2a: Gift Policies – Gift Acceptance Policy

Introduction
The Foundation is an Oregon nonprofit corporation that develops and provides resources to advance the mission of the College to serve its students and the community. The Foundation is a tax-exempt organization as described in Section 501(c) (3) of the Internal Revenue Code. It qualifies as a public charitable organization under Section 170(b)(1)(A)(vi) of the Internal Revenue Code. Contributions to the Foundation are tax-deductible to the extent allowed by law. The Foundation encourages the solicitation and acceptance of gifts for purposes that will help the Foundation further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to the Foundation or for the benefit of any of its endowment or any of its programs.

Purpose of Policies and Procedures
The purpose of this document is to set forth the criteria that the Foundation Board and its Gift Acceptance Committee use to determine that a proposed gift is acceptable and to inform prospective donors and their advisors of the types of gifts the Foundation accepts. While these guidelines establish best practices, they are designed to provide flexibility as directed by the Board and its Gift Acceptance Committee. Any references in this document to rules for recording gifts refer to generally accepted accounting principles or IRS guidelines, and may differ from fundraising or campaign counting guidelines as established by CASE and followed by the Foundation.
Use of Legal Counsel
The Foundation seeks the advice of outside legal counsel as appropriate on matters relating to acceptance of gifts. Review by legal counsel is usually sought in connection with:
- Closely held stock transfers that are subject to restrictions or buy-sell agreements;
- Documents naming the Foundation as trustee;
- Gifts involving contracts, such as bargain sales or other documents requiring the Foundation to assume a legal obligation;
- Gifts of patents and intellectual property;
- Transactions with potential conflict of interest that may invoke IRS sanctions; or
- Other instances in which use of counsel is deemed appropriate by the Foundation’s Board or Gift Acceptance Committee.
Communications with Donors
The Foundation holds all communications with donors and information concerning donors and prospective donors in strict confidence, subject to legally required requests for information by government agencies and courts. All other requests for or releases of information concerning a donor or a prospective donor will be granted only if permission is first obtained from the donor.
Conflict of Interest
The Foundation does not provide personal legal, financial or other professional advice to donors or prospective donors. Donors and prospective donors are strongly urged to seek the assistance of their own professional advisors in matters relating to their gifts and the resulting tax and estate planning consequences. The Foundation complies with the “Model Standards of Practice for the Charitable Gift Planner” promulgated by the Partnership for Philanthropic Planning (formerly the National Committee on Planned Giving). It is the role of Foundation staff to guide or otherwise assist donors who wish to make a charitable gift. The donor should be advised that it is the donor’s responsibility to obtain any necessary tax advice, appraisals, file appropriate tax returns and defend against any challenges to claims for tax benefits.
Acceptance of Gifts
1. The Foundation’s Board shall, through the Foundation’s Executive Officer, Executive Director, or other individuals as the Board may designate, accept all gifts to the Foundation, provided such gifts are in conformity with the Foundation’s Gift Acceptance Policy. Those individuals designated to accept or negotiate gifts should follow the guidelines set forth in this policy, particularly when negotiating or entering into endowment agreements, trust agreements and other restricted or deferred gift agreements, as authorized by this policy. As stated in this policy, certain types of gifts require Gift Acceptance Committee, Executive Committee and/or Board review and approval prior to acceptance and may also require review by College administration, legal counsel for the Foundation, or the Foundation’s Planned Giving Committee. Foundation staff are encouraged to develop more detailed procedures to aid in the effective administration of this policy.
2. Once the Foundation has accepted a gift, it becomes Foundation property. Once a gift is completed, the donor has no direct decision making power regarding the disposition of the gift. Donor control of a gift after a gift has been received can impair the donor’s ability to claim a tax deduction for a charitable contribution.
3. The information required by the Foundation to make an informed decision regarding the acceptance of a gift will vary depending upon the nature of the gift. If it appears that a gift may not be acceptable from the outset of discussions with the donor, the Gift Acceptance Committee will endeavor to reach that conclusion as soon as possible and convey that fact to the development officer so that he or she can suggest alternate types of contributions to the donor.
Gift Definition
For federal income tax purposes, a gift is defined as a voluntary and absolute transfer of assets from a person or an organization to the Foundation where the donor receives no goods or services in return. Gifts usually take the form of cash, securities, real property or personal property. The following criteria generally identify a gift:
- A gift is motivated by charitable intent.
- Gifts are irrevocable transfers of assets. The Foundation is not obligated to return unexpended funds. If, at the time of gift inception, the Foundation is unable to comply with the donor’s intent, or if the gift has been misdirected to the Foundation, the gift may be returned at the Foundation’s discretion. The Foundation may consult with the College regarding return of a gift as necessary. Out of pocket expenses may be deducted from the gift before it is returned. The Foundation Executive Officer and Executive Director are authorized to approve the return of a gift. The return of a gift for any other reason must be reviewed and approved by the Gift Acceptance Committee. Generally, a donor should be advised that return of a gift invalidates any gift receipt previously provided.
- Gifts are not generally subject to an exchange of consideration or other contractual duties between the Foundation and the donor, except for certain restricted and deferred gifts as set out in this policy.
- Formal financial accounting to the donor may not be required as it would be, for example, with a research grant.
- A gift is not completed until it has been accepted by the Foundation.
Restrictions on Gifts
1. Unrestricted gifts and gifts for specific programs and purposes may be accepted, provided they are consistent with the Foundation’s mission, purposes and priorities. The Foundation will not accept gifts that are inconsistent with its mission, purposes or priorities or are judged too difficult to administer. Unrestricted gifts may be used for any purpose consistent with the Foundation’s mission as directed by the Foundation Board.
2. Restriction(s) placed on the use of the funds contributed to the Foundation may be rendered illegal, unreasonable or unable to be fulfilled due to circumstances, including, but not limited to: the termination of a College program; a surplus of funds available from other sources to fulfill the designated purpose; the insufficiency of the restricted funds to fulfill the designated purpose where no funds from other sources are available to supplement the restricted funds; or the designated purpose is no longer consistent with the mission of the College and its individual programs. In those instances, the Foundation will attempt to work with the donor to restructure the gift. If the donor is no longer alive or lacks legal capacity, the Foundation can restructure the gift to remove or modify restrictions in a way that best seeks to follow the donor’s charitable intent, but only if the gift agreement so allows. If the gift agreement does not include terms authorizing a modification, the Foundation must seek guidance from a court with the power to modify or remove the restriction. Guidance for modification of endowment gifts is provided in the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as enacted in Oregon.
Gift Acceptance Conditions
1. The Foundation will accept only gifts that are consistent with the core educational values of the College and are:
  - compatible with the mission of the College and its individual programs;
  - in compliance with the Internal Revenue Code of 1986, as amended, (“IRC”) and other federal and state statutes, regulations, rulings, or court decisions that control the conditions under which contributions can receive favorable tax treatment and under which an Oregon nonprofit corporation may operate; and
  - compatible with the Foundation’s tax-exempt status.
2. The Foundation will not accept any gift that:
  - violates any federal, state or local statute or ordinance;
  - creates a fund to provide for scholarships, fellowships, professorships or lecture series with restrictive clauses that could reflect negatively on the Foundation or the College, that reserve to the donor or his/her representative the right to designate the recipient or which unduly restrict the class of individuals eligible to qualify for gift proceeds;
  - contains a condition that requires any action on the part of the College that is unacceptable to College administration;
  - commits the Foundation or College to name a fund where the gift is potentially revocable in any way;
  - requires the College and its administration to employ a specified person at a future date;
  - contains unreasonable conditions (i.e. a lien or other encumbrance) on gifts of partial interests and property;
  - requires tuition payments for a family member or other close relatives of the donor;
  - exposes the Foundation to litigation or other liabilities;
  - requires the payment of maintenance costs or other expenses (e.g. debt service) for which no specific provision has been made; or
  - appears to be financially unsound.
3. Unless a specific exception is granted by the Gift Acceptance Committee, the Foundation will generally sell all gifts of stock or property so that it can invest the proceeds in accordance with the Foundation’s investment policies. The Foundation will not accept a gift that generates unrelated business income tax without the prior approval of the Gift Acceptance Committee.
Calendar Year End Giving
To qualify as a tax deduction in a given calendar year, a cash gift must be postmarked or hand-delivered by December 31st of that year. Credit card gifts must be actually charged by December 31st. Donors should consult their financial institution regarding the delivery time of wired transfers.
Role of Gift Acceptance Committee
1. A Gift Acceptance Committee shall be established to assist in the review of gifts as outlined in this policy. The Gift Acceptance Committee shall consist of the Finance Committee of the Foundation Board. The primary responsibility of the Committee shall be to review, and determine action on, proposed gift transactions which: (a) the Executive Officer, Executive Director or Operations Manager refers to the Committee; or (b) consist of assets that require Committee review as indicated in this policy. The committee may consider the issues involved through meetings, telephone discussions, mailings or other appropriate means.
2. The Gift Acceptance Committee is responsible for regularly reporting its decisions on gift acceptance to the Executive Committee of the Foundation Board. The Committee is also responsible for reviewing this policy at least annually or more often as needed to ensure that it remains consistent with applicable laws and the programs of the Foundation. This policy also provides that the Gift Acceptance Committee review the status of charitable gift annuities and life insurance policies at least on an annual basis.
3. The Executive Officer and Executive Director shall be authorized to carry out decisions made by the Committee. If, in the judgment of the Committee, a potential gift falls outside the parameters outlined in this policy, the Committee may refer consideration of the potential gift to the full Board of the Foundation.
Types of Gifts and Their Approval
1. The following gifts may be considered for acceptance by the Foundation:
  - Cash and credit cards
  - Tangible personal property, including in-kind gifts
  - Securities
  - Real estate
  - Remainder interests in property
  - Oil, gas, and mineral interests
  - Bargain sales
  - Life insurance
  - Charitable gift annuities
  - Charitable remainder trusts
  - Revocable trust agreements
  - Charitable lead trusts
  - Retirement plan account distributions or beneficiary designations
  - Bequests
  - Intellectual property rights
  - Pledges
2. The following criteria apply to the acceptance of gifts in these categories:
  1. Cash and Credit Card Gifts
    1. Checks should be made payable to the Foundation. The donor, in the note section or in a cover letter, should specify any special restriction for the use of the funds, if any. Cash gifts will be deposited into the Foundation’s unrestricted account unless they are designated for a temporarily restricted or endowed fund.
    2. Large sums may be transferred by wire directly to the Foundation’s bank account. The Foundation should be informed in advance of a planned wire transfer so that it can ensure the gift is credited to the correct donor and designation.
    3. The Foundation accepts gifts by credit card by phone or through the Foundation’s website.
  2. Tangible Personal Property
    1. The Foundation may accept gifts of equipment, artwork, vehicles and other items if the Foundation or College has identified such as a need, or if the items can be readily converted to cash and the donor consents to such conversion.
    2. For tangible personal property and in-kind gifts valued $5,000 or more, the donor is required to provide a third party qualified appraisal of the item and all appropriate IRS forms. The Foundation will obtain a copy for its records.
    3. Property or equipment gifts to the Foundation will be receipted by the Foundation and the Foundation will determine as quickly as possible whether the ownership of any such gift will be transferred to the College.
    4. If in the opinion of the Foundation staff the tangible personal property is unusual or falls outside a typical gift handled by the Foundation, including being unrelated to the Foundation’s charitable purpose, a gift of tangible personal property may require review by outside legal counsel and review and approval by the Gift Acceptance Committee.
  3. Securities
    The Foundation can accept both publicly traded securities and closely held securities.
    1. Publicly Traded Securities: Marketable securities will be transferred to a Foundation account maintained at one or more brokerage firms or delivered physically with the transferor’s signature or stock power attached. As a general rule, all marketable securities will be sold in a timely manner with proceeds deposited in the Foundation’s unrestricted account or account designated by the donor. In some cases, marketable securities may be restricted by applicable securities laws; in such instance the final determination on the acceptance of the restricted securities may be made by the Gift Acceptance Committee.
    2. Closely Held Securities: Proposed gifts of closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other ownership forms, will be reviewed by legal counsel and reviewed and approved by the Gift Acceptance Committee. The following considerations may be addressed:
      - The type of entity represented by the gift. (For example, Corporation, S Corporation, LLC, LLP).
      - If the security will generate unrelated business taxable income to the Foundation and if so whether the Foundation is able to pay any tax liabilities.
      - Will the gift trigger any negative tax consequences to the donor. If the donor is unsure, he/she is advised to speak with a financial advisor.
      - Any restrictions on the security that would prevent the Foundation from ultimately converting the asset to cash.
      - How the company operates and if its operation of the gift interest creates a liability for the Foundation.
      - The marketability of the security; what is the market and the estimated time required for sale.
    3. If potential problems arise on initial review of the security, further review and recommendations may be sought from an outside professional before making a decision whether to accept the gift. Every effort will be made to sell non-marketable securities as quickly as possible.
  4. Real Estate
    1. Gifts of real property require review and approval by the Gift Acceptance Committee and as necessary by legal counsel and the Foundation Board.
    2. Unencumbered real property may be accepted after visual inspection, appraisal and a Phase II environmental audit at the donor’s expense, if deemed appropriate, and any other requirement that the Foundation Gift Acceptance Committee may request as a condition to acceptance and to which the donor agrees. In some instances the Foundation may obtain a second appraisal. If real property is being donated to establish a trust, the trust shall not provide for payments to the donor in excess of trust income during the period of time that the trust owns the real property, i.e., while the real property is being liquidated by the trustee.
    3. Real property that is encumbered by a trust deed, mortgage, lease or other restriction or encumbrance may be accepted only upon advice from the Foundation’s legal counsel.
    4. Before accepting real property as an outright gift or to a trust, or with a retained life estate, arrangements for paying expenses will be agreed upon in writing by the donor and Foundation. The expenses to be considered may include fees, taxes and assessments, insurance coverage and cost of maintaining building and grounds.
    5. The following considerations apply to gifts of real estate:
      - The usefulness of the property to the Foundation or College.
      - The marketability of the property.
      - The existence of any restrictions, reservations, easements, or other limitations associated with the property.
      - If there are carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property.
      - If the property is free of environmental damage.
  5. Remainder Interests in Property
    The Foundation may accept a remainder interest in a personal residence, farm, or vacation property subject to the provisions of paragraph (iv) above. At the death of the life tenants, the Foundation may use the property or reduce it to cash. Where the Foundation receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness will be paid by the donor and/or primary beneficiary.
  6. Oil, Gas, and Mineral Interests
    The Foundation may accept oil, gas, or mineral interests, when appropriate, subject to review by legal counsel and review and approval by the Gift Acceptance Committee and the Foundation Board. In accepting oil, gas or mineral interests, the Foundation will determine whether the following criteria have been met:
    - Gifts of surface rights should have a value of $20,000 or greater.
    - Gifts of oil, gas, and mineral interests should generate at least $3,000 per year in royalties or other income (as determined by the average of the three years prior to the gift).
    - The property should not have extended liabilities or other considerations that make receipt of the gift inappropriate.
    - A working interest is rarely accepted. A working interest may only be accepted when there is a plan to minimize potential liability and tax consequences.
    - The property must undergo an environmental review to ensure that the Foundation has no current or potential exposure to environmental liability. The cost of the environmental review must be borne by the donor.
  7. Bargain Sales
    A bargain sale occurs when a donor, who intends to make a charitable contribution, sells property to charity for less than its fair market value. The Foundation may enter into a bargain sale arrangement in instances where the bargain sale furthers the mission and purposes of the Foundation. All bargain sales must be reviewed by legal counsel and reviewed and approved by the Gift Acceptance Committee. In determining the appropriateness of the transaction, the Foundation will consider whether:
    - The value of the property has been substantiated by an independent appraisal.
    - Any debt ratio assumed with the property is less than 50% of the appraised market value.
    - The Foundation or College will use the property, or there is a market for sale of the property preferably allowing sale within 12 months of receipt.
    - The costs to safeguard, insure, and maintain the property (including property tax, if applicable) during the holding period have been determined.
  8. Life Insurance
    1. Gifts of life insurance enable a donor to make a future major gift to the Foundation at a relatively modest cost. Gifts of life insurance can occur in one of three ways:
      - Contributing a paid-up policy and designating the Foundation as the owner and beneficiary of the policy.
      - Contributing a partially paid policy and designating the Foundation as owner and beneficiary. Donors make annual charitable contributions to the Foundation that may be used to pay the remaining policy premiums.
      - Designating the Foundation as a beneficiary or contingent beneficiary on a policy of life insurance owned and maintained by the donor.
    2. The Foundation must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded for accounting purposes as a charitable gift. If the donor contributes future premium payments, the Foundation will include the entire amount of the additional premium payments as gifts in the year that they are made.
    3. If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, the Foundation may continue to pay the premiums, convert the policy to paid up insurance, or surrender the policy for its current cash value.
    4. Once the policy is accepted, life insurance holdings will be reviewed annually by the Gift Acceptance Committee to determine whether it is best to continue to pay the premiums, convert the policy to paid up insurance, surrender the policy for its current cash value, or change the underlying investment structure.
  9. Charitable Gift Annuities
    1. The Foundation will follow the charitable gift annuity rates published periodically by the American Council on Gift Annuities (the ACGA). Generally all charitable gift annuities will be unrestricted unless otherwise designated by an approved signed fund agreement or approved by the Gift Acceptance Committee.
    2. The Foundation may issue single and two life gift annuity contracts as well as single and two life deferred gift annuity contracts. No more than two life income beneficiaries will be permitted for any gift annuity. The minimum age for life income beneficiaries of a gift annuity shall be 60. Where a deferred gift annuity is offered, the minimum age for life income beneficiaries shall be 55.
    3. Exceptions to the minimum age requirements for all annuity contracts must be approved by the Gift Acceptance Committee. The Foundation may only enter into charitable gift annuities with Oregon residents and other states with no regulation.
    4. The Foundation will issue gift annuity contracts in the minimum amount of $10,000 and the maximum amount of $100,000 on approval of the Operations Manager, who will consider the total value of the charitable gift annuity portfolio. Amounts from $100,001 – $250,000 must be reviewed and approved by the Gift Acceptance Committee. Any proposed contract for more than $250,000 must be reviewed and approved by the Gift Acceptance Committee in consultation with the Planned Giving Committee to determine whether other gift vehicles might be more appropriate. Issuance of multiple contracts to a single annuitant totaling more than $100,000 must be reviewed and approved by the Gift Acceptance Committee and Planned Giving Committee.
    5. Gifts of cash and publicly traded securities will be accepted to fund charitable gift annuities on approval of the Operations Manager. Gifts of real estate, tangible property, or other illiquid assets may be accepted to fund charitable gift annuities upon review and approval by the Gift Acceptance Committee and in compliance with this policy.
    6. The Foundation’s charitable gift annuity pool performance will be formally reviewed at least annually by the Gift Acceptance Committee. An annual summary of this review and any recommended changes in investment strategy will be presented to the Planned Giving Committee and the Foundation Board. When the overall size of the charitable gift annuity pool reaches $500,000, the Gift Acceptance Committee in consultation with the Planned Giving Committee will review these policies and recommend any changes.
  10. Charitable Remainder Trusts
    1. The Foundation shall not accept a charitable remainder trust without prior review and approval of the Gift Acceptance Committee in consultation with legal counsel. Where the trust is testamentary, that is, one that arises upon the death of the donor, the Foundation reserves the right to disclaim any interest that would be in violation of this Gift Acceptance Policy.
    2. A charitable remainder trust is an irrevocable trust created either during the life of the donor or through the donor’s will or trust. The trust must provide that a specified sum (not less than 5%) of the trust’s value is paid to one or more beneficiaries on an annual or more frequent basis. At least one beneficiary must be non-charitable.
    3. Charitable Remainder Annuity Trust (CRAT). A CRAT is an irrevocable trust that provides for paying a fixed sum not less than 5% but not more than 50% of the initial fair market value of the trust corpus, at least annually, to one or more persons, at least one of whom is not a charitable beneficiary; for life or the lives of a named individual(s) or for a term of years not to exceed 20; after which the entire trust principal will be retained for the use of the Foundation (a qualifying charity). Additional contributions are not allowed.
    4. Charitable Remainder Unitrust (CRUT). A CRUT is an irrevocable trust that provides for paying a stated percentage (not less than 5%) of the net fair market trust principal, determined and paid at least annually, to one or more persons at least one of whom is not a IRC Section 170(c) organization; for life or the lives of a named individual(s) or for a term of years not to exceed 20; after which the entire principal is irrevocably transferred or retained for the use of, in this case, the Foundation. Unlike an annuity trust, additional contributions may be made to a unitrust in years after creation of the CRUT. Unitrust options include:
      - Standard or Straight Unitrust.
      - Net Income Unitrust (NICRUT).
      - Net Income with Make Up Unitrust (NIMCRUT).
      - FLIP Unitrust (FLIPCRUT).
    5. Other sources should be consulted for a full explanation of these Unitrust variations. The following guidelines apply to the acceptance of charitable remainder trusts.
    6. If it is irrevocably designated the beneficiary of such a trust, the Foundation may agree to serve as the trustee of a charitable remainder trust that meets the requirements set forth below. Legal review of all trust documents is required.
    7. The initial contribution to the charitable remainder trust shall be at least $100,000 unless other factors dictate acceptance of the gift would be in the best interests of the Foundation or the College and the Gift Acceptance Committee waives this requirement. If the income interest is for life, the beneficiary(ies) must be at least 55 years of age for a NIMCRUT, NICRUT or FLIPCRUT and 60 for a standard or straight charitable remainder trust unless the Gift Acceptance Committee approves a younger age. No minimum age requirement shall apply to trusts for terms of years.
    8. There is no maximum number of designated individual beneficiaries, but there shall be no more than two generations of beneficiaries.
    9. The Foundation will not serve as trustee of a charitable remainder trust interest unless the trust is designed so that its net present value at the time of future distribution to the Foundation is not less than 50% of the initial gift. Calculation of net present value will consider a reasonable return over time, growth of trust assets, allowance for management expenses, and discount (inflation) factor in accord with practices of similar charitable organizations. Exceptions may be recommended by the Gift Acceptance Committee in light of such factors as assets involved, size of gift, potential for additional gifts or additions to the unitrust, age and life expectancy.
  11. Revocable Trust Agreements
    The Foundation encourages its donors to name the organization as a beneficiary of all or a portion of a revocable trust agreement. However, the Foundation will not serve as trustee of a revocable trust agreement and will instead encourage the donor to use a professional fiduciary.
  12. Charitable Lead Trusts
    1. Charitable lead trusts shall not be accepted by the Foundation without prior review and approval of the trust agreement by the Gift Acceptance Committee in consultation with legal counsel. Where the trust is testamentary, that is, one that arises upon the death of the donor, the Foundation reserves the right to disclaim any interest that would be in violation of this Gift Acceptance Policy.
    2. A charitable lead trust is a trust in which the initial payout interest, or “lead” interest, is paid to the Foundation, and the “remainder” interest is given to one or more non-charitable beneficiaries, who could be either the donor or family members. The amount paid to the Foundation may be either a fixed sum (an “annuity trust” interest) or a percentage of the trust assets as valued each year (a “unitrust” interest). At the conclusion of the payment period, the trust assets are returned either to the donor or to someone designated by the donor.
    3. The Foundation may serve as trustee of a charitable lead trust to which the initial contribution is at least $100,000. A trust may be funded with a smaller amount, subject to prior approval of the Gift Acceptance Committee.
    4. The trust term may be at the discretion of the donor, subject to the approval of the Executive Officer, Operations Manager, and the Gift Acceptance Committee.
  13. Retirement Account Plan Distributions or Beneficiary Designations
    Donors and supporters of the Foundation will be encouraged to give to the Foundation through retirement plan distributions or name the Foundation as beneficiary of their retirement plans. Such designations will not be recorded for accounting purposes as gifts to the Foundation until such time as the gift is irrevocable, but will be tracked in the donor database and recognized as appropriate toward fundraising campaign goals.
  14. Bequests
    1. Donors and supporters of the Foundation will be encouraged to make bequests to the Foundation under their wills and trusts. Such bequests will not be recorded for accounting purposes as gifts to the Foundation until such time as the gift is irrevocable, but will be tracked in the donor database and recognized as appropriate toward fundraising campaign goals.
    2. For realized bequest gifts, if a donor places no restriction on a bequest gift over $25,000, the gift will be designated as a quasi-endowed gift. For realized bequest gifts, if a donor places a purpose restriction on a bequest gift over $25,000, the gift will be designated as an endowed gift. For bequest gifts under $25,000, a case-by-case decision will be made by the Gift Acceptance Committee and/ or Board of Trustees.
  15. Intellectual Property Rights
    Intellectual property rights, which include royalties, patents, copyrights, contract rights or other similar interests must be reviewed by Foundation legal counsel and reviewed and approved by the Gift Acceptance Committee. They will be examined in light of the following criteria:
    - If the intellectual property right relates to the mission of the Foundation.
    - If the ownership of the intellectual property right can be clearly transferred or assigned to the Foundation.
    - If the intellectual property right is a full or fractional interest. If fractional, who are the other owners of the property and percentage interests. If the gift is deductible to the donor under the IRS partial interest gift rules.
    - Does the right in the intellectual property generate, or have the potential to generate, at least $5,000 or more each year.
    - Is there a market for the sale or licensing of the intellectual property right.
    - The costs associated with acceptance of the intellectual property right (i.e., is the gift a patent application that will require further action to secure, are there any claims, liens or other contests associated with the property, or are there likely to be costs associated with defending the intellectual property right.)
    - If there exists a restriction on the retention or use of the property.
    - What agreements or other legal documents would the Foundation be required to execute in order to obtain patents, market the property and grant licenses in the name of the Foundation.
  16. Pledges
    A pledge is a promise by a donor to make a gift. The Foundation welcomes donor pledges. Pledges may take several forms.
    1. Conditional and Unconditional Pledges
      Pledges that promise a present or future gift, without any limitation or condition, are unconditional and may be recorded as a gift (though not receipted until actual payment is received). A conditional pledge is made if the donor requires the Foundation or the College to perform some task or take some action before the pledge can be enforced. A conditional pledge might also depend on some future event over which neither the College, Foundation nor donor have control. Conditional pledges can be logged into the donor database for tracking purposes only, provided there is a reasonable expectation that the condition will be met and when there is appropriate documentation of the gift (preferably in the form of a gift agreement), including dollar amounts and a payment schedule. When conditions of the pledge are met the pledge may be recorded as a gift (though not receipted until actual payment is received).
    2. Requirements for Pledges
      Pledges are pre-approved for acceptance if the following terms are met:
      - The donor has agreed to terms of the gift and written substantiation includes the amount of the pledge, the pledge period, the date of the first payment, and the frequency of the payments. The written substantiation also contains a statement of the gift designation, and any restrictions, and these are acceptable to both the Foundation and College.
      - The pledge is made by an entity (donor) that exercises control over the assets to be given. A donor cannot make a pledge that includes anticipated matching funds from an employer or other source. Nor can a donor pledge funds that must be applied for through a Donor Advised Fund or Community Foundation. If the donor wishes to use a Donor Advised Fund or Community Foundation, the donor must “advise” the fund or the foundation, which then has discretion to make the gift or not. In any event, no “pledge” is recorded under these circumstances.
    3. Approval of Pledges
      1. No specific approval is needed to accept an unconditional pledge to be paid within five (5) years.
      2. The Foundation and the College, as applicable, must approve conditional pledges.
      3. Unconditional pledges with payout periods longer than five years must be approved by the College, as applicable, and the Gift Acceptance Committee.
Miscellaneous
1. Securing appraisals and legal fees for gifts to the Foundation: It will be the responsibility of the donor to secure and pay for an appraisal (where required) and the advice of independent legal, financial or other professional advisers as needed for all gifts made to the Foundation.
2. Valuation of gifts for development purposes: The Foundation will record a gift received by the Foundation at its valuation for gift purposes on the date of gift.
3. Responsibility for IRS filings upon sale of gift items: The Foundation is responsible for filing IRS Form 8282 upon the sale or disposition of any non-marketable asset sold within three years of receipt by the Foundation when the charitable deduction value of the item is more than $5,000. The Foundation must file this form within 125 days of the date of sale or disposition of the asset.
4. Acknowledgement of all gifts made to the Foundation and compliance with the current IRS requirements in acknowledgement of such gifts is the responsibility of the Foundation; IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions provide detailed guidance and can be obtained at www.irs.gov.
5. Disclosure provided for pooled funds. The Foundation will provide all appropriate disclosures as required by the Philanthropy Protection Act of 1995 for gifts contributed to pooled funds.

Portland Community College

Portland Community College Foundation

2a: Gift Policies – Gift Acceptance Policy