Outright Gifts

Outright Gifts Gift Acceptance Policies Adopted June 21, 2005 The Foundation promotes the use of its services by a broad spectrum of the community, and encourages gifts to the Foundation in any amount.* The Foundation also seeks to protect its reputation for competence and skill in the management of donated assets, and to preserve the assets of the Foundation from liabilities that would diminish the philanthropic impact of the generous gifts of its donors. In order to achieve these goals, and to promote understanding on the part of donors and their advisors, the Foundation subscribes to the following policies concerning the acceptance of gifts: Proper Designation Any gifts to the Community Foundation, including gifts of real estate, may be made to the Foundation under the following name and address: Community Foundation of Northern Colorado 4745 Wheaton Drive, Suite 100 Fort Collins, Colorado 80525 The Community Foundation is incorporated in the State of Colorado, and is a qualified, tax-exempt organization under Internal Revenue Code ? 501(c)(3). Outright Gifts 1. Cash. The Community Foundation accepts cash, checks, money orders and gifts via credit card. 2. Marketable Securities. The Community Foundation accepts gifts of publicly traded stocks and bonds. When the securities are in "street name," they are transferred to the Community Foundation's account, thereafter we may either sell or hold the securities for the benefit of the donor's fund. When the gift is in the form of physical securities, we may either sell or hold the securities for the benefit of a donor's fund. 3. Stock in Privately Owned Companies. To be accepted, such stocks must have a qualified appraisal performed by an independent professional appraiser. If immediately marketable, the stocks are sold. If not, they are kept (in the safe) until they can be redeemed. Prior to approval, such gifts are reviewed by the Community Foundation staff and legal counsel. 4. Stock in subchapter S Corporations. To be accepted, such stocks must have a qualified appraisal performed by an independent professional appraiser. Prior to approval, such gifts are reviewed by the Community Foundation staff and legal counsel. 5. Real Estate. All real estate gifts must be approved by the Executive Committee. Prior to approval, such gifts are reviewed by the Community Foundation staff and legal counsel. Concerns include legality, marketability, insurability, mortgages, easements, restrictions, and environmental problems. Until the property is sold, the donor must provide for obligations such as taxes and insurance. An arrangement to handle all expenses related to the property prior to its liquidation must be agreed to by the donor and the Foundation. In most cases, the Foundation will agree to cover certain expenses for which it can be reimbursed from the proceeds of the sale. 6. Tangible Personal Property. The property must be readily marketable and the donor must agree that the property can be sold unless the Foundation agrees to use the property for a purpose related to its exempt purpose. At least one qualified appraisal by an independent professional is required. Prior to approval, such gifts are reviewed by the Community Foundation staff. Page 1 of 4 7. Partnership Interests and Interests in Limited Liability Companies (LLC). The Community Foundation does not accept gifts of general partnership interests. Prior to approval of gifts of limited partnership interests or interests in an LLC all relevant partnership and LLC agreements will be reviewed by the Community Foundation staff and legal counsel with particular attention given to the activity of the partnership/ LLC and how allocations are made. Further, the underlying assets and liabilities of the partnership/ LLC will be reviewed. Limited partnership interests in family limited partnerships will be considered for acceptance. These interests are also subject to review by the Executive Committee. Deferred Gifts 8. Bequests. The Community Foundation receives bequests from persons who have directed in their wills that certain assets be transferred to the Foundation. 9. Life Insurance. The Community Foundation accepts life insurance policies for which the donor has relinquished ownership by assigning all rights, title, and interest in the policy to the Foundation. If the insurance policy is not fully paid up, the usefulness of the gift is judged on a case-by-case basis. If the policy is accepted, the Foundation may choose either to cash it in for the current surrender value or continue to pay the premium (e.g., the Foundation has paid the premium on a policy for which the donor provides an annual contribution equal to the premium). 10. Life Income Arrangements. Several types of deferred giving arrangements can be established during one's lifetime or through a will and can be structured to provide a life income for oneself or a loved one. Life income arrangements include: charitable remainder annuity trust, charitable remainder unitrust, and a remainder interest in a residence or farm. Charitable lead trusts provide income over a term of years or a person's lifetime to charity. 11. Gift Annuities. The Community Foundation will issue charitable gift annuities if funded with cash or marketable securities valued at $25,000 or more. Rates for gift annuities issued by the Foundation will not exceed the recommended rates established by the American Council on Gift Annuities. In conformity with the Treasury Department regulations governing community foundations, gifts to the Community Foundation may not be directly or indirectly subjected by a donor to any material restriction or condition that prevents the Foundation from freely and effectively employing the transferred assets, or the income from them to further its exempt purposes. Life Insurance Gifts The Community Foundation may accept life insurance policies as gifts to the Community Foundation on the following terms: 1. The Community Foundation shall be both the owner and the beneficiary of any policy accepted by the Community Foundation. The Community Foundation may decline to accept any insurance policy if it is not in the best interest of the Community Foundation to accept the proposed gift. 2. The donor agrees that the proceeds from the policy will be the property of the Community Foundation for the Community Partnership Fund or to be administered by the Community Foundation for such purposes as designated by the donor, subject to the policies and procedures of the Community Foundation. 3. The Community Foundation shall have no obligation to continue premium payments on insurance policies. 4. If any insurance policy lapses for non-payment prior to maturity because a donor fails to provide sufficiently for premium payments, the Community Foundation may redeem the policy and apply the proceeds from any cash settlement to the Community Partnership Fund. 5. The minimum dollar amount of the life insurance policies to be considered for acceptance by the Community Foundation is $50,000. 6. The Community Foundation does not participate in charitable split dollar insurance plans. 2 Real Estate Gifts All real estate gifts must be approved for acceptance by the Foundation. Prior to approval, such gifts are reviewed by the Community Foundation staff and legal counsel. What follows is a comprehensive list of issues and information that may be relevant to any proposed gift. To facilitate the transfer, donors will be asked to provide the following: REQUIRED ITEMS 1. Exact legal name of donor and federal I.D. number. 2. Legal description of property. 3. Description of any buildings or other structures located on the land. 4. Information regarding mortgage, if any. 5. Specimen of title insurance commitment or schedule describing any liens, encumbrances or title matters affecting the property. 6. Copy of appraisal showing the fair market value of the property current within 180 days. 7. Discussion or written proposal regarding source of funds to address ongoing expenses for taxes, insurance, assessments, maintenance, grass cutting, security, utilities, etc. 8. Disclosure of any and all leases, security instruments, graves or cemetery parcels, and brief history of the use of the property, on the Foundation’s form. POTENTIALLY REQUIRED ITEMS: 9. Boundary survey of property with location of all structures, easements and encumbrances appearing on the face of the survey. 10. Information regarding existing zoning status. 11. Information on all ingress/egress for the property. 12. Detailed description of prior use of the property, when prior use has been for purposes other than residential. 13. Description of use of surrounding property, with specific disclosure of any storage tanks or potential environmental factors affecting the property. 14. Disclosure of any contemplated or anticipated condemnations, right-of-ways or other actions by municipalities that may affect the subject property. 15. Phase I environmental report on the property, including environmental report on any structures located on the real estate. Such a report will usually be required when concerns regarding the property are raised by any one or more of the following characteristics: , Stained soils, concrete or asphalt paving; , Stained sinks and toilets (some companies try to dispose of hazardous chemicals by pouring them down the sinks or into toilets); , Stained storm drains (some owners dispose of hazardous chemicals directly down storm drains, or by pouring chemicals onto soil which subsequently migrate to storm drains); 3 , Stressed vegetation, or absence of vegetation where it would be expected; , Standing lagoons, pits or ponds with suspicious content; , Oily sheens or discoloration of surface water on the site; , Foul or unusual odors or noxious funds; , Observed storage tanks or distribution lines or storage drums; , Sprayed-on fireproofing; , Leaking pipes, electrical transformers, tanks, barrels or containers; and , Flaking ceiling tiles, floor tiles or insulation, due to possible asbestos mitigation concerns. 16. Disclosure of amount of existing real estate taxes, insurance premiums and assessments attributable to the property. *Minimum levels are required for individual funds. 4