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Gift Acceptance Policies NOTRE DAME DE SION SCHOOL OF KANSAS CITY PURPOSE OF POLICIES AND GUIDELINES Definitions throughout the policies and guidelines are identified as follows: Advancement Committee – a committee of volunteers that oversee advancement activities; gift planning staff – employed staff that assist donors and prospective donors in planning deferred gifts; Advancement Staff – employed staff involved in day-to-day advancement activities; Advancement Office – office of employed staff that are involved in the day-to-day advancement activities. The Advancement Committee must approve gift agreements that deviate from the policies set forth here. All gifts solicited under these policies shall be accepted pursuant to the guidelines set forth in the corporate resolution adopted by the Board of Trustees. Further, it is recommendation of the Advancement Committee that policies and guidelines be reviewed biannually. RESPONSIBILITY TO DONORS In all matters involving donors or prospective donors, the interests and concerns of a donor’s personal financial position take priority over the contribution to Sion. No agreement shall be made between Sion and any agency, person, company or organization on any matter, whether investment, management, or otherwise, which would knowingly jeopardize a donor’s interest. It shall be the policy of Sion to not use any high-pressure techniques when dealing with prospective donors. The task of all fund raising personnel shall be to inform, serve, guide or otherwise assist the donor in fulfilling his or her philanthropic wishes, but never, under any circumstance, to pressure or unduly influence. No personnel employed by Sion shall receive commissions that could give such personnel a direct beneficial interest in any agreement. The Board of Trustees, Advancement Committee, Sion and its authorized personnel shall use their best efforts to keep information concerning donors or prospective donors of gifts confidential unless permission is obtained from donors to release such information. Sion shall not sell, rent or exchange names of donors to any company, organization of person. RESTRICTIONS ON GIFTS Sion will accept unrestricted gifts and gifts for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission, purposes and priorities. Sion may not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violate the terms of Sion’s articles of incorporation, gifts that are too difficult to administer, or gifts that are for purposes outside the scope and intent of Sion’s mission. All final decisions on the restrictive nature of a gift and its acceptance or refusal shall be made by the Advancement Committee and presented to the Board of Trustees. ADVANCEMENT COMMITTEE The Advancement Committee is charged with the responsibility of reviewing gifts made to Sion, properly screening and accepting those gifts, and making recommendations to the Board on gift acceptance issues where appropriate. ASSIGNMENT OF GIFTS AND BEQUESTS All gift planning staff shall execute an Assignment of Gifts and Bequests agreement upon their employment with Sion. Pursuant to the terms of that instrument, staff shall not be allowed to accept any type of gift from any donor. LEGAL AND FINANCIAL COUNSEL Prospective donors shall be advised to consult with counsel of their choice in all matters related to gift instruments such as drafting of wills, trust agreements, contracts, or other documents. Donors shall be advised to consult with their attorney or accountant on matters related to the tax implications of any gift agreement. Sion shall consult with legal counsel in all matters pertaining to its gift program and shall execute no agreement, contract, trust or other legal document with any donor without the service of legal counsel. SCOPE OF SERVICE Information provided by Sion representatives may extend beyond the consideration of the organization to help donors remember whatever additional charitable interests they may have in other organizations and agencies. Sion staff and volunteers shall discourage donors from naming Sion as executor, administrator, personal representative, trustee, successor trustee or any other designation within any type of instrument that would require Sion’s participation in the handling of donor’s estate plans. AUTHORIZATION FOR NEGOTIATION The Advancement Staff of Sion is authorized to negotiate planned giving agreements with prospective donors following these policies, with legal counsel as needed, but without further approval of the Board of Trustees Chair and Head of School. Any one of the following persons shall have authority to sign planned giving agreements on behalf of Sion: Board of Trustees Chair, Head of School, and Finance Director. On real property transactions, the approval of the Board of Trustees Chair, Head of School and Director of Finance shall be required. Sion reserves the right to refuse any gift. INVESTMENT OF FUNDS FOR LIFE INCOME GIFTS Funds received in exchange for a gift annuity or a life income contract shall be managed under the jurisdiction of Sion’s Head of School. Investment practices shall comply with federal and state regulations governing such agreements and with guidelines established and approved by the Board of Trustees, utilizing competent advisory services to achieve the objective first of the life income beneficiaries and secondly of the remainder beneficiaries. All funds received for gift annuity agreements shall be invested and retained in the fund until the demise of the life income beneficiaries. Invested funds, which have an obligation to a life income beneficiary, shall not be used for self-dealing interests within other Sion funds. PAYMENTS TO LIFE INCOME BENEFICIARIES Payments on life income obligations shall be made quarterly unless the donor submits a written request for a different schedule. Payments shall be made and reported to the donor in the manner prescribed by regulations of the Internal Revenue Service. DISPOSITION OF FUNDS FROM LIFE INCOME AGREEMENTS Only upon the demise of the last life income beneficiary shall the principal amount of a planned gift be released to or for the use of Sion. The amount equal to the charitable remainder shall be released, according to the applicable share agreement. POLICIES FOR SPECIFIC GIFTS Cash Cash is acceptable in any form. Checks shall be made payable to Notre Dame de Sion and shall be delivered to Sion. Gifts of Tangible Personal Property Sion will consider gifts of tangible personal property, including but not limited to works of art, manuscripts, literary works, boats, motor vehicles, and computer hardware, only after a thorough review indicates that the property is: Readily marketable, and/or The gift will be completed by the execution and delivery of a deed of gift or other appropriate conveyance acceptable to Sion, and the delivery of the property, as applicable. The costs associated with the conveyance and delivery of the gift will be paid by the donor. In addition, the filing of Form 8283 by the donor is required by the IRS for gifts of tangible personal property valued at more than $500. This form should be sent to the attention of Notre Dame de Sion, 10631 Wornall Road, Kansas City, Missouri 64114, for execution. Sion is responsible for filing Form 8282 for gifts of tangible personal property valued at more than $5,000 sold by Sion within two years of the date of gift. Unless the Advancement Committee instructs otherwise, such gifts will be sold as quickly as market conditions permit. Gifts of Real Property Sion will consider gifts of real property, both improved and unimproved (i.e., detached single-family residences, condominiums, apartment buildings, rental property, commercial property, farms, acreage, etc.) including gifts subject to a retained life estate, only after a thorough review of the criteria for acceptance set forth below under the direction of the Advancement Committee. Sion will not accept any gift of real estate involving a time-share arrangement. Criteria for Approval and Acceptance Process Market Value and Marketability. The Advancement Committee must receive a reasonably current appraisal of the fair market value of the property and interest in the property Sion would receive if the proposed gift is approved. The donor shall be responsible for any costs associated with providing this. Advancement staff will inform the donor that, if the gift is completed, the IRS will require an appraisal be made within sixty days of the date of gift. Advancement staff must understand and communicate to donors that it is Sion’s policy to dispose of all gifts of real estate (other than property which Sion wishes to retain) as expeditiously as possible. Thus, regardless of the value placed on the property by the donor’s appraisal, Sion will attempt to sell at a reasonable price in light of current market conditions, and the donor needs to be informed that any such sale occurring within two years of the date of gift will be reported to the IRS on Form 8282. Potential Environmental Risks. All proposed gifts of real property, including gifts from estates, must be accompanied by a Phase I environmental audit performed at the donor’s expense. The only permitted exception to this requirement is for residential property, which has been used solely for residential purposes for at least a thirty-year period of time. In cases where this exception applies and no environmental audit is undertaken, the donor/executor must have an outside party complete an Environmental Checklist prepared by the Advancement Committee and may be required to execute an environmental indemnity agreement. Even in cases where a Phase I audit is submitted, the Advancement Committee may require that the donor sign an environmental indemnity agreement. Limitations and Encumbrances. The existence of any and all mortgages, deeds of trust, restrictions, reservations, easements, mechanic liens and other limitations of record must be disclosed. No gift of real estate will be accepted until all mortgages, deeds of trust, liens and other encumbrances have been discharged, except in very unusual cases where the fair market value of Sion’s interest in the property net of all encumbrances is substantial. Carrying Costs. The existence and amount of any carrying costs, including but not limited to property owners’ association dues, country club membership dues and transfer charges, taxes and insurance must be disclosed. Title Information. A copy of any title information in the possession of the donor, such as the most recent survey of the property, a title insurance policy, and/or an attorney’s title opinion, must be furnished. Deed of Gift. If a proposed gift of real property is approved
by the Advancement Committee, the gift will be completed by the
execution and delivery of a deed of gift or other appropriate conveyance.
The costs associated with the conveyance and delivery of the gift,
including but not limited to recording fees and, if deemed necessary
by the Advancement Committee, a current survey, title insurance
and/or an attorney’s title opinion, will be either paid by
the donor or from the proceeds of the sale. In addition, the filing
Form 8283 by the donor is required by the IRS for gifts of real
property. This form should be sent to the Advancement Office for
execution by Sion. Gifts of Securities Publicly Traded Securities: Marketable securities may be transferred to a Sion account maintained at one or more brokerage firms or delivered physically with the transferor’s signature of stock power attached. As a general rule, all marketable securities may be restricted by applicable securities law; in such instances the final determination on the acceptance of the restricted securities shall be made by the Advancement Committee. Closely Held Securities: Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLP’s and LLC’s or other ownership forms, can be accepted subject to the approval of the Advancement Committee. However, gifts must be reviewed prior to acceptance to determine that: There are no restrictions on the security that would prevent Sion
from ultimately converting those assets to cash, Bequests Unrestricted bequests will be allocated under policies approved by the Board of Trustees. A donor’s wishes regarding restricted use of a bequest will be honored subject to its acceptance by the organization and to the requirements of applicable laws. Copies of all documents pertaining to bequests will be forwarded to Sion. The following procedure shall be followed for all bequests received by Sion: Obtain and check Notice of Probate or other documents received
advising of a bequest (hereafter referred to as Notice). Charitable Gift Annuities Notre Dame de Sion will accept gift annuities, which begin payments within one year of the gift date, as well as deferred payment gift annuities, whose initial payment is at least a year after the gift date. The deferral period will be at the discretion of the donor. Sion will accept annuity gifts for one life, two lives in succession, or joint and survivor annuity agreements. Gift annuity agreements will be limited to one life or two lives in being at the time of the gift. Sion will only issue gift annuity agreements in the United State subject to being compliant with any applicable state annuity regulations. The maximum annuity rates offered will be the current Uniform Gift Annuity rates as adopted by the American Council on Gift Annuities. In the case of deferred payment gift annuities, the organization will use the current Uniform Interest Factors Chart published by the American Council on Gift Annuities. Sion may establish a maximum annuity rate chart that is lower, but never higher than the Uniform Gift Annuity Rates of the American Council on Gift Annuity. To conform to the federally mandated "Clay-Brown Rule," the annuity rate offered will generate a charitable deduction of more than 10 percent of the fair market value of the assets given, or the annuity rate will be reduced to qualify for the deduction (in realization that the monthly changing Applicable Federal Rate (AFR) affects the calculated deduction). To conform to various state laws, Sion will always offer the maximum annuity rate to each potential donor/annuitant, based on the actuarial age of the annuitants, but Sion may suggest that if the person is willing to accept a lower rate, a larger charitable deduction would be obtained for the same size gift. Gift assets accepted for a gift annuity will be limited to cash and securities for which a ready market exists. Closely held stock will not be accepted. Sion will not accept real property into its gift annuity fund. To conform to state laws, Sion will operate a segregated gift annuity fund, in which identifiable separate investments will be maintained and which is not part of any other investment or endowment fund of Sion. The full annuity gift will be admitted to the gift annuity fund and will be maintained until the demise of the last annuitant in the agreement. A policy or methodology will be established to identify the changing market value of each agreement, so that an appropriate amount may be withdrawn from the gift annuity fund at the termination of the agreement. To conform to various state insurance laws, Sion (with Board approval) may elect to reinsure any annuity agreement above the minimum $100,000 of Required Legal Reserve amount with an "A" rated commercial insurance company, registered to do business in Sion’s state of domicile. If the insurance company fails, Sion realizes that it will be liable for the payments. If the gift annuity is funded with cash (including payment by check), the annuity will be effective on the postmark date on the envelope that brings it to Sion or the date it is hand-delivered to a Sion representative. The value of the annuity will be the amount of cash transferred to Sion. If securities are being used to fund the annuity, the effective date and value for the annuity are as follows: Properly executed security certificate(s) and stock power mailed
to Sion or their designated broker: The effective date of the gift
annuity is the postmark on the envelope delivering the latter of
the properly executed certificates or stock power. The face value
of the gift annuity will be the amount for which the securities
are sold. Sion will instruct the broker to sell the securities
immediately upon receipt. Sion will make an effort to be aware of the investment and reporting requirements of its own state of domicile as well as those states that have statues regulating gift annuity funds, and be guided by input from its legal counsel and staff as to the necessity for filing for a permit to write annuity agreements in those states. Sion will maintain a separate checking account for its gift annuity fund so that records can be maintained to permit appropriate report of gift annuity fund activity to those states that require it by statute. Sion will maintain investment and administrative records of its gift annuity fund and program to ensure that questions from its governing Board can be answered appropriately. Gifts of Life Insurance and Pension Benefits Donors may name Sion the primary, secondary, or residual beneficiary of life insurance contracts, and the residual beneficiary of pension benefits. Donors may name Sion owner and beneficiary of whole life insurance contracts, with the understanding that Sion will not enter into any arrangement with any agent, agency or insurance company for the purpose of selling life insurance contracts for the benefit of Sion. Sion is not obligated to continue making premium payments on any life insurance policy transferred to it. Payable on Death Accounts or Totten Trusts Donors may name Sion the beneficiary of any account designated as payable or transferable on death. Charitable Remainder Unitrusts, Annuity Trusts and Charitable Lead Trusts Sion may accept a designation as a beneficiary of trust agreements. Trust donors must select a trustee other than Sion to oversee their trusts. The donor shall be required to have trustee fees paid from the trust. Sion reserves the right to refuse any specific charitable trust. Life Estate Contracts Sion may be willing to enter into a retained life estate agreement with one or two persons for a personal residence, farm or vacation home. As a general rule, the life estate agreement will require the donor to retain the obligation to care for the property, pay taxes, insurance and maintenance costs and other obligations which pertain to the interest the donor has retained. However, under extenuating circumstances and upon recommendation of the Chair and Head of School, Sion may assume part of this responsibility to protect its vested remainder interest. A Phase I environmental survey, appraisal and title binder, paid for by the donor, will be required on any real property to be gifted prior to acceptance by Sion. Sion reserves the right to refuse any life estate gift. Gifts to the Endowment Fund Sion shall accept gifts to its Endowment Fund. All gifts to this fund shall be administered pursuant to the terms of the donor and Sion. COMPLIANCE WITH CHARITABLE DONATIONS SUBSTANTIATION REQUIREMENTS All donations to Sion shall be acknowledged and receipted in accordance with IRS requirements. Specifically, receipts (or acknowledgement letters acting as a receipt) shall include the following as applicable: The amount of the donation if made by cash A statement that the amount of the deductible contribution for
federal income tax purposes is the excess of the amount of money
(and the value of any other property) contributed over the value
of the goods or services provided by Sion. MISCELLANEOUS PROVISIONS Securing Appraisals and Legal Fees for Gifts to Sion It shall be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel for all gifts made to Sion. For more information contact:
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