A Gift Acceptance Policy helps church teams navigate complex and sometimes risky donor gifts. A policy helps you consider gifts that may or may not align with your mission, vision, and values. It can help you avoid potential legal and public relations issues, and it helps staff understand how to graciously turn down offers that could carry an unacceptable amount of risk.
The following Sample Gift Acceptance Policy can be used as a starting point for your ministry's policy, or you may use it to strengthen an existing policy. Work with a locally licensed attorney and CPA when developing your own policy or when making changes to an existing policy. This helps ensure you’re following state and federal laws.
[Name of Ministry]
[Date]
The information in this document identifies the ways [Name of Ministry] accepts gifts from donors (individual and corporate) and serves as a guideline for staff involved with accepting gifts, outside advisors who assist in the gift planning process, and donors wishing to make gifts to [Name of Ministry].
This document provides both a process for gift acceptance and guidance to prospective donors and their advisors. The provisions apply to all gifts received by [Name of Ministry] for any of its initiatives, programs, and services.
[Name of Ministry] may decline any gift or pledge that in any way compromises its reputation, that poses an undue risk, or that does not serve its mission.
Our church is dedicated to the highest ethical standards when soliciting and accepting gifts. In keeping with this commitment, our church will adhere to the following specific principles:
“Controversial gift” means a gift that includes or could be construed to include assets generated by a business enterprise this is not missionally aligned or could create reputational harm to the ministry.
Unless subject to an agreement between [Name of Ministry] and the donor to restrict the gift for a specific purpose, all gifts will be considered unrestricted and may be used for such purposes as the organization determines to be most appropriate.
[Name of Ministry] may elect to decline a current or planned gift if the donor’s intent or focus is beyond the scope of the church's mission and/or is not consistent with the church's funding priorities, or if any restriction would make the gift difficult or impossible to administer.
[Name of Ministry] will generally accept the following gifts:
Gifts of property, other than publicly traded securities, must be accompanied by an appraisal if the estimated value exceeds $5,000 and IRS Form 8283 for [Name of Ministry] to sign. A qualified independent appraiser, who cannot be associated with [Name of Ministry] or with any of its leadership, including the Board, or with the donor or donor’s family or business, must provide the appraisal. When the gift funds a specific recognition opportunity, donors agree to make up any shortfalls upon conversion to cash and the level of recognition the donation requires.
NOTE: All valuations should be based upon IRS Rules & Regulations in effect at the time of the gift.
[Name of Ministry] will accept gifts in the form of cash, check, or credit card, or other electronic transfer mechanisms, regardless of the amount. Checks shall only be made payable to [Name of Ministry].
A pledge can be made to [Name of Ministry] by an individual, corporation, or foundation. Pledges may be made in single or multiple installments. Gifts intended to be made over several years should be evidenced in writing, together with a written timetable acknowledging how and when the donor intends to make the gift.
[Name of Ministry] encourages and welcomes estate and planned gifts. In working with donors who have an interest in a planned giving vehicle, [Name of Ministry] may use a planned giving consultant for advice, direction, and help in preparing the necessary samples and proposals to encourage the donor to make the gift or facilitate the transfer process.
Donors should engage their own advisors and legal counsel to ensure the vehicle matches their personal, estate, and philanthropic intent. Donors who choose to honor [Name of Ministry] in this way may be recognized through [Name of Ministry]’s planned giving recognition publications and events.
Bequests of all kinds (fixed or percentage, residual, contingent, or testamentary trusts) are welcome, though [Name of Ministry] may decline gifts from the estates of deceased donors if the gift is not acceptable for any reason. [Name of Ministry] will not act as an executor or personal representative of a donor’s estate.
[Name of Ministry] accepts the following planned gifts:
[Name of Ministry] encourages gifts of qualified retirement plan assets. Examples of such a plan might be an individual retirement account (IRA), 401(k), 403(b), simplified employer pension plan (SEP), or a profit-sharing plan.
Current law permits a direct tax-free transfer from a qualified IRA to a qualified charity for up to $100,000 each year by anyone over age 70 ½. [Name of Ministry] encourages such gifts. If the gift is unrestricted and intended for annual support, the donor will receive [Name of Ministry] Fund recognition for the gift even though the donor receives no income tax deduction for the transfer. If the donor is age 72, he or she also may not have to recognize the distribution as taxable income and is credited to the donor in lieu of a Required Minimum Distribution. Refer to Internal Revenue Service publication 590-B for specific information about qualified charitable distributions from IRAs.
[Name of Ministry] encourages gifts from a Donor Advised Fund (DAF). A donor advised fund is a separately identified fund or account that is maintained and operated by [Name of Ministry]. Each account fund is composed of contributions made by individual donors. Once the donor makes the contribution, [Name of Ministry] has legal control over it. However, the donor, or the donor's representative, retains advisory privileges with respect to the distribution of funds and the investment of assets in the account. Since the donor received an income tax deduction for the initial transfer to the DAF, he/she receives no further tax deduction for the transfer to [Name of Ministry], but will receive [Name of Ministry] “acknowledgement” in the Annual reports.
[Name of Ministry] accepts gifts of publicly traded stock. Such gifts should be subject to due diligence, and a plan of liquidation should be carefully considered (although [Name of Ministry] refrains from obligating itself to liquidate the stock in a specific way prior to acceptance.
In most instances, [Name of Ministry] will instruct its broker immediately to sell gifts of marketable securities. Exceptions may be made when the security in question is traded thinly and/or when an untimely sale of stock in bulk might adversely affect the price.
Non-publicly traded securities and other properties should be liquidated at the earliest possible time, keeping in mind market impact as well as other conditions and circumstances relating to such gift. [Name of Ministry] can also hold privately held securities for a period of time as an investment if the [Name of Ministry]’s investment counsel recommends. The staff of [Name of Ministry], shall have the ultimate responsibility for instructing its broker to liquidate such assets.
[Name of Ministry] also recognizes that transferring mutual fund shares is a more complicated process than transferring publicly traded stock, and, therefore, will generally only accept gifts of mutual fund shares that exceed $5,000 in value.
[Name of Ministry] will consider gifts of real property, both improved and unimproved (e.g., detached single-family residences, vacation homes, condominiums, apartment buildings, rental property, commercial property, farms, acreage, etc.), only after a thorough review as set forth below. These guidelines apply only to gifts of real estate located in the United States. [Name of Ministry] may consider such gifts located abroad under special circumstances, recognizing that the legal parameters for transferring and owning real estate in countries other than the United States vary considerably.
Prior to accepting a gift of real estate, a representative of [Name of Ministry] will physically visit and inspect the property. This visit may also include consulting real estate professionals familiar with and knowledgeable about the property in question and the real estate market in the area in which the property is located.
Prior to accepting a gift of real estate, [Name of Ministry] will conduct an analysis of the gift transaction with outside professionals, including real estate counsel. The analysis should include the costs of insuring, maintaining, and liquidating the property, as well as the potential revenue stream or sale proceeds derived from the property. This analysis should also determine the maximum exposure [Name of Ministry] might incur and the level of risk that is associated with the receipt, ownership, and eventual sale of the property.
Under normal circumstances, [Name of School] will not accept outright gifts of real property with a present fair market value of less than $100,000.
[Name of Ministry] may choose to accept gifts-in-kind after a review determines that the school can sell the property or use the property to support its education or research. If [Name of Ministry] sells or disposes of the property within three years of receiving the gift, the school will file IRS Form 8282 and send a copy to the donor.
The information provided in this article is intended to be helpful, but it does not constitute legal advice and is not a substitute for the advice from a licensed attorney in your area. We strongly encourage you to regularly consult with a local attorney as part of your risk management program.
