We Will Have General Issues and Concerns Here
INTRODUCTION
1. PURPOSE
This manual states the policy and procedures for accepting various types of non-cash gifts for First United Methodist Church. The policies have been established by the Board of Trustees of First United Methodist Church. They have been thoroughly reviewed by both and the Endowment Committee and the Finance Committee. Their purpose is to maximize the donor’s charitable intent, minimize undue risk to First United Methodist Church, clarify the administration of the planned gift program, and facilitate the gift acceptance process.
2. FORMAT
This manual subdivides the description of each gift vehicle into five areas:
- The marketing aspects of each gift are addressed so that promotional and advertising material composed by the First United Methodist Church staff will be consistent with the features of each gift and the benefits that accrue to the donor.
- The tax aspects of each gift are addressed so that First United Methodist Church staff and representatives can be knowledgeable about this information when negotiating with donors. First United Methodist Church staff and representatives who are not practicing attorneys should never give legal advice about the tax implications or consequences of a gift.
- The policy items relating to each gift are set forth to guide First United Methodist Church staff in the critical parts of administratively dealing with each gift. These policy items have been reviewed by both and the Endowment Committee and the Finance Committee and have been approved by the Board of Trustees.
- The procedural aspects of each gift are delineated to guide both donors and the organization through the setting of appropriate limits or strictures on certain types of gifts.
- The practical aspects for each gift are lifted up as a general guide to the practicality of
each gift so that First United Methodist Church staff may see and avoid problems that accrue to any particular gift.
3. USERS
The manual is intended as an internal document for First United Methodist Church , primarily to serve the needs of the Endowment Committee, the Pastor, the First United Methodist Church Board of Trustees, the Endowment Committee, and the administrative staff. It may also prove useful from time to time to program staff who may have a particular interest in the gift acceptance process or any of its tax consequences for donors.
GENERAL ACCEPTANCE POLICIES for FIRST UNITED METHODIST CHURCH
Note: Throughout this document the items marked (P) are specific policy items that need to be reviewed by and the Endowment Committee, the Finance Committee and should be approved by the First United Methodist Church Board of Trustees.
- (P) The acceptance and administration of planned and deferred gifts to First United Methodist Church will be governed by this document entitled Manual of Policy and Procedures for Non-Cash Gifts.
It is highly desirable that planned gifts coming to First United Methodist Church be used to fund endowment. This is to ensure that the capital assets of donors will come to benefit the capital assets of First United Methodist Church. This maintains the organization’s integrity when asking a donor prospect for long-term, capital assets gifts. Such practice also tends to free up donors’ cash contributions for use today, in operations or for capital expenditures, while the donor’s capital or estate assets are given to support the endowment.
- (P) All non-cash gifts to First United Methodist Church, and all cash gifts from the estates of donors to First United Methodist Church, unless specifically designated otherwise by the donor, will be placed in the First United Methodist Church Endowment Fund. Exceptions will be reviewed by the Pastor, and the Endowment Committee and approved by the Finance Committee.
- (P) All non-cash gifts to First United Methodist Church will be reviewed by the Pastor, and the Endowment Committee and will be approved by the Finance Committee.
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(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.
- (P) Proposed planned or deferred gifts, or legacies, will be coordinated with legal counsel for First United Methodist Church, to assure that acceptance, use and administration of each gift is compatible with the mission, operation and governance of First United Methodist Church.
- (P) Neither First United Methodist Church, nor any representative thereof, will pay any “finders fees” in any form to any individual, corporation or other entity in return for contact with or information about prospective donors living or dead whose gifts might benefit or are said to benefit First United Methodist Church or its Endowment Fund.
- (P) First United Methodist Church personnel will not draft gift documents. They may offer generic or educational sample wording for gifts as requested by donors or their agents.
- (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.
- (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).
- (P) Title to all gift property should be clear and unencumbered and properly documented with an acceptable Deed of Gift. If gift property is encumbered, such property must be reviewed by the Pastor, and the Endowment Committee and the Finance Committee will approve such property for acceptance.
- (P) Title to gift property should be transferred to ‘First United Methodist Church ’ which is the legal name of the corporation.
- (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.
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