Family Service Agency of the Central Coast (FSACC) solicits and accepts gifts for purposes that will help the organization further and fulfill its mission. FSACC urges all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts, including the resulting tax and estate planning consequences. The following policies and guidelines govern acceptance of gifts made to FSACC for the benefit of any of its operations, programs or services.
Use of Legal Counsel—FSACC will seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for:
A. Gifts of securities that are subject to restrictions or buy-sell agreements.
B. Documents naming FSACC as trustee or requiring FSACC to act in any fiduciary capacity.
C. Gifts requiring FSACC to assume financial or other obligations.
D. Transactions with potential conflicts of interest.
E. Gifts of property which may be subject to environmental or other regulatory restrictions.
Restrictions on Gifts—FSACC will not accept gifts that (a) would result in FSACC violating its corporate charter, (b) would result in FSACC losing its status as an IRC § 501(c)(3) not-for-profit organization, (c) are too difficult or too expensive to administer in relation to their value, (d) would result in any unacceptable consequences for FSACC or (e) are for purposes outside FSACC’s mission. Decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Board of Directors, in consultation with the Planned Giving Committee and Executive Director.
Gifts Generally Accepted Without Review—
Cash. Cash gifts are acceptable in any form, including by check, money order, credit card, or on-line. Donors wishing to make a gift by credit card must provide the card type (e.g., Visa, MasterCard, American Express), card number, expiration date, card verification code, and name of the card holder as it appears on the credit card.
Publicly Traded Securities. In some cases, marketable securities may be restricted, for example, by applicable securities laws or the terms of the proposed gift; in such instances the decision whether to accept the restricted securities shall be made by the Board of Directors, in consultation with the Planned Giving Committee. All publicly traded securities will be sold promptly upon receipt unless otherwise directed by FSACC’s Board of Directors. Publicly traded securities may be transferred electronically to an account maintained at the Community Foundation of Santa Cruz County.
Bequests and Beneficiary Designations under Revocable Trusts, Life Insurance Policies, Commercial Annuities and Retirement Plans. Donors are encouraged to make bequests to FSACC under their wills, and to name FSACC as the beneficiary under trusts, life insurance policies, commercial annuities and retirement plans.
Charitable Remainder Trusts. FSACC will accept designation as a remainder beneficiary of charitable remainder trusts.
Charitable Lead Trusts. FSACC will accept designation as an income beneficiary of charitable lead trusts.
Gifts Accepted Subject to Prior Review—
Certain forms of gifts or donated properties may be subject to review prior acceptance. Examples of gifts subject to prior review include, but are not limited to:
Tangible Personal Property. The Executive Committee shall review and determine whether to accept any gifts of tangible personal property in light of the following considerations: does the property further the organization’s mission? Is the property marketable? Are there any unacceptable restrictions imposed on the property? Are there any carrying costs for the property for which the organization may be responsible? Is the title/provenance of the property clear?
Real Estate. All gifts of real estate are subject to review by the Board of Directors. Prior to acceptance of any gift of real estate, FSACC shall require an initial environmental review by a qualified environmental firm. In the event that the initial review reveals a potential problem, the organization may retain a qualified environmental firm to conduct an environmental audit. Criteria for acceptance of gifts of real estate include: Is the property useful for the organization’s purposes? Is the property readily marketable? Are there covenants, conditions, restrictions, reservations, easements, encumbrances or other limitations associated with the property? Are there carrying costs (including insurance, property taxes, mortgages, notes, or the like) or maintenance expenses associated with the property? Does the environmental review or audit reflect that the property is damaged or otherwise requires remediation?
Closely Held Securities. In some cases, closely held securities may be restricted, for example, by applicable laws or the terms of the proposed gift; in such instances the decision whether to accept the restricted securities shall be made by the Board of Directors, in consultation with the Planned Giving Committee and other partners like the Community Foundation of Santa Cruz County. All closely held securities will be sold promptly upon receipt unless otherwise directed by FSACC’s Board of Directors.
Gifts of Insurance Policies – FSACC agrees to accept gifts of life insurance policies under the following terms and guidelines:
All gifted policies will be accompanied by a current, in-force illustration and other evidence that the policy is still a valid life insurance contract. There should be no loans, collateral pledges or other encumbrances on the policy at the time of the gift without substantial further analysis.
Ownership: Donor will irrevocably transfer 100% of donated policy to FSACC.
Beneficiary: FSACC must be named as an irrevocable beneficiary of no less than 10% of any transferred policy. Donor may name up to ten additional 501(c)(3) organizations to receive the balance of the policy’s death benefit. (Total must equal 100%).
Current and future policy premiums must be fully paid by the donor to the insurance carrier. Otherwise, FSACC reserves the right to refuse the gift of the life insurance policy.
If a donated life insurance policy involves ongoing administrative costs and expenses to FSACC, the Board of Directors will meet to consider whether to accept or decline the gift.
The Board of Directors has the right to consider the liquidation of a donated life insurance policy.
FSACC will accept policies from life insurance carriers that carry a Best’s rating of B+ or higher or an equivalent rating from another recognized ratings company.
