Donate
Fundholder Portal

Saginaw Community Foundation Gift Acceptance Policies

 

Forms of Gifts

The Saginaw Community Foundation will accept gifts in the following forms:

  • Marketable Securities – SCF accepts gifts of publicly traded stocks and bonds. Receipts will acknowledge the number of shares given, as well as the high, low, and closing price of the securities on the date of the gift
  • Cash and Checks – SCF accepts cash, checks, and money orders
  • Closely Held Marketable Securities – To be accepted, such stocks must have a certified valuation performed by an independent professional appraiser
  • Real Estate – SCF accepts gifts of real estate in accordance with the Foundation’s policies and procedures governing gifts of real estate (scroll down to Real Estate Gift Acceptance section for further information)
  • Other Tangible Personal Property (i.e., furniture, works of art) – SCF accepts tangible personal property when it is salable or when it can be used for a purpose related to SCF’s exempt purpose

Gifts other than cash or check are deemed complete when a receipt is issued by SCF.

 

Purpose of Gift

All gifts to SCF must be used for purposes which fall within the mission of the Saginaw Community Foundation and must be made with charitable intent. SCF reserves the right to refuse any gift that it believes is not in the best interests of the foundation. Also, in conformance with Treasury Department regulations, gifts to SCF may not be directly or indirectly subjected by a donor to any material restriction or condition that prevents SCF from freely and effectively employing the transferred assets, or the income derived there from, in furtherance of the foundation’s exempt purposes. The Saginaw Community Foundation cannot be required by the donor to retain or sell any asset given to it.

 

Policy for Review of Gifts

The Saginaw Community Foundation’s board or executive committee will consider and determine whether or not gifts are consistent with the mission of SCF.

SCF staff may accept, without board or executive committee approval, gifts consistent with the purposes, bylaws and procedures of the Foundation if they are in any of the following forms:

  • Marketable securities
  • Cash and checks
  • Gifts of usable furniture and equipment for SCF’s offices or programs of the foundation

All other gifts will require review and approval of the board or executive committee. Reviewable gifts will include the following:

  • Gifts with a purpose that may fall outside the charitable purposes, bylaws, and procedures of SCF
  • Gifts of marketable real estate.
  • Closely held property and securities where there may be concerns about valuation, requirements, or other questions.
  • Other property which may be unusual or fall outside the types of gifts usually handled by the foundation.
  • All other illiquid gifts

 

Action To Accept Gifts

SCF’s president is authorized to accept all gifts not requiring committee review. Gifts requiring board or executive committee review will be handled promptly, with the president providing executive committee members with all relevant information necessary to make a decision. If a gift is not accepted, staff will inform the donor immediately. If the gift is accepted, SCF staff will perform whatever transaction is necessary to turn it over to cash as soon as reasonable or practical (e.g. if real estate).

All gift reviews will be handled with utmost confidentiality.

 

Special Circumstances

In certain instances, a decision regarding gift acceptance must be made immediately, i.e., a gift made on December 31. If executive committee members are unavailable at that time, the president may, with the concurrence of at least one officer, accept the gift in their behalf, with ratification at the next executive committee or board meeting.

 

Procedures for Accepting a Gift of Real Estate and Other Reviewable Gifts

  1. After the donor contacts SCF regarding a potential gift of real estate or other reviewable gift, SCF staff will do an initial review in order to make a preliminary determination about the value of accepting the property and the charitable benefit of the gift.
  1. SCF staff will determine:
  • if there is any economic benefit in accepting the property, i.e., is it immediately disposable or income producing?
  • if there are any material restrictions associated with the gift which could categorize the fund as a non-component fund
  • if SCF is willing and able to carry out the donor’s wishes, both legally and within its policies
  • if the gift has a positive net present value
  • if the property exposes SCF to unreasonable risk, either in terms of dollars or staff time
  • if there are any potential liabilities associated with the property, i.e., a pond
  • if the property will require ongoing management
  • if the property is encumbered by a trust deed, loan or mortgage. Encumbered property will be accepted only in exceptional circumstances
  • Who will pay expenses such as title search, abstract, closing costs, and attorney fees. Normally, the donor is responsible for such expenses
  1. The SCF attorney will be contacted to see if there are any problems in accepting the gift of real estate as described. The attorney will outline the necessary steps and verification needed in order to accept the property.  If the property is subject to leases, SCF’s attorney will review and analyze those leases.
  1. SCF Investment Committee will assess the desirability of having SCF retain ownership of the donated property at the time of the donation; and reassess continued ownership of the property annually thereafter. Generally, SCF would not hold real estate that is not income producing.
  1. Staff will get a copy of the title, including all mineral and gas/oil leases and rights.
  1. If the property is going to be held for a period of time, SCF will determine the likely expenses to be incurred in carrying the property including real estate taxes, mortgage debt, utilities, maintenance, etc., and determine who will be responsible for paying such expenses.
  1. The donor must establish the value of the real estate by having an up-to-date qualified appraisal and provide SCF with a copy of the appraisal. SCF will strictly adhere to the IRS requirements regarding gift valuation substantiation.
  1. A Phase I or baseline environmental audit is mandatory for all gifts of real estate. If any questions are raised during the baseline audit, a Phase II environmental audit will be necessary.
  1. SCF will check to make sure all property taxes, special assessments, etc., are paid.
  1. The donor must furnish SCF with a warranty deed, not a quit claim deed.
  1. The donor must furnish SCF with Bill of Sale or other evidence of authenticity and intent to transfer ownership.

 

Gift Acceptance Policy adopted by SCF Board of Directors on Dec. 15, 1995. Revised Nov. 30, 2011.

Real Estate and Other Reviewable Gifts Acceptance Policy adopted by SCF Board of Directors on Dec. 15, 1995. Revised Nov. 30, 2011.