Thank you, Karen, for informing us of the charitable contracts. The days of “Take my money and do with it what you want” are fortunately behind us. Our charities do so much more when we have real partnerships with donors, because they have so much more to offer us than just their financial support. However, this more engaged relationship requires us to carefully review and document what the donor expects and for the charity to be engaged. Gift agreements, often referred to as declarations of intent, serve explicitly to achieve both objectives. Philanthropy Works published an article on entry with a gift agreement geared towards a department management perspective. Read it here. ConservationTools.org, which was managed by the Pennsylvania Land Trust Association, has been very thorough in creating a useful donation manager from the perspective of a conservation organization. You can check here. It is also understood and understood that gift funds received can be placed by a third party that best defines the investment options for this endowment fund (see #4 item below). The Foundation`s spending policy will be the policy defined and approved by the Board of Directors, which probably includes only the use of annual interest and does not enter into the Fund`s capital to protect and immortalize growth. Some other questions and points from Philanthropy Works that you should consider when drawing up your formal written agreement: This resource contains useful information about why a gift deal may be necessary and important and how you can start with one.
The following section, entitled `Gift Template Agreement`, contains a gift agreement that has been modelled by an agreement established by the Community Foundation of Collier County. At PW, we believe that any gift that reaches the level of great gift status with your charity should require a gift agreement. Yes, even if it`s a gift to the annual fund. It is quite common for a donation agreement to exclude one or more provisions that may be necessary to determine whether a contribution to accountants should be accounted for and, if so, that the contribution has been duly accounted for. Since there is no simple procedure for answering all the questions that may arise as part of a gift agreement, judgments and further investigations are often necessary to establish a specific provision. This was also included in section 11 of the template for the gift arrangement above. The importance of periodic checks In addition, regularly checking your registration systems to ensure that existing procedures and documentation in data sets meet the company`s reporting requirements is good business practice. Reporting requirements change as a business evolves and fundraising strategies evolve.
Consider whether your development office is actively researching or accepting non-traditional, cashless gifts. In addition, where a certain turnover has been achieved at the development office or other staff members who have been involved in obtaining donors or obtaining and maintaining records, it is important to ensure that new staff are adequately trained to implement these procedures. Additional Resources Example of Gift Acceptance Policy (Word) Form 990 Calendar M: Noncash Contributions (IRS website) Contribution Revenues (AICPA Store) Thanks Kevin. Today`s theme, the development of charitable gift contracts, is of particular interest to anyone who works with non-profit companies, universities, hospitals or donors — people who want to create a legacy, not only in their succession plan for their own families, but also perhaps for the public.