Gift Policy

Cash

Cash is acceptable in any form. Checks shall be made payable to The Incarnation Foundation and shall be delivered to the Incarnation Business Administrator or a suitable representative chosen by the Board of Directors.

Tangible Personal Property (subject to review)

All gifts of tangible personal property shall be examined in light of the following criteria:

• Does the property fulfill the mission of the Foundation?
• Is the property marketable?
• Are there any undue restrictions on the use, display, or sale of the property?
• Are there any carrying costs for the property?

The final determination on the acceptance of tangible property gifts shall be made by a majority of the Board of Directors of the Foundation.

Securities (subject to review)

The Foundation can accept both publicly traded securities and closely held securities.

• Publicly Traded Securities: Marketable securities may be transferred to an 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 shall be sold upon receipt. In some cases marketable securities may be restricted in some manner related to the securities laws; in such instance the final determination on the acceptance of such restricted securities shall be made by a majority of the Board of Directors of the Foundation.
• Closely Held Securities: 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, can be accepted subject to the approval of the Finance Committee of the Foundation. However, gifts must be reviewed prior to acceptance to determine that:
  • there are no restrictions on the security that would prevent the Foundation from ultimately converting those assets to cash,
  • the security is marketable, and
  • the security will not generate any undesirable tax consequences for the Foundation.
• If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. The final determination on the acceptance of closely held securities shall be made by a majority of the Board of Directors of the Foundation and legal counsel where necessary. Every effort will be made to sell non-marketable securities as quickly as possible.

Real Estate (subject to review)

Gifts of real estate (or notes secured by real estate) may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to acceptance of real estate, the Foundation shall require an initial environmental review of the property to ensure that the property is not contaminated with environmental damage. Environmental inspection forms are attached as an appendix to this document. In the event that the initial inspection reveals a potential problem, the Foundation shall retain a qualified inspection firm to conduct an environmental audit. The cost of the environmental audit shall generally be an expense of the donor.

Where appropriate, a title binder shall be obtained by the Foundation prior to the acceptance of the real property gift. The cost of this title binder shall generally be an expense of the donor.

Prior to acceptance of the real property, the gift shall be approved by a majority of the Board of Directors of the Foundation and by the Foundation’s legal counsel. Criteria for acceptance of the property shall include:

• Is the property useful for the purposes of the Foundation?
• Is the property marketable?
• Are there any restrictions, reservations, easements, or other limitations associated with the property?
• Are there carrying costs, which may include insurance, property taxes, mortgages or notes, etc., associated with the property?
• Does the environmental audit reflect that the property is not damaged?

Oil & Gas Interests

The Foundation may accept oil and gas property interests, where appropriate. Prior to acceptance of an oil and gas interest the gift shall be approved by the majority of the Board of Directors of the Foundation, and if necessary, by the Foundation’s legal counsel. Criteria for acceptance of the property shall include:

• Are there extended liabilities or other considerations making receipt of the gift inappropriate?
• Is the interest a working interest that may create a tax impact on the Foundation? If so, it may be possible to accept the interest and develop a plan to minimize the tax impact.
• Are there any environmental concerns associated with the acceptance of the property?

Gift of Remainder Interest

The Foundation will accept a remainder interest in a personal residence, farm or vacation property subject to the provisions related to acceptance of real estate above. The donor or other occupants may continue to occupy the real property for the duration of the stated life. At the death of the donor, 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 are to be paid by the donor or primary beneficiary.

Life Insurance Policy

The Foundation must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. If the donor contributes future premium payments, the Foundation will include the entire amount of the additional premium payment as a gift in the year that it is made.

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.

Charitable Remainder Trust

The Foundation may accept designation as remainder beneficiary of a charitable remainder trust. The Foundation will not accept appointment as Trustee of a charitable remainder trust. Exceptions to this policy may be made by a majority of the Board of Directors of the Foundation.

Charitable Lead Trust

The Foundation may accept a designation as income beneficiary of a charitable lead trust. The Foundation will not accept an appointment as Trustee of a charitable lead trust.

Retirement Plan Beneficiary Designation

Donors and supporters of the Foundation shall be encouraged to name the Foundation as beneficiary of their retirement plans. Such designations shall not be recorded as gifts to the Foundation until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

Bequests

Donors and supporters of the Foundation shall be encouraged to make bequests to the Foundation under their wills and trusts. Such bequests shall not be recorded as gifts to the Foundation until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

Life Insurance Beneficiary Designations

Donors and supporters of the Foundation shall be encouraged to name the Foundation as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to the Foundation until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.