Planned Gift Policies for Various Types of Gifts

We Have Gift Policies for Specific Types of Planned Gifts Here

SECTION ONE

CHARITABLE BEQUEST

  1. (P) First United Methodist Church staff, agents or representatives should not be named in a donor’s will or trust or to act in any official capacity such as witness, attorney-in-fact, executor, or trustee. Any exceptions should be approved in advance by the Pastor after complete disclosure of all attending circumstances and upon the advice and review of legal counsel for First United Methodist Church.

  2. (P) Documents such as releases, waivers and final accountings may require the signature of an First United Methodist Church representative. These should be reviewed by the in consultation with legal counsel for First United Methodist Church prior to being executed by the Pastor or another duly authorized First United Methodist Church representative.

  3. (P) Gifts of real property that come to First United Methodist Church as legacies will, prior to acceptance, undergo the procedures specified in Section Four of this Manual, entitled Gifts of Real Property.

  4. (P) All designations or restrictions on planned and deferred gifts proposed by donors, or otherwise coming to First United Methodist Church, must be reviewed by the Pastor, and the Endowment Committee and approved by the Finance Committee.

  5. (P) All donors will be encouraged to have the documentation pertinent to planned and deferred gifts they wish to make to First United Methodist Church either drawn up or reviewed by their own attorney.

  6. (P) First United Methodist Church will not hold gift property for more than two years simply to circumvent the Internal Revenue Service tax reporting requirements.

  7. (P) All non-cash gifts to First United Methodist Church will be immediately reviewed to determine if liquidation is appropriate. The Pastor, and the Endowment Committee and the will review the liquidation plan for such gifts, and the Finance Committee will give final approval of the liquidation plan. This includes gifts of real property, tangible personal property, intangible personal property and all non-cash financial property (securities of all natures).

SECTION TWO

OUTRIGHT GIFTS OF PERSONAL PROPERTY

  1. (P) The will recommend that a donor of personal property should comply with IRS Form 8283 reporting requirements for non-cash gifts. An authorized representative of First United Methodist Church will execute the donor acknowledgment section of Form 8283 and return it to the donor so that it may be filed with the donor’s federal income tax return.

  2. (P) The Pastor of First United Methodist Church, with the and the Director of Finance, will review and approve gift acceptance, compatibility, maintenance, storage and transportation costs for non-cash gifts of personal property prior to acceptance.

  3. (P) Legal counsel for First United Methodist Church will review proposed gifts of personal property for undisclosed contingent liabilities prior to acceptance.

  4. (P) First United Methodist Church will not accept a gift making it a principal in a joint venture or business activity in which it participates fully in the risks of operation, and has more than limited liability for the conduct of the business without the approval of the Finance Committee.

  5. (P) First United Methodist Church requires that all gifts of an interest in mining or oil and gas properties, and any other gift which First United Methodist Church deems appropriate, must be inspected by a properly licensed or certified professional as approved by First United Methodist Church. This is done as may be required to demonstrate due diligence and care in accepting the property as free from contamination. This should be documented properly for legal purposes and done in consultation with legal counsel for First United Methodist Church.

SECTION THREE

OUTRIGHT GIFTS OF REAL PROPERTY

  1. (P) The will recommend that a donor of real property should comply with IRS Form 8283 reporting requirements for non-cash gifts. An authorized representative of First United Methodist Church will execute the donor acknowledgment section of Form 8283 and return it to the donor so that it may be filed with the donor’s federal income tax return.

  2. (P) Legal counsel for First United Methodist Church will review proposed gifts of real property for undisclosed contingent liabilities prior to acceptance.

  3. (P) Generally, restrictions on gifts of real property will be discouraged. Restrictions must be considered by the appraiser for purposes of valuation and must be reviewed by the Pastor, and the Endowment Committee with approval being given by the Finance Committee.

  4. (P) First United Methodist Church must secure adequate insurance coverage for accepted gifts of real property while these gifts are held prior to liquidation.

  5. (P) Donors who propose gifts of real property to First United Methodist Church will be asked to provide to First United Methodist Church the following documents:
    1. A qualified appraisal, completed within six months of the date of transfer, which appraisal shall be the responsibility of the donor;
    2. Evidence of clear title plus a title search giving the history of ownership of the property;
    3. A CERCLA Phase I environment test of the property; (see Policy # 6 below)
    4. A copy of the current deed to the property;
    5. A statement that the property is free and clear of liens and encumbrances;
    6. A hold harmless agreement whereby First United Methodist Church is indemnified for liabilities occurring prior to the date of transfer.

  6. (P) First United Methodist Church staff or representatives negotiating a gift of real property with a donor will employ comprehensive environmental and financial checklists to ensure that appropriate due diligence is completed and documented. Checklists will accompany this section of the Planned Giving Policy and Procedures Manual for Non-Cash Gifts and will be updated from time to time as more appropriate checklists are devised or made available.

  7. (P) A current independent appraisal, survey and title documentation will be the responsibility of the donor. This will confirm the value and the ownership of the proposed gift of real property, unless a different arrangement is set forth in writing by the Pastor of First United Methodist Church after review by legal counsel for First United Methodist Church, and with the approval of the Finance Committee.
  8. (P) First United Methodist Church will not accept a gift making it a principal in a joint venture or business activity in which it participates fully in the risks of operation, and has more than limited liability for the conduct of the business without the approval of the Pastor and the Finance Committee.

SECTION FOUR

BARGAIN SALE

  1. (P) A bargain sale gift will be accepted only after review by the Pastor and the Endowment Committee and approval by the Finance Committee.

  2. (P) A letter of understanding outlining the terms and conditions of the gift, possible tax consequences and cautions regarding a subsequent sale of the property by First United Methodist Church, will be required before such a gift is approved.

SECTION FIVE

LIFE ESTATE AGREEMENT

  1. 1. (P) Gifts of life estate will not be encouraged except in circumstances that make such a gift highly advantageous to First United Methodist Church. This includes the ‘due diligence’ on environmental issues.

  2. (P) The minimum value of a gift of real property in which the donor retains a life estate is $200,000.

  3. (P) All the normal review and gift acceptance procedures for Outright Gifts of Real Property apply to gifts in which a life estate interest is retained. (See Section 4, Policy on acceptance of real property gifts.)

SECTION SIX

CHARITABLE GIFT ANNUITY

  1. (P) First United Methodist Church staff, volunteers, representatives or agents will not promote charitable gift annuities as investment vehicles or compare them to investment alternatives. The charitable gift annuity will be promoted as a gift vehicle that gives cash payments to a donor or others for life in return for a gift to First United Methodist Church.

  2. (P) The minimum that shall be required to establish a charitable gift annuity at First United Methodist Church is $5,000.

  3. (P) A gift annuity agreement funded with non-liquid assets (e.g. real estate or personal property) will not be encouraged.

  4. (P) First United Methodist Church will use charitable gift annuity rates that conform to the uniform gift annuity rates advised by the American Council on Gift Annuities. First United Methodist Church personnel will use standard computer software in computing gift annuity rates, tax deductions and remainders.

  5. (P) The assets from charitable gift annuities will be invested by First United Methodist Church in appropriate long-term investment vehicles (e.g. vehicles with objectives similar to those of endowment funds), and will pay annuitants or other income beneficiaries from these investments. First United Methodist Church will not use the assets of any charitable gift annuity until each gift annuity has completed its payout period.

  6. (P) Gift Annuity agreements at First United Methodist Church will be written for unrestricted gifts only. A donor may not designate specific programs of First United Methodist Church as recipients of annuity remainders.

  7. (P) The minimum age of an income beneficiary for a charitable gift annuity at First United Methodist Church will be 45 years. This applies both to present and deferred gift annuities.

  8. (P) Charitable Gift Annuity agreements will not be written at First United Methodist Church for annuities that span more than two generations. (e.g. donor, child, grandchild)

  9. (P) All the normal review and gift acceptance procedures for Outright Gifts of Real Property will apply to gift annuities. (See Section 4, Policy #5)

SECTION SEVEN

POOLED INCOME FUND

    1. (P) Until otherwise decided by the Finance Committee, First United Methodist Church will not actively pursue Pooled Income Fund contributions as a donor option.

SECTION EIGHT

Charitable Remainder
UNITRUST

    1. (P) A unitrust will be promoted as a gift vehicle that generates income payment and tax benefits for a donor. First United Methodist Church staff, volunteers, representatives or agents will not promote unitrusts as investment vehicles or compare them to investment alternatives.

    2. (P) First United Methodist Church will not act as trustee of a charitable remainder unitrust.

    3. (P) First United Methodist Church staff, volunteers, representatives and agents may provide generic, educational information about charitable remainder unitrusts, including sample calculations. They will refrain from writing documents or giving tax or legal advice. Final authority will rest with the donor’s tax advisor.

    4. (P) First United Methodist Church staff, volunteers, representatives and agents will attempt to work with donors who desire certain designations and restrictions on the use of residues coming to First United Methodist Church to help these restrictions or designations be truly beneficial to First United Methodist Church as an organization. Such restrictions and designations will be reviewed by the Pastor, the and and the Endowment Committee, with the Finance Committee giving approval for such restrictions or designations.

    5. (P) When informing donors prior to signing a charitable remainder trust, First United Methodist Church staff, volunteers, representatives or agents will suggest that trusts be funded with a minimum of $100,000 in assets at the time of creation of the trust.

    6. (P) First United Methodist Church staff, volunteers, representatives or agents will discourage donors from funding charitable remainder trusts with tangible personal property assets as the sole assets in the trust at inception.

    7. (P) First United Methodist Church staff, volunteers, representatives or agents will discourage donors from funding charitable remainder trusts with real property assets as the sole assets in the trust at inception.

     

SECTION NINE

Charitable Remainder
ANNUITY TRUST

    1. (P) An annuity trust will be promoted as a gift vehicle which generates income payment and tax benefits for a donor. First United Methodist Church staff, volunteers, representatives or agents will not promote annuity trusts as investment vehicles or compare them to investment alternatives.

     

    2. (P) The policies for CRUTs will also apply to CRATs, edited to reflect the difference in the name and type of trust vehicle.

     

SECTION TEN

Charitable
LEAD TRUST

    1. (P) The policies for CRATs and CRUTs will be also apply to CLTs with the appropriate editorial changes for this type of trust.

     

SECTION ELEVEN

LIFE INSURANCE

    1. (P) First United Methodist Church does not endorse any specific insurance product, agency or sales person, nor will it provide to donors lists of insurance agents or companies.

     

    2. (P) First United Methodist Church will not provide to any insurance agents or companies any lists of donors for any purpose whatever.

    3. (P) In the event a donor gives First United Methodist Church an insurance policy before all premiums are paid, or should the donor be or become unwilling or unable to continue premium payments on the policy, First United Methodist Church will negotiate an appropriate settlement with the insurance company.

     

### End of Policy Items on Various Gift Types ###

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This Website updated on 12/30/2001