Gift Acceptance Policy
Effective Date: Nov 2024
Last Review Date: Nov 2024
Wilderness Louisville, Inc., does not provide legal, accounting, tax or related advice. All prospective donors to Wilderness Louisville, Inc., are urged to seek the assistance of independent legal and tax advisors relating to their gifts and the resulting tax and estate planning consequences.
Statement
Wilderness Louisville, Inc. (the “Corporation”) operates exclusively for charitable and educational purposes within the meaning of section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or the corresponding section of any future federal tax code (the “Code”). The Corporation has all general powers enumerated in Section 273.171 of the Kentucky Revised Statutes together with the power to solicit grants and contributions for its purposes, subject to any limitations contained in its Articles of Incorporation, under the laws of the Commonwealth of Kentucky, or this Gift Acceptance Policy (the “Policy”).
As such, the Corporation will receive, invest, encourage, manage, and administer public and private gifts and bequests donated for the benefit of the Corporation and will direct them to specific areas or projects unless otherwise designated by the donor or the Corporation’s Board of Directors (the “Board”).
Mission
The Corporation is a steward of natural areas and champion of nature education, recreation, and youth. Its mission is to provide and sustain quality natural spaces in Louisville and to ensure there is equitable access to the community overall. The Corporation is a national leader in development of, and equitable access to, natural areas. It works in partnership with the Louisville Metro Government’s Department of Parks and Recreation (the “Metro”) to promote development, stewardship, and community awareness of these important public spaces.
Purpose of Policies and Guidelines
These policies and guidelines have been developed to facilitate the sound administration of the current and deferred giving programs of, and to ensure that gifts and donor recognition are consistent with the purpose and mission of, the Corporation. The intent is to encourage funding for the Corporation’s programs, daily operations and future growth without burdening the organization with gifts that may generate more cost than benefit or that are restricted in a manner which is not in keeping with the goals of the Corporation.
Solicitations
The role of the Corporation’s volunteer and staff solicitors is to inform, serve or otherwise assist donors in fulfilling their philanthropic wishes, but never to pressure or unduly persuade. No person acting in any capacity on behalf of the Corporation shall receive commissions or finder’s fees with respect to gifts generated.
Gift Planning
The Corporation does not provide legal, accounting, tax or related advice. All prospective donors to the Corporation will be urged to seek the assistance of independent legal and tax advisors relating to their gifts and the resulting tax and estate planning consequences.
Use of Legal Counsel
When appropriate, the Corporation will seek the advice of legal counsel in matters relating to the acceptance of deferred gifts and other gifts. In particular, no agreement relating to deferred giving will be executed without the advice of legal counsel. Review by legal counsel will generally occur in the case of:
- Closely held stock transfers that are subject to restrictions or buy-sell agreements;
- Documents naming the Corporation as trustee;
- Gifts that require the Corporation to make payments or assume obligations;
- Transactions with potential conflicts of interest;
- Transactions that raise tax issues regarding the tax status of the Corporation; and
- Other instances in which use of legal counsel is deemed appropriate by the Corporation’s Board of Directors (the “Board”).
Donor Confidentiality
In general, information concerning donors or prospective donors shall be kept confidential by the Corporation and its authorized personnel unless the donor requested otherwise.
Acceptance/Declination of Gifts
The Corporation may choose to decline a gift for any reason, including but not limited to:
- There are restrictions, terms or conditions to a gift that are not consistent with the purposes, values, resources, and objectives of the Corporation;
- The gift could financially jeopardize the donor or the Corporation;
- The gift or its terms are illegal;
- There are physical or environmental hazards related to the gift;
- An individual or corporation may benefit improperly from the gift;
- The gift may result in inappropriate or undesirable publicity or cast the Corporation in a negative light; or
- The gift is not in the best interests of the Corporation.
Restrictions on Contributions
With respect to the purposes to which contributions will be used and the manner of such use, the Corporation will generally accept both unrestricted and restricted contributions, provided that, in the judgment of the Board, doing so is consistent with the mission, purposes, priorities and the best interests of the Corporation. A restricted contribution may be declined by the Board for any reason.
Unrestricted Contributions
The Corporation will accept general unrestricted contributions in any amount, which will be placed in the Corporation’s general fund and used for operating expenses or for any other purpose.
Named Fund
Donors may establish and name a “[Named] Fund” for either an unrestricted purpose (i.e., a separately-maintained account that will be used for general operating expenses and for any other purpose) or a restricted purpose (i.e., a separately-maintained account that will be used for a specific purpose). No Named Fund will be established unless, in the judgment of the Executive Director, doing so is consistent with the Corporation’s mission, purposes, priorities and its best interests. Named Funds may be established if at least $3,500 is contributed initially and a total of $15,000 or more is pledged and then received by the Corporation with respect to such fund over a five-year period. If the Named Fund is to be less in amount than $15,000, the Board of Directors must approve. If the Named Fund’s purposes are to be restricted, then such restriction must be approved in advance by the Board of Directors. Named Funds are not considered to be permanent funds and their corpus may be spent down.
Restricted Contributions
Subject to the Board’s approval, the Corporation will accept restricted contributions of $1,000 or more that are designated for a specific purpose, but are not associated with a Named Fund or a Named Endowment. For the avoidance of doubt, this does not include purpose restrictions established or imposed by the Board of Directors or Executive Director.
Endowed Funds
Subject to the Board’s approval, donors may establish an “Endowed Fund,” which may or may not (i) be named by the donor, (ii) require that the corpus in whole or in part be invested permanently and the income therefrom be utilized by the Corporation and (iii) be restricted as to purposes. An Endowed Fund may be established only if at least $5,000 is contributed initially and a total of $25,000 or more is pledged and then received with respect to such fund within the subsequent five-year period.
Foreign Contributions
In case of a donation originating from non-U.S. entities or persons, the Executive Director or the Finance Committee must conduct a thorough review of the donor as well as fund sources to insure compliance with applicable state and federal statutes and the Corporation’s Bylaws. In reviewing the case, the following information should be collected and reviewed:
- The foreign entity or person’s name in English, in the language of origin, and any acronym or other names used to identify the entity or person.
- The jurisdictions in which the donor maintains a physical presence, where it is incorporated or formed and its place of business.
- The principal purpose of the donor, including a detailed report of the recipient’s activities and goals.
- The name and addresses of organizations to which the donor currently provides or proposes to provide funding, services, or material support, to the extent known, as applicable.
- The names and addresses of any subcontracting organizations utilized by the donor.
- The donor’s existing sources of income, such as official grants, private endowments, and commercial activities.
Current Gifts
The solicitation and acceptance of current donations will be subject to the following:
Cash
Cash (including checks, money orders, wire transfers, ACH, etc.) is always acceptable. Checks and similar instruments should be made payable to “Wilderness Louisville, Inc.”
Tangible Personal Property
Tangible personal property will be accepted, provided that the property is useful, safe and appropriate. The Executive Director may create and publish on the Corporation’s website a list that identifies specific examples of tangible property that the Corporation will and will not accept without the Executive Director’s prior approval. In addition to accepting tangible personal property that will be directly used in the Corporation’s operations, in appropriate circumstances the Corporation will accept tangible personal property that will be converted into cash. All determinations in this regard will be made by the Executive Director.
Publicly Traded Securities
Publicly traded securities will generally be accepted. Unless the Finance Committee directs otherwise, such securities will normally be sold as soon as practicable after receipt. The Board may decline to accept donations of publicly traded securities due to restrictions, encumbrances, a lack of market activity or for any other reason.
Closely-Held Securities
Closely-held securities (including, but not limited to equity and debt instruments issued by non-public corporations, partnerships, limited liability companies and limited liability partnerships) will be accepted if and only if the Board believes that doing so is in the Corporation’s best interests. In making this determination, the Board (and the Corporation’s legal counsel, as appropriate) will consider marketability, tax consequences and any other matters deemed appropriate.
Real Property
Donations of real estate (including remainder interests) may be accepted by the Corporation itself particularly if the gifts are likely to have immediate utility to the Corporation for its activities or if the real property is located close or contiguous to a Metro park. Any gift of real estate must be reviewed by the Finance Committee and approved by the Board of Directors. The Corporation will work with the Metro to ensure that donated real property is maintained in accordance with the donor’s intent and the Corporation’s charitable purposes, but the Corporation will not hold title to donated real property. As with any gift, the Corporation reserves the right to reject any gift of real estate for any reason. The donor will be encouraged to seek independent counsel to address any tax or legal issues associated with the transfer of real property.
The Executive Director will prepare a summary of the proposed gift for consideration by the Finance Committee. The summary should include the following information:
- Donor’s name and address.
- Gift designation, if any.
- Description of proposed gift vehicle: an outright gift, planned gift (e.g., retained life estate, charitable gift annuity), endowment gift, etc.
- An appraisal of the property, conducted by a qualified appraiser in accordance with IRS guidelines, and not older than 60 days. Donor must be responsible for the cost of this appraisal.
- A disclosure statement, signed by the donor, reflecting any and all carrying costs, including but not limited to taxes, insurance, association dues, membership fees and transfer charges.
- A title insurance commitment issued by a reputable title insurance company showing marketable title in the donor, free and clear of encumbrances. No gift of real estate may be accepted until all mortgages, deeds of trust, liens and/or other encumbrances have been discharged.
- A Phase I environmental assessment by a qualified engineer (required for all real estate gifts, regardless of type) indicating that ownership will not expose the Corporation to environmental liability.
- A report of the on-site visual inspection by a representative or consultant of the Corporation. This inspection should include observation of the adjacent property and surrounding area.
- A structural engineering report (where appropriate).
- Evidence of compliance with the Americans with Disabilities Act (where applicable).
Bargain Sales
The Corporation will accept donations involving bargain sales, but only if both the Executive Director and the Board agree.
Other Property
The Corporation will accept current contributions of other types of property (such as intangible personal property, including patents, licenses, etc.) on a case-by-case basis. However, the Corporation will not accept the following types of property:
- Cryptocurrency,
- Vehicles,
- Furniture, or
- Precious metals.
Deferred Gifts
The solicitation and acceptance of deferred donations will be subject to the following terms. Deferred gifts will be considered expectancies and will not be recorded as gifts until the gift is irrevocable.
Bequests
The Corporation will actively encourage bequests and will work with all appropriate parties in this regard to ensure that all bequests comport with both the wishes of the testator and the policies of the Corporation. The Corporation will publish on its website, or otherwise make available, standard language that donors can incorporate into their estate planning documents (will, trust instrument, etc.) in order to easily include the Corporation in the relevant documents. Examples of such language are attached hereto as Exhibit A.
Trusts
The Corporation will accept beneficial interests in trusts, including but not limited to charitable lead trusts and charitable remainder trusts. The Corporation will not, however, accept appointment as trustee of a charitable lead or charitable remainder trust.
Retirement Plans
The Corporation will accept being named as beneficiary of a retirement or similar plan (i.e., a 401(k) plan, an IRA, or a defined contribution plan) provided the investments are in conformity with its investment principles. The Corporation will also accept tax-free qualified charitable distributions from IRAs (traditional or Roth).
Life Insurance
The Corporation will accept gifts of life insurance where the Corporation is named as both beneficiary and irrevocable owner of the insurance policy. The policy may not be term insurance, in whole or in part. The donor must agree to pay, before due, any future premium payments owing on the policy.
Miscellaneous Provisions
Donors of property listed in Internal Revenue Service Form 8283, Noncash Charitable Contributions, will be advised that if the property is sold, liquidated, or otherwise disposed of within three years after the Corporation’s receipt, then the Corporation will file a separate report with the IRS within 125 days of sale, liquidation or other disposition, using Internal Revenue Service Form 8282, Donee Information Return.
Mailing Address
The mailing address of the Corporation is: P.O. Box 456, Fairdale, KY 40118.
Legal Rights and Powers
No gift shall be accepted if there is a question as to whether the donor has the legal right, power or competency to effectuate the proposed transfer.
Legal Fees and Appraisals
Donors will be responsible for their own legal fees and the costs of any valuations or appraisals that may be needed for tax or other purposes.
Crediting of Gifts
With respect to development goals and other purposes, the following guidelines shall be followed in crediting gifts:
- Cash: Outright gifts of cash will be credited to the donor for the full amount contributed or pledged. In the event that a pledge is not fulfilled, the donor will be credited with only the total amount received by the Corporation.
- Outright Gifts of Property: Gifts of property will be credited for the actual or estimated cash value or fair market value.
- Retirement Plan Beneficiary Designations: Retirement plan beneficiary designations will not be recorded as gifts until such time as the gift becomes irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of the gift will be recorded.
- Bequests: Bequests of cash or other property actually received will be credited at full cash value. Bequests will not be recorded as gifts until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of the gift will be recorded.
- Other Deferred Gifts: Other deferred gifts to the Corporation will be credited as a gift from the donor as the Board may determine.
Modifications
These policies and guidelines have been reviewed and accepted by the Board of the Corporation. The Board must approve any changes to or deviations from these policies.
[End of policy] 101768213.2
EXHIBIT A
Examples of Bequest Language
Please note: Wilderness Louisville, Inc., does not provide legal, accounting, tax or related advice. The following examples are offered solely for informational or helpful purposes. All prospective donors to Wilderness Louisville, Inc., are urged to seek the assistance of independent legal and tax advisors relating to their gifts and the resulting tax and estate planning consequences.
The below is a suggested provision for a revocable trust instrument:
“As soon as reasonably possible after my death, the Trustee will distribute the sum of $[AMOUNT] to Wilderness Louisville, Inc., of Louisville, Kentucky (or its successor), to be used for [IDENTIFY A SPECIFIC FUND OR PROGRAM/OMIT IF DONATING FOR USE IN GENERAL PURPOSES].”
Below are suggested provisions to include in a will to create either an outright bequest or a conditional bequest:
- For an outright bequest, please use either of:
- “I bequeath the sum of $[AMOUNT] to Wilderness Louisville, Inc., in Louisville, Kentucky (or its successor), to be used for [SPECIFIC FUND OR PROGRAM/OMIT IF FOR GENERAL PURPOSES].”
- “I bequeath [ALL/___%] of my residuary estate to Wilderness Louisville, Inc., in Louisville, Kentucky (or its successor), to be used for [SPECIFIC FUND OR PROGRAM/OMIT IF FOR GENERAL PURPOSES].”
- For a conditional bequest, please use:
- “If [ONE OR MORE INDIVIDUALS] does/do not survive me, I bequeath [(the sum of $AMOUNT) or (ALL/____% of my residuary estate)] to Wilderness Louisville, Inc., in Louisville, Kentucky (or its successor), to be used for [SPECIFIC FUND OR PROGRAM/OMIT IF FOR GENERAL PURPOSES].”