It is the policy of the Foundation not to enter into gift arrangements that do not reflect at least some donative intent on the part of the donor. The Executive Director will document in the file for each planned gift the scope and nature of the donative intent expressed by the donor.
Restricted Gifts Donors may choose to restrict the use of their gifts to any purpose consistent with the charitable purposes of the Foundation. So long as the restriction is general in nature and not contingent on specified future acts. The Executive Director may accept these restrictions and bind the Foundation to its provisions. Donors may offer successively less limiting restrictions if they wish. Each donor will be asked to agree that, should the restrictions they choose not be appropriate at the time of the maturity of their gift because of changes beyond the control of the Foundation; the Foundation may use the gift in a manner that meets the then current greatest need.
Types of Gifts
In general, the Foundation may accept any gift that is provided for in law or custom so long as such gift is consistent with the other provisions of these policies and guidelines. The Executive Director and his/her advisors may determine that the Foundation will emphasize or concentrate its efforts on encouraging one form or type of gift. The below list of the gift types will be encouraged and accepted by the Foundation. At all times, the preferences of the donor shall be more important than the Foundation's preference for charitable gifts.
Outright Gifts
This is the most preferred gift form because of the immediacy of its usefulness in our work. Outright gifts should always be encouraged first when possible. Outright gifts may take the form of cash and gifts of property.
Bargain Sales
This gift form creates an outright gift of part of the value of property because the donor's sale price is less than the fair market value. Usually, a donor sells property to the Foundation and the Foundation, in turn, sells the property to another buyer.
Charitable Remainder Trusts A charitable remainder trust allows a donor to give property or cash that will be used by a third party (the trustee) to earn an income, which is paid to income beneficiaries (usually the donor or donors), for life or a period of years. At the end of the income payment period, the trust principal is distributed to the Foundation.
Unitrust
The unitrust, which provides an income, based on a set percentage of the trust principal, which is chosen by the donor at the outset. Each year the trustee of the unitrust multiplies the value of the trust fund by the percentage chosen and pays that amount in annual, semi-annual, quarterly, or monthly payments. This is the most flexible charitable trust arrangement and is the arrangement of choice for most donors.
Annuity Trust
The annuity trust provides a fixed dollar income, which is chosen by the donor at the outset. The payments do not change and will come from trust principal should earned income not be sufficient. Payments may be annual, semi-annual, quarterly, or monthly.
Charitable Lead Trust The trustee of a charitable lead trust (also known as a charitable income trust) pays the income of the trust to the Foundation or other charities and, at the end of a fixed period; the trust corpus is transferred to one or more non-charitable beneficiaries. These gifts can produce dramatic gift and estate tax savings, providing a way for a donor to be philanthropic and preserve assets for family or other heirs.
Life Estate Contracts
This arrangement allows a donor to make a gift of the remainder interest (that which is left after the donor's lifetime) in a personal residence or farm to the Foundation, and reserve to him or herself a life estate (the privilege to live in the home for life). These gifts are contracts. The donor agrees to pay all property taxes due, maintain the residence and to provide adequate insurance. The Foundation may accept an outright life-estate gift or one made in exchange for a gift annuity.
Gifts of Life Insurance A donor may give a paid up life insurance policy to the Foundation, naming the Foundation as both owner and irrevocable beneficiary. A donor may give a life insurance policy to the Foundation that is not paid up if the policy has a current gift value or if the Foundation is assured that there is a reasonable expectation that the donor will continue to make gifts that will be at least equal to the cost of premiums for that policy. Should a contributed life insurance policy require additional premiums to remain in force, the full Board of Trustees may determine the prudence of accepting such contributions. The donor shall be made aware that the Foundation cannot guarantee that policies needing premium payments will be maintained.
Bequests Gifts made by will are encouraged and accepted as provided in these policies. The Foundation may act as trustee for charitable trusts and gift annuities established by will so long as the non-charitable interest in the trust or annuity so established does not exceed twenty years.
Revocable Trusts
The Foundation may act as trustee of revocable trusts, which will benefit the Foundation with a remainder interest. The trust or the donor shall pay any fees or charges unless the trust is made to be irrevocable. Revocable trusts are extremely valuable when donors are being encouraged to make large planned gifts in the future.
Restrictions
A donor may choose to restrict a gift to create a quasi-endowment fund upon maturity. Those funds will be held in perpetuity and the income they generate will be used for the purposes designated by the donor provided that such purposes meet the criteria specified herein. Unrestricted endowment income shall be used as directed by the full Board of Trustees. Donors may designate their quasi-endowments to be Personal Quasi-Endowments, which will carry the name designated by the donors, and income from those funds will be given to the Foundation in the name so designated.
All Roman Catholic parishes, schools, organizations and institutions within our seven-county geographical area can be named for a fund of any size. The right to name a new Personal Quasi-Endowmentsother than for a parish, school, organization or institution within the Foundation will follow these guidelines.
The Foundation will not discourage anyone from contributing to any fund(s) regardless of the size of the gift.
A fund named for a deceased person(s) must be at least $25,000. The donor(s) can start this fund with a minimum of $10,000 and a pledge to donate the remainder within the one year.
A fund named for a living person(s) must be at least $100,000. The donor(s) can start the fund with a minimum of $25,000 and a pledge to donate the remainder within the five years.
Gifts under the amount needed to establish a fund named will be added to the parish, school, organization or institution designated by the donor.
