Gift Acceptance Policy
The purpose of this policy is to provide guidance to donors, staff, volunteers and the general public so as to facilitate the gift giving process.
Policy Statement
The LightHouse for the Blind and Visually Impaired (LightHouse) strongly encourages the solicitation and acceptance of gifts. Gifts of support enable it to achieve its mission. Such gifts are essential to the organization’s health and its achieving its programmatic goals. The purpose of this policy is to provide guidance to the donors, staff, volunteers and the general public so as to facilitate the gift giving process. The LightHouse reserves the right to refuse any gift that requires it to act in a manner not in accordance with its mission. The LightHouse is also unable to accept gifts that are deemed too restrictive in nature. The LightHouse will not accept gifts, which involve unlawful discrimination based upon race, religion, gender, sexual orientation, age, disability, color or national origin or that are in any other basis prohibited by federal, state, and local laws.
Responsibility to Donors
The LightHouse is committed to a relationship with its donors based on the highest ethical standard. This involves treating all transactions with donors with strict confidence. The LightHouse has adopted the Donors Bill of Rights of the Association of Fundraising Professionals as official policy. The LightHouse has also adopted practices that conform to general nonprofit industry standards. Donors are always strongly encouraged to discuss gifts with their financial advisors. Donors are acknowledged for their contributions and the LightHouse offers recognition to the donor in its annual report and through recognition vehicles such as plaques. The responsibility for the acceptance, approval or negotiation of any gift lies with the Executive Director as authorized by the Board of Directors’ adoption of this policy.
The LightHouse Accepts the Following Types of Gifts
Outright gifts: The donor makes these gifts for the LightHouse’s immediate disposal with no retained interest. These gifts are accepted in the form of cash, personal checks, money orders, credit card transactions, gifts by payroll deduction, matching gifts, gifts of securities, tangible personal property, real estate, and other assets. The most desirable gifts are those without restrictions.
Restricted gifts: The donor makes these gifts in support of a particular program, specialized group, or named cause. The LightHouse respects a donor’s desire to support particular programs and the donor can place restrictions on gifts to meet this desire. Should the restriction on a gift be such that it limits the LightHouse’s ability to provide services in accordance with its mission, or if the restriction involves funding a need the LightHouse feels does not exist, we will discuss this with the donor and such gifts may be refused.
Gifts can be made to existing funds or endowments. If a donor wishes to create a named endowment fund the minimum gift is $10,000. If the LightHouse cannot use the funds in the strict compliance with donor’s wish, it has discretion in how the funds will be used as long as the donor’s restrictions are adhered to in principal.
Forms of Gifts - Current
Cash: The LightHouse accepts cash, checks, money orders, and gifts made through credit cards.
Marketable securities: The LightHouse accepts gifts of publicly traded stocks and bonds. The value of these gifts is the market value at the time of the gift. It is the policy of the LightHouse to convert gifts of stock and bonds to cash as soon as it is possible.
Stock in privately owned companies: The LightHouse requires approval by its Board of Directors before acceptance of this stock. When the LightHouse decides to sell this type of stock, the Board should consider obtaining a qualified, independent appraisal on such stock for the purposes of determining the sale price.
Limited partnership interests: The LightHouse will approach the acceptance of gifts of limited partnership interests with caution. A determining factor might be a regular cash distribution from the partnership. The LightHouse will insist on the ability to sell the interest at some point.
Real property: Although it is preferable for gifts of real property to be converted to cash by the donor, often it is in the donors interest to give such gifts intact. Gifts of real property may be accepted based on the outcome of a property analysis, including physical condition, likelihood of sale and current market analysis of value. A Phase I environmental report or similar study is required upon the donation of all commercial property. In some cases the cost of a Phase I report may be borne by the LightHouse. In addition, all donors of residential property shall be required to confirm or provide satisfactory evidence to the LightHouse that no known domestic environmental hazards exist at the subject property. Property subject to a mortgage will only be considered if sufficient equity exists. Gifts of real property are accepted with the understanding that the property will be sold as soon as possible. Until the sale is complete, the donor may be asked to provide a cash gift to provide for obligations such as taxes and insurance. Donation of commercial property occupied by a tenant will be reviewed on a case by case basis and acceptance will be contingent on the donation being in the best interest of the LightHouse and the donor as determined by the LightHouse Board of Directors.
Tangible personal property: Gifts of tangible personal property (jewelry, art, collections, equipment, etc) with a substantial value must be saleable and the donor must agree the property can be sold. In some instances IRS regulations might require at least one qualified appraisal by an independent professional. In some instances, the donor will be asked to make a cash gift to cover storage, transportation, insurance, repair and selling costs. Commissions on the sale of tangible personal property by an auction house will be taken from the proceeds of the sale and donors will not be asked to reimburse those costs. Gifts of used personal property with a value less than $500 are only accepted if they can be used for vision loss rehabilitation, can be given to a client with vision loss or if they appear on the “wish list” of a particular LightHouse program. In all instances, gifts of tangible personal property will be accepted on a case by case basis.
Automobile donations: The LightHouse participates in a car donation program with a third party service. The service takes on the responsibility of receiving and selling all donated vehicles and gives a portion of the sales proceeds less expenses to the LightHouse. The LightHouse does not directly accept donated automobiles, boats, motorcycles, trucks or like vehicles.
In-kind gifts: In-kind gifts are products and/or services given in lieu of cash. They are often confused with gifts of tangible personal property. The difference is that an in-kind gift is of a product that would otherwise have been purchased by the organization. A number of factors impact this type of gift and the LightHouse does not accept unsolicited in-kind gifts except in the rarest of circumstances.
Pledges: Pledges may be accepted if in writing and if paid within five years. Only the Executive Director in consultation with the Board of Directors can make the acceptance of a pledge.
Oil and mineral interests: (see this section under Forms of gifts – planned)
Forms of Gifts – Planned
Bequests: Gifts of cash, marketable securities, real property, tangible personal property and the like as part of an estate are encouraged as long as it is understood these gifts must fall within LightHouse policies and guidelines as to being mission related and free of discriminatory restrictions.
Life insurance: The LightHouse will accept life insurance if it is named as the beneficiary or if the LightHouse is both the irrevocable owner and beneficiary. Life insurance policies that are not fully paid are accepted on a case-by-case basis.
Charitable remainder trusts: The LightHouse will accept remainder interest in a charitable remainder trust. The LightHouse does not serve as trustee, and utilizes the services of a commercial trust company. The donor is advised to seek the advice of their legal and financial advisors.
Oil and mineral interests: These gifts are not accepted as current gifts, but may be accepted as part of a bequest of real property.
Gifts of partial interests: The LightHouse will accept gifts of partial interests, i.e. when the LightHouse shares property with another beneficiary, as long as it is understood these gifts must fall within LightHouse policies and guidelines as to being mission related and free of discriminatory restrictions. It should be understood that it is the LightHouse’s general intent to liquidate its interest as soon as it is practical.
The ultimate decision on these policies and on the acceptance of any gift outside of these policies rests with the Executive Director of the LightHouse for the Blind and Visually Impaired in consultation with the Board of Directors. In certain instances consultation with LightHouse legal counsel may occur.
Revised 10/17/2002
