Gift Acceptance Policy
Last modified: December 21, 2018
Numotion Foundation ("Foundation", “Corporation”, "we" or "us") is a not-for-profit corporation under the laws of the State of Tennessee and a tax exempt organization under 501(c)(3) of the Internal Revenue Code, whose mission is to support people and causes that work towards enhancing the lives of people with disabilities in communities of common interest. Contributions to Numotion Foundation are tax deductible as provided by law.
This gift acceptance policy (this “Policy”) establishes guidelines governing the acceptance of gifts by the Foundation for the benefit of any of its operations, programs, or services, and provides guidance to prospective donors and their advisors when making gifts to the Foundation.
Please read this policy carefully to understand our policies and practices regarding your gifts/donations and how we will treat it.
The Foundation’s Board of directors (the “Board”) is responsible for all aspects of charitable giving to the Foundation. In accepting a gift, the Board will be responsible for stewarding both the donor and the gift. A gift review committee may be established at the discretion of the Board, consistent with the Foundation’s organizational documents, for the purpose of reviewing proposed gifts. The gift review committee may accept or reject the gift and make its recommendations to the Board on gift acceptance issues. The committee must consist of at least three current Board members, though additional individuals may be admitted on an ad hoc basis by the chairperson. The committee may consult any professional, employee, or volunteer as it deems necessary or advisable.
The Foundation’s acceptance of any gift is at the discretion of the Foundation. The Foundation will not accept any gift:
- unless it can be used or expended consistent with the Foundation’s purpose and mission;
- if it may potentially jeopardize the Foundation’s tax-exempt status or financial status
- if it would violate the Foundation’s policies, or local, state, or federal laws.
- if the gift could improperly benefit a donor.
- if the Foundation does not have the resources to honor the terms of the gift.
- if for gifts of property, a fair market value cannot be determined or will result in additional expense to the Foundation.
- if for gifts of property or in-kind gifts, there are physical or environmental hazards.
The Board and/or the gift review committee will review any gifts with restrictions and will not accept gifts with restrictions that:
- would result in a violation of the Foundation’s certificate of incorporation or loss of its tax-exempt status; or
- are otherwise found inappropriate or inadvisable.
All contributions shall be made and accepted in conformity with the provisions of federal and state laws, as well as the Internal Revenue Code and regulations that are in effect at the time of the gift transaction.
3. Gift Types
Cash. The Foundation will accept all unrestricted gifts of cash or cash equivalents, regardless of amount. Checks or money orders must be made payable to the Foundation and may not be made payable to any individual representing the Foundation.
In-Kind Gifts. The Foundation will accept, in its discretion, gifts of in-kind services or goods, including tangible personal property, if they directly serve a need of the Foundation. Otherwise, acceptance of an in-kind gift will be at the discretion of the Board and/or the gift review committee.
The Foundation will generally accept unrestricted, tangible personal property if determined to be in the best interest of the Foundation. Tangible personal property may include art, furniture, jewelry, equipment, cars, boats, and any other personal item owned by a donor. In deciding whether or not to accept tangible personal property, the Foundation will consider:
- (a) The carrying costs for the property, including maintenance and repairs.
- (b) The cost of insurance.
- (c) Storage and transportation costs.
- (d) The marketability and cost of selling.
Publicly Traded Securities. The Foundation will accept, in its discretion, readily marketable securities. Marketable securities are likely to be sold immediately by the Foundation.
Gifts Subject to Review. Certain other gifts must be reviewed by the Board and/or the gift review committee prior to acceptance. Gifts subject to review include but are not limited to:
- (a) Closely held securities, including interests in limited partnerships and limited liability companies.
- (b) Real property.
- (c) Life insurance policies.
- (d) Life estate gifts.
- (e) Annuities.
- (f) Endowments.
- (g) Restricted gifts.
- (h) Gifts whose source or value is not transparent.
In conducting the review, the Board and/or gift review committee must consider any obligations created or liabilities posed by the gift for the Foundation, including but not limited to:
- Marketability of the gift.
- Carrying costs.
- Appraisal costs.
- Ongoing fiduciary obligations.
- Environmental liabilities for gifts of real property.
- Issues with title.
- Reputational harm from accepting the gift.
- Restrictions on use of the gift, both imposed by the donor and legally, such as conditions, covenants, easements, liens, or encumbrances.
4. Use of Legal Counsel
Legal counsel shall be engaged, where appropriate and at the discretion of the Board and/or gift review committee, when the Foundation is determining the acceptability of a gift. Review by counsel is recommended for:
- (a) Gifts of securities subject to buy-sell agreements or other restrictions.
- (b) Gifts involving contracts or other legal documents requiring the Foundation to assume an obligation.
- (c) Gifts naming the Foundation as a trustee or imposing a fiduciary obligation.
- (d) Gifts with potential conflicts of interest that have the potential for IRS sanctions.
- (e) Gifts of real estate.
- (f) Gifts establishing an endowment fund.
- (g) Any other instances in which the Board and/or the gift review committee deem the use of counsel appropriate.
The Foundation will not provide advice about the tax or other treatment of gifts and will encourage all prospective donors to seek guidance from their own legal counsel and financial advisors relating to their gifts. Any legal counsel engaged by the Foundation is employed by the Foundation and does not act on behalf of the donor.
5. Miscellaneous Provisions
Valuation of Gifts Other Than Cash and Publicly Traded Securities. Where appraisals are needed to determine the value of the gift, the donor shall in most circumstances be responsible for obtaining an independent appraisal.
Acknowledgment of Gifts. The Foundation will provide acknowledgments to donors meeting the Internal Revenue Code’s substantiation requirements for property received by the Foundation as a gift, including completing required tax forms where applicable, such as Form 1098-C for Contributions of Motor Vehicles, Boats, Airplanes.
Fees. The Foundation will not compensate, whether through commissions, finders’ fees, or other means, any third party for directing a gift or donor to it.
Donor Bill of Rights. The Foundation works to follow The Donor Bill of Rights developed by the Association of Fundraising Professionals (AFP), the Association for Healthcare Philanthropy (AHP), the Council for Advancement and Support of Education (CASE), and the Giving Institute: Leading Consultants to Foundations.
IRS Filings. The Foundation will complete all filings required by the IRS of the Foundation in connection with gifts received by the Foundation. The Foundation is not responsible for completing any IRS filings required of the donor.
6. Contact Information
To ask questions or comment about this policy and our practices, contact us at:
Numotion Foundation, 155 Franklin Road Ste 100, Brentwood, TN 37027.