Gift Policies and Procedures

Reason for this policy:

The function of these policies is to update and clearly delineate the kinds of gifts Community Boating, Inc. (CBI), the “Corporation”, will accept, under what circumstances, and how they shall be assigned, acknowledged, valued, and reported. It also outlines procedures to be followed regarding the handling of gifts to the Corporation.

  1. Definitions and Authorizations
    1. Definitions
      1. The legal name of the organization is Community Boating, Inc (hereinafter referred to as CBI).
      2. A gift is any voluntary, nonreciprocal transfer of cash or other asset from individuals or private organizations, such as corporations and foundations, to the Corporation.
      3. Gift restrictions must be agreed to at the time the gift is established and must be fully documented in writing. CBI reserves the right in the gift designation agreement to broaden the purpose of the gift should it be determined by the Board of Directors at some future date that the purpose for the gift no longer best serves the mission of the Corporation.
      4. A grant is a transfer of assets to CBI from a foundation, corporation, association, or government entity for specific purposes governed by a formal agreement between CBI and the donor, and subject to specific reporting requirements. Some grants by the nature of their reciprocal requirements are not donative in intent but are contractual.
      5. A bequest is a completed gift by will of tangible, intangible, or real property. A bequest intention is a promise, revocable during the donor’s lifetime, to make a gift by will; therefore, a bequest intention is not a completed gift. 
      6. The definitions of other planned giving vehicles as used by CBI are included later in this document.
    2. Authorizations
      1. No solicitation of funds may be undertaken on behalf of CBI without the approval of the President or his/her designee.
      2. The President or his/her designee is responsible for the development for Board approval of policies for the solicitation, acceptance, and use of gifts, and for the subsequent implementation of these approved policies.
      3. The Executive Director or his/her designee is responsible for
        1. Coordinating and controlling the solicitation and receipt of gifts to the Corporation.
        2. Transmitting cash and non-cash gifts to the Treasurer or his/her designee for timely deposit and safeguarding of gift receipts.
        3. Acknowledging all gifts, entering all records on to the gift records database, documenting all gift receipts, and ensuring the stewardship of gifts, including reporting on all grants and gifts according to the donating entities’ written requirements.
        4. Maintaining files of proposed grants, gifts, and contracts.
        5. Maintaining files of awarded grants, gifts, and contracts.
      4. The Budget and Finance Committee is responsible for
        1. The management of all the endowment and trust funds, restricted or unrestricted, of the Corporation. 
        2. Delegating to or contracting with investment counsel or managers, banks or trust companies the authority to act in place of the Board of Directors in the investment and reinvestment of institutional funds, subject to the approval of the Board of Directors and to the extent permitted by law. 
    3. Gift Assignments
      1. All gifts and pledges will be assigned to a specific restricted or unrestricted gift account under the With Donor Restrictions and Without Donor Restrictions categories prescribed by generally accepted accounting principles.
      2. Pledges will only be recorded and credited if in writing.
      3. The total anticipated income to the Corporation as beneficiary of a charitable lead trust may be recorded as a pledge, and the pledge period may not exceed the period of the trust.
      4. Corporate matching gifts will be credited to the purpose for which the donor’s original gift was made.
      5. Information about gifts, pledges, and donors is confidential and will be released only on authority of the President, his/her designee, or the donor. Employees with access to confidential gift, pledge, and donor information are duty bound to maintain the confidentiality as a term and condition of employment and may only share such information with authorized Corporation officials on a need to know basis or as otherwise authorized by the President.
  2. Valuation and Acceptance of Gifts
    1. General
      1. CBI personnel will inform, guide, and otherwise assist donors in completing their philanthropic transfers, but at no time shall Corporation personnel provide tax or legal advice to donors. The legal and financial costs of transferring non-cash gifts to the Corporation shall normally be borne by the donors.
      2. No gift will be accepted if the acceptance would cause the Corporation to incur an obligation, financial or otherwise, which the Executive Director or his/her designee deems burdensome. Similarly, the Corporation reserves the right to dispose of gifts of property at any time, unless otherwise agreed to with a donor.
        1. A gift will not be accepted if, in the judgment of the Corporation, it is too restrictive in purpose or the purposes are inconsistent with the Corporation’s goals or objectives.
        2. A gift will not be accepted if, in the judgment of the Corporation, it would jeopardize the Corporation’s tax-exempt status.
        3. A gift will not be accepted if the funds or property were acquired other than by legal means.
        4. A gift will not be accepted if, in the judgment of the Corporation, it may undermine the Corporation’s independence or compromise the Corporation’s commitment to academic freedom.
        5. A gift will not be accepted if, in the judgment of the Corporation, the intended purpose of the gift or being associated with the donor could compromise the Corporation’s reputation or is inconsistent with the Corporation’s mission or values.
    2. Gifts of Real Property
      1. Gifts of real property must have a clear and marketable title and not be contaminated by hazardous waste. Acceptance of such property is subject to the prior review and approval by the Board of Directors. A gift of real property will be subject to the following requirements:
        1. Personal inspection by staff
        2. Title search
        3. Qualified appraisal by the donor
      2. If a trust is involved, a written agreement must be signed by the donor to provide additional funds to the trust, to provide for ongoing expenses and maintenance of the property until it is sold. 
      3. If the property is used for commercial purposes, a completed real estate checklist, including detailed financial information on the property is required.
      4. Mortgaged real property may not be accepted. A donor who owns mortgaged real property should be encouraged to pay off or transfer the mortgage before making the gift. 
    3. Gifts of Tangible Personal Property or Capital Equipment
      1. Community Boating will consider the acceptance of tangible personal property or equipment under the following conditions:
        1. The property or equipment is of a class currently in the Corporation’s fleet and enhances the fleet; or
        2. The gift is made with the explicit understanding that the property is to be sold and the proceeds applied to a Corporation purpose.
      2. If the property is accepted, the donor is responsible for obtaining a qualified appraisal of the property’s fair market value.
    4. Gifts of Securities
      1. The Board of Directors may accept gifts of marketable securities.
      2. All negotiable securities will be valued at the mean of their market values on the date of delivery. The date of delivery is the date all transfer documents are in the custody of the Corporation or the date the security is deposited by wire transfer into an account authorized by the Corporation.
      3. The Corporation will normally sell securities received for charitable purposes and apply the proceeds to the fund account(s) corresponding to the donors’ stated purposes.
    5. Gifts of Life Insurance or Retirement Plan
      1. For gift acceptance, the Corporation must be an assigned irrevocable beneficiary of an insurance or retirement plan (if the Corporation is not the owner as well as the beneficiary of a life insurance policy, the beneficiary designation is revocable).
      2. If premiums remain to be paid, the donor must agree in writing to give sufficient funds annually on a timely basis to the Corporation in order for it to pay premiums, or the donor must agree to pay the premiums directly. The Corporation reserves the right to cash in a policy or take other actions available to the owner of a policy at any time. The Corporation will not undertake to secure insurance on the life of a donor or otherwise at the request of a donor, nor will it accept ownership of policies subject to a loan or in connection with “split dollar” or similar arrangement where the proceeds are to be divided between charitable and non-charitable interest. However, in all other circumstances, the Corporation may be named as a beneficiary of a death benefit on a life insurance policy.
      3. If the Corporation receives the proceeds of a policy or retirement plan that had not previously been recorded as a pledge, the full amount received will be reported as a gift.
      4. If the donor pays further premiums on a life insurance policy, the value of these premiums will be credited as gifts. If the Corporation pays further premiums, the cost will be an operating expense and will not change the surrender value or face value of the policy.
    6. Planned Gifts
      1. Gift Annuity: fixed payment for life in exchange for an irrevocable transfer of assets. The payout rate on a gift annuity contract should be no higher than that recommended by the American Council on Gift Annuities. A deferred gift annuity allows for payment of the annuity to start at a later time than the date of the gift. The minimum amount to establish a gift annuity is $10,000. The minimum age to establish a gift annuity is 60, while the minimum age to establish a deferred gift annuity is 50.
      2. Charitable Remainder Trust: payment as a fixed percentage determined annually (unitrust) or as an annuitized amount (annuity trust) of the trust assets will be made to the named beneficiaries. When each separately invested trust terminates, the value of the trust will be transferred to the Corporation. The minimum amount to establish a charitable remainder trust is $50,000.
      3. Charitable Lead Trust: income interest from a donor’s trust is paid to the Corporation until the termination of the trust, when the principal reverts to the named beneficiary. The minimum amount to establish a charitable lead trust is $50,000.
      4. The cost of management fees for the outside management of trusts will be the responsibility of the trust.
  3. Bequests and Bequest Intentions
    1. Bequests
      1. Completed gifts under the will of a deceased donor.
    2. Bequest Intentions
      1. Definition: Notification from donors during their lifetime that CBI is an intended beneficiary under the donor’s will.
        1. No bequest will be accepted if the acceptance would cause the Corporation to incur an obligation, financial or otherwise, which the Executive Director or his/her designee deems burdensome or;
        2. The bequest would cause the Corporation reputational harm.
  4. Gift Purposes
    1. Without Donor Restrictions
      1. Gifts without donor restrictions are given by donors to the Corporation without any limitation, prohibition, or constraint on the use of the gift funds, regardless of any subsequent designation by the Corporation.
      2. Unrestricted Bequests will be credited to unrestricted gift income to support operations or for other purposes so designated by the President or his/her designee.
    2. With Donor Restrictions
      1. Gifts with donor restrictions are those given by a donor for a specific purpose, those added to one of the Corporation’s endowment funds, or investment gains or income generated from an endowment fund. 
        1. Specific purposes of a gift with donor restrictions may include but are not limited to Junior Program Current Operations, Universal Access Program Current Operations, and Junior Program Race Team.
        2. Those that are added to one of the Corporation’s endowment funds are permanently restricted, retained and invested for income producing purposes.
        3. Investment gains or income generated from an endowment fund are to be released on a schedule in accordance with the original terms of the endowment, with the income restricted to the specific purpose of the endowment.
  5. Recognition and Stewardship
    1. Campaign Gifts
      1. The Board of Directors may determine that all gifts of any type and for any purpose during the period of an authorized comprehensive campaign may be recognized as “campaign gifts”.
      2. Alternatively, the Board may determine that only gifts accepted for unrestricted and specified restricted purposes during the period of an authorized campaign may be recognized as “campaign gifts”.
    2. Physical Naming Opportunities
      1. The Executive Director, with the approval of the Board of Directors, may authorize a list of naming opportunities, with minimum amounts assigned to each opportunity.
      2. The Corporation reserves the right to terminate its obligations regarding a naming if being associated with the naming could compromise the Corporation’s reputation or is inconsistent with its vision, mission, or values.
      3. If not otherwise specified, a naming is granted in perpetuity, except that, if the named entity ceases to exist, the naming period will conclude and the Corporation will determine an appropriate way to recognize the original naming gift.
    3. Endowment Naming Opportunities
      1. The Board of Directors may authorize in recognition of a donor’s generosity the naming of endowed funds upon receipt of funds in specified minimum amounts. Named endowment funds may support, for example, the Instructor-in-Training Program, STEM education, or the Universal Access Program.
      2. The minimum amount to establish an endowment fund is $100,000.
    4. Reporting Protocols
      1. The Executive Director will regularly report on the aforementioned policies to the Board of Directors. 
      2. The Corporation will adhere to all gift reporting requirements as outlined by Massachusetts general laws.
  6. Administration of these Policies
    1. Oversight of these policies is the responsibility of the Board of Directors with approval of such policies resting with the Board. The Executive Director and his/her designee is responsible for the administration of these policies.