Gift Acknowledgement

All gifts should be acknowledged by official correspondence or receipt from the Foundation. Gifts must always be acknowledged as promptly as possible. The Foundation will make it a general practice to send the official acknowledgment as soon as possible.

The gift acknowledgment should include the value of the gift and date of receipt to provide donors supporting documentation for tax purposes. Non-monetary gifts, including securities, real property, and gifts in kind, etc., should be acknowledged by describing the number and type of items involved.

Tuesday
Oct262010

Gifts of Cash

All gifts of cash will be deposited in the Attorney-CPA Foundation's financial institution as soon as possible and in any event not later than the second business day after their receipt.

Procedures for Handling Cash and Checks

  1. Cash receipts are given immediately for all cash received.
  2. Checks are endorsed and photocopied and a deposit slip shall be prepared.
  3. After the total of checks for the day has been totaled a second individual will double check the balances, initial the deposit slip that the amount has been verified.
  4. A courier will make the deposit to the banks prior to the cut off time for credit on the same business day. The deposit slip will be given to the Treasurer for reconciliation on a weekly basis with the donor tracking.
  5. A copy of the check and correspondence will be filed in the donor file folder.
  6. The development staff will enter the date into the computerized donor tracking system.

Cash Gifts in Excess of $10,000

Upon receipt of any cash gift of $10,000 or more IRS Form 8300 must be completed by the Development Director and forwarded to the Internal Revenue Service (IRS). This amount can be changed by the IRS.

Quid Pro Quo Contributions

The Attorney-CPA Foundation will provide Donors a more detailed acknowledgment if the contribution is a "quid pro quo contribution" in excess of $75.00 or such other amount specified by the IRS. A quid pro quo contribution is payment made partly as a contribution and partly for goods or services provided to the Donor by the Attorney-CPA Foundation. The written disclosure statement must:

  1. Inform the Donor that the mount of the contribution that is deductible for federal
    income tax purposes is limited to the excess of any money (and the value of any
    property other than money) contributed by the donor over the value of goods or
    services provided by the Attorney-CPA Foundation, and
  2. Provide the Donor with a good-faith estimate of the value of the goods or services that the Donor received.
Tuesday
Oct262010

Gifts of Real Estate

It is the Attorney-CPA Foundation's general policy to review all proposed gifts of real property; however as general rule the Attorney-CPA Foundation will not accept gifts of real property valued less than Twenty Five Thousand Dollars ($25,000), cemetery lots, or property which is mortgaged, has liens or is encumbered in any way. Although the Attorney-CPA Foundation appreciates the generosity of all gifts, the Attorney-CPA Foundation must take into consideration administrative costs associated with gifts of real estate including but not limited to pollution remediation, taxes and selling expenses.

Procedures for Accepting Gifts of Real Estate

The following procedure should be adhered to in accepting a gift of real property:

  1. Complete the Real Estate Donation Checklist below:
    • Explain that the Attorney-CPA Foundation accepts only marketable real estate and that the property will be sold as soon as possible so that the proceeds can be applied to the Attorney-CPA Foundation's mission and purpose.
    • Explain that the real property must be free of mortgages, liens, past due taxes, or assessments and other encumbrances at the time of the gift.
    • Explain that if the Donor intends to claim an income tax charitable deduction, they will need an appraisal made within 60 days of the gift. They may be required to file an IRS Form 8283 with their individual tax return in the year of the gift. (The Donor is responsible for the appraisal cost.)
    • Explain that a title certificate or attorney title opinion letter will be needed before the property can be accepted. (The Donor is responsible for the cost.)
    • Explain that a hazardous waste inspection and certification may be required before the Attorney-CPA Foundation will accept the property. (The Donor is also responsible for this cost.)
  2. Complete the Prospective Gift of Real Property Checklist for Considering Acceptance.
    • Obtain a Copy of a Recent Appraisal Substantiating the Value
    • Obtain a Copy of Grant Deed to Donor
    • Obtain a Copy of Tax Assessment and Status on Property Tax
    • Obtain a Title Certificate Policy
    • Review by Legal Counsel
  3. Procedure after Acceptance When a proposed gift of real estate is accepted, the following steps should be taken:
    • A deed and owner's affidavit is prepared, transferring ownership from the Donor to the Attorney-CPA Foundation.
    • Upon receipt of the executed deed from the donor:
      • the deed and the recording fee is sent to the appropriate county recorder's office; and
      • An insurance policy is obtained
  4. Procedure for Selling the Property
    • Obtain an appraisal or other evidence of value to facilitate setting a sales price
    • Obtain a preliminary title report
    • Review by legal counsel
Tuesday
Oct262010

Gifts of Mineral Interest

In general, the Attorney-CPA Foundation will accept royalty mineral interests, but will not accept operating (working) mineral interests.

Procedures for Accepting Gifts of Mineral Interests

The following procedure applies whenever a Donor plans to gift a mineral interest (i.e. oil, gas, coal) to the Attorney-CPA Foundation:

  1. Determine the Exact Nature of the Donor's Mineral Interest
  2. Obtain Other Helpful Information It would also be helpful to request the following information from the Donor:
    • Whether the interest is currently producing (i.e. paying money to the Donor);
    • If producing, the name and address of the mineral company making the royalty payments as well as the name and phone number of the contact person;
    • If not producing, the approximate date production is expected;
    • If the field is not proven (tested and found to contain economically obtainable minerals), the approximate date that testing is expected, if known;
    • Obtain a tax history summary from the Donor to ensure an unencumbered gift;

  3. Assist Donor in Finding Oil/Gas Attorney
    Help the Donor, if requested, find an attorney knowledgeable in assignment of mineral interests and the related state law where the mineral interests are located
Tuesday
Oct262010

Gifts of Securities

Gifts of Readily Marketable Securities Gift of Stock Held in Certificate Form

When the Donor has the actual stock certificates, a gift can be made to the Attorney-CPA Foundation by:

  1. Assignment

    On the back of the original certificate is an assignment form to transfer ownership of stock. The Donor may complete it as follows:

    • In the blank for name and address of assignee, enter "The Attorney-CPA Foundation" along with the Attorney-CPA Foundation's mailing address.
    • Have all parties shown as owners sign and date the assignment in the presence of a banker or stock broker so that the latter can "guarantee" their signatures. Having the assignment notarized or witnessed is not sufficient. The signatures must be medallion guaranteed by a bank or broker 

  2. Irrevocable Stock Power

    The preferred method to receive a gift of stock is to use an Irrevocable Stock Power completed as set forth above.

For security, it is recommended that the Donor mail the certificate in one envelope and the stock power in another. If the Donor mails the certificate(s), they should be sent to the Treasurer. The Donor may wish to use registered mail, return receipt requested

Gift of Stock Held in Brokerage Account

Many donors own securities which are held in street name by a brokerage house. In this instance, there are two ways a gift can be made to the Attorney-CPA Foundation. They are listed below in order of preference:

  1. Re-issuance of the Shares:

    • The Donor instructs the broker to issue a certificate, for the number of shares to be donated, in the name of the Attorney-CPA Foundation.
    • The broker sends the new certificate, together with a transmittal identifying donor, by certified mail to the Business Office.
  2. Broker to Broker Wire Transfer

    This procedure may be used when time is critical to completing a security gift (i.e. a year-end gift),

    • The donor instructs the broker to wire transfer the number of shares to be donated to the Attorney-CPA Foundation's stockbroker.
    • Ask the Donor or broker to notify the Business Office of the pending wire transfer to the Attorney-CPA Foundation's account.

Gifts of Non-readily Marketable Securities

Gifts of securities which are not readily marketable will be accepted under the following conditions:

  1. Gift of Non-readily marketable 'C' Corp. Stock

    Gifts of closely-held 'C' corporation stock will be valued on the financial statements at one dollar ($1) in the absence of financial information that would enable the determination of fair market value. The stock of a 'C' corporation with no apparent value will not be accepted.

  2. Gift of Non-readily Marketable 'S' Corp. Stock

    A 501(c)(3) non-profit organization can be a shareholder of a corporation which has elected to be taxed under the taxation rules of subchapter 'S'. However, by holding and/or selling such stock, charities may be subjected to unrelated business income tax (UBIT).

    • In receiving the 'S' stock the Attorney-CPA Foundation needs to acquire the following information:
      • Donor's adjusted basis in the stock
      • Anticipated amount and timing of cash distributions from the S Corp. for payment of UBIT
      • Anticipated distributions of appreciated property to shareholders
    • 'S' stock as funding asset for a charitable gift annuity
      • In considering accepting 'S' stock in exchange for a gift annuity, the Attorney-CPA Foundation will decrease the payments of the charitable gift annuity by the amount of the UBIT payable.

Gift of Rule 144 Stock

Stock controlled under Securities and Exchange Commission Rule Number 144 shall be held until the restriction on sale expires. Rule Number 144 refers to restricted securities and requires that a nonprofit organization and its Donor together hold restricted securities for a minimum of two years before their sale. (Restricted securities are well designated and should not be difficult to identify.)

Tuesday
Oct262010

Gifts of Retirement Accounts

Individuals are permitted to include the Attorney-CPA Foundation as a beneficiary of their retirement accounts. If such action were taken, the residue of the account would go directly to the Attorney-CPA Foundation under the terms of the retirement account contract. Making such a change does not require legal involvement, as it is simple to do and is revocable by the Donor.

Tuesday
Oct262010

Gifts of Life Insurance

The Attorney-CPA Foundation may be named as a revocable or irrevocable beneficiary of an insurance policy, or a life insurance policy may be donated by naming the Attorney-CPA Foundation as the irrevocable owner and beneficiary of the policy. Special consideration shall be given to the insurable interest rules of the state of domicile of the Donor, and the effect that these laws have upon the tax consequences of a gift of life insurance. Also, arrangements should be made to insure that annual premium payments are made by the donor.

Tuesday
Oct262010

Charitable Trusts

Prior Acceptance of Trustee Duties

Attorney-CPA Foundation may serve as Trustee of Charitable Remainder Trusts (CRTS) and Charitable Lead Trusts when requested, however, each the Charitable Trust must be reviewed and accepted prior to execution of the document.

Funded With Real Property

Attorney-CPA Foundation may not serve as Trustee for Charitable Remainder Trusts funded with real property. If so, a local trustee should be selected until the property is sold at which time the Attorney-CPA Foundation may step in and serve in the Trustee capacity.

Funded With Non-income Producing Assets

Attorney-CPA Foundation will may not accept Trustee duties for Charitable Lead Trusts funded with non-income producing real property, other non-liquid assets, or an operating business.

Trustee Fees

The Attorney-CPA Foundation may charge a usual and customary fiduciary fee for acting as Trustee of a Charitable Trust annually out of the corpus of the Trust as valued January 1 each year.

Minimum Contribution to a CRT

In general, the minimum contribution to a Charitable Remainder Trust in which the Attorney-CPA Foundation will serve as Trustee is One Hundred Thousand Dollars ($100,000).

Tuesday
Oct262010

Life Estates

If state law requires the participation of the remainder beneficiary in capital improvements on property in which the Attorney-CPA Foundation holds the remainderman interest, no improvements or expenditures shall be made without the express approval of the Attorney-CPA Foundation's Board of Trustees.

Tuesday
Oct262010

Guidelines for Scholarship Funds

Administration of scholarships shall be reserved to the Trustees of the Foundation. However, donors may propose the following for monies contributed for the purpose of scholarships:

  • Potential Recipients' Educational Institution
  • Reasonable Considerations in Choosing Scholarship Recipients
  • An individually named fund whose Assets are less than the $25,000 minimum as of three consecutive fiscal year ends may, by action of the Trustees, be transferred to the Foundations unrestricted funds.
Tuesday
Oct262010

Guidelines for Memorial Funds

Adopted 7/3/2009)

  • Memorial Funds received in honor of a member or spouse shall be held as restricted funds in such parties’ name. The funds shall be available for use by the Foundation “for the purposes of the Foundation as provided for in the Articles of Incorporation.
  • Any expenditure of a memorial fund shall provide for proper acknowledgement of the memorialized person in the program materials or by other means.

Allocation of Expenses to Memorial, Scholarship, and other funds.

(Adopted 11/13/2009)

The expenses of the foundation may be allocated between the general fund and all other funds on such terms as the trustees shall determine from time to time. Such allocation can be based on an allocation out of pocket cost plus an amount designed to cover all or a part of donated services received by the foundation.