Giving Policies

Gift Acceptance Policy

The Board of Directors and staff of L’Arche Greater Washington, D.C. (the “Organization”) solicit current and deferred gifts from individuals, corporations, and foundations to support the Organization’s ongoing mission and future growth.  The Organization adheres to procedures and guidelines to ensure responsible and ethical practices in accepting gifts. 

APPROVAL

 Approved by Board of Directors December 5, 2024 which supersedes the policy approved January 26, 2019.

PROCEDURES

A. Applicability.  These procedures and guidelines apply to all gifts to L’Arche, Inc.

B. Gift Review Process. 

1. Development Staff Review. The Organization’s development staff is responsible for reviewing all gifts made to the Organization and bringing unusual or concerning gifts to the attention of the Gift Acceptance Committee. 
2. Gift Acceptance Committee.  The Gift Acceptance Committee is composed of the Executive Director, Director of Finance and Operations, Treasurer of the Board of Directors, Director of Development and Communications, and such other members as appointed by the Executive Director.  The Gift Acceptance Committee has authority to make final decisions on accepting or rejecting unusual or concerning gifts.  The Committee may also submit significant questions with recommendations for a decision by the Finance Committee, Executive Committee, or full Board of Directors.
3. Use of Legal Counsel.  The Organization shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate.

C. Gift Acceptance.  The Organization generally accepts gifts that support the mission and can be accepted without causing conflicts of interest or undue administrative burden. The Organization reserves the right to review and refuse gifts that are inconsistent with the its mission, cause conflicts of interest, present undue administrative burdens, or for any other lawful reason in the Organization’s sole discretion.

1. Unrestricted Gifts.  The Organization generally accepts all unrestricted cash, pledges, bequests, remainder interests in property, beneficiary designations, and publicly traded securities.  Unrestricted gifts are recorded as unrestricted and used to fund current operations or to maintain reserves.
2. Publicly Traded Securities.  Upon receipt of a gift of donated securities, The Organization sells the securities at the earliest practical date.  It is not the Organization’s policy to hold securities for an extended length of time.  Such gifts are credited to donors according to current IRS codes.
3. Credit Cards, Automated Clearing House (ACH), and Digital Payments. The Organization accepts VISA, MasterCard, Discover, American Express, ACH bank-to-bank transfers, Paypal, and Apple Pay. For gifts made online by credit card, ACH, or digital payment, the date the charge is accepted for processing by the Organization is the applicable date of the gift.
4. Pledge Terms.  The Organization accepts pledges with payment periods up to three years.  Pledges with payment periods greater than three years may be considered in the discretion of the development staff and, where appropriate, the Gift Acceptance Committee.  Pledges are generally expected to be fulfilled with contributions of cash or publically traded securities. 
5. Restricted Gifts.  The Organization generally accepts gifts restricted by the donor to specific programs and purposes, provided that such gifts are consistent with its stated mission, purposes, and priorities.  The Organization does not accept gifts that are too restrictive in purpose, such as those that violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of the Organization.
6. Donor Advised Funds (DAFs) Gifts from Donor Advised Funds (DAFs) are viewed as gifts from the DAF itself, with a soft credit entered for the recommending donor. These soft credits can be used to fulfill pledges from the donor if the donor desires. For IRS purposes, no tax acknowledgement is sent. A thank you letter is sent to the donor acknowledging the gift.
7. In-Kind Gifts.  The Organization accepts in-kind gifts from its wish list. In-kind gifts will be accepted at the discretion of the Director of Development and Communications and Executive Director.
8. Vehicles. The organization accepts donations of cars for sale through a community partner, Melwood and receives the proceeds from any sale.
9. Real Estate.  No gift of real estate or real property is accepted if such acceptance causes the Organization to incur a financial burden, potential liability, or other obligations, unless otherwise determined by the Gift Acceptance Committee.  In most situations, a Phase I environmental impact study and an independent appraisal done at the owner’s expense are required to accompany a gift of real estate.  The Organization does not value real estate donations for tax purposes.
10.   Life Insurance. The Organization accepts only fully paid insurance policies for which it is named as beneficiary and the irrevocable owner of the policy.  Gifts of life insurance are credited at face value as pledges receivable as designated by the Board of Directors unless specified by the donor.
11.   Closely Held Securities.  Gifts of closely held securities are subject to prior approval of the Gift   Acceptance Committee. The valuation of securities that are not publicly traded is the responsibility of the donor, and such gifts must be accompanied by an independent qualified appraisal to be credited to annual or campaign goals. Securities need to be marketable and able to be liquidated in a reasonable amount of time.  The donor is responsible for all costs associated with ensuring donated securities are marketable with no restrictions.
12.   Planned and Deferred Gifts.
    1. 1. Distributions from estates and trusts that are received by the Organization will be credited at full value on the date that the Organization receives notification in writing by the executor or trustee, or funds are realized by the Organization, whichever comes first.
       2. The Organization encourages donors to consider making provisions in their estate planning for eventual bequests to the Organization.  Donors who notify the Organization of their intent will be recognized as a member of the Legacy Society.
       3. Trusts.  The Organization accepts Charitable Remainder Trusts, Charitable Remainder Unitrusts, and Charitable Lead Trusts.  The Organization does not actively manage such trusts.  Donors should consult with their financial and legal advisors to determine the best vehicle for their estate plans.
       4. Realized Planned Gifts. Unrestricted realized bequests of less than $50,000 will be designated to the current operating budget​ of L’Arche Inc. For bequests over $50,000, the Gift Acceptance Committee will determine how to designate the gift.
13.    Gifts from Family Members of Prospective Core People. The Organization generally does not accept gifts from family members or guardians of prospective core people where there exists an expressed or implied expectation of acceptance of the core person into the Organization in exchange for the gift.

D. Gift Acknowledgment and Valuation.

1. Acknowledgement of all gifts made to the Organization and compliance with the current IRS requirements in acknowledgement of such gifts is the responsibility of the Director of Development and Communications with oversight by the Executive Director and the Board of Directors.
2. The Organization will record gifts received at fair market value on date of receipt.  Marketable securities are sold upon receipt.
3. The Organization does not provide fair value estimates to donors in donor acknowledgements. 
4. It is the responsibility of the donor to secure any appraisal or independent legal counsel needed by the donor in relation to gifts made to the Organization.
5. The Director of Development and Communications and Director of Finance and Operations are responsible for filing IRS Form 8282 in accordance with its requirements upon sale or disposition of any asset sold by the Organization when the charitable deduction value of the item is more than $5,000.
6. Donee acknowledgements on IRS Form 8283 for non-cash donations in excess of $5,000 may be signed by the Director of Development and Communications, Director of Finance and Operations, or Executive Director.  

E. Code of Conduct.  Representatives of the Organization exercise caution to avoid pressure, persuasion or undue influence and encourage donors to seek their own counsel when considering a planned gift option.  All personnel employed by the Organization who contact prospective donors are paid a salary or fixed wage, and do not receive commissions that could give a direct beneficial interest in any donation.  The Organization complies with the Model Standards of Practice for the Charitable Gift Planner promulgated by the National Committee on Planned Giving.

F. Confidentiality. The Organization recognizes that it is in a position of trust with the donor, and that the donor has placed trust in the Organization concerning confidentiality.  All donor information, correspondence, and governing instruments are kept in a secure place, which is accessible to individuals with approval of the Executive Director or the Director of Development and Communications It is known throughout the Organization that this is confidential information.

G. Use of Constituent Lists. It is the Organization’s policy not to sell its constituent lists to individuals or other organizations interested in using it for fund raising.

H. Protection of Donor’s Interest. No program, agreement, trust, contract, or commitment is knowingly urged upon any prospective donor that would benefit the Organization at the expense of the donor’s interest and welfare.  No agreement is made between the Organization and any agency, person, company, or other organization that knowingly jeopardizes the donor’s interest.

I. Donor Bill of Rights. The Organization acts in accordance with the Donor Bill of Rights, created by the Association of Fundraising Professionals (AFP), the Association for Healthcare Philanthropy (AHP), the Council for Advancement and Support of Education (CASE), and the Giving Institute.

J. Use of Legal Counsel

1. Prospective donors are advised to seek legal or tax counsel from his/her attorney in any and all aspects of a proposed gift, whether by bequest, trust agreement, or outright gift. They are advised to consult with their attorney or accountant on matters related to the tax implications and estate planning aspects of a planned gift agreement.
2. The Organization consults with separate legal counsel in all matters pertaining to its planned giving program and consults counsel when executing agreements, contracts, trusts or legal documents.  In no case is the Organization’s attorney the attorney for the donor.  Donors are advised to seek their own legal or tax counsel.
3. No legal fee is paid by the Organization for the drafting of a will or other trust instruments on behalf of prospective donors even if the Organization is to be named as a beneficiary.  No legal fee is paid by the Organization for determining the marketability of any donated property, whether securities or real property.

K. Finances & Accounting Policy.  See 1120 Finances & Accounting above for procedures regarding cash receipts, bookkeeping, and pledged revenue.