Policies, Procedures & Gifts
Gift Acceptance Policy
Introduction
CUP, Inc. (hereinafter “CUP”) is a not-for-profit organization organized under the laws of the state of Florida. CUP encourages the solicitation of gifts that will help further its mission. CUP, as a 501(c)(3) organization, is established to allow donors to make tax- deductible gifts. CUP Federal Tax ID # is 87-3296836.
Mission
CUP exists to secure successful jobs for people with intellectual and developmental disabilities in an inclusive workplace.
Administrative Responsibility
The Board of Directors of CUP empower the Chief Executive Officer (CEO) and the Operations Manager to ensure appropriate compliance with this policy by all staff, consultants, and volunteers. All gift acceptance programs shall be subject to the oversight of the Gift Acceptance Committee.
Gift Acceptance Committee
The CEO, Treasurer, and Fundraising Committee Chair of the Board of Directors shall constitute the Gift Acceptance Committee. The primary responsibilities of this committee shall be to review proposed gift transactions using the criteria specified herein. The Gift Acceptance Committee shall also periodically review and approve gift acceptance guidelines for planned gifts, consistent with established policies and guidelines and in compliance with Internal Revenue Service regulations.
Ethical Standards
Every employee or person interacting with donors in the gift planning process on behalf of CUP shall adhere to the Model Standards of Practice for the Charitable Gift Planner, and the Association of Fundraising Professionals (AFP) Code of Ethical Standards and Donor Bill of Rights. Refer to attachments for full documents.
Independent Counsel
Donors are advised to secure the advice of independent counsel regarding the legal, investment, estate, and tax consequences resulting from gifts to CUP. It is CUP’s policy that the donor’s attorney may not also represent CUP, on a specific gift. Additionally, donor advisors that serve on CUP’s Board of Directors must disclose any conflicts of interest and refrain from voting on gifts in which they serve as counsel or advisor to the donor.
Purpose
These policies and procedures govern CUP’s solicitation, acceptance, and administration
of gifts and provide guidance to prospective donors and their advisors when making
gifts. The provisions of these policies shall apply to all gifts received by CUP for any of
its programs or services.
The purpose of all gifts to CUP must relate to its mission.
Policies and Procedures
A gift is a voluntary transfer of assets from an individual or entity made without consideration. That is, the donor does not receive any goods or services from CUP in consideration of the gift. CUP will accept unrestricted gifts and gifts restricted for specific programs and purposes, provided that:
- A gift satisfies all IRS qualifications as a charitable transaction except in the case of approved estate planning mechanisms.
- A gift is an irrevocable transfer of assets.
- Gifts are consistent with CUP’s stated mission.
- Gifts do not violate the terms of CUP’s policies.
- Any restrictions or conditions imposed on the use of such gifts are approved by CUP.
Prohibited Gifts and Non-Acceptance of Gifts
CUP reserves the right to refuse a gift or pledge. Reasons for gift refusal might include, but are not limited to, the following:
- The gift or gift transaction involves an illegality.
- The gift is given in exchange for the organization’s support of a specific political agenda.
- The gift or gift transaction conflicts with CUP policies or CUP’s mission.
- The benefit of the gift is outweighed by the potential negative publicity for CUP that would result from the transaction.
- The gift or gift transaction inhibits CUP from seeking gifts from other donors.
- The benefit of the gift is insufficient to offset the extent of administrative and/or legal effort involved in its acceptance.
Current Gifts
Donors may choose to designate their gift to a specific purpose (restricted gift) or to make an unrestricted gift. Principal and income shall be available for expenditure on gifts made for a specific purpose or in support of a specific program of CUP. An unrestricted gift is a gift made with no limitations on how the gift is to be used. Unrestricted gifts are used for the highest priority needs and provide the most flexibility as these needs change. Restricted gifts are encouraged to be no less than $10,000.
Deferred Gifts
A deferred gift involves the irrevocable transfer of an asset for the benefit of a nonprofit. Current tax laws allow several planning alternatives for deferred gifts, although a donor will not receive charitable tax deductions unless the gift complies with applicable requirements established by the Internal Revenue Code, or other laws or regulations which govern certain types of deferred gifts. CUP urges all prospective donors to seek 5 the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences.
Gift Agreements
Gift agreements may be appropriate when a pledge is made, or whenever a gift is restricted to ensure that both a donor and a recipient understand the nature and purpose of a specific gift. The agreement acts as a reference point for the administration of a gift, especially in the event of any dispute. It ensures that the expectations of both the donor and recipient can be met over time and can continue to be met should the original context of the gift change.
Savings Clause
A savings clause is a clause in a gift agreement that allows CUP to revise or modify the gift of the donor if the criteria or purposes of the gift are no longer lawful. CUP’s savings clause must be present in all gift agreements.
Sample savings clause
While the wishes of the donors will be loyally observed, CUP, may modify the criteria for the gift if it determines that the purposes of the gift are in whole or in part contrary to law or changes occur such that the program or purpose is unable to be fulfilled. In such an event, CUP will make every effort to notify the donor that the gift will be reallocated in a manner that most closely satisfies the intentions of the donor.
Naming of Facilities and Programs
On occasion, CUP may seek to recognize the efforts and contributions of individuals and
organizations by the naming of buildings, portions of buildings, programs, etc.
Recommendations for such recognition is determined on a case-by-case basis.
A clause must be included in the naming agreement, negotiated and signed by the
honoree/donor and CUP, that gives CUP the ability to suspend or terminate the
agreement in the event that the named honoree/donor is associated with or commits an
act that falls within the purview of the clause – usually defined as behavior that is
criminal, scandalous, or otherwise publicly reprehensible.
Methods of Giving
Cash and Cash Equivalents
Gifts of cash include cash equivalents: money orders, or electronic or credit card
transfers paid to CUP.
To wire cash to CUP, the donor’s bank or broker initiates the transfer to CUP’s account
at Valley Bank. CUP’s routing number and account number will be provided upon
request. The donor will alert CUP that a transfer is occurring for proper tracking,
acceptance, recording and gift acknowledgement.
Sustaining memberships or recurring gifts may involve monthly bank withdrawals or
credit card charges of a minimum of $5/month. The donor authorizes CUP to complete
these transactions according to the donor’s directive and CUP will continue to make
these withdrawals and charges until the donor notifies CUP to have payments
discontinue.
Checks
Checks are to be made payable to CUP, Inc. and mailed to CUP, Inc., c/o Greg Jones 3408 S Dale Mabry, Tampa Fl 33629.
Pledge Receivables
For gifts larger than $5,000, a signed pledge card, letter of intent or award letter should be in CUP’s possession before a gift is processed.
Stocks, Bonds, and Marketable Securities
Publicly traded stocks and bonds may be electronically transferred, re-registered in CUP’s name, or conveyed through use of a stock power form. CUP also accepts interests in mutual funds. It is CUP’s policy to sell securities upon receipt. Stock controlled under Securities and Exchange Commission Rule 144 will be held until the restriction on sale expires and then will be sold. Gifts of bonds that require a holding period will be accepted and cashed when the holding period has expired. Unacceptable securities include those which are assessable or which in any way may create a liability; those that, by their nature, may not be assigned (such as series E savings bonds); or those that have no apparent value.
Paid-up Insurance Policies and Proceeds
Donors may transfer ownership of a paid-up insurance policy to CUP and take a tax deduction for the interpolated terminal reserve (typically cash surrender value). CUP shall be the owner and permanent beneficiary of the policy and retain the policy in its offices.
Retirement Assets
Account type retirement plans, in which a balance accumulates as principal, may be gifted to CUP. These include Individual Retirement Accounts (IRA), 401(k), 403(b), and defined contribution plans. (Annuity plans, such as defined benefit plans, in which retirement benefits are paid out as income and principal does not accumulate, generally cannot be used for charitable gifts.) Methods for gifting retirement assets include:
- Naming CUP as successor or contingent beneficiary for all or part of the assets upon death of either the retirement asset owner or spouse.
- Creating a testamentary charitable remainder trust with the assets upon the death of the asset owner, naming CUP as remainder beneficiary.
IRA Charitable Rollover
CUP is eligible to receive qualified charitable distributions (QCD) from IRAs. Donors eligible per IRS regulations to make contributions directly from their IRA may direct their plan administrator to distribute to CUP.
In-Kind Gifts and Tangible Personal Property
Gifts of such assets as artwork, furniture, equipment, jewelry, gems, and metals valued
more than $5,000 must be accompanied by a qualified appraisal. Unless the property is
to be used in connection with CUP’s tax-exempt purpose, it will be sold at the highest
possible price as soon as possible after conveyance. No commitment will be made to
keep gifts of personal property. CUP discourages gifts of personal property which cannot
readily be sold, or which require unusual expenses prior to sale.
If CUP accepts a gift but lacks the means or expertise to convert the gift to cash or
otherwise process it, CUP may engage the services of a third party vendor or vendors
that provide services to effectuate the ready acceptance, management, and prompt
disposition. CUP reserves the right to dispose of property that does not help advance its
mission.
Interests in Business Entities
Donors may make gifts of interests in business entities (i.e., closely held marketable
securities, limited partnership interests, interests in limited liability companies). These
can be accepted if CUP assumes no liability in receiving them. In evaluating a gift
proposal of such assets, the Gift Acceptance Committee may consider the probability of
conversion to a liquid asset within a reasonable period, projected income that will be
available for distribution, administrative fees, and the nature of the business from which
the asset is derived.
A letter from the attorney drafting the partnership agreement or articles of organization
must accompany gifts of limited partnership interests or interests in limited liability
companies, providing the following information:
- Independent appraisal of value of the subject entity and statement of the percentage of the entity to be gifted to CUP.
- Assurance CUP will be held harmless in the event the entity becomes bankrupt or is otherwise unable to satisfy its obligations.
- Assurance that CUP will be held harmless in the event the entity is sued. CUP does not accept gifts of general partnership interests due to potential unlimited liability.
Premium-due Insurance Policies
Insurance policies that are not paid-up require gift acceptance committee approval. Donors may transfer ownership of premium-due policies to CUP and make income tax deductible contributions in the amount of the premiums. If accepted the donor must provide a statement that CUP has no liability and gives no guarantees as to the financial performance of the policy or underlying insurer. Contributions for premium-due policies must be made by direct payment to CUP at least ten days prior to the premium date. CUP cannot assume delinquent premium payments unless the gift acceptance committee determines it is economically beneficial to CUP. Premium-due policies must have a minimum cash value of $10,000; a one-time administrative fee may be assessed. Donation of policies or annuities written for a year-end tax purpose must have a 8 certifiable date from the insurance company to be a qualified donation for that tax year. CUP does not enter into charitable reverse split dollar agreements.
Royalties and Distribution Rights
CUP may accept gifts of royalties or distribution rights on published works (such as books or films) where there is clear evidence of marketability or assurance of an income stream. A qualified appraisal acceptable to the gift acceptance committee is required.
Acceptance of Gifts through Third Party Vendors
Gifts of vehicles
CUP partners with Charitable Adult Rides & Services, Inc. (CARS) to administer vehicle donations, including pick-up, title transfer, and sale. CARS strives to accept all types of donated vehicles (running or not) including cars, trucks, trailers, boats, RVs, motorcycles, campers, off-road vehicles, planes, heavy equipment, farm machinery, and most other motorized vehicles.
Gifts of real estate
CUP partners with Charitable Adult Rides & Services, Inc. (CARS) to administer real estate donations. CARS accepts any property type (land, homes, commercial) in any location, so long as there is equity, with the exception of time shares. CARS will facilitate payment of back taxes; pay off all loans, liens and commissions; and pay all closing costs.
Cryptocurrency
Gifts of cryptocurrency shall require review by the gift acceptance committee on an individual basis. Gifts of cryptocurrency shall require the donor’s name, address, birthdate, and contact information to include email address and cell phone number. All digital assets shall be converted to U.S. dollars upon receipt through a third party vendor.
Planned Gifts and Financial Advising
CUP’s planned and testamentary giving program encompasses all form of gifts whose benefits do not fully accrue to CUP until some future time (such as the death of the donor or other income beneficiaries or the expiration of a predetermined time), or whose benefits to CUP are then followed by the interests of non-charitable beneficiaries. Wills, trusts or other documents should specify CUP as the charitable recipient. All prospective donors will be advised to consult their own legal or financial counsel regarding the tax implications of a gift and matters related to estate planning.
Bequests
Bequests may be from a will or trust and may be specific or contingent in nature. Bequests to CUP are used for operations and programs. A bequest through a will or trust to CUP should include the following: CUP, Inc., 3302 Elizabeth Court, Tampa, FL 33629.
Other Planned Giving Vehicles
CUP facilitates Charitable Remainder Trusts, Charitable Lead Trusts, and Charitable Gift Annuities by collaborating with Community Foundation Tampa Bay or other community foundations, who have the proven ability to accept the donor’s gift, invest the gifted funds, make the agreed payment distributions to the donor over the specified beneficiary’s lifetimes and complete the remainder gift payments to CUP.
Charitable Remainder Trusts
Unitrusts
The basic form of Unitrust provides for payment to the donor and/or beneficiary of an amount equal to a set percentage of fair market value of the assets of the Unitrust, valued annually. The percentage is determined at the time the Unitrust is created, is stated in the Unitrust, and is permanent. The payout must equal no less than 5% of the fair market value of the assets placed in the Unitrust when it is created, and may be made monthly, quarterly, semiannually, or annually. If the annual income and/or realized capital gains do not equal the committed Unitrust percentage, principal is used to supplement the short fall. If there is any excess income or appreciation more than the stipulated payment, it is added to the principal. Additional contributions may be made to Unitrusts.
Annuity Trusts
Donor and/or beneficiary annually receive a payout that is fixed irrevocable at the time of the gift and stated in the Annuity Trust Agreement. The payout must equal at least 5% of the fair market value of the assets placed in the trust when it is created. Income in excess of the annual payment is added to the principals. If the income in any year is less than the annual payment, the difference is derived from the realized capital gain or principal. Additional contributions may not be made to Annuity Trusts. The present value of the remainder interest must be equal to or greater than 10% of the original contribution of the trust.
Charitable Lead Trusts
Annuity or Unitrust amounts from the assets within the Charitable Lead Trust are paid to CUP for a period of years, or for the remaining life of the donor or beneficiary. The remainder interest is either retained by the donor or given to a non-charitable beneficiary.
Charitable Gift Annuity
The donor enters a contract providing a fixed dollar return for life to the donor and/or other beneficiaries, in exchange for a contribution to CUP via a community foundation. The amount of payment is dependent upon the age of the donor and the size of the gift.
Donor-Advised Funds
CUP is eligible to receive grants from donor-advised funds. Donor-advised funds are giving accounts established at a community foundation or a charitable arm of a financial firm. It allows donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time.
Gift Administration
Gift receipts will be issued for all gifts within 30 days from the date received. Receipts will state the name of the donor, date received, restrictions if applicable, and a description of the gifted property. If the donor received something of value in exchange for the gift (quid pro quo), the receipt will state the fair market value of the item received; otherwise, the receipt shall state: “No goods or services were received in exchange for this gift.” Gifts of tangible personal property (including securities) shall not include a valuation of the asset, which is the responsibility of the donor.
Corporate Matching Gifts
If specifically requested by the donor, gifts in cash received from organizations or corporations to match gifts of cash or securities by individuals associated with that corporation or organization will be recognized on behalf of the individual donor's gift record and allocated to the same purpose as the donor's gift. The receipt for the matching portion of the gift will be sent to the corporation or organization. A pledge from an individual is considered a personal obligation from the donor. Therefore, a gift is recorded for their portion, and a second gift is recorded for the matching organization’s amount with a soft credit noted to the individual’s account.
Donor Information and Records
All information obtained from or about donors, prospects and gift beneficiaries is held in strictest confidence in accordance with AFP’s Code of Ethics. No CUP staff or volunteer will have access to donor records unless necessary for the fulfillment of donor intention. CUP will respect donor wishes regarding publication of information or other forms of recognition. Gift records reflecting the name of the donor and details of the gift will be maintained in an electronic database and a hard copy of all gift receipts filed for reference. The Operations Manager and/or others as they may designate are responsible for maintaining gift records.
Confidentiality and Donor Disclosures
All information concerning donors or prospective donors’ gifts, including names of beneficiaries, gift amounts, and other personal information shall be kept confidential unless permission is obtained from the donor to release such information. The role and relationship of all parties involved in the gift planning process shall be fully disclosed to donors, including how and by whom each is compensated, if applicable. CUP adheres to all IRS regulations related to charitable support. CUP is not in the business of rendering legal, investment, or tax advice and donors are advised to seek independent counsel on these matters. CUP’s Board of Directors is responsible for the oversight and management of all fundraising activities made on CUP’s behalf. The policy of CUP is to encourage gifts of any type and description that are consistent with its charitable objectives. CUP reserves the right to abstain from accepting all gifts that are not consistent with its purpose for any reason. Gifts made to CUP may be either for the general purposes of CUP or through a designation for a specific purpose. While preference is for unrestricted gifts, a donor often has several reasons for making a gift, including furthering a particular goal or supporting a particular purpose.
Transparency
CUP complies with the following IRS guidelines:
- Criteria for acceptance are objective and nondiscriminatory.
- The gift supports and furthers CUP’s purpose.
- Assurances are in place that improper private benefit is not given.
- Proper receipts for tax planning are provided.
Resource Development and Donor Relations
The interests of donors are a primary consideration with respect to any gift. Pressure techniques are not acceptable, and no program, agreement, trust, or contract shall be presented which would support CUP at the expense of the donors’ best interests and charitable motivations.