Objectives
1.
To properly
acknowledge the value of services and materials given to NUIHC at a price
less than fair-market value (FMV)
2.
To properly
acknowledge the receipt of cash donations.
3.
To ensure that
reasonable value is assigned to donations in order to properly reflect them
in revenues and costs.
Overview
NUIHC anticipates each year cash
donations and in-kind donations of space, equipment and personal services
from various agencies and individuals. Any in-kind donation received must
be accounted for according to grant regulations. In order to properly
record and acknowledge the value of these donations, as well as any cash
donations, a system is required to initially record the transaction and
later enter it into the general accounting system. The Finance Manager will
be responsible for initiating the journal and general ledger entries.
Procedures
A. Gift
Procurement Activities
1.
Development
Committee: The Board of Directors as specified in NUIHC’s by-laws would
appoint a committee. This committee is charged with leadership in
fund-raising and resource acquisition with the ultimate objective of
increasing needed resources for support of NUIHC.
2.
Volunteer
Organizations: Separate NUIHC committees such as a staff development and/or
a patient development committee may exist and include in their purpose the
development of gifts and resources for NUIHC. The Board of Directors
Development committee prior to implementation will review all activities.
3.
Gift Solicitation
Program: NUIHC’s gift solicitations will consist of an annual campaign for
solicitation of donors of record and others for gifts. Capital campaigns
for special gifts (including trusts and annuities and planned gifts included
in the wills and estates of donors) will be conducted as the need arises,
for either endowment or expendable purposes. The Board of Directors
Development committee prior to implementation will review all activities.
(Not currently in effect)
B. Gift Procurement Policies
1.
Correct Legal Name:
All gifts, regardless of value, form or designated use, shall be made only
to: NEBRASKA URBAN INDIAN HEALTH COALITION, the proper legal name of the
corporation. Questions about methods of giving, timing, assignment, or
purpose of any gift shall be directed to the Director, as shall all
questions about legal forms for gifts or about the tax consequences for
gifts.
2.
Importance of
Coordination of Gifts: NUIHC depends on the financial support of Board of
Directors members, corporations, foundations and other friends for a
substantial portion of its gift in come. Gifts and the income from former
gifts held as endowment provide important resources for the operating
budget, the capital and equipment budget and other enterprises of NUIHC.
Soliciting gifts must be a coordinated effort; management of fund-raising is
the responsibility of the Executive Director.
3.
Tax Laws: The
significance of the tax laws makes recording and acknowledging all gifts
received an important obligation for NUIHC.
4.
Specific Targeted
Fund-Raising: Fund-raising targeted at specific donors or specific donor
groups shall be conducted, coordinated or otherwise resolved in accordance
with the wishes of the donor (s).
5.
General
Fund-Raising: The following donor categories are reserved for NUIHC’s
general giving program: Current or past clients, Board of Directors
members, corporations, past donors, staff alumni and current employees.
6.
Types of Gifts:
a.
Unrestricted gifts
have no stipulation as to purpose or use. Restricted gifts are those given
for a specific purpose designated by the donor.
b.
Expendable gifts are
immediately usable for current purposes. Retained gifts, such as an
endowment gift, are to be invested and held permanently for the income
derived.
c.
Non-monetary gifts
can be:
1)
Marketable
Property-Securities, real property and saleable personal property (subject
to Board of Directors review and action).
2)
Gifts-in-Kind – Gifts
to be used in the form in which they are given: equipment, facility space,
supplies, books, personal time, etc.
3)
Rights and
Insurance-Royalties, copyrights, trademark rights and insurance policies
naming NUIHC as beneficiary.
d.
Gifts-in-trust can be
negotiated by agreeing to hold and manage principal resources given by the
donor in exchange for the dividend income for life, after which this income
will be used by NUIHC according to the wishes of the donor.
7.
Special Handling for
Select Gifts:
a. Memorial Gifts: The
families of clients and other individuals may make gifts “in memory of “ or
“in honor of” persons by name. When received by NUIHC, these finds will be
used as unrestricted income. Nonspecific memorial gifts of $1,000 or more
are deemed significant contribution; donor wished for use of these funds
will be examined with the Executive Director (or designee) prior to
deposit.
a.
Temporary Funds: A
donor may turn over funds or property as a gift specified with conditional
use over time. These funds may be held for a fixed period and invested,
with only income useable by NUIHC, until conditions of time or maturation
are achieved and the principal becomes available. In other cases, the use
of the principal may be permitted at a fixed rate of use over a period of
time, as specified by the donor.
b.
Legacies and
Bequests: A donor may designate, under legal contract expressed in his or
her will, that NUIHC is to receive a direct gift from his or her estate. A
donor may also arrange, after the death of a named beneficiary, that the
principal or some of the surviving estate will become the property of NUIHC.
8.
Donor Record Files:
All correspondence (including original donor correspondence, letters of
transmittal and envelopes pertaining to gifts) should be sent to the
Director with a copy of each check (or with original receipt for cash
received) at time of receipt. Copies should be made if the recipient or
department wishes to maintain its own record. Complete donor records will
be maintained by the Director except for legal documents, securities, copies
of wills, etc. which shall be maintained elsewhere with appropriate security
necessary for their protection. Donor record files are private information
and not public information. Donors will have an option to request their
names not be published.
C. Gift
Processing Procedures
1.
Checks and Cash
Gifts in the form of checks or
cash, received by NUIHC shall be processed in the same manner as all
incoming monies. A copy of the check received or of the receipt issued for
cash will be sent to the Director on the day the donation is received.
2.
Securities
a.
Delivery of
Security: The transfer of securities certificates as gifts
to NUIHC is especially
sensitive and may only be accomplished in
the following ways:
1.
Certificates
belonging to the donor will be sent only by certified or registered mail, or
by hand. A stock power form, signed by the donor and naming NUIHC as
transferee, will be sent in a separate envelope again using certified or
registered mail.
2.
Securities and stock
powers shall be mailed or hand delivered to NUIHC.
b.
Handling by Brokers
or Agents: Brokers may be instructed by donors to transfer their securities
to NUIHC as gifts. The donor should instruct his broker to immediately
notify NUIHC’s Director of the gift by telephone and to request instructions
for correct handling of these securities. Securities certificates should
not be issued in the name of NUIHC. Only signed stock powers are required
by NUIHC to effect title transfer.
c.
Instructions
regarding use of gifts of securities:
1)
When gifts of
securities are made, NUIHC must be advised of the donor’s wishes, both as to
disposition of property and purpose for income derived by NUIHC from
ownership. Instructions should accompany the gift to clearly indicate the
intention of the donor. If none are received NUIHC has the authority to
sell these securities. If it chooses, and to use the funds (or income, if
retained) for areas of current needs. These decisions shall be made based
upon the advice of NUIHC’s bankers and professional financial advisors.
2)
Particular care with
the envelope transmitting any gift of securities is required since the
postmark on the envelope determines the date for computing the value of the
donor’s charitable deduction.
d.
Receipt of securities
by staff or in departments: Stock certificates
received by any employee of NUIHC
are to be handles within the day received and delivered to the Director,
with care given to preserve the entire package including the envelope.
4.
Gifts-in-Kind
a.
Donated Sales of
Gifts-in-Kind: When someone offers a donated sale of art objects, books,
equipment, etc., for use, the offer must be referred to the Director for
legal counsel on the transaction.
b.
Delivery of
Gifts-in-Kind: Arrangements will be made during preliminary discussions or
correspondence about delivery of gifts-in-kind directly to NUIHC or to any
department. Arrangements also include agreement with the donor regarding
costs of packing, freight charges, etc., usually the responsibility of the
donor.
c.
Charitable Value of
Gifts-in-Kind: NUIHC cannot establish monetary value for gifts-in-kind
according to the Internal Revenue Service. The donor, if a value is needed
for income tax purposes, must contract with a qualified and independent
third party as official appraiser who will certify in writing the commercial
value of the object(s) given. All gifts-in-kind are regularly reported to
NUIHC’s administration and are officially acknowledged in the same manner as
cash or other contribution.
5.
Year-End Cuts
a.
Expediting Delivery:
To be considered as a contribution in a specific tax year, gifts received by
NUIHC or its representative must be postmarked no later than December 31, or
must be delivered or transferred to NUIHC’s account by this date. During
December, brokers and banks acting as agents for a donor should be advised
to telephone the name of the donor, amount of the gift, purpose and date of
transfer to the Director prior to December 31.
b.
Transmittal Date: It
is especially important that postmarked envelopes be sent to the Director
with all gifts received during the December year-end period. If the donor
personally delivers cash or securities, the person accepting the gift, which
reads, should make a notation on the document(s): “hand delivered on
December, 20 “. This notation should then be signed by the receiving
person, and forwarded with the gift to the Director that same day.
D. Gift
Acknowledgement
All gifts, regardless of value,
form or designated use, should be acknowledged by official correspondence or
receipt from NUIHC. These documents represent to the donor, NUIHC’s
official acceptance of this gift and its terms and conditions as well as
certification of his/her charitable act for tax purposes.
1.
Acknowledgement by
the Director.
2.
Time
Acknowledgement: Gifts must always be acknowledged as promptly as
possible. The Director will send a written thank you within 48 hours after
the gift has been received.
3.
Donor Recognition:
Suitable recognition of important gifts will be considered. Guidelines on
gift size and value to NUIHC will be observed as will uniform practice on
plaque design. Donor recognition of all types is the responsibility of the
Director.
E. Documentation
of Charitable Gifts
Per the Revenue Reconciliation Act
of 1993, the following letters will satisfy the new rules for gifts received
in 1994 and later years.
Letter 1: Substantiation for cash
contributions – required for a single contribution of $250 or more in order
for the contributor to receive a deduction.
Dear Patron:
On behalf of NUIHC, I would like to
thank you for your recent contribution of $. Support from organizations
such as yours enable NUIHC to continue expanding and providing activities
that enhance the charitable spirit of our community.
NUIHC did not provide any goods or
services to you in exchange for your contribution.
Again, thank you for your
patronage. If you have any questions regarding your organizations past,
present or potential future involvement with NUIHC, please do not hesitate
to contact me at 000-0000.
Sincerely,
Jane Doe, Executive Director
Letter 2: Substantiation for
non-cash contributions – however, NUIHC does not have to provide an estimate
of the value of the contribution.
Dear Patron:
On behalf of NUIHC, I would like to
thank you for your recent contribution. Support from organizations such as
yours enable NUIHC to continue expanding and providing activities that
enhance the charitable spirit of our community.
NUIHC did not provide any goods or
services to you in exchange for your contribution. Again thank you for your
patronage. If you have any questions regarding your organizations past,
present or potential future involvement with NUIHC, please do not hesitate
to contact me at 000-0000.
Sincerely,
Jane Doe, Executive Director
Letter 3: Substantiation for “quid
pro quo” contributions (one where the donor receives goods or services from
the charity in exchange for the contribution) required for contributions
RECEIVED in excess of $75, even if the contributor’s deduction may be less
than $75 due to the value of the goods or services received.
Dear Patron:
On behalf of NUIHC I would like to
thank you for your recent contribution of $. Support from organizations
such as yours enable NUIHC to continue expanding and providing activities to
enhance the charitable spirit of our community. In exchange for your
contribution, NUIHC provided your organization with valued at $. Your
deductible contribution to NUIHC is limited to the excess of the amount
contributed over the value of the goods and services provided to you by
NUIHC.
Again, thank you for your
patronage. If you have any questions regarding your organizations past,
present, or potential future involvement with NUIHC, please do not hesitate
to contact me at 000-0000.
Sincerely,
Jane Doe, Executive Director
