St. John s Episcopal Church Foundation, Inc. GIFT ACCEPTANCE POLICIES AND GUIDELINES (updated (8/10/2016)

Transcription

1 I. Restricted vs. Unrestricted Gifts St. John s Episcopal Church Foundation, Inc. GIFT ACCEPTANCE POLICIES AND GUIDELINES (updated (8/10/2016) A. Unrestricted gifts of cash or highly liquid assets best serve the overall mission and purpose of the St. John s Episcopal Church Foundation, Inc. (also referred to as the Foundation ). B. A donor may restrict a gift for endowment purposes when there is an interest in making a lasting contribution to future needs or making a memorial gift to perpetuate the memory of a loved one or friend. However, restricted gifts to the Foundation must be approved by the Foundation Board of Trustees (also known as the Board ). II. Non-Cash Gifts of Property Non-cash gifts such as real estate, closely held corporate stock, life insurance, jewelry, collections, etc., can be made to the Foundation. However, such gifts are subject to the approval of the Board of Trustees. III. Cultivation and Solicitation of Gifts Formal solicitation by the Foundation will be made by authorized representatives and staff only. Any referrals to legal, tax or other professional advisors by the Foundation will include a list of several professionals. Donors may choose a professional outside of the requested list, as well. A. Guidelines 1. Adherence to laws: Authorized representatives of the planned giving program on behalf of the Foundation will not accept any gift which violates Internal Revenue code requirements or any other Federal or state laws. 2. Tax exempt status: The Foundation shall not accept any gift which would improperly inure to the benefit of any individual or in a manner that would jeopardize the tax-exempt status of the Foundation as determined upon the advice of counsel. 3. Authorized solicitors: Only authorized representatives and staff of the Foundation shall solicit any donor with respect to formal deferred gift instruments that are part of the Foundation s approved planned giving program. 4. Committee review: Prospective gifts will be brought to the attention of the Foundation Board. All gifts will be reviewed by a committee of the board and officially approved by the Board, and received, accepted and acknowledged by the Executive Director, or Board designee of the Foundation. 5. Pressure techniques: Representatives will always exercise extreme caution to avoid pressure or undue persuasion when dealing with prospective Page 1 of 4

2 donors. The role of a representative is to inform, advise and assist the donor in his/her estate planning concerns and in fulfilling charitable objectives. 6. Confidentiality: All information concerning prospective donors, including names and addresses, names of beneficiaries, nature and value of estate, amounts of provision, etc., will be kept strictly confidential by the Foundation and its Board unless the donors grant permission to use selective information for purposes of referral, testimonial or example at the discretion of authorized representatives. 7. Legal advice: Prospective donors should consult their attorney in all matters related to deferred gift instruments such as drafting wills, trust agreements, contracts or other legal documents. The donor should consult with his/her own attorney or accountant on matters related to tax implications and estate planning aspects of a deferred gift agreement before completion of final agreements. 8. Tax advice: Prospective donors should seek independent tax counsel regarding the completion of planned gifts, in order to be informed of certain consequences related to their gifts. 9. Drafting documents: If requested, the Foundation staff or counsel may be called upon to draft trust, annuity or other gift documents, subject to approval by the donor s own counsel. While Foundation counsel will not finalize a donor s will or codicil, said counsel may prepare suggested language pertinent to a bequest to the Foundation to be submitted to the donor s attorney for inclusion in the donor s will or codicil. 10. Conflict of interest: The interest of the donor shall come before the interest of the Foundation. No program, agreement, trust contract, or commitment shall be urged upon any donor or prospective donor that would benefit the Foundation at the expense of the donor s interests and welfare. No agreement shall be made between the Foundation and any agency, person, company or organization on any matter related to investment, management or otherwise which would knowingly jeopardize the donor s interest. Foundation representatives (trustee, administrators, or staff) shall not enter into any transaction which could form the basis of a conflict of interest. 11. Promotional policy: The program s promotions shall be in good taste, dignity and consistent with St. John s ministry. All printed material for general distribution shall be reviewed by the appropriate persons. B. Gift Restrictions 1. Restriction rules: All gifts are subject to the policies and procedures of St. John s planned Giving Program. The Foundation Board reserves the right to change the designated purpose or purposes of a restricted gift if it is impractical to comply with the restrictions. No change will be made which will affect the deductibility of the bequests and gifts under the Internal Revenue Code and Regulations. In any conflict, the Internal Revenue Code and Regulations shall control. 2. Cost of gift considerations: The Planned Giving Program shall take the necessary steps to assure that any gift is cost effective for the Foundation. Care shall be taken to ensure that any gift is from a legitimate source. Page 2 of 4

3 IV. Acceptance Policies by Type of Gift A. Outright Gifts Outright gifts of any amount will be accepted. However, care will be taken to ensure that outright gifts which may be restricted to endowment do not replace contributions to the St. John s stewardship campaign. B. Memorial Gifts Memorial gifts are considered to be special gifts of remembrance which are additional to the stewardship pledge process. All memorial gifts received in any amount of $2, or more are placed in the St. John s Endowment Fund unless otherwise designated by the donor and are subject to approval by the Board of Trustees of the Foundation. C. Bequests All Bequests received shall be titled in and owned by the Foundation unless otherwise designated by the donor, and approved by the Board. Bequests in testamentary trust: The Foundation will consider the nature of the asset as well as the capability to economically manage the asset for the short-term until liquidation can occur. With these general comments in mind, the following are types of gifts which the Foundation will consider from either a distributable or a testamentary trust. 1. Cash and marketable securities: These are the most desirable gifts. 2. Closely held stock: These gifts shall be carefully scrutinized by the Foundation Board before acceptance. 3. Real Estate: Any real estate shall be carefully scrutinized by the Foundation Boar before acceptance. The Foundation may require an environmental assessment report prior to accepting or retaining title. 4. Notes, mortgages and contracts: These shall be carefully reviewed to ensure that the paper is collectible, properly collateralized and that the Foundation is provided accurate information from the personal representative or trustee. 5. Miscellaneous tangible personal property: Each and every asset will be reviewed as to its appropriateness for acceptance by the Foundation. The Foundation Board will review the marketability, accurateness of any appraisal, and the capabilities of the Foundation to safeguard these tangible assets until liquidation on a case-by-case basis. D. Life Insurance Gifts While most gifts of life insurance are desirable and easily administered, caution and careful review shall be given by the Board before any life insurance policy benefit is accepted by the Foundation. Page 3 of 4

4 E. Retirement Plans The Foundation Board Committee will review any potential gift within a retirement account. F. Gifts of Non-Cash Property (securities, real estate and other personal property) 1. Stocks and bonds: Examples include stocks, mutual funds, municipal and corporate bonds, treasury bills and notes, warrants, stock options and stock appreciation rights. The Board committee will review such gifts on a case-by-case basis. 2. Real Estate: Real estate can include personal residences, rental properties, office buildings, land leasehold interests and other structures (e.g. warehouses). The Board committee will review such gifts on a case-by-case basis. 3. Other personal property: Potential contributions include art collections, antiques, jewelry, airplanes, automobiles, boats and other vehicles. The Board committee will review such gifts on a case-by-case basis. G. Living Trust, Charitable Remainder Trust, and Life Income Plans 1. Living Trust: Real estate and personal property gifted through any type of trust shall be reviewed carefully by the Foundation Board committee. V. Miscellaneous A. The Foundation will not knowingly enter into a gift contract with an individual where its tax exempt status, ministry, or community reputation will be tarnished. B. Except in unusual situations, the Foundation will not serve as a trustee for a trust where St. John s is also a beneficiary of gifts from the trust. Page 4 of 4

5 St. John s Episcopal Church Foundation Statement of Management and Investment Objectives for St. John s Episcopal Endowment Fund (updated 8/10/2016) A. Management and Investment Objectives 1. The Board of Trustees of the St. John s Foundation is responsible for the oversight of the endowment funds and support of the investment policies found herein. 2. The management objective for the endowment account is to grow and protect its assets, by earning a total return for each fund, appropriate to each fund s time horizon and liquidity needs. 3. To support the spending policy outlined in the Bylaws and Policies for the Receipt and Expenditure of Funds, as well as meet the current and future obligations of said policy. 4. To act in the best interest of the Endowment, investing with care and due diligence. B. Risk Management and Long-Term Asset Allocation 1. To reflect the long-term objectives and to support the spending policies of the Endowment fund. 2. To accomplish investment objectives, endowment funds will be divided among equity securities, fixed-income securities and short-term cash equivalents. 3. Gifts of cash to the Foundation shall be deposited promptly to a money-market account, to be invested on a monthly or bi-monthly basis, according to proper compliance and best use policy. 4. New cash flow will be allocated with the objective of rebalancing the allocations among funds and in accordance with policies detailed in the Foundation Bylaws and herein. Page 1 of 3

6 C. Investment Management and Performance of Funds Guidelines for Fixed Income Fund 1. The investment objectives for the Fixed Income Fund is to meet or exceed net of fees the Benchmark over a three-year rolling period. To ensure that this objective is met, the performance of the Fixed Income Fund will be measured against said Benchmark. 2. The average quality of the bond fund shall be rated AA or higher, and no investments are permitted less than BBB quality. 3. All securities in the fund shall be well diversified with respect to type, industry and issuer in order to minimize default exposure. Guidelines for Equity Funds 1. The investment objective for equity funds is to meet or exceed net of fees over a three-year rolling period the appropriate indices related to the appropriate funds invested in by the Foundation. (Large Cap-S&P 500, Small and Mid-Cap Russell 2500 Stock Index, International-MSCI EAFE Index) 2. Decisions as to security selection, size and quality, number of industries or holdings, current income levels and turnover shall be left to broad manager discretion, subject to the usual standards of fiduciary prudence. However, in no case, shall a single security exceed 5% of the market value of the equity fund. Additionally, no single major industry shall represent more than 30% of the market value of the equity fund. 3. Due to the nature of equity markets, the equity fund will be subject to market risk, which is to say periods of declining prices broadly affecting the entire equity market. To mitigate this risk, the Foundation will establish diversity of said equity funds by investing portions of equity funds in assets that have a moderate or low covariance with the US Large Cap stock market and growth potential that meets or exceeds that of Large Cap stocks. These assets may include foreign, small cap or mid cap stocks. Refer to Appendix A for general target asset allocation which shall be subject to variation as deemed appropriate from time to time by the Board. Page 2 of 3

7 Exhibit A Target Portfolio and Asset Allocation Equity Target Range 80% 60% 85% Large Cap Value 20% 15% - 50% Large Cap Growth 25% 15% - 50% Small and Mid-Cap 20% 10% - 25% International 15% 10% - 25% Fixed Income 15% 5% - 20% Cash Equivalents 5% 1% - 15% 1. Guidelines for Compliance and Monitoring of Objectives a. All transactions should be entered into on the basis of best execution, which means best-realized net price. 2. Guidelines for Reporting Results and Performance a. The St. John s Episcopal Foundation will brief the parish on events and topics relevant to its progress. Page 3 of 3