DONOR POLICIES

Gift Acceptance Policy

Teen Missions International, Inc., (the “Organization”) is a Florida nonprofit corporation recognized as exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code (the “Code”), which qualifies as a public charity under Section §509(a)(1) and Section §170(b)(1)(A)(vi) of the Code. 

Whereas, the purpose of this gift acceptance policy is to govern the acceptance of gifts by the Organization, and to provide guidance to prospective donors and their advisors when making gifts.

Whereas, all gifts accepted by the Organization must be consistent with the Organization’s mission, purposes, and priorities.

Now Therefore;

Gift Acceptance Committee. 

The Organization shall appoint a Gift Acceptance Committee, which shall be responsible for considering and accepting gifts in accordance with this policy. The Gift Acceptance Committee shall consist of the President and at least two (2) additional members of the Organization’s Board of Directors.

The Gift Acceptance Committee shall have the authority to review potential gifts not covered by this Policy, and to make exceptions to this policy, when it is determined by majority vote that an exception would be in the best interests of the Organization. Decisions to deviate from or otherwise make an exception to this policy with regard to any gift shall be documented in writing with supporting rationale. 

The advice and approval of the full Board of Directors may be sought with regard to acceptance of a gift when Board approval is recommended by legal counsel or is otherwise deemed advisable by unanimous vote of the Gift Acceptance Committee to determine if any amendments to the policy are necessary in light of changed circumstances. Upon conclusion of the annual review, the Committee shall present the Organization’s Board of Directors with a recommendation to either modify the policy or continue using the policy without modification.

Types of Gifts and Criteria for Acceptance 

The following types of gifts and associated policies regarding their acceptance shall govern the Gift Acceptance Committee or the Board of Directors in its review of proposed gifts to the Organization:

Cash

Unrestricted Cash. The Organization will accept monetary gifts in any form, including, but not limited to, cash, credit card, or check. Checks should be made payable to Teen Missions International Inc., unless otherwise specified. Under no circumstance should a check be made payable to an individual representative or agent of the Organization.

Donor-restricted cash gifts. Cash gifts over $10,000 that are given with a donor restriction (other than gifts to a special fund already approved by the Board of Directors) must be brought before the Board of Directors for approval prior to acceptance. Recommendations for special recognition of donors (such as publicizing names, naming buildings, rooms, etc.) will be referred to the Board for approval. For donor-restricted cash gifts approved by the Board of Directors and exceeding $100,000, the President shall ensure that the Organization’s legal counsel assists in the drafting or review of the documents constituting the gift transfer.

The President or their designee is responsible for addressing proposed donor-restricted cash gifts of $10,000 or less where the proposed restriction is not to a fund already approved by the Board of Directors. Such gifts, if accepted, must be for purposes consistent with the Organization’s mission and must involve complete expenditure of the gifts within one year of receipt.

Donor designated restrictions on contributions shall be honored to the fullest extent possible so long as they are consistent with the Organization’s ministry goals and values.

Gifts of noncash property

Receiving gifts of noncash property can result in additional expenses for the Organization. This policy establishes a minimum standard for matters to be reviewed in making the determination of whether to accept or reject a gift of noncash property. Once a gift of property is accepted, a proper acknowledgment that conforms to current federal tax law shall be provided to the donor. 

Real property

Gifts of real estate may be accepted upon review and approval of the Gift Acceptance Committee, with advice of legal counsel. The Committee shall consider: (i) whether acceptance of the property furthers the Organization’s charitable purposes; (ii) whether the property is marketable; (iii) whether there are any restrictions, reservations, easements, or other limitations associated with the property; (iv) whether there are carrying costs to be incurred, including but not limited to, insurance, property and/or transfer taxes, homeowners association dues or other similar fees; mortgages, or notes; (v) whether there is evidence of environmental concerns related to the property; and (vi) such other criteria as the Gift Acceptance Committee shall deem advisable. 

The donor must secure a qualified appraisal of the property in compliance with IRS regulations at the donor’s expense. The donor shall consent to having a copy of the appraisal sent directly to the Organization from the appraiser. 

Other documents that must be provided include, but are not limited to real estate deeds, plot plans, tax bills, and documentation of zoning status. A visual inspection of the property must be conducted by an experienced real estate professional of the Organization’s choosing on behalf of the Organization. A title insurance binder shall be obtained by the Organization prior to acceptance of the gift, at the donor’s expense. If the title of the property is not cleared, the donor must incur expenses in clearing the title so that the property can be sold. The Organization shall require an environmental site assessment, which will ordinarily be a Phase I Environmental Study, at the donor’s expense. If this requirement is waived for any reason, the donor shall sign an agreement to indemnify the Organization from environmental liability. 

Where appropriate, the Gift Acceptance Committee may approve the payment of certain expenses from the proceeds of the sale of the property; such action will result in a decrease of the original gift value. Generally, the Organization will not accept a gift of real property if the Organization would be required to incur more than $10,000 in expenses regarding the transfer. The Organization will not accept a gift of real property that would cause the Organization to assume obligations as a landlord.

Intangible personal property

The President or their designee shall address proposed gifts of intangible personal property as follows, provided, however, that contributions with donor restrictions are subject to the policy on donor-restricted cash gifts as set forth above. 

Publicly Traded Securities

Marketable securities may be transferred to an account maintained at the broker of the Organization or delivered physically with the transferor’s signature or stock power sent separately. Generally, all marketable securities shall be sold upon receipt. In some cases, marketable securities may be restricted by applicable securities laws. In such instances the final determination of the acceptance of the restricted securities shall be made by the Gift Acceptance Committee.

Closely Held Securities

Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interest in Subchapter S corporations, limited partnerships and limited liability companies, or other ownership forms, can be accepted subject to the approval of the Gift Acceptance Committee of the Organization. However, gifts must be reviewed prior to acceptance to determine:

• There are no restrictions on the security that would prevent the Organization from ultimately converting those assets to cash.

• The security is marketable.

• The security will not generate an undesirable tax consequence for the Organization.

• If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. The Gift Acceptance Committee of the Organization and legal counsel shall make the final determination on the acceptance of closely held securities when necessary. Every effort will be made to sell non-marketable securities as quickly as possible. 

Tangible personal property

Prior to accepting a gift of tangible personal property, the President or their designee shall perform an initial evaluation of the practicality of accepting the offered donation. If the initial evaluation is positive, the President or their designee shall oversee the performance of reasonable due diligence. Tangible personal property will be accepted only if: 

• The property is in good condition and can be used by the Organization in its mission; or

• The property can be sold for an amount adequate to exceed costs associated with accepting, holding and disposing of the gift.

• Tangible personal property having a value of $5,000 or more shall be accepted only after the President or their designee has consulted with legal counsel to address risks of unpaid liens or other liabilities taking into consideration possible UCC-1 lien searches or similar lien searches. 

All gifts of tangible personal property valued at more than $1,000 must be approved by the President or their designee before they can be accepted. Any tangible personal property gifts valued over $10,000 also require approval of the Board of Directors prior to acceptance. For gifts of tangible personal property valued at more than $100,000, the President or their designee shall ensure that the Organization’s legal counsel assists in the drafting or review of the documents constituting the gift transfer.

Life Insurance Interests 

A gift of ownership of a life insurance policy may be accepted if the Organization is named as the owner and irrevocable beneficiary of 100% of the policy. The Organization will only accept whole, universal or variable life insurance policies. The Organization does not accept term insurance but may be named as a beneficiary of such policies. If the policy is paid completely by the Organization, the value of the gift for the Organization accounting and gift crediting purposes is the policy’s replacement cost. If the policy is partially paid by the Organization, the value of the gift for the Organization accounting and gift crediting is the policy’s cash surrender value. If the donor contributes future premium payments made by the Organization with regard to a policy partially paid by the Organization, the Organization will recognize the amount of the additional premium payments as a gift in the year that they are paid by the Organization. 

If the donor does not elect to continue to make gifts to cover premium payments on a policy that is partially paid by the Organization, the Organization may: (i) continue to pay premiums on the policy; (ii) convert the policy to paid-up insurance; or (iii) surrender the policy for its current cash value. The Organization may accept designations as beneficiary of a donor’s life insurance policy. Upon notification of a donor’s intent to name the Organization a beneficiary, the Organization shall request a copy of the actual designation form.

Charitable Remainder Trusts

The Organization may accept designation as the remainder beneficiary of a charitable remainder trust (“CRT”). A CRT is designed to pay an income stream to one or more beneficiaries (at least one of which is non-charitable) for a term defined in the trust instrument, with the remainder interest passing to the Organization. Upon consideration and approval of appointment as Trustee of a CRT, The Organization will not accept such appointment unless the Organization is the sole irrevocable beneficiary of the trust remainder.

Charitable Lead Trusts 

The Organization may accept designation as an income beneficiary of a charitable lead trust (“CLT”). A CLT is designed to pay an income stream to the Organization for a term defined in the trust instrument with the remainder interest passing to non-charitable remainder beneficiaries such as children or grandchildren. Upon consideration and approval of the Gift Acceptance Committee, with advice of legal counsel, the Organization may accept appointment as Trustee of a CLT.

Bequests

The Organization may accept designations as the beneficiary of wills or trusts. The Organization shall encourage donors considering such bequests to transfer assets that have immediate value to the Organization, or that can be liquidated. Gifts appearing to require more cost than benefit shall be discouraged or rejected. Donors should be encouraged to use designation language supplied by the Organization and reviewed by legal counsel. Furthermore, donors should be encouraged to describe the specific purposes, if any, of their bequests as broadly as possible to avoid unduly burdensome limitations and restrictions. The Organization and its staff shall not act as an executor for a donor’s estate. Upon notification of a donor’s intent to name the Organization a beneficiary, the Organization shall request a copy of the portion of the donor’s will or trust instrument naming the Organization a beneficiary. 

Other Property 

Other property not otherwise described in this policy, whether real or personal, tangible or intangible, must be reviewed and approved by the Gift Acceptance Committee or the Organization’s Board of Directors prior to acceptance.

Endowment Policy

All gifts given to the Organization for the purpose of establishing an endowment or contributing to an existing endowment must first be completely reviewed and then formally accepted by the Gift Acceptance Committee or the Board of Directors. The following additional criteria shall apply to any endowment gifts:

Establishment and management of endowment funds represent a significant legal and financial commitment on the part of the Organization. Therefore, the minimum amount for an initial gift for individual named endowment purposes is $100,000.

Recognizing that such sums must often be accumulated over a period of years, the Organization will allow a donor to spread the payments for a period of up to five years to meet the minimum endowment policy amount.

An endowment fund is not activated until the minimum funding level has been reached.

An endowment fund may be designated for a specific purpose, program, or department depending on the wishes of the donor and is subject to approval of the Gift Acceptance Committee or the Board of Directors.

In the case of a pure endowment–that is, one created when the donor specifies that a contribution is to be used for an endowment, the principal may not be expended under circumstances not expressly set out in gift documents.

In the case of a quasi-endowment–usually, one created by the Organization itself using funds that were not specifically designated for an endowment or one designated as quasi by the donor, the principal may be invaded only after review and approval of the Gift Acceptance Committee of the Board of Directors.

Administrative Matters

Gift and Pledge Agreements. Where appropriate and advisable, the Organization may enter into a written gift agreement with a donor which shall specify the terms of any restricted gift, which may include provisions regarding donor recognition. The Organization’s acceptance of pledges of future support (including by way of matching gift commitments) shall be contingent upon the execution and fulfillment of a written Charitable Pledge Agreement which shall specify the terms and conditions of the pledge including any provisions regarding donor recognition.

Federal Tax Reporting and Gift Acknowledgement. The Organization will acknowledge receipt of gifts in accordance with the requirements of federal tax law. The donor shall be responsible for providing the Organization with IRS Form 8283 as may be required for acknowledgment of certain gifts of charitable deduction property. “Charitable deduction property” means any donated property (other than money and publicly traded securities) if the value claimed by the donor exceeds $5,000 per item or group of similar items donated by the donor to one or more donee organizations (e.g., the property listed in Section B on Form 8283). 

The Organization is responsible for filing IRS Form 8282 if the Organization should sell, exchange, or otherwise dispose of donated property within three (3) years of receipt where the donor’s charitable deduction required a qualified appraisal (generally property other than publicly-traded securities with a value of $5,000 or greater). The Organization is required to furnish Form 8282 to the IRS and the donor within 125 days of the date of sale or disposition of the property.

Appraisals. In any of the cases where an appraisal is required, it is the sole responsibility of the donor to obtain and pay for competent appraisal services and to share the results of such appraisal with the Organization.

Donation-related Expenses. Prospective donors shall be responsible for their own legal, accounting, appraisal, and other fees for all gifts made to the Organization.

Valuation of Gifts. The Organization will record a gift received by the Organization at its valuation for gift purposes on the date of the gift. 

Donor’s Use of Legal Counsel. All prospective donors shall be strongly encouraged to seek the assistance of competent, independent legal counsel or other professional financial advisors of their choice in matters pertaining to their gifts, including tax and estate planning consequences.

Changes to Gift Acceptance Policy. These policies and guidelines have been reviewed and accepted by the Board of Directors of the Organization. The Board of Directors of the Organization must approve any changes to or deviations from these policies and guidelines.

Donor & Gift Acceptance Policies were last updated and approved on May 5th, 2020