Last Updated 9-22-16
Frankfort Education Foundation Gift Acceptance Policy
Frankfort Education Foundation (FEF), a 501(c)(3) nonprofit organization organized
under the laws of the State of Indiana, encourages the solicitation and acceptance of
gifts to or for the benefit of FEF for purposes that will assist in fulfilling its mission.
The mission of FEF is to support the Community Schools of Frankfort's mission of
"Ensuring Excellence for Every Student Everyday" by awarding teacher grants and
student scholarships through philanthropic investment and community engagement.
FEF reserves the right to refuse any gift that does not provide sufficient financial benefit
or puts assets or reputation of the organization at risk. FEF will not accept any gift
unless it can be used or expended consistently with the vision, mission, and strategic
plan of the organization. All gift and gift consideration must meet all applicable local,
state, and federal laws and regulations.
FEF is grateful for any contributions, however, there are some kinds of gifts that the
organization simply cannot or may not want to accept (National Council of Nonprofits,
n.d.). Furthermore, FEF may not be prepared to use some gifts, although generous, in a
productive way (National Council of Nonprofits, n.d.). “Some gifts may even result in
more hassle and expense than benefit to the organization” (National Council for
Nonprofits, n.d.). Therefore, FEF has an approved “gift acceptance policy to manage the
expectations of donors and also guide board and staff with a consistent practice for
reviewing and accepting charitable contributions” (National Council of Nonprofits, n.d.).
No irrevocable gift, whether outright or life-income in character, will be accepted if under
any reasonable set of circumstances the gift would jeopardize the donor’s financial
security.
FEF will accept donations of cash or publicly traded securities. Gifts of in-kind services,
equipment, or supplies will be accepted at the discretion of FEF. Certain other gifts, real
property, personal property, in-kind gifts, non-liquid securities, and contributions whose
sources are not transparent or whose use is restricted in some manner, must be
reviewed prior to acceptance due to the special obligations raised or liabilities they may
pose for FEF.
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Last Updated 9-22-16
FEF will provide acknowledgments to donors meeting IRS substantiation requirements
for property received by the charity as a gift. However, except for gifts of cash and
publicly traded securities, no value shall be ascribed to any receipt or other form of
substantiation of a gift received by FEF.
The most desirable gifts are those with the least restrictions, as unrestricted funds allow
the organization the most flexibility to address its most pressing needs (Lawrence,
Flynn, & Fletcher, 2007). FEF will accept unrestricted gifts, and gifts for specified
programs and purposes, provided that such gifts are consistent with its stated mission,
purposes, and priorities. FEF will not accept gifts that are too restrictive in purpose. Gifts
for purposes that are not consistent with FEF’ mission or consonant with its current or
anticipated future programs cannot be accepted. Examples of gifts that are too
restrictive are 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 FEF. All final
decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made
by the FEF Board of Directors.
FEF follows the Association of Fundraising Professionals Code of Ethical Standards, Donor
Bill of Rights, and eDonor Bill of Rights. FEF will respect the intent of the donor relating
to gifts for restricted purposes and those relating to the desire to remain anonymous.
With respect to anonymous gifts, FEF will restrict information about the donor to only
those board members, staff members, and volunteers with a need to know.
In some cases, the FEF Board of Directors may seek independent legal counsel before
accepting a non-standard, non-cash gift. Non-cash gifts will be accepted only when it is
reasonably expected they can be converted into cash within a reasonable period of time
or when the organization can utilize the property in its operation (Lawrence, Flynn, &
Fletcher, 2007). All donors of non-cash gifts must acknowledge that FEF is not acting as
a professional advisor, rendering opinions of the gift (Lawrence, Flynn, & Fletcher,
2007). All gifts of life insurance must comply with applicable state insurance
regulations, including insurable interest clauses (Lawrence, Flynn, & Fletcher, 2007).
To avoid a conflict of interest, all donors and potential donors should seek independent
professional legal, tax, estate planning, and/or financial planning advice before making a
gift. In no instance will representatives of FEF (i.e., board members, volunteers, staff),
provide legal, tax, estate planning, and/or financial planning advice to donors or
potential donors.
The following types of gifts will be accepted without further approval:
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Last Updated 9-22-16
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Unrestricted, outright gifts via cash, check, credit card, and publicly traded
securities
The following types of gifts may be accepted with Board approval:
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Restricted gifts of cash, check, credit card, and publicly traded securities
Noncash gifts
Unrestricted or restricted gifts via cryptocurrency (e.g., Bitcoin) (For more
information, visit: http://en.wikipedia.org/wiki/Cryptocurrency &
http://www.bankrate.com/finance/investing/cryptocurrency-alternatives-tobitcoin-1.aspx)
The following types of gifts will not be accepted:
As recommended by Lawrence, Flynn, & Fletcher (2007), unless the board grants a
specific exemption, FEF will not accept any gifts that:
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Contain a condition that requires any action on the part of the organization that is
unacceptable to administration
Contain a condition that the proceeds will be spent by the organization for the
personal benefit of a named individual or individuals
Require the organization and its administration to employ or dismiss a specific
person now or at a future date
Inhibit the organization from seeking gifts from other donors
Expose the organization to adverse publicity, litigation, or other liabilities
Require undue expenditures, or involve the organization in unexpected
responsibilities because of their source, conditions, or purpose
Involve unlawful discrimination based upon race, religion, gender, sex, sexual
orientation, age, national origin, color, disability, veteran status, or any other
basis prohibited by federal, state, and local laws
FEF will not compensate, whether through commissions, finders’ fees, or other means,
any third party for directing a gift or a donor to FEF (National Council on Nonprofits,
n.d.).
Note: It is recommended that FEF gain initial and regular review of this policy by
qualified legal counsel before approving the Gift Acceptance Policy. Maintenance of this
policy is the responsibility of the Resource Development Strategic Area with annual
review and approval by the FEF Board of Directors. FEF may consider establishing a Gift
Acceptance Sub-Committee of the Resources Development Strategic Area. Once
approved by the FEF Board of Directors, the IRS Form PF-990 will require the
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organization to indicate “Yes” to having a Gift Acceptance Policy, and may require
additional documentation (e.g., Schedule M: Noncash Contributions). It is
recommended to post the approved Gift Acceptance Policy on the FEF web site.
References
Association of Fundraising Professionals (n.d.). Code of ethical standards. Retrieved April 21, 2015, from
http://www.afpnet.org/files/ContentDocuments/CodeofEthics.pdf
Association of Fundraising Professionals (n.d.). Donor bill of rights. Retrieved April 21, 2015, from
http://www.afpnet.org/files/ContentDocuments/Donor_Bill_of_Rights.pdf
Association of Fundraising Professionals (n.d.). eDonor bill of rights. Retrieved April 21, 2015, from
http://www.afpnet.org/Ethics/EnforcementDetail.cfm?ItemNumber=3285
Lawrence, B., Flynn, O., & Fletcher, K. (2007). The Nonprofit Policy Sampler (2nd ed.). Washington, D.C.:
BoardSource.
Maine Island Trail Association. (n.d.). Gift acceptance policies and guidelines. Retrieved April 21, 2015, from
http://www.mita.org/files/MITA%20Gift%20Acceptance%20Policy%20-%20Complete.pdf
National Council of Nonprofits. (n.d.). Gift acceptance policies. Retrieved April 21, 2015, from
https://www.councilofnonprofits.org/tools-resources/gift-acceptance-policies
Resources
Association of Fundraising Professionals – Indiana Chapter: http://www.afpindiana.afpnet.org/
Engel, B. (n.d.). Long Beach Nonprofit Partnership – Creating gift acceptance policies. Retrieved April 21, 2015, from
http://www.lbnp.org/Websites/lbnp/images/Library/Fundraising/Creating%20Gift%20Acceptance%20Policies.pdf
Grant Space. (n.d.). Knowledge base: What is a gift acceptance policy. Retrieved April 21, 2015, from
http://grantspace.org/tools/knowledge-base/Nonprofit-Management/Other-Nonprofit-Management-Issues/examplesof-gift-acceptance-policies
Indiana Youth Institute – Virginia Beall Ball Library – Fundraising for small nonprofits resources. Retrieved April 21,
2015, from http://www.iyi.org/resources/doc/IYI-Bibliography-Fundraising-for-Small-Nonprofits-February2013.pdf
Nonprofit Risk Management Center. (n.d.). Sample gift acceptance policies. Retrieved April 21, 2015, from
https://www.councilofnonprofits.org/sites/default/files/documents/SAMPLE%20Gift%20Acceptance%20Policies.pdf
Public Counsel. (n.d.). Form 990 policy series memorandum: Gift acceptance policy. Retrieved April 21, 2015, from
http://www.publiccounsel.org/tools/assets/files/GiftMemo.pdf
Schaumleffel, N. A. (2014, February). Nonprofit leadership like it oughta be: Normative perpetual mission-focused
experience management cycle. Presentation conducted synchronously online via the High Impact Webinar Series of the
Nonprofit Leadership Alliance, Kansas City, MO.
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