Gift Acceptance Polilcy
The following is the Nevada County Digital Media Center's Gift Acceptance Policy adopted June 7, 2011 in accordance with non-profit "best practices" and our IRS Form 1023 filing compliance.
Nevada County Digital Media Center (NCDMC)
GIFT ACCEPTANCE POLICY
Adopted June 7, 2011
Nevada County Digital Media Center (NCDMC), , a not-for-profit organization organized under the laws of the State of California and exempt as apublic charity under Section 501(c)(3) of the Internal Revenue Code, encourages the solicitation and acceptance of gifts for purposes that will assistNCDMC to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to NCDMC or for the benefit ofany of its programs.
I. Purpose of Policies and Guidelines
The Board of Directors of NCDMC and its Executive Director and staff solicit current and deferred gifts from individuals, corporations, andfoundations to secure the future growth and mission of NCDMC. It is the purpose of these Policies and Guidelines to govern the acceptanceof gifts (including grants) by NCDMC and to provide guidance to prospective donors and their advisors when making gifts toNCDMC. The provisions of these Policies shall apply to all gifts received by NCDMC for any of its programs or services.
II. Restrictions on Gifts
NCDMC will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are not inconsistent with its statedmission, purposes, and priorities. NCDMC may not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are thosethat violate the charitable trust of NCDMC, gifts that are accompanied by an improper economic benefit to the donor such as a gift that isconditioned on a commercial preference to the donor or affiliated company, or gifts that vest the donor with inappropriate control such as a giftthat requires NCDMC to hire a specific person or take some other unacceptable action. All final decisions on the restrictive nature of a gift,and its acceptance or refusal, shall be made by the Board of Directors.
III. Gift Vehicles
NCDMC will accept gifts through the following gift vehicles:
- Outright donations
- Testamentary bequests
- Charitable remainder trusts
- Charitable lead trusts
NCDMC does not offer the following gift vehicles:
- Charitable gift annuities
- Pooled income funds
NCDMC is authorized to accept the following assets, subject to these Policies and Guidelines
- Cash or Cash Equivalents Charitable: Acceptable.
- Pledge Agreements: Acceptable if payable only in assets listed herein.
- Publicly Traded Securities: Acceptable. NCDMC shall promptly sell any contributed securities in accordance with NCDMC's investment policies.
- Closely-Held Securities and Other Intangibles: Acceptable, with the exception that NCDMC shall not accept securities and other intangible assets which may not be sold, have no value, or may result in additional liability to NCDMC.
- Tangible Personal Property: Acceptable, subject to review by the Board of Directors. NCDMC shall not offer to value the contributedproperty. The donor shall sign a statementofownership and disclose any liens on the property. NCDMC will not accept any property subject to a restriction on NCDMC's ability touse,sell, or otherwise deal with the property as it deems necessary.
- Life Insurance: Acceptable. NCDMC may accept the gift of a life insurance policy, provided that NCDMC is the owner and the irrevocable beneficiary of the policy. Ifthe policy is not fully paid-up, the donor shall be encouraged to make annual gifts to NCDMC sufficient to cover additional premiums. NCDMC shall have theright to retain the life insurance policy, cash it in, or otherwise make use of its value.
- Real Estate: Not accepted at this time.
- In-Kind Gifts: Acceptable if approved by the Executive Director. In-kind contributions include gifts of supplies, equipment, services and the like which are beneficialto NCDMC. Costs incurred as a result of accepting the gift, such as transportation and storage, must be approved by the ExecutiveDirector. The CEO shall report all in-kind gifts to the Board.
V. Miscellaneous Provisions
A. Executive Director. Except as provided in Article II above, the Executive Director shall have discretion and authority to accept unrestricted gifts allowable under these Policies and Guidelines, of a value up to $100,000. As to restricted gifts, the Executive Director shall have discretionand authority to accept restricted gifts of a value up to $50,000. Gifts above those amounts may be accepted only by the Board ofDirectors.
B. Legal counsel. The Executive Director may seek the advice of legal counsel where appropriate and shall seek the advice of legal counselin all matters pertaining to the acceptance of a gift which may have adverse legal, ethical, or policy consequences toNCDMC. All prospective donors shall be urged to seek the assistance of personal legal and financial advisors in matters relating to theirgifts and the resulting tax and estate planning implications.
C. Securing appraisals and legal fees for gifts to NCDMC. NCDMC shall not appraise property. It shall be the responsibility of thedonor to secure an appraisal where required. NCDMC shall not pay the legal fees of the donor. The donor shall pay any fees forappraisals and legal advice required.
D. Valuation of gifts for development purposes. NCDMC shall record a gift received by NCDMC at its valuation for giftpurposes on the date of gift, following generally accepted accounting principles (GAAP).
E. Responsibility for IRS filings upon sale of gift items. NCDMC is responsible for filing IRS Form 8282 upon the saleor disposition of any asset sold by NCDMC within two years of receipt where the charitable deduction value of theitem was $5,000 or greater. NCDMC must file such form within 125 days of the date of sale or disposition of theasset.
F. Written acknowledgment. Written acknowledgment of all gifts made to NCDMC and compliance with the current IRS requirements inacknowledgement of such gifts shall be the responsibility of the Board of Directors.
Adopted by the NCDMC Board of Directors on June 7, 2011.