors.
3.2. Securing Appraisals and Legal Fees for Gifts. It will be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel for all gifts made to the Organization. The donor will pay all associated costs for the appraisal absent a prior arrangement with the Organization. The donor is also responsible for payment of all of his or her legal fees associated with the gift and/or any required appraisal thereof.
3.3. Confidentiality. Files, records, and mailing lists regarding all donors and donor prospects are maintained and controlled by the Organization. Written reports of interviews and solicitations will be maintained in the donor or donor prospect records. This information is confidential and is strictly for the use of the Organization’s Board of Directors and staff, subject to legally authorized and enforceable requests by government agencies and courts of competent jurisdiction. Use of this information shall be restricted to organizational purposes only; provided, however, that the donor has the right to review his or her donor fund files. Names of donors will not be provided by the Organization to other organizations, nor will any lists be sold or given to other organizations.
3.4. Anonymity. Requests for donor anonymity will be honored, and donors who wish to remain anonymous may do so with every confidence.
3.5. Responsibility for IRS Filings Upon Sale of Certain Donated Property. The Board of Directors is responsible for filings IRS Form 8282 upon the sale or disposition of any asset sold within three (3) years of receipt by the Organization when the charitable deduction value of the item is more than Five Thousand and No/100 Dollars ($5,000.00).
3.6. Changes to Gift Acceptance Policy. This Policy has been reviewed and accepted by the Board of Directors of the Organization. The Board of Directors of the Organization must approve any changes to, or deviations from, this Policy.