Gift Acceptance Policy Guidelines
The purposes for establishing these Gift Acceptance Policy Guidelines are twofold. First, the guidelines provide the parameters within which the staff and volunteers shall function in discussing deferred gift programs with interested prospects. Second, the guidelines identify procedures and limitations on gifts to the Orange County Council in
determining acceptable programs for their trusteeship.
These Gift Acceptance Policy Guidelines were developed by a special committee of technically oriented professional individuals skilled in the fields of law, accounting, investment, banking, and insurance. The guidelines reflect both state law and federal law. The guidelines are adopted as official policy by the council’s executive board.
Guideline 1 – Priority of the Donor’s Interest
The interest of the donor shall have priority over the interest of the council. No program, trust agreement, contract, or commitment shall be entered into by the council which benefits the council at the expense of the donor’s intent.
Guideline 2 – Use of Legal Counsel
- The Orange County Council shall seek legal counsel in all matters pertaining to its planned giving program and shall execute no planned giving agreement without the advice of legal counsel, unless an unmodified pre-approved standard agreement is used.
- All agreements in which the Orange County Council is the trustee shall follow the format of the specimen agreements approved by legal counsel for the council.
- All prospective donors shall be advised, both orally and in writing, to seek their own legal counsel in matters relating to their deferred gifts, tax and estate planning.
Guideline 3 – Authorization for Negotiation
- Interested representatives of the council are encouraged to discuss planned giving with prospective donors. However, only persons authorized by the executive board may formalize planned giving plans with prospective donors. Such plans must follow these guidelines and the format of specimen agreements approved by legal counsel for the council unless otherwise approved by the board.
- All agreements that do not meet the requirements of the guidelines must receive prior approval by legal counsel for the council and a majority of the council’s Executive Committee.
Guideline 4 – Avoidance of Undue Influence
- Representatives of the Orange County Council shall not employ any undue influence such as high pressure sales techniques when working with prospective donors.
- All personnel employed to administer or promote deferred gifts shall be paid a salary or retained on a per diem or annual basis, and shall not receive any commission or other compensation constituting or giving the appearance of constituting an interest in any planned gift agreement.
Guideline 5 – Confidential Information
All information concerning donors and prospective donors, including names, names of beneficiaries, amount of gift, size of estate, etc., shall be kept strictly confidential by the Orange County Council and its authorized personnel unless permission is granted by the donor to release such information.
Guideline 6 – Governing Charitable Remainder Unitrusts
- The Orange County Council will not serve as Trustee of a charitable remainder uni trust, but will seek to have the National Boy Scouts of America Foundation serve as Trustee if the property contributed to the unitrust equals or exceeds $100,000 in value. Donors with gifts under $100,000 should be encouraged to participate in the Boy Scouts of America Pooled Income Fund, the National Gift Annuity Program, or to seek another trustee.
- The fixed percentage to be paid by the unitrust to the donor or to donor’s designee shall be no less than 5% per annum or as otherwise permitted under the Internal Revenue Code of 1986, as amended. Nor shall the unitrust pay to the donor an amount that exceeds the permissible amount allowed by the Internal Revenue Code of 1986, as amended.
Guideline 7 – Governing Charitable Remainder Annuity Trusts
- The Orange County Council will not serve as Trustee of a charitable remainder annuity, but will seek to have the National Boy Scouts of America Foundation serve as Trustee if the property contributed to the unitrust equals or exceeds $100,000 in value. Donors with gifts under $100,000 should be encouraged to participate in the Boy Scouts of America Pooled Income Fund, the National Gift Annuity Program, or to seek another trustee.
- The fixed dollar amount to be paid by the Charitable Remainder Annuity Trust to the donor or the donor’s designee shall be in accordance with the Internal Revenue Code of 1986, as amended.
Guideline 8 – Governing Pooled Life Income Agreements
- No Pooled Life Income Agreement shall be entered into with a donor for a sum less than $5,000. Additional gifts with a minimum of $1,000 annually are permitted. Each Pooled Life Income Agreement shall be made through the national BSA Pooled Income Fund.
- The Pooled Life Income Agreement shall not cover more than two lives, and the beneficiaries shall each be 40 years of age or more at the time of the gift.
- The Orange County Council will not accept any gifts for the BSA Pooled Income Fund without first completing the necessary resolutions and declarations as required by that Fund.
Guideline 9 – Governing Charitable Trusts, Life Insurance Gifts and Life Estate Gifts
- The Orange County Council shall not serve as trustee for a Charitable Trust but will refer this type of agreement to an independent banking or trust institution for management.
- The naming of the Orange County Council as a beneficiary of an insurance program shall imply no obligation on the part of the council.
- The Orange County Council shall only enter into a Life Estate Gift contract with non-encumbered real estate and approval of Regional Endowment Counsel.
Guideline 10 – Gifts of Real Estate
- The Orange County Council will accept gifts of real property that, at the time of the gift, do not have any outstanding mortgage, tax lien, or other encumbrances upon the land. If, however, any encumbrances are present at the time the gift is offered and represent a nominal amount when compared with the total value of the property, such property may be accepted with the approval of the Executive Board. How the encumbrance will be removed, and by whom, shall be agreed upon by both the Executive Board and the donor in writing prior to acceptance of such property.
- No gift of real property shall be accepted until a preliminary environmental evaluation and disclosure statement have been completed for the property in question. In the event this preliminary statement discloses any information indicating the presence of toxic materials, hazardous waste, or oil seepage on the property, a complete environmental report must be completed before the gift is accepted.
- Arrangements to cover post-transfer expenses should be agreed upon in writing by the donor and the Council prior to the gift. Such expenses include taxes and assessments, insurance, and maintenance costs of the land or any buildings on the land. Any tangible personal property associated with real property gifts should be segregated into separate gift proposals.
Guideline 11 – Investment of Funds and Interval of Payments
Unless otherwise donor-specified, the management of funds, securities or property received under trust agreements in which the Orange County Council is the trustee, shall be administered by the Council’s Investment Committee in separate accounts for each contract and managed to meet the objectives of each individual trust.
Guideline 12 – Final Disposition of Planned Gift Funds
Upon the death of the surviving beneficiary of the planned gift agreement, the agreement shall terminate and the assets and any accruals derived there from shall be paid to the Orange County Council for its general purposes or, if restricted by the donor, for specific use as stated in the applicable agreement. It shall be the policy of the Orange County Council to direct all gifts received as a result of planned giving, and designated for general purposes to the council’s strategic reserve fund for allocation of the earnings and any portion of the gift as determined by the Board of Directors or Executive Committee. It shall be the policy of the Orange County Council to direct all gifts received as a result of planned giving, and that are donor-restricted, to current restricted funds, land, building and equipment funds, endowment funds, custodian funds, and/or loan and annuity funds, consistent with the donor’s restriction.