Gift Acceptance Guidelines
(Adopted May 24, 2023)
INTRODUCTION
The Board of Directors of Denison Ministries has promulgated these guidelines to maximize the interests of Denison Ministries (“the Ministry”) and the donors who support its causes, so that all gifts are efficiently and effectively used for the religious and charitable purposes of the Ministry.
These guidelines supersede and replace any and all prior gift acceptance policies or guidelines of the Ministry.
GUIDING PRINCIPLES
Giving to the Ministry should be through the least restrictive means so as to not encumber the Ministry with gifts that (i) cost more to administer than the benefit received by the Ministry, or (ii) cannot be easily liquidated into cash. In other words, gifts should not be accepted if the donor restricts or designates the gift in a manner that is inconsistent with the immediate use of the gift to fulfill the religious and charitable purposes of the Ministry.
Prior to accepting any non-cash donation, the Ministry may in its sole discretion consider whether the donor engages in an activity or cause that would be inconsistent with the Ministry’s nonprofit purposes, mission, sincerely held religious beliefs, or conduct expectations.
Prospective donors should be encouraged to seek their own legal and/or tax counsel advice in matters relating to their charitable gifts, taxes, and estate plans. Likewise, the ministry should not enter into any giving agreement without the advice of the ministry’s legal counsel and tax accountants.
No finder’s fee or commission will be paid to anyone as consideration for directing a gift to the Ministry.
SPECIFIC GIFT GUIDELINES
A. Cash
1. The preferential form of donating to the ministry is through a gift of cash; provided, however, the Ministry may only accept donations denominated in U.S. dollars. If a question arises at the time of the gift as to (a) legal title to the donated funds, or (b) legal capacity of the donor to donate the funds, then the Ministry may reconsider its acceptance of a cash donation.
2. Generally, donors should make cash gifts by a banking transfer [such as ACH, wire, or check] or credit card, and in either such event payable solely to Denison Ministries. The Ministry may not accept a donation payable to (a) more than one payee, (b) an employee, director, agent, or volunteer of the Ministry, or (c) another individual or entity regardless of whether, in any such case, the donation is for the credit or benefit of the Ministry.
B. Publicly Traded Securities (U.S. capital markets)
1. The Ministry may accept a donation of publicly traded securities provided that those securities are readily marketable on one or more public marketplaces in the United States, such as the NYSE or NASDAQ. The donor should be told that the Ministry will immediately sell the securities through the Ministry’s brokerage arrangements.
C. Non-Publicly Traded Securities or Closely-Held Securities
1. Generally, the Ministry should not accept a donation of non-publicly traded or closely-held securities unless:
- There is a readily available market for the immediate sale of the securities.
- The securities are not encumbered or restricted in any manner which might create an obligation, duty, or liability to the Ministry.
D. Real Property
1. Generally, donations of real property should not be accepted without the prior approval of the Ministry’s Board of Directors.
2. The Ministry should engage an independent realtor licensed in the locale of the real property to analyze the feasibility of accepting a donation of the real property. Legal counsel for the Ministry should also be involved in the process, including preparation of the Bill of Donation and associated conveyance of title documents.
3. In addition to normal due diligence associated with a real estate transaction, the Ministry should obtain and analyze the following:
- An appraisal of the real estate prepared by an independent licensed appraiser.
- Governmental documentation (such as IRS Form 8283) necessary for the donation of the real property to the Ministry.
- Liens, encumbrances, reservations, deed restrictions, zoning, environmental matters, and other conditions affecting the marketability or title insurability of the real property.
- The commercial or residential nature of the real property and associated revenue generation and operating expenses, including whether the Ministry would incur unrelated business income should the donation be accepted.
- Costs and expenses related to the due diligence investigation of the real property and the obligations of the Ministry to bear those costs and expenses.
E. Other Tangible Personal Property
1. Generally, tangible personal property such as vehicles, jewelry, artwork, collections, antiques, and other personal property with an estimated value less than $1,000 should not be accepted by the Ministry as a donation. For tangible personal property with an estimated value of $1,000 or more the Ministry should consider the following prior to accepting the donation:
- The personal property should be readily convertible into cash.
- The personal property should not be perishable or require special facilities or security to safeguard it.
- The appraised value of the personal property as determined by an independent appraiser.
- Legal counsel for the Ministry should also be involved in the process, including preparation of a Bill of Donation and associated conveyance of title documents.
- Any required governmental documentation (such as IRS Form 8283) necessary for the donation of the personal property to the Ministry.
F. Other Personal Property
1. Except as otherwise set forth in these guidelines, donations of other personal property (whether tangible or intangible) such as mortgages, notes, copyrights, royalties, and other intellectual property generally will not be accepted by the Ministry as a donation without due diligence by the Ministry prior to the donation.
G. Deferred Gifts
Testamentary Devise and Bequest
1. Gifts to the Ministry through wills and other forms of testamentary transfer are encouraged; however, these guidelines should still be considered in conjunction with the Ministry’s discussions with a prospective donor as to the acceptability of any such gift, or the Ministry’s ultimate decision to accept any such gift. For example, restrictions on the gift may negatively impact the Ministry’s acceptance of the gift. And, if the Ministry has created an endowment fund and the gift is unrestricted then the Ministry’s priority for the gift may be as an addition to the Ministry’s endowment fund.
Life Estate Gifts
1. Generally the Ministry should not encourage a gift of a remainder interest in property in which the donor retains a life estate. In other words, the donor may need to sell the property during their lifetime and find that the value of the life estate is a small portion of the value of the property.
Life Insurance
1. The Ministry may encourage donors to name the Ministry as a beneficiary for all or a portion of a person’s life insurance policy(ies). The Ministry should not, however, agree to accept gifts from donors for the purpose of purchasing life insurance on the donor’s life.
2. The Ministry will not endorse life insurance products for use in funding gifts to the Ministry.
H. Restricted Gifts and Gift Designations
1. The Ministry will include a statement substantially in the following form in its fundraising and solicitation materials, and donor receipts:
“Denison Ministries has promulgated Gift Acceptance Guidelines. These address various cash and non-cash methods of giving. Acceptance of a donation by Denison Ministries is subject to these guidelines. Denison Ministries will treat any donor gift restrictions and/or designations as a suggestion, unless the ministry’s Board of Directors has approved the restriction and/or designation in advance of receiving the gift.”
2. In the event a restricted or designated gift is approved in advance of receiving the gift, then the restricted or designated gift may only be used for the purpose(s) for which they are restricted or designated. The Ministry’s President will determine if a segregated account will be established for the gift. If the Ministry does not use the restricted or designated funds, in whole or in part, for the purpose(s) restricted or designated, then the Ministry will return the remainder of the gift to the donor unless the donor releases the restriction or designation.
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