YAA POLICY: GIFT ACCEPTANCE POLICY; PAGES A 1- 8;
APPROVED: NOVEMBER 15, 2011
YORK ART ASSOCIATION
Gift Acceptance Policies
The York Art Association (hereinafter “YAA”) is a central Pennsylvania nonprofit that provides monthly art exhibits, classes and other resources to celebrate the visual arts. YAA was formed in 1905 when three visual artists and several businessmen came together to exchange views and interests. Over one hundred years later, YAA has evolved into a vital organization with over 450 members. The primary objective of the YAA is to provide opportunities in South Central Pennsylvania and Northern Maryland for individuals to expand their artistic skills or simply explore creativity through classes, workshops, lectures, exhibits or publications.
As a 501(c)(3) non-profit organization, YAA relies upon charitable contributions, at least in part, to fulfill its mission. When soliciting or accepting gifts, YAA will represent its policies and mission and will disclose to donors important and relevant information. Every gift will be promptly acknowledged, and donors will be informed of how their gift will be used. However, if a donor’s contribution is not in compliance with federal and/or state laws relating to charitable contributions or fails to fulfill the mission of YAA, the contribution cannot be accepted. YAA will be available to partner with the donor’s professional advisor and/or the York County Community Foundation to facilitate any charitable gifts made to YAA, such as, but not limited to, charitable remainder trusts, charitable annuities, and life insurance policies.
The mission of the York Art Association is to encourage and develop interest in the visual arts. York Art Association will pursue adequate funding in order to provide opportunities for education through classes, workshops, lectures, exhibits and publications. YAA will also support and assist in marketing members’ work through exhibits and interaction within the community.
Purpose of Policies
These Gift Acceptance Policies (hereinafter “the Policies”) have been prepared to protect the interests of the donor, to preserve the intent for which gifts are donated, and to ensure sound financial management and stewardship of contributions to the endowment of YAA.
For the purpose of these Policies, the term “donation” or “gift” refers to an outright or deferred contribution from an individual or organization for which no return of services or goods are expected, implied, or forthcoming to the donor.
For the purpose of these Policies, the term “in-kind contribution” or “tangible gift” shall be defined as a gift other than cash.
All unrestricted gifts accepted in the name of YAA will be applied for use as designated by the Board of Directors of YAA, in its sole discretion.
Donor’s Use of Counsel
YAA does not function as a tax advisor or attorney. Therefore, donors are strongly encouraged to seek their own advisors for tax, legal, financial, and other advice concerning their gift.
YAA’s Use of Counsel
YAA reserves the right to seek outside legal advice prior to accepting any gift. Such situations would include, but are not limited to, accepting gifts governed by contracts or legal documents, gifts that may present a potential conflict of interest, or any gift in which YAA believes the use of counsel would be appropriate. In any event, YAA reserves the right to reject any gift.
Administration of gifts will be under the immediate direction of the Board of Directors of YAA. The Board of Directors is available to review proposed gifts that are not defined in these policies. After acceptance of a gift, stewardship of funds will ultimately be provided by the Board of Directors of YAA.
All gifts received will be reported to the YAA’s Board of Directors at their regularly scheduled meetings.
Spending and Fees Policy
YAA shall provide for distributions not to exceed 5% of the average market value of endowment funds over a twelve (12) quarter moving average. YAA shall assess, annually, an administrative fee not to exceed 2% for all funds it self-administers.
Restrictions on Gifts
Unrestricted gifts are gifts which are not directed to a specific use for the YAA or its operational purpose, and their use is not limited. All unrestricted gifts are applied to the endowment and used at the discretion of the Board of Directors for its mission and purpose.
Restricted gifts are gifts which have limited use(s) as directed by the donor. These restricted gifts shall be reviewed by the Board of Directors to determine that such restrictions are compatible with the YAA’s mission and purpose. Gifts that are counter to or beyond the scope of the YAA’s mission will not be accepted.
Charitable Bequests and Memorials are generally accepted as unrestricted gifts. If directed in the bequest or memorial that the gift is to benefit a specific fund of the YAA, the gift will be directed to the endowment of the YAA for its purpose and mission. If restricted, the charitable bequest or memorial would then follow the policies for Restricted Gifts.
Non-cash gifts will be reviewed by the Board of Directors, which shall provide the donor and YAA with direction and guidance regarding such gifts.
Deferred gifts are generally accepted; however, YAA shall accept no fiduciary responsibilities related to the administration of any deferred gifts. As such, in the event that it is so named, YAA reserves the right to appoint a successor or alternate trustee.
Gift Instrument Language
Gift instrument language shall include the following:
- The disposition of the gift if YAA cannot comply with the wishes of the donor.
- The disposition of the gift if YAA ceases to exist. In the absence of such language, the gift shall be used as designated by the York Art Association prior to its dissolution.
- The specific investment of the fund.
Types of Gifts
Gifts of Cash are accepted to support the mission of YAA unless the donor places restrictions on the gift. If restricted, the gift would then follow the policies for Restricted Gifts.
Publicly Traded Securities such as stocks, mutual funds, municipal and corporate bonds, and treasury bills and notes may be accepted by YAA. As a rule, all marketable securities will be sold upon receipt unless otherwise directed by the Board of Directors.
Life Insurance Policies are a simple way to make a significant gift to YAA and can be contributed in one of the following ways:
- A donor can purchase a policy naming YAA as the beneficiary.
- The cash value, not the face value, of a whole or universal life insurance policy can be donated to YAA.
- A donor can gift a policy to YAA, which then becomes the owner of the policy. If the policy requires continuing premium payments, the donor then makes annual donations in the amount of the annual premium costs to YAA, which then pays the premium. The donor then receives a tax deduction for the gift to YAA.
Real Estate gifts can include personal residences, rental properties, office buildings, land, and other structures. Before acceptance of this type of gift, YAA and the donor must have a written agreement regarding the payment of expenses associated with the gift. YAA shall require the following written documentation on the proposed gift by a qualified person or organization: an appraisal, a home inspection (if appropriate), and a title search on the property. YAA further reserves the right to decline a gift of real estate for any reason, including, but not limited to, evidence of environmental hazard, lack of marketability or need for structural, cosmetic or other remediation prior to sale. The final decision to accept or decline the gift will be made by the Board of Directors upon receipt and review of all required documentation.
Non-cash Gifts are subject to review by the Board of Directors. These gifts may include, but are not limited to, art, furniture, coin and stamp collections, jewelry, equipment, vehicles, and any other tangible personal property items. The Board of Directors may require the donor to obtain a bona fide appraisal or other documentation of fair market value acceptable to YAA.
Named funds can be established with a minimum initial basis of $25,000.00 or by way of a minimum aggregate gift of $25,000.00. As to an aggregate gift, upon request, a named fund can be established based upon an initial gift of $5,000.00 with a written commitment to provide an additional $5,000.00 per year, until the $25,000.00 limit is reached. While grants may not be made until the $25,000.00 limit is reached, the fund will be charged fees from its inception. If twenty-four (24) months pass without an annual $5,000.00 gift prior to reaching the $25,000.00 level, the entire fund balance will be retained by YAA. If the fair market value of the named fund falls below $25,000.00 at the time grants are made, no distribution or grant will be made from such fund in that year of grant-making.
Named funds include designated funds, donor-advised funds, and certain fields of interest funds. An attachment to the gift instrument, signed by the donor, shall indicate whether or not YAA possesses the permission of the donor to publicize the fund, as well as the monetary amount. One original copy of the gift instrument shall be provided to the donor; one original copy of the gift instrument shall be retained by YAA in a safe deposit box. A copy of the gift instrument shall also be retained with the office files.
YAA reports to both our donors and the Internal Revenue Service.
- A donor who gives any type of contribution will be promptly acknowledged and informed of how his/her gift will be used.
- A donor of a named fund, or a representative of that named fund, will receive an Annual Fund Statement.
- YAA will comply with all applicable IRS regulations.
YAA will follow the “Model Standards of Practice for the Charitable Gift Planner,” which is publicized by the National Committee on Planned Giving, when soliciting or accepting gifts. A copy of the aforesaid Standards of Practice is included in these policies as an addendum.
The Board of Directors will review the Gift Acceptance Policies periodically, as necessary, to determine if any amendments are necessary to reflect changes in the law, changes in the organization, or address new situations not previously addressed in the policies.
SAMPLE THANK YOU LETTER FOR UNRESTRICTED DONATIONS:
Your gift of the item(s) listed below will be used to support the work of the York Art Association. We greatly appreciated your donation of an unrestricted gift and intend to use it to further the mission of the YAA.
The York Art Association retains the right to refuse items for which we do not have adequate storage or the means with which to dispose of the items in a useful fashion.
Thank you for your support of the York Art Association’s mission to provide the encouragement and development of an interest in the visual arts in our community.
All contributions are tax deductible to the extent permitted by laws. You may assign a value for each item in the space provided below. It is understood that we have not provided you with any goods or services in exchange for this contribution. This contribution was received in the tax year 20__.
Please retain this document for your records.
The York Art Association
220 South Marshall Street
York, PA 17402
Item / Value
Received by: __________________________________
Signature of Donor: _______________________________________________________
SAMPLE THANK YOU LETTER FOR DONATION OF FUNDS
On behalf of the Board of Directors and members of the York Art Association, I would like to thank you for your generous gift of $_____ in memory of ___________. _______was a valued member of our organization, and he is fondly remembered by his many friends here. His participation and involvement helped to make the York Art Association a better organization.
We are grateful for your support of the mission of the York Art Association to encourage and develop interest in the visual arts, to provide opportunities for education through classroom instruction, workshops, lectures, exhibits and publications, and to support the work of our artists.
On behalf of all of us, I would like to thank you for helping to bring art to adults and children within our community and beyond.