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Gift Acceptance Policies

 

GIFT ACCEPTANCE POLICIES AND GUIDELINES

Approved on the 7^th day of December, 2007.

 

 

Turkish Philanthropy Funds ("TPF") is a Delaware non-stock corporation which exists exclusively for charitable, religious, educational and scientific purposes and encourages the solicitation and acceptance of gifts for purposes that will help TPF to further and fulfill its mission. 

 

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I.          Purpose of Policies and Guidelines

 

The Board of Directors of TPF and its staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of TPF.  These policies and guidelines govern the acceptance of gifts by TPF and provide guidance to prospective donors and their advisors when making gifts to TPF.  The provisions of these policies shall apply to all gifts received by TPF for any of its programs or services.

 

II.        Use of Legal Counsel

 

TPF shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate.  Review by counsel is recommended for:

 

a. Documents naming TPF as Trustee

b. Gifts involving contracts requiring TPF to assume an obligation

d. Transactions which involve a potential conflict of interest

e. Other instances in which use of counsel is deemed appropriate by the Gift Acceptance Committee

 

III.       Conflict of Interest

 

TPF 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

 

TPF 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.  TPF 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 TPF.  All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Gift Acceptance Committee.

 

V.        The Gift Acceptance Committee

 

The gift acceptance committee shall consist of:

 

            -           The President of TPF

            -           The Treasurer of TPF

            -           Such other members as appointed by the President of TPF

 

 

The gift acceptance committee is charged with the responsibility of reviewing all gifts made to TPF, properly screening and accepting those gifts, and making recommendations to the Board on gift acceptance issues when appropriate.

 

VI.       Types of Gifts

 

A. The following gifts are acceptable:

                        1.         Cash

                        2.         Tangible Personal Property

                        3.         Securities

                        4.         Real Estate

                        5.         Life Insurance

                        6.         Retirement Plan Beneficiary Designations

                        7.         Bequests

                        8.         Life Insurance Beneficiary Designations

 

B. The following criteria govern the acceptance of each gift form:

 

1.         Cash:  Cash is acceptable in any form.  Checks shall be made payable to "Turkish Philanthropy Funds" and shall be delivered to __Ozlenen Kalav, President & CEO_____ in TPF's administrative offices.

 

2.         Tangible Personal Property:  All other gifts of tangible personal property shall be examined in light of the following criteria:

 

§  Does the property fulfill the mission of TPF?

§  Is the property marketable?

§  Are there any undue restrictions on the use, display, or sale of the property?

§  Are there any carrying costs for the property?

 

The final determination on the acceptance of other tangible property gifts shall be made by the Gift Acceptance Committee of TPF.

 

3.         Securities:  TPF can accept both publicly traded securities and closely held securities.

 

            Publicly Traded Securities:  Marketable securities may be transferred to an account maintained at one or more brokerage firms or delivered physically with the transferor's signature or stock power attached.  As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the [Investment Committee].  In some cases marketable securities may be restricted by applicable securities laws; in such an instance the final determination on the acceptance of the restricted securities shall be made by the Gift Acceptance Committee of TPF.

 

            Closely Held Securities:  Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other ownership forms, can be accepted subject to the approval of the Gift Acceptance Committee of TPF.  However, gifts must be reviewed prior to acceptance to determine that:

 

§  there are no restrictions on the security that would prevent TPF from ultimately converting those assets to cash,

§  the security is marketable, and

§  the security will not generate any undesirable tax consequences for TPF.

 

If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift.  The final determination on the acceptance of closely held securities shall be made by the Gift Acceptance Committee of TPF and legal counsel when necessary.  Every effort will be made to sell non-marketable securities as quickly as possible.

 

4.         Real Estate:  Gifts of real estate may include developed property, undeveloped property, or gifts su bject to a prior life interest.  Prior to acceptance of real estate, TPF shall require an initial environmental review of the property to ensure that the property has no environmental damage.  In the event that the initial inspection reveals a potential problem, TPF 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.

 

            When appropriate, a title binder shall be obtained by the TPF 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 the real property, the gift shall be approved by the Gift Acceptance Committee of TPF and by TPF's legal counsel.  Criteria for acceptance of the property shall include:

 

§  Is the property useful for the pur poses of the TPF?

§  Is the property marketable?

§  Are there any restrictions, reservations, easements, or other limitations associated with the property?

§  Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property?

§  Does the environmental audit reflect that the property is not damaged?

 

5.         Life Insurance:  TPF must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift.  The gift is valued at its interpolated terminal reserve value, or cash surrender value, upon receipt.  If the donor contributes future premium payments, the TPF will include the entire amount of the additional premium payment as a gift in the year that it is made.

 

If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, the TPF may:

 

§  continue to pay the premiums,

§  convert the policy to paid up insurance, or

§  surrender the policy for its current cash value.

 

6.         Retirement Plan Beneficiary Designations:   Donors and supporters of TPF will be encouraged to name the TPF as beneficiary of their retirement plans.  Such designations will not be recorded as gifts to the TPF until such time as the gift is irrevocable.  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 become irrevocable.

 

7.         Bequests:  Donors and supporters of TPF will be encouraged to make bequests to the TPF under their wills and trusts.  Such bequests will not be recorded as gifts to the TPF until such time as the gift is irrevocable.  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.

 

8.         Life Insurance Beneficiary Designations:  Donors and supporters of TPF will be encouraged to name TPF as beneficiary or contingent beneficiary of their life insurance policies.  Such designations shall not be recorded as gifts to TPF until such time as the gift is irrevocable.  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.

 

VII.     Miscellaneous Provisions

 

A. Securing appraisals and legal fees for gifts to TPF:  It will be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel for all gifts made to TPF.

 

B. Valuation of gifts for development purposes:  TPF will record a gift received by TPF at its valuation for gift purposes on the date of the gift.

 

C. Responsibility for IRS Filings upon sale of gift items:  The Gift Acceptance Committee of TPF is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within two years of receipt by TPF when the charitable deduction value of the item is more than $5,000.  TPF must file this form within 125 days of the date of sale or disposition of the asset.  Form 8282 with Filing Instructions is attached as an appendix to these policies.

 

D. Acknowledgement of all gifts made to TPF and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of the Board of TPF.  IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions are attached to these policies as an Appendix.

 

VIII.    Changes to Gift Acceptance Policies

 

These policies and guidelines have been reviewed and accepted by the Gift Acceptance Committee of TPF.  The Gift Acceptance Committee of TPF must approve any changes to or deviations from these policies.