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Donor Recognition and Confidentiality
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 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, Chief Financial Officer, 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 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. The Organization accepts VISA, MasterCard, Discover, and American Express. For gifts made by credit card, 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 acknowledgment 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.
a. 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.
b. 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.
c. 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.
d. Bequests. Unless determined otherwise by the Gift Acceptance Committee, bequests will be added to the general operations expenses of L’Arche Inc.
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. Acknowledgment of all gifts made to the Organization and compliance with the current IRS requirements in acknowledgment 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 generally are sold upon receipt.
3. The Organization does not provide fair value estimates to donors in donor acknowledgments.
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 Chief Financial Officer 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 acknowledgments on IRS Form 8283 for non-cash donations in excess of $5,000 may be signed by the Director of Development and Communications, Chief Finance Officer, 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 fundraising.
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.
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Certain states require written disclosures for nonprofit organizations soliciting contributions. Individual state disclosures are below.
Florida: A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE, WITHIN THE STATE, 1-800-435-7352 (800-HELP-FLA), OR VISITING www.FloridaConsumerHelp.com. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE. Florida Registration #CH50129
Maryland: For the cost of copies and postage, from the Office of the Secretary of State, State House, Annapolis, MD 21401.
North Carolina: Financial information about this organization and a copy of its license are available from the State Solicitation Licensing Branch at 1-919-814-5400. The license is not an endorsement by the state.
Virginia: From the State Office of Consumer Affairs in the Department of Agriculture and Consumer Affairs, P.O. Box 1163, Richmond, VA 23218.
REGISTRATION WITH A STATE AGENCY DOES NOT CONSTITUTE OR IMPLY ENDORSEMENT, APPROVAL OR RECOMMENDATION BY THAT STATE.
More information about nonprofit fundraiser disclosures and annual charity registrations.
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You can donate online to L’Arche GWDC with confidence that your information is secure. We have partnered with Authorize.Net, a leading payment gateway since 1996, to accept credit cards safely and securely for our customers.
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All donations to L’Arche GWDC are listed in our annual report. If you wish to remain anonymous in print, please indicate in the comments field of the donation form. Please contact info@larche-gwdc.org or call (202) 232-4539 to check or update your donor recognition information for publications. We will not sell, trade or share your personal information with any other person or third-party. We will not send donor mailings on behalf of other organizations. L’Arche GWDC adheres to the Donor Bill of Rights as created by the Association of Fundraising Professionals (AFP), and the Council for Advancement and Support of Education (CASE)
Tax-deductibility (EIN: 52-1233065)
L’Arche Greater Washington, D.C. is a 501(c)3 tax-exempt organization and your donation is tax-deductible within the guidelines of U.S. law. To claim a donation as a deduction on your U.S. taxes, please keep your donation receipt as your official record that will be sent to you upon successful completion of your donation.
Tax Receipts
After completing our online donation form, a donation receipt will be sent to you at the email address you provide on the form. If you donate through check or cash, you will receive a paper receipt after the donation has been processed. Each January, donors who gave $250 or over within the previous calendar year will receive tax receipts with records of their donations made to L’Arche GWDC. If you donated less than $250 to L’Arche during the calendar year and still wish for a receipt, please email info@larche-gwdc.org or call (202) 232-4539.
Questions?
If you have any questions or wish to change your address or contact preferences, please don’t hesitate to contact us at info@larche-gwdc.org or (202) 232-4539.