Guidelines
- The Non-Profit’s chairperson, executive director, authorized board of directors
(the “Board”), members, and staff, and in limited circumstances, designated volunteers, shall
have the authority to solicit and accept gifts on behalf of the Non-Profit in compliance with this
Policy. They shall comply with all federal, state, and local laws and regulations concerning the
solicitation and acceptance of gifts. - The Non-Profit’s acceptance of any gift is at the discretion of the Non-Profit. The
Non-Profit will not accept any gift:
(a) unless it can be used or expended consistent with the Non-Profit’s purpose
and mission; and
(b) if it may potentially jeopardize the Non-Profit’s tax-exempt status or
violate the Non-Profit’s policies, or federal, state, or local laws.
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- No irrevocable gift, whether outright or life-income in character, will be accepted
if under any reasonable set of circumstances the gift would jeopardize the donor’s financial
security. - The Board will review any gifts with restrictions and will not accept gifts with
restrictions that:
(a) would result in a violation of the Non-Profit’s certificate of incorporation
or loss of its tax-exempt status; or
(b) are otherwise found inappropriate or inadvisable.
Gift Types
- Cash. The Non-Profit will accept all unrestricted gifts of cash or cash equivalents,
regardless of amount. Checks or money orders must be made payable to the Non-Profit and may
not be made payable to any individual representing the Non-Profit. - In-Kind Gifts. The Non-Profit will accept, in its discretion, gifts of in-kind
services or goods, including tangible personal property, if they directly serve a need of the Non-
Profit. Otherwise, acceptance of an in-kind gift will be at the discretion of the Board.
The Non-Profit will generally accept unrestricted, tangible personal property if
determined to be in the best interest of the Non-Profit. Tangible personal property may include
art, furniture, jewelry, equipment, cars, boats, and any other personal item owned by a donor. In
deciding whether or not to accept tangible personal property, the Non-Profit will consider:
(a) the carrying costs for the property, including maintenance and repairs;
(b) the cost of insurance;
(c) storage and transportation costs; and
(d) the marketability and cost of selling the property. - Publicly Traded Securities. The Non-Profit will accept readily marketable
securities. Marketable securities are likely to be sold immediately by the Non-Profit. - Gifts Subject to Review. Certain other gifts subject to review by the Board before
acceptance include but are not limited to:
(a) Closely held securities, including interests in limited partnerships and
limited liability companies.
(b) Real property.
(c) Life insurance policies.
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(d) Life estate gifts, including charitable trusts. No review is necessary if the
Non-Profit is named a remainder beneficiary of a charitable remainder trust with no other
obligations.
(e) Annuities.
(f) Endowments.
(g) Restricted gifts, including cash or cash equivalents. Any gift not expressly
restricted by the donor will be deemed unrestricted.
(h) Gifts whose source or value is not transparent.
In conducting the review, the Board must consider any obligations created or
liabilities posed by the gift for the Non-Profit, including but not limited to:
(i) Marketability of the gift.
(j) Carrying costs.
(k) Appraisal costs.
(l) Ongoing fiduciary obligations.
(m) Environmental liabilities for gifts of real property, including under the
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of
1980.
(n) Issues with title.
(o) Reputational harm from accepting the gift.
(p) Restrictions on use of the gift, both imposed by the donor and legally,
such as conditions, covenants, easements, liens, or encumbrances.
Use of Legal Counsel
- Legal counsel shall be engaged where appropriate when the Non-Profit is
determining the acceptability of a gift. Review by counsel is recommended for:
(a) Gifts of securities subject to buy-sell agreements or other restrictions.
(b) Gifts involving contracts or other legal documents requiring the Non-
Profit to assume an obligation.
(c) Gifts naming the Non-Profit as a trustee or imposing a fiduciary
obligation.
(d) Gifts with potential conflicts of interest that are at risk for IRS sanctions.
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(e) Gifts of real estate.
(f) Gifts establishing an endowment fund.
(g) Other instances in which the Board deems the use of counsel appropriate.
- The Non-Profit will not provide advice about the tax or other treatment of gifts
and will encourage all prospective donors to seek guidance from their own legal counsel and
financial advisors relating to their gifts. Any legal counsel engaged by the Non-Profit is
employed by the Non-Profit and does not act on behalf of the donor.
Miscellaneous Provisions - Valuation of Gifts Other Than Cash and Publicly Traded Securities. Where
appraisals are needed to determine the value of the gift, the donor shall in most circumstances be
responsible for obtaining an independent appraisal. - Acknowledgment of Gifts. The Non-Profit will provide acknowledgments to
donors meeting the Internal Revenue Code’s substantiation requirements for property received by
the Non-Profit as a gift. This may include completing required tax forms where applicable, such
as Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes. The designated officer
of the Non-Profit shall be responsible for providing acknowledgments and completing necessary
forms. - IRS Filings. The designated officer of the Non-Profit shall be responsible for
completing all filings required by the IRS of the Non-Profit in connection with gifts received by
the Non-Profit. The Non-Profit is not responsible for completing any IRS filings required of the
donor. - Fees. The Non-Profit will not compensate, whether through commissions, finders’
fees, or other means, any third party for directing a gift or donor to the Non-Profit. - Periodic Review. To ensure the Non-Profit operates in a manner consistent with
its charitable purposes and does not engage in activities that could jeopardize its reputation or
tax-exempt status, the Board shall at least annually review this Policy. The review shall, at a
minimum, consider whether the guidelines should be amended:
(a) To reflect changes to the Non-Profit’s ability to accept or manage gifts,
including its financial status.
(b) To clarify any terms of this Policy.
Compliance and Acknowledgment
Compliance. All individuals subject to this Policy under Section 1 must
acknowledge that the individual has received, read, understood, and agrees to comply with this
Policy. Failure to comply may result in discipline or removal, up to and including termination of
employment or office.
[FORM OF]
Acknowledgment of Receipt of the Gift Acceptance Policy of the Lonnie Love Foundation.
I, _____, acknowledge that on ___, I received a copy of Gift
Acceptance Policy (the “Policy”) of The Lonnie Love Foundation (the “Non-Profit”) and that I
read it, understood it, and agree to comply with it. I understand that the Non-Profit has the
maximum discretion permitted by law to interpret, administer, change, modify, or delete this
Policy at any time with or without notice. No statement or representation by a supervisor or
manager or any other employee, whether oral or written, can supplement or modify this Policy.
Changes can be made only if approved in writing by the CEO of the Non-Profit. I also
understand that any delay or failure by the Non-Profit to enforce any policy or rule will not
constitute a waiver of the Non-Profit’s right to do so in the future. I understand that neither this
policy nor any other communication by management representatives or any other employee,
whether oral or written, is intended in any way to create a contract of employment.
For employees only: I understand that, unless I have a written employment agreement signed by
an authorized representative of the Non-Profit, I am employed at will and this Policy does not
modify my at-will employment status. If I have a written employment agreement signed by an
authorized representative of the Non-Profit and this Policy conflicts with the terms of my
employment agreement, I understand that the terms of my employment agreement will control.
Signature : _______________
Printed Name : ______________
Date : ___________________