GIFT ACCEPTANCE POLICY
Trustees of the Wellesley Free Library appreciate and welcome offers of gifts, donations, and bequests. In accepting or declining any such gift, the Board as a public entity, must al all times make decisions that are in the best interest of both the Library and the community that it serves.
The acceptance of gifts does not constitute or imply endorsement by the Trustees of any service, product or business of the donor. Publicity given to such gifts or donations must not be of the donor's services or products.
Introduction
The following policies have been developed to insure:
- complete and accurate recording of gifts and pledges
- compliance with IRS regulations and acceptable business practices
- guidance for persons involved in gift solicitation, recording, and management
- equity and fairness for the purpose of donor gift recognition and stewardship
These policies apply to all parts of the WFL, including all entities under its auspices, such as support 501(c)3 funds. These policies will be reviewed regularly to insure compliance with new IRS regulations, accounting standards, or other issues as needed or appropriate.
Gift Acceptance Authority
A Development Committee will represent the Library to review questions about specific interpretation of Library gift policies and to review gifts of $250,000 or more for formal approval. The Committee will include two representations from the Library Trustees, the Library Director, and the Director of Development. In addition, the following authorizations will be observed:
- Gift records at the WFL will be kept confidential to the extent permitted by law. Donor information is released only with the authorization of the Director of Development or his/her designated representation.
- No solicitation of funds may be undertaken by any party on behalf of the WFL without the prior approval of the Library Trustees. The Development Committee may then allow or disallow a solicitation or fundraising project based on the Library fundraising priorities.
- It is the responsibility of any supporting 501(c)3 fund representatives to being any problematic gift to the attention of the Director of Development, who will assist in resolving the issue, or forward it to the Development Committee for final resolution.
Gift Acceptance Terms
Gifts accepted by the Trustees come under the full control of the Trustees, and will be accepted only if they:
- are appropriate to the mission and needs of the Library
- are unrestricted or, if restricted, given in reasonable broad and flexible terms to maximize the usefulness to the Library
- are irrevocable
- impose no undue financial burdens on the Library
- permit the WFL to apply the gift to a related purpose in the event that the designated purpose is no longer practical, necessary, or able to be performed.
Pledges should be paid within three years. Pledges not fulfilled within the specified period of time must be reviewed by the Development Committee for appropriate action, which may include withdrawal of attached naming rights.
Gift Acceptance Process
All gifts to the WFL require written documentation and applicable supporting documentation (such as excerpts from completed wills, bequest intention forms, irrevocable trust agreements, etc.) in order to be counted toward Library fundraising goals.
Gifts of $10,000 or more, or that have a capital naming attached also require a signed Donor Recognition Agreement.
Gifts may be recognized by their value in the following ways:
- for tax purposes
- for counting toward Library fundraising goals
- for gift societies, plaques, etc.
Gift Valuation and Vehicles
The following represent common vehicles for giving. Additional vehicles will be considered by the Development Committee on an as needed basis.
- Publicly Traded Securities: The Library will accept marketable securities as outside gifts or payments toward pledges or life income gifts. Such gifts will be valued at the mean market value on the date of the gift, in accordance with IRS regulations.
- Tangible Property/Gifts In-Kind: Acceptance of specific materials donated to the library will be considered for addition to the collection if appropriate. Trustees reserve the right to retain or dispose of any accepted materials as they deem appropriate.
It is the responsibility of the donor to secure independent expert appraisals to establish tax deductible values for non-monetary gifts. The WFL, as donee, is not regarded as "independent" by the IRS, and therefore maintains a policy of not paying for appraisals. Tangible property gifts may be counted toward fundraising goals, but not used as a vehicle for pledge payments.
- Gifts of Insurance: Insurance policies may be gifted if the Library is assigned as irrevocable beneficiary and owner. Such gifts will be counted toward fundraising goals and recognized at full value if the donor is at least 80 years of age. Bequests from donors less than 80 years of will be recognized for the gift valued according to the donor's actuarial life expectancy.
- Charitable Remainder Trusts: The establishment of such an irrevocable trust for the benefit of the WFL will be credited at the fair market value of the assets received, though reflected in financial reports at face value. Terms about the valuation, income flow from, or the control of the trust must be resolved by the Development Committee. Minimum gifts required are $10,000 for pooled income funds or annuities; $50,000 for trusts managed by the Library
- Charitable Lead Trusts: For lead trusts that extend five years or less, the face value may be reported; for charitable lead trusts that extend beyond five years, amounts beyond the five years may be valued both at remaining face value (for recognition of the donor) and at discounted present value of the remaining income stream (to permit cash-flow projections).
- Bequests: Newly established bequests will be counted toward fundraising goals and recognized at full value if the donor is at least 80 years of age. Intended bequests from donors less then 80 years of age will be recognized for the gift valued according to the donor actuarial life expectancy.
- Endowments: The minimum dollar amount required to establish an endowed fund is $50,000. Preauthorized endowments and naming opportunities are identified on an ongoing basis and listed in the "Naming Opportunities" document within the Development Office.
If the commitment does not reach the specified level and the fund in question is not fully endowed; the fund may become part of the Library endowment, and used for purposes as close to donor's intent as possible.
- Memorial Funds: Memorial Funds are the summation of several gifts from individuals that are designated for a collective memorials.
Gifts received in memory of an individual will be designated as unrestricted and placed in a collective fund. If in two months time the fund amounts to a minimum of $1,000, the honoree's name will be listed on a collective memorial plaque. If the fund does not meet the minimum, a memorial bookplate will be placed in books selected by the Library Director.
11/6/2006
Development Definitions
| Annual Fund |
The organized effort to obtain primarily unrestricted gifts on a yearly
basis for the fiscal year in which they are received. Appeals conducted
by supporting entities are all components of the overall Wellesley Free
Library Annual Fund.
|
Bequest
|
a deferred gift through an estate or trust. |
| Discretionary Gift |
An unrestricted gift made to the Library to be used at "the discretion"
of a specified individual such as the Library Director or Trustees.
|
| Endowment |
a permanent fund established in response to an irrevocable contribution
of assets with a minimum of $50,000. The fund principal is invested "in
perpetuity" and a portion of the earnings, based on the spending policy
approved by the WFL TRustees, is directed to support Library needs.
|
| Gift |
A voluntary, irrevocable transfer of cash or other assets to a beneficiary
without consideration of compensation at the time of transfer or any time in the future.
|
| Gift-in-Kind |
An irrevocable non-cash contribution of tangible property. It may consist of, but is not
limited to, equipment, art, books, etc.
|
| Grant |
An allocation of assets to the beneficiary from a foundation, corporation or non-federal
government agency. A grant is delineated by a format agreement between the
beneficiary and the donor for a specific purpose, defined period of time, and usually
subject to reporting requirements.
|
| Major Gift |
A gift of $25,000 or more from an individual, organization or foundation.
|
| Matching Gift |
A third party gift made based on a prescribed ratio of a donor's gift to a nonprofit organization. Matches may be counted toward gift society membership if received within the fiscal year in which the individual's qualifying gift is
received.
|
| Planned Gift |
A Deferred gift commitment established legally during the donor's lifetime, but with principal benefits extending to the
charitable recipient until some future time.
|
| Pledge |
A signed and dated commitment to fund a gift over a specified period, generally two or more years, payable
according to terms agreed to between the donor and the Library.
|
| Restricted Gift |
A gift made with conditions imposed by the donor, but consistent with library fund raising priorities; such a gift may
be for current, endowment, or capital use.
|
| Unrestricted Gift |
A gift made for general purposes with no donor conditions imposed.
|
| Designation Pending |
A temporary fund or state for a gift while discussions continue with the donor to determine the purpose for which the gift may be used. Such a gift may be designated within two years or revert to use for general unrestricted purposes.
|
| |
