FRIENDS OF YUBA CITY PARKS AND RECREATION FOUNDATION I. CHARITABLE GIFT SOLICITATION AND ACCEPTANCE POLICIES The Friends of Yuba City Parks and Recreation Foundation is responsible for soliciting and receiving charitable gifts as well as recognition for and receipt of gifts received for the betterment of the Yuba City Parks and Recreation programs and facilities. II. GIFT ACCEPTANCE POLICIES a. A charitable gift is defined as a voluntary transfer of assets from a person or an organization to the Foundation where no goods or services are expected, implied or forthcoming for the donor. Gifts usually take the form of cash, checks, securities, real property or personal property. b. All gifts will be individually evaluated for suitability towards furthering the mission of the Friends of Yuba City Parks & Recreation Foundation. The Foundation reserves the right to accept or decline gifts. c. A quid pro quo contribution is one in which the donor’s payment is made partly as a contribution, and partly in consideration of goods or services received. (For example, a contribution of $250 is required to attend a dinner function, $125 of which will cover the value of the dinner.) d. Questions as to the acceptability of a gift will be referred to the Foundation Board of Directors for their decision. The Foundation may defer to staff for further research or further information. e. The secretary of the Foundation will acknowledge in a timely manner all gifts except those which are quid pro quo accepted on behalf of the Friends of the Yuba City Parks and Recreation Foundation. Quid pro quo gifts or other special event type gifts will be acknowledged by the sub-committee responsible for the event or activity. f. Persons who gift $1000 or more individually or in aggregate, shall have their names included on the memorial gift plaque located at the Recreation Administration office. The Foundation will respect the wishes of those donors who request to remain anonymous. g. The Foundation will provide stewardship of all gifts, insuring they are utilized in accordance with the donor’s intent. If the donor’s intent (restricted gifts) can not be met the Foundation will return the gift. h. Gifts from donors wishing to remain anonymous will be handled the same as any other gift, with the understanding that no public announcement regarding the donor will be made. i. Types of Gifts 1. Memorial Gifts. The Foundation will accept memorial and “honor” gifts. As with all gifts, the Foundation encourages memorial donors to make unrestricted contributions, so they maybe used where the Foundation has the greatest need. Restricted contributions must be presented to the Foundation for their approval. 2. Gifts of Stock. The Foundation will accept gifts of appreciated securities. The Foundation has established a brokerage account, wherein said gifts may be deposited. A receipt will be given to the donor based upon value per share at the time of acceptance. Information regarding the stock and any pertinent personal information must be included. It is the policy of the Foundation that any gifts of stock should be sold as soon as possible after receipt. j. In-Kind Gifts. The Foundation will accept In-Kind gifts of art, vehicles, real estate etc. if the gift is useful to the Foundation or easily sold. The Foundation reserves the right to refuse a gift that is not useful or easily sold. The Foundation will keep a permanent record of all In-Kind contributions valued at $500 or more. Items of lesser value will be acknowledged, but no permanent record of the gift or donor will be kept. Donors of In-Kind gifts should be aware that establishment of value for tax purposes is their responsibility, not the responsibility of the Foundation. k. Will. Gifting at donor’s death. A declaration stating how the donor wishes to distribute his or her probate estate upon death. l. Outright Lifetime Gift. The gifts will generally be made pursuant to an agreement between donor and the Foundation, setting forth the purpose and restrictions, if any, of the gift. There must be actual delivery of the gift during the lifetime of the donor. m. Charitable Remainder Trust. This gift vehicle allows a donor to transfer cash or other property to a trust during donor’s life or at donor’s death. The trust instrument provides that periodic payments, no less than on an annual basis, are paid by the trustee of the trust to a non-charitable beneficiary (often the donor or donor’s spouse) for the beneficiary’s life or a term of years not to exceed 20 years. The remainder interest of the trust will be distributed to the Foundation at the end of the trust term. The Foundation cannot be named as a Trustee of the account. The Foundation will not pay for costs associated with establishing a trust unless the Foundation deems the gift as significant and or irrevocable. n. Life Insurance. The Foundation will encourage outright gifts of life insurance. Gifts can be made by giving existing policies, by changing beneficiaries of existing policies, or by purchasing new insurance policies. With respect to existing policies, the transfer should be absolute, with full ownership vested in the Friends of Yuba City Parks and Recreation Foundation. The Foundation will have the right to surrender the policy if it so desires. The policy should have a net cash value with no outstanding loans. The donor should agree to contribute on an annual basis the amount necessary to maintain the policy in force. The Foundation should not accept any insurance policy where the intent of the donor is for the Foundation to pay future premium payment unless specifically approved, on a case by case basis, by the Foundation Board. o. Retirement Plan/IRA Benefits. The Foundation may be named as a primary, secondary, partial or contingent beneficiary of an IRA and/or a retirement plan. Additionally, an IRA and/or retirement plan may fund a charitable remainder trust. The goals in this latter arrangement are to eliminate the income tax and the estate p. Endowment Gift. This is a gift that is to be maintained where only the income from the investment of the assets of the gift or a portion of the assets’ annual capital appreciation can be expended. The gift instrument may provide for the disposition of the property to another public charity in the event the Foundation violates the endowment instructions. The Foundation has the right and responsibility to request a minimum gift size for the establishment of a permanently restricted gift (endowment). IV. Gifting of Real Property a. The policy of the Friends of Yuba City Parks and Recreation Foundation is to accept gifts of real estate only after the Foundation has determined that it is in the best interest of the Foundation to do so. The appraisals, closing costs of property, etc. are the responsibility of the donor. V. Use of Funds a. Priorities for program and facility needs will be established by the Friends of Yuba City Parks and Recreation Foundation. The City of Yuba Parks and Recreation Department staff may recommend their needs to the Foundation. VI. Allowable Expenditures a. With approval from the Foundation, all costs associated with fundraising events are legitimate expenditures, i.e. membership in professional organizations and service organizations and providing Recreation Program Scholarships to low-income families. VII. Disallowed Expenditures a. The following types of expenditures are not allowed from unrestricted funds: 1. Cash gifts to City Employees 2. Expenses for which there are no receipts, unless the nature of the expense prohibits issuance of a receipt 3. Fines and other costs considered personal in nature 4. Lobbying VIII. Pledges a. A pledge is defined as a donor’s promise to give money or property in the future. Pledge donations will be accepted for designated campaigns and appeals. The pledged amount will be credited to the campaign fund as a pledge receivable on the date of the pledge. Recognition will be awarded when the pledge is fulfilled. Careful attention must be given to the appropriate documentation of pledges. Whenever possible, a letter of intent stating the donor’s unconditional promise to give should be secured. Letters of intent are typically prepared by the development staff based on conversation with the donor. Minimally, the letter will include the total amount of the pledge, the payment schedule, and a specific breakdown of purposes for which the pledge is to be used. Donors are invited to make any changes on the document. The City of Yuba City Employees may make a payroll deduction pledge. Employees must complete and sign a statement authorizing the deduction of a fixed amount from their paycheck to be directed to the Yuba City Parks and Recreation Foundation. The Finance Division will track the payroll deduction pledges. b. c.