In order to best meet caring community members' wishes, and fulfill the
mission of our Community Foundations, we have adopted a gift
The Northern Indiana Community Foundation, Inc. is a publicly
supported philanthropic organization governed by a volunteer
board from Fulton, Miami and Starke counties. The Northern
Indiana Community Foundation, Inc. seeks to enrich the quality
of life for each resident of these counties by administering
funds entrusted to it, or of funds bequeathed by individuals,
or gifted by corporations and other organizations and agencies.
The Northern Indiana Community Foundation, Inc. provides sound
management of these contributions as part of the permanent
endowment for each separate county.
The purpose of this Gift Acceptance
Policy is to govern the acceptance of gifts and to provide
guidance to the donors and their professional advisors in completing
gifts. This is to insure the Northern Indiana
Community Foundation, Inc. fulfills its mission which is:
"To improve the quality of life in our communities by assisting donors
in fulfilling their charitable wishes."
In order to accomplish its mission, the Foundation seeks to serve
the charitable interests of its donors and the community by informing,
guiding and otherwise assisting the donor in fulfilling his or
her philanthropic wishes.
The Foundation assures that the charitable
intentions of each donor will be fulfilled. The interests of the
donor shall come before these of the Foundation. No program, agreement,
trust, contract or commitment shall be urged upon any prospective
donor that would benefit the Foundation at the expense of the donor's
interest and welfare.
Prospective donors shall be advised to seek the counsel
of their attorney in any and all aspects of the proposed gift,
whether by will, bequest, trust agreement, or outright gift. The donor will
be advised to consult with their attorney or other advisors on
matters related to the tax implications of the gift.
to meeting the donor's charitable intent, all gifts must serve
the charitable purposes of the Foundation and are subject to
the approval of the Foundation Board of Directors. The Foundation
Board has the right to accept or refuse any gift, based on this
policy or other considerations. Gifts that are too restrictive,
too difficult to administer, or gifts that are for purposes outside
the mission of the Foundation will not be accepted.
The minimum gift amount
to establish a "named" endowed fund is $5,000. The purpose or donor's
intent of the gifts used to establish new endowment funds must
be defined in a written fund agreement or deferred gift instrument signed
by the donor, or their appointed representative, and if appropriate, an
authorized representative of the Foundation. Standard
fund agreements, as approved by legal counsel and Foundation
Board of Directors will be used. Any deviation from these standard
agreements must receive legal approval by Foundation counsel
prior to execution. In
most cases, additional gifts may be made to existing funds of
the Foundation without restating the original purpose of the
distributions from funds will be made in accordance with the
Articles of Incorporation, Donor Advised Fund Guidelines, Investment Spending
Policy and federal tax laws and regulations.
Gifts received in the
following forms to any existing fund may be accepted by the Executive
Director and will not require prior review and approval of the
Board of Directors:
- Marketable securities
- Gifts of personal property for the Foundation's
offices or programs.
Gifts that require review or approval by the Board of Directors include:
- Initial gifts that create a fund or that create a Fund Agreement.
- Stock in privately owned companies or subchapter S corporations
- Real Property
- Tangible personal property
- Deferred gifts
In conformance with Treasury Department regulations governing community
foundations, gifts to the Foundation may not be directly or indirectly
subjected by a donor to any material restriction or condition that prevents
the Foundation from freely and effectively employing the transferred assets
or the income derived there from, in furtherance of its exempt purposes.
The Foundation accepts cash,
checks, and money orders. The
donor needs only to communicate the intended purpose of the
The Foundation accepts gifts of publicly traded
stocks and bonds. The securities should be electronically
transferred to the Northern Indiana Community Foundation,
the county foundation. Upon receipt into the Foundation's brokerage
account the securities will be sold as soon as is practical.
If a donor holds a stock certificate in their name, they
will have to sign a stock power form with a signature guarantee.
The forms are available at the Foundation office but the signature
guarantee will have to take place at a bank or other financial
institution. The donor may then bring the security to the
Foundation office. The Foundation will value the gift for its
purposes, at the average price per share on the
date of receipt at the Foundation office or in the Foundation's
brokerage account unless otherwise notified by the donor's
Under certain circumstances, life insurance may
be a donor's most practical method of making a gift to the
the benefits of such a gift vary, two significant factors can
come into play through a gift of life insurance:
- The conversion
of a "dormant" source of wealth into an active gift.
activation of a potentially sizeable gift through annual tax-deductible
gifts that can be used to make premium payments.
A gift of life insurance
may provide two forms of tax relief — a current charitable
income tax deduction and an estate tax reduction at death. The
donor will be entitled to a charitable income tax deduction only when
the charity is named as both the owner and beneficiary of the policy. The
various methods of giving life insurance can fit a wide range
of individual circumstances. There
are numerous methods by which a life insurance policy may be
contributed to the Foundation with attractive benefits to be
a. Assign irrevocably a paid-up life
insurance policy to the Foundation, naming the Foundation owner
and beneficiary of the policy. Charitable
income tax deduction generally equals the replacement value of
the policy. Replacement
value is the cost of purchasing the same amount of paid up
insurance at one's age and state of health when making the
b. Name the
Foundation as primary beneficiary, but retain ownership of life insurance
policy. The donor may
reserve the right to revoke the beneficiary designation should
family circumstances necessitate. While there are no federal income
tax savings, proceeds paid to the Foundation upon death qualify
for an estate tax charitable deduction.
c. Name the Foundation as successor beneficiary to receive
the proceeds if other beneficiaries are not living. The
donor reserves the right to revoke the beneficiary designation. Again,
there are no federal income tax savings, but in the event
the proceeds are paid to the Foundation, they will qualify
for an estate tax charitable deduction.
Gifts of this type may or may not be accepted. Only securities
which will not create a liability for the Foundation will be
considered. To be accepted, such stocks must have a qualified
appraisal performed by an independent professional appraiser. Prior
to approval by the Board, such gifts are reviewed by the Foundation's
executive director and legal counsel.
See Real Estate Gift Policy.
The Foundation will consider the acceptance
of tangible personal property on a case by case basis. When personal property can be
used in the course of the Foundation's business, a donor may receive the appraised
value for the gift. In all other cases, the donor's gift value
is the historic cost of the gifted items.
The Foundation will
consider the difficulty and expense of selling the items, the
expertise required to sell the items, issues of storage interim
to sale, and the general overall benefit to the Foundation in
deciding whether to accept the gift.
The Foundation accepts
different types of gifts whose
benefits do not fully accrue to
the Foundation until some future
time (such as the death of the
donor or other income beneficiaries,
or the expiration of a predetermined
period of time), or whose benefits
to the Foundation are then followed
by the interests of noncharitable
beneficiaries. The Foundation requests
that all deferred gifts be coordinated through the Executive
Director. All donors contemplating a deferred gift should
consult their own financial, legal, and tax advisors. Types
of deferred gifts and Foundation procedures follow:
A charitable gift made by a will that is revocable
during the donor's life and operable only upon the donor's
death. A bequest can be for a specific gift, a specific
asset, or a percentage of the donor's estate.
Charitable Remainder Trust
A charitable remainder trust is a contractual agreement
between a donor and the Foundation under which the donor
makes an irrevocable gift of cash, securities or property
to the Foundation. In exchange
for the donated property, the Foundation agrees to provide income for
a specific period (the donor's lifetime or a period not to exceed 20
years). There are several types of charitable remainder trusts.
Charitable Remainder Trust Agreement
The legal document that establishes
the terms of the agreement between
the Foundation and the donor. It
will specify the charitable purpose
of the gift, as well as the duties of the Foundation to the
Charitable Remainder Annuity Trust (CRAT)
A CRAT provides the donor with a fixed, annual annuity calculated
as a percentage of the initial fair market value of all property
contributed to the trust. No further contributions to the trust
Charitable Remainder Unitrust (CRUT)
A CRUT provides the donor with a fixed percentage of the net fair market
value of the trust's assets, valued annually. Additional
contributions may be made to a CRUT.
Charitable Lead Trust (CLT)
A CLT provides income to the Foundation during the
donor's lifetime. At the end of the trust term, the remainder
of the trust is distributed to the donor's named beneficiaries.
It will be the policy of the Northern Indiana Community Foundation,
Inc. to review and accept any of the above named planned giving
instruments that fall within the guidelines listed below. These
guidelines reflect the Foundation's prudent practice that takes into consideration
the needs of the donor as well as the needs of the Foundation.
The Foundation recommends the minimum
gift to establish a Charitable Remainder Trust
at the Foundation will be cash or the fair market
value of an asset valued at $50,000.
The Foundation recommends
the minimum age required to
be 55 years for each income
beneficiary when the trust is established.
Number of Beneficiaries
the number of income beneficiaries to two.
Maximum Trust Rate
the maximum trust rate to be paid to each
income beneficiary in a fair and prudent
manner, and will not exceed the Uniform Gift
Annuity rates established annually by the
American Council on Gift Annuities. Each
potential income beneficiary will be informed of the Uniform
Gift Annuity Rate based upon the actuarial age of the income
will provide semi-annual
payments unless otherwise designated by the
donor not to exceed twelve payments per year.
The annuity rates must provide a charitable
deduction of at least 10% of the value of
the assets given. The trust agreement should
be written with the fair market value of the donation on the gift date.
Administration and Fees
may administer the
trust or have a second
party administer the
trust. Each individual planned gift will be reviewed by the Foundation
Board's legal counsel and a recommendation will be made to the Foundation Board
for approval, including the fee structure. Such fees will be deducted
from the earnings of the fund or the fund corpus, and not from the payment
to the beneficiary(s).
The Foundation board has the authority to
accept or refuse bequest gifts. Most
designations in wills should fit within Foundation guidelines; however, complicated
or restrictive instructions may prevent the Foundation from accepting certain
gifts. Donors and/or their legal counsel should contact the Foundation
staff regarding any unusual administrative provisions. The name of the
donor need not be disclosed. Such contact at the time of the gift's creation
will help avoid any problems when the gift is implemented.
Sample language for
a will is: "I give, devise and bequeath to the Northern Indiana
Community Foundation, Inc. an Indiana nonprofit corporation,
for the benefit of ___________county, ___________, (describe
devise — for example, 'Ten thousand dollars' or 'all of the residue
of my estate' to be used in all furtherance of the charitable
purposes of the Northern Indiana Community Foundation, Inc. as
defined in and subject to the provisions of its Articles of Incorporation
and Bylaws." In
addition, a donor may specify that his bequest be used for a
particular purpose such as scholarship or to benefit the youth
of Fulton, Miami or Starke County or for the support of United
Way, for example. The bequest can name any current fund within
the Northern Indiana Community Foundation, Inc., however it is
recommended that a Fund Agreement be prepared at the time the will is
prepared if the donor wishes to establish a new fund within the Foundation.
All information concerning prospective donors, including
names and addresses, names of beneficiaries, nature and worth
of estates, amounts of provisions, etc. shall be kept strictly
confidential by the Foundation and its authorized personnel unless
the donors grant permission to use selective information for
purposes of referral, testimonial or example at the discretion
of the donor or authorized representatives.
Investment of Gifts
The Foundation reserves the right to make
any or all investment decisions regarding gifts
received. In making
a gift to the Foundation, donors give up all right, title, and
interest to the assets contributed. In particular, donors
give up the right to choose investments and investment managers,
brokers, or to veto investment choices for their gifts.
Acknowledgement and Reporting of Gifts
The Foundation's staff
will prepare and send to each donor
a letter of acknowledgement The Finance Administrator
will send IRS form 8283 to a donor for a noncash gift over $500
when the Foundation has proper documentation as to the value
of the gift. The Finance Administrator will send IRS form
8282 to a donor of property that is disposed of within two years
of the date of the original contribution.
Gift Acceptance Committee
will be considered
the gift acceptance
committee in times
where a Board meeting cannot be
scheduled within 30 days of the
gift needing approval. All
gifts of real estate will need the approval of the Real Estate
Committee before being presented to the Board or gift acceptance
committee for approval.
Annual Review of Gift Acceptance Policy
The Gift Acceptance Committee shall review this policy
annually to determine if any amendments are necessary to reflect
changes in the law or the Foundation and to address new situations
not previously addressed by the Board.