GIFT ACCEPTANCE POLICY  

 Table of Contents

I.                  Introduction

II.                 Purpose of Policy Statement

III.                Definitions

IV.                Gift Solicitation

V.                 Gift Eligibility

VI.                Gift Acceptance and Valuation

VII.               Designated Funds

VIII.              Gift Receipting

IX.                Gift Recognition

X.                 Gift Disposition

XI.                Appendix of Related Policies

 

Introduction/Rationale

The National Council of Teachers of English is a registered charity and, as such, it seeks donations that will (1) enhance its mission in the field of English as it relates to teaching, research, professional development and community service, and (2) provide financial support for its operations.  Donations from individuals, corporations, foundations, other members of the private sector and from government are becoming an increasingly important source of funds, and it is prudent to set out the provisions, which govern NCTE’s donation policy and fundraising activity.

Purpose of Policy Statement

This document has been established to:

• Formalize the conditions and procedures to be followed by NCTE in accepting donations.
• Ensure that informed decisions are made on the acceptance of gifts and that such gifts are receipted in accordance with the requirements of the Internal Revenue Service.
• Ensure that efficient administrative, legal, and accounting practices and procedures are followed
• Enable accurate reporting of gifts bestowed upon NCTE, its Research Foundation, its conferences, forum associations, and other subordinate units
• Ensure consistent, equitable relations with donors
• Ensure due diligence prior to making a decision with respect to a gift which:
  • might expose NCTE to an uncertain and potentially significant liability
  • is precedent-setting or involves sensitive issues
  • may have come from illegal activities
  • because of its unusual nature, presents questions as to whether it is within the role and scope of NCTE.

In order to ensure that this Policy continues to be effective, it shall be reviewed periodically. The Executive Director is responsible for initiating this review at intervals not to exceed three (3) years.

Definitions

Gift: A voluntary transfer of cash and kind, from individuals, industry, foundations and other sources to NCTE for either unrestricted or restricted utilization in the operation of NCTE. Gifts are made without expectation of return; no consideration (outside of appropriate recognition) to the donor or to anyone designated by the donor may result from the payment.  Gifts may be monetary (cash, checks, credit cards) or non-monetary (e.g. securities, real property, or personal property).

Current Use gifts: Gifts or grants given to NCTE that the donor has directed are to be immediately used in support of various programs or projects.  These gifts are especially valuable to NCTE because they provide direct relief to the General Fund.

Deferred gifts:  Gifts or grants pledged to NCTE that the donor has directed are to be used in support of various programs or projects when the instrument of payment makes those funds available.

Endowed gifts:  Gifts or bequests, given to NCTE, to be held permanently for the income derived, as part of NCTE’s endowment fund.

Gift Acceptance Committee:  Composed of the Executive Director, Past President, and one member of the Executive Committee, as designated by the President.

Gift-in-Kind: Donated tangible and intangible assets and property such as real estate, notes, mortgages, royalty or copyright interests, art, books, equipment, automobiles, inventory, personal property, securities, and other physical assets or materials, which represent value to NCTE.

Unrestricted gifts: Gifts, given to NCTE, where the donor has not specified the purpose for which the gift is to be used.

Restricted gifts:  Gifts, given to NCTE, where the donor has specified that the gift be used to support a particular purpose.

Gift Pledges:  Gift contributions to NCTE that are pledged over a period of time (normally to a maximum of 5 years, depending on the size of the gift and the nature of the appeal).  

Official Charitable Receipt: The official charitable receipt is a statement issued by NCTE that includes a declaration as to the value of the gift, date of the gift and name of the donor.

Gift Solicitation

NCTE’s Executive Director and Past President must authorize the solicitation of gifts.  This approval applies uniformly to both those solicitations conducted at NCTE headquarters and those conducted by affiliated agencies of NCTE.

NCTE’s solicitation of gifts is informed by and consistent with priorities established by appropriate NCTE processes.

Gift Eligibility

NCTE welcomes gifts that support the pursuit of its mission.  Indicators that a gift is acceptable include:

• NCTE has a use or need for the gift or, when there is no immediate need, the gift is marketable.
• The gift and its accompanying terms are legal.
• The purpose of the gift is compatible with the work/priorities of NCTE or the unit for whose benefit the gift is intended.
• The cost required to support/sustain the gift does not diminish the value of the gift to a negligible sum.
• There does not appear to be a physical hazard and/or liability concern associated with the gift.

NCTE deems the following types of gifts eligible for acceptance:

• Outright gifts of cash, checks, or marketable securities
• Gifts-in-kind
• Life insurance
• Annuity contracts and gifts of residual interest
• Trust agreements
• Bequests

NCTE has the right to decline any gift that is not consistent with its mission.  Gifts will not be accepted by NCTE that, in the judgment of the members of the Gift Acceptance Committee:

• Violate any federal, provincial or municipal law;
• Create any fund with restrictive clauses that would violate the Human Rights Code, or that reserve to the donor or his/her designee the right to designate the recipient;
• Compromise NCTE's integrity or interfere with NCTE's institutional judgment;
• As a condition thereof, require any action on the part of NCTE which is unacceptable to NCTE or violates NCTE policies and regulations;
• Require or stipulate the future employment at NCTE of any specified person or doing business with any specified company or person;
• Contain unreasonable conditions;
• Are gifts of partial interest in property, unless NCTE agrees otherwise;
• Are financially unsound or that would expose NCTE to liability or to diminishment of its reputation;
• Rely on an appraisal or evaluation, provided to the donor by third parties, that is perceived to be inaccurate or unreliable.

A Note About Pledges

Pledges are an important part of the fund raising process.   If the donor receives consideration for the pledge, the pledge will by law be legally binding.  Consideration would include any privileges afforded the donor as a result of the pledge.  Unbinding pledges are considered to be conditional on continued goodwill of the donor. 

In the case of a binding commitment, the donor shall execute a Charitable Deferred Pledge Agreement, which is a commitment to the donor’s estate in the event of his/her death before the completion of the pledge. 

NCTE’s policy is to not pursue any unfilled pledge commitment through legal means unless the Executive Director and Past President decide that special situations or circumstances involving any particular pledge would warrant such action.

Gift Acceptance

NCTE reserves the right to accept or decline any gift.  Members of the Gift Acceptance Committee will decide upon and accept or reject in advance of execution any NCTE-administered gift that is an exception to standard criteria for acceptance. 

Ownership of all gifts directed to NCTE vests in NCTE, whether said gifts are for the benefit of NCTE generally or for some specific purpose in it.

Gifts accepted by NCTE will be used solely for the purpose specified by the donor.

Undesignated gifts shall be used for such purposes as NCTE judges will best advance its mission and priorities.   Income earned on unrestricted gifts less than $25,000 may be used for NCTE purposes specified by the Gift Acceptance Committee. Income earned on unrestricted gifts of $25,000 or more may be used for NCTE purposes specified by vote of the Executive Committee.

Valuation of Gifts

Due to Federal tax regulations, NCTE does not provide appraisals for donations received. A qualified appraisal to be used for tax purposes is the responsibility of the donor.  For more information regarding IRS regulations on Charitable Contributions, contact the Internal Revenue Service.

The acceptance of corporate gifts or corporate-sponsored foundation gifts shall be consistent with the Relations with For-Profit Business Entities policy, adopted in September 2002.

Except as required by law, all information obtained from or about donors or prospects shall be held in strictest confidence by NCTE.

Designated Funds

Designated Funds

Designated funds are gifts for current operating purposes but restricted to a particular division, department, project, or purpose by donors or other outside agencies.  In order to be considered a gift for tax purposes, a gift cannot be restricted to the benefit of particular individuals and the donor must relinquish complete control over the use of the funds. 

NCTE must decide, when accepting any gift, that the purpose of the donation is acceptable. In general, NCTE must ensure that there is a clearly stated purpose related to any special funds received and that the expenditures involved conform to policy. Due care must be exercised to avoid engaging NCTE in contractual relationships outside of its functional authority.

Additionally, designated funds should only be given in support of Executive Committee-approved programs (for the purpose of budget relief) and should not represent intent on behalf of the donor to exercise his/her own desires for initiation or management of a particular program or activity.

In the event that NCTE sees fit to terminate the restrictions of a gift, it will seek to use such funds for a purpose that reflects as near as possible the original restriction.  Restrictions shall be deemed unable to be fulfilled due to circumstances, including, but not limited to:  the termination of a NCTE program; the insufficiency of the restricted funds to fulfill the designated purpose where no funds from other sources are available to supplement the restricted funds; and the designated purpose is no longer consistent with the mission of NCTE and its individual programs.

Reports on gift use will only be made available upon request.

Endowments

In order to establish an endowment, NCTE must receive a minimum of $5,000 in order to commence with administration of the gift.  NCTE, unless otherwise agreed, will not be responsible for the solicitation of gifts necessary to reach the minimum balance necessary for payout.   The donor(s) will have no more than three (3) years to reach the endowment level.  If it is not reached at that time, the monies will be redirected toward general funds use and/or priorities identified by the Executive Director and Past President, unless otherwise agreed.  Once the endowment level is reached, any shortfall between the interest earned and the specified payout will be the responsibility of the donor(s).

  Endowed gifts will be added to the Endowment Fund and managed by an outside investment manager as selected and guided by the Executive Director and Past President, in consultation with the Deputy Executive Director.

Earnings for gift accounts will be maximized to the extent possible in keeping with sound financial management practices.

Income earned on a donor's endowed gift will be used for the purpose stipulated by the donor.

Occasionally, funds sought and contributed for a NCTE purpose are insufficient to make the project viable. If NCTE is unable to proceed, benefactors will be invited to redirect their contributions to an analogous purpose, and/or to curtail future pledged payments.

Gift Receipting

NCTE will acknowledge the receipt of all gifts in writing and in a manner that satisfies the IRS’s substantiation requirements set forth in IRC Section 170(f) for the deduction of charitable gifts by individual donors. 

Charitable gifts to NCTE in the form of cash, checks or credit cards received by any department in NCTE, shall be directed to the designated staff member, along with related correspondence and any specific instructions, on the day they are received.  When the designated staff member is not available, this same material is to be advanced to the NCTE Business/Finance Secretary.

The designated staff member is responsible for accepting, processing and acknowledging donations to NCTE.  The designated staff member shall advise the Executive Director and Past President of donations and pledges received and shall maintain appropriate records relating to the donation.  Additionally, reasonable efforts to protect the confidentiality of donors shall be undertaken. 

All eligible gifts will be acknowledged with an official charitable receipt accompanied by correspondence prepared by the designated staff member. These documents are deemed to be the official acceptance of the gift and its related terms and conditions, as well as official certification of the donation for income tax purposes. 

NCTE receives, on occasion, payments that are not considered charitable gifts.  In certain circumstances, individuals may wish to donate consulting fees or honoraria earned in the course of their NCTE duties.  Such amounts constitute taxable income in their hands. If the individual does choose to donate these to NCTE, he/she would first be required to accept payment for services, then proceed to make a donation in order to qualify for income tax deductions.  Otherwise, forfeiture of payments or redirection of funds, while constituting a gift, would not qualify for tax deductions.

Gift Recognition

Gifts received by NCTE will be acknowledged through appropriate venues during the course of each fiscal (July 1-June 30) year.  This public recognition is meant to express NCTE’s appreciation and gratitude for the generosity of those individuals and institutions that have committed themselves to supporting the profession.

NCTE will honor donor’s wishes as to how published credit should appear and will honor those who wish for their contributions to be credited anonymously.

Individuals whose gifts are matched by their employers will receive campaign recognition but will not receive individual credit for the amount matched.

Disposition Of Gifts

Gifts intended for NCTE are accepted with the understanding that NCTE retains the right to handle or dispose of gift material in the best interest of the institution.  Donated materials will be accepted only if they meet current NCTE needs.

Related Policies

NCTE:  Motion 79:37, February 1, 1979, Charitable Remainder Trusts

NCTE:  Motion 83:59, May 6, 1983, Investment Policies & Procedures

NCTE:  Motion 2001:94 & 116, September 22, 2001, Volunteer Fundraising Structure

NCTE:  Motion 2001:131, November 14, 2001, Designated Fund Management within FY Parameters

NCTE:  Motion 2002:44, April 27, 2002, Approval Body for Fundraising Solicitation

NCTE:  Motion 2002:65, September 22, 2002, Relations with For-Profit Business Entities