Appendix B

Deferred or Future Gifts

Foundation will encourage future gifts to be made without restriction, since specific restrictions become inactive or non-existent over time. Foundation reserves the right to decline restricted future gifts.

1. Estate Gifts (wills, trusts, life insurance, other instruments)

The Foundation will encourage unrestricted estate gifts to the Foundation or unrestricted estate gifts to the endowment fund, since specific restrictions become inactive or nonexistent over time. Foundation reserves the right to decline restricted estate gifts.

Upon the donor’s request, the Foundation will provide language to assist in establishing a restricted estate gift. The sample language will include the following: “This designation represents a preferred use for these funds and is not an absolute restriction. Should the exact designation cease to be effective or practicable before or after the gift is received by Foundation, the Board is authorized to use this gift in an alternative way consistent with the general intent of this designation.”

Gifts received where the Foundation had no prior knowledge of the amount or nature of the gift will be treated as if the language above had been included, unless legally impossible. Gifts of less than $50,000 will be placed in the General Endowment Fund when the restriction no longer exists.

2. Other Planned Gifts (charitable remainder trusts, charitable lead trusts, etc.)

Gifts established through the planned giving program at the Foundation may be restricted with the approval of the Gift Acceptance Committee. As discussed above, the Foundation will encourage unrestricted planned gifts to the Foundation or unrestricted planned gifts to the endowment fund, since specific restrictions become inactive or nonexistent over time. The Foundation reserves the right to decline restricted future gifts.

Acceptance will rely in part on inclusion of the language in the instrument, which reads: “This designation represents a preferred use for these funds and is not an absolute restriction. Should the exact designation cease to be effective or practicable before or after the gift is received by Foundation, the Board is authorized to use this gift in an alternative way consistent with the general intent of this designation.”

Gifts distributed to Foundation where the Foundation had no prior knowledge of the gift instrument or its restriction will be handled on a case-by-case basis. The Foundation reserves the right to decline restricted gifts from planned giving instruments.

Appendix C

Gifts-In-Kind Acceptance and Acknowledgement Policies

Acceptance Policy

All gifts-in-kind over are reviewed, accepted, and officially acknowledged by the Executive Director. Gifts-inkind above $100,000 or of an unusual composition may be reviewed by the Gift Acceptance Committee. The Foundation reserves the right to decline any gift that does not further its goals, or that involves special maintenance or other conditions that the Foundation is unable to satisfy.

The donor is responsible for making arrangements to deliver the in-kind gift to the Foundation unless Foundation agrees to accept the gift and assume the cost of delivery.

Appraisal Guidelines

In accordance with Internal Revenue Service regulations, the donor is responsible for determining the value of an accepted gift. Before presenting a gift of tangible property to the Foundation, donors should first establish and present to the Foundation a written estimate of the fair market value of the gift. If the donor states a value below $5,000, the value given by the donor is the value Foundation will assign to the gift. If the donor states a value of $5,000 or more, a qualified appraisal from an independent appraiser, dated no more than 60 days prior to the date of contribution, is required by the IRS to substantiate a donor's charitable deduction for gifts-in-kind. Employees of the Foundation are not qualified appraisers, and federal regulations do not permit the Foundation to give appraisals or estimates of value.

Tax Deduction Issues

Generally, the fair market value of a gift-in-kind may be deductible.

• A donation within a tax year valued at $250 or more requires a written acknowledgment from the receiving Foundation. Foundation is responsible for providing all donors with a receipt. Receipts must indicate it was a gift-in-kind, and should list the donated items without reference to the value

• If the value of a gift is $500 or more, the Internal Revenue Service requires donors to file IRS Form 8283 and comply with its regulations pertaining to non-cash charitable contributions.

• If the donation is valued at more than $5,000, the donor must obtain a qualified appraisal and submit an appraisal summary with the return claiming the deduction. A copy of the appraisal must also be given to Foundation.

For companies that contribute products, the deduction is limited to the actual cost of producing the item when the donor is the creator of a contributed tangible asset.

Acknowledging Gifts-In-Kind

In-kind gifts are acknowledged by the Foundation. Acknowledgement letters should specifically identify the donated item(s) and state that the items received support the Foundation’s mission, without referencing the cash value thereof. The letter must also either state “No goods, services or privileges were exchanged in association with this in-kind donation,” or, if goods services or privileges were exchanged, a stated value thereof.

Receipting and Acknowledging Donated Services

An individual who incurs out-of-pocket expenses associated with giving of services may be able to deduct some of those expenses. Allowable items include unreimbursed expenses directly connected with the provision of the services, which must be requested by the Foundation. Deductible travel expenses include air, rail or bus transportation, out-of-pocket car expenses, taxi fares or other transportation costs between the airport/station and hotel; lodging costs, costs of meals.

The summary above is based on Internal Revenue Service publications and provides basic guidelines regarding tax deductions for gifts-in-kind. This summary is not intended to serve as a complete account of the requirements or limitations covering tax-deductible gifts. The Foundation recommends that donors consult their tax advisors when considering gifts-in-kind.