Gift Planning & Acceptance Policy
The Mt Vernon Education Foundation promotes the encouragement and acceptance of donations that contribute towards achieving and fulfilling our mission. We strive to expedite and, where possible, affirmatively respond to all prospective donors’ gift offerings. This policy and its guidelines regulate the acceptance of such gifts. These regulations are applicable to all donations received by the Mt Vernon Education Foundation across all programs and services.
The Mt Vernon Education Foundation will seek legal advice concerning gift acceptance when necessary. Unrestricted gifts and gifts specifically earmarked for certain programs and purposes will be accepted, provided they align with the Mt Vernon Education Foundation‘s mission, objectives, and priorities. Gifts that are overly restrictive, burdensome to manage, or fall outside the Mt Vernon Education Foundation‘s mission scope will not be accepted.
MVEF is committed to ensuring equity, diversity, and inclusion in all its philanthropic activities. Every gift, irrespective of its size, is assessed against our core values of promoting fairness, inclusivity, and equal opportunity for every student.
In our commitment to uphold the highest standards of donor ethics, we present our Donor Bill of Rights. To the donors to Mt. Vernon Education Foundation, we pledge the following:
Information: To be informed about our mission, how we use your donations, and our capacity to employ your gifts effectively for their intended purposes.
Transparency: To have access to our most recent financial statements and to know who serves on our governing board.
Trust: To be assured that your gifts will be used solely for the purposes for which they were given.
Recognition: To receive suitable acknowledgment and recognition, or to have the choice to donate anonymously.
Confidentiality: To know that your donation information will be treated respectfully and confidentially to the extent provided by the law.
Professional Relations: To expect interactions with our representatives to be professional.
Identity: To be informed whether those seeking your donations are volunteers, organization employees, or hired fundraisers.
Privacy: To decide if you want your name to be excluded from our shared mailing lists.
Open Dialogue: To ask questions when making a donation and to receive timely, truthful, and clear answers.
1.01 Compliance with IRS
The Mt Vernon Education Foundation adheres to the prevailing Internal Revenue Tax Code regarding gifts. An annual review of the current code by a tax/finance professional will be carried out to assure full compliance by the Mt Vernon Education Foundation.
1.02 Gift Definition
A gift is any valuable item given to the Mt Vernon Education Foundation, over which the donor relinquishes full possession and control. The Mt Vernon Education Foundation reserves the right to reject any or all parts of a gift if it is determined to be irrelevant to or inappropriate for its mission.
1.03 Consultation with Professionals
Every donor is advised to seek professional counsel regarding any donation to the Mt Vernon Education Foundation. Neither Board Members nor Mt Vernon Education Foundation employees or affiliates will provide professional advice or counsel to donors on matters such as tax liability, estate planning, and comprehensive investment planning.
1.04 Cash Gifts
Cash gifts may be donated to the Mt Vernon Education Foundation at any time and will be accepted as unrestricted contributions. Donor-specified gifts may be subject to approval by the Executive Committee and/or Board of Directors.
Cash and check donations are accepted irrespective of amount unless there’s doubt about the donor’s legal ownership of the assets or the donor’s mental competence to legally transfer the funds. All checks should be payable directly to the Mt. Vernon Education Foundation, and under no circumstances made payable to an employee, agent, or volunteer for the Mt. Vernon Education Foundation‘s benefit.
1.05 Publicly Traded Securities Gifts
The Mt Vernon Education Foundation will maintain a brokerage account for receiving publicly traded securities. All marketable securities will be sold as soon as feasibly possible after receipt. Restricted securities will be reviewed by the Mt Vernon Education Foundation’s legal counsel, and if the restrictions are found to be unreasonable or excessive, acceptance will be deferred to the Executive Committee.
1.06 In-Kind Gifts
Non-cash gifts, including in-kind gifts, will be individually reviewed and accepted if their value exceeds $1,000 subject to the Board of Directors’ approval. The Executive Director can approve or reject in-kind gifts up to $1,000 and must notify the Executive Committee and/or Board of Directors about all in-kind gifts, whether accepted or rejected.
1.07 Endowed Gifts
Endowed gifts will be invested through the Mt Vernon Education Foundation in the Mt Vernon Foundation Legacy Fund.
1.08 Closely Held Securities
Closely held securities are accepted only with the approval of the Mt Vernon Education Foundation, and each gift must be reviewed prior to acceptance to confirm that:
- There are no restrictions preventing the conversion of these assets to cash.
- The security is marketable, and there is a ready buyer.
- The security will not produce undesirable tax consequences.
- An external professional may provide further review and recommendation before finalizing the decision on gift acceptance.
1.09 Real Estate
Gifts of real estate must be appraised by an independent party selected by the Mt Vernon Education Foundation who has no connection to the donor. The donor is solely responsible for appraisal costs. Written approval from the Mt Vernon Education Foundation is required before accepting any real estate gift, which will be sold immediately. The acceptance criteria include:
- Availability of a ready buyer.
- The property’s usefulness for the Mt Vernon Education Foundation‘s purposes.
- Marketability of the property.
- Any restrictions associated with the property.
- Any carrying costs linked to the property.
- Confirmation of no environmental damage from an environmental audit.
1.10 Remainder Interests in Property
The Mt Vernon Education Foundation may accept a remainder interest in a personal residence, farm, or vacation property subject to the provisions governing Real Estate gifts. The donor or other occupants may continue to occupy the real property for the duration of the stated life. Upon the death of the donor, the Mt Vernon Education Foundation will convert it to cash. When the Mt Vernon Education Foundation receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or primary beneficiary.
1.11 Grain, Oil, Gas, and Mineral Interests
The Mt Vernon Education Foundation may accept oil and gas property interests, where appropriate. Legal counsel may be sought prior to the acceptance of grain, oil, and gas interests. Such gifts are anticipated to be sold immediately.
1.12 Life Insurance
For a life insurance policy to be recorded as a gift, the Mt Vernon Education Foundation must be named as both the beneficiary and irrevocable owner. The Mt Vernon Education Foundation will not accept gifts from donors for purchasing life insurance on the donor’s life. The gift is valued at its interpolated terminal reserve value or cash surrender value upon receipt. If the donor contributes future premium payments, the Mt Vernon Education Foundation will record the total additional premium payment as a gift in the year it is made. If the donor ceases to make gifts to cover premium payments, the Mt Vernon Education Foundation may choose to continue paying the premium, convert the policy to paid-up insurance or surrender the policy for its current cash value.
1.13 Life Insurance Beneficiary Designations
The Mt Vernon Education Foundation encourages donors to name it as a designated beneficiary to receive all or a portion of life insurance policies which they or others have purchased on their lives. The Mt Vernon Education Foundation will not endorse any insurance products for use in funding gifts.
1.14 Charitable Gift Annuities
The Mt Vernon Education Foundation will not accept any gift annuity that names an income beneficiary under 60 years of age without its prior approval. There shall not be more than the allowed number of income beneficiaries for each gift annuity, in compliance with state laws. The minimum contribution for a gift annuity is set at $20,000. Annuity payments can be made on a quarterly, semi-annual, or annual schedule. The Mt Vernon Education Foundation will not accept real estate, tangible personal property, or other illiquid assets in exchange for current charitable gift annuities. Funds contributed in exchange for a gift annuity will be set aside and invested during the annuity payment term. After these payments have ended, the remaining principal funds contributed in exchange for the gift annuity will be transferred to the Mt Vernon Education Foundation‘s Legacy Fund.
1.15 Charitable Remainder Trust
The Mt Vernon Education Foundation may accept designation as a remainder beneficiary of a charitable remainder trust established by a donor. The Mt Vernon Education Foundation will not accept appointments as trustees of a charitable remainder trust.
1.16 Bequests
The Mt Vernon Education Foundation actively encourages gifts through wills and trusts. Gifts from deceased donors’ estates consisting of unacceptable property will be rejected. Bequests and trust distributions will only be recorded as gifts to the Mt Vernon Education Foundation when they become irrevocable. Tangible personal property and other personal property will not be accepted unless it’s believed to be worth more than $5,000. No personal property will be accepted unless there’s reason to believe that the property can be quickly liquidated. No personal property will be accepted that obligates the Mt Vernon Education Foundation to perpetual ownership of such property.
1.17 Cryptocurrencies
To provide guidance for the acceptance and management of donations made to the Foundation using cryptocurrencies, ensuring transparency, security, and compliance.
Scope
This policy applies to all cryptocurrencies, including but not limited to Bitcoin, Ethereum, and any other blockchain-based assets recognized as a form of value transfer.
Key Principles
Transparency: Ensure all cryptocurrency transactions are recorded, reported, and subject to standard financial audit procedures.
Security: Protect the Foundation’s cryptocurrency assets against unauthorized access, loss, or theft.
Volatility Management: Address the inherent price volatility of cryptocurrencies to minimize potential financial risks.
Acceptance Process
Donation Channels: Accept cryptocurrency donations via:
Direct wallet-to-wallet transfers
Third-party cryptocurrency payment platforms with proven security measures
Receipts and Acknowledgments: Upon receiving a cryptocurrency donation:
Issue a digital receipt specifying the amount, date, and type of cryptocurrency received.
Note: The value in fiat currency at the time of the transaction/selling should be indicated for reference.
Conversion to Fiat Currency
Immediate Conversion: Due to the volatile nature of cryptocurrencies:
Convert the received cryptocurrency to fiat currency (e.g., USD) immediately upon receipt, using a reputable exchange platform.
This minimizes potential financial risks due to price fluctuations.
Holding Policy: If deciding to hold any portion of the cryptocurrency:
- Ensure it is kept in secure, preferably cold, wallets.
- Review holdings at regular intervals (e.g., monthly) to decide on conversion or retention based on the Foundation’s financial strategy.
Reporting and Documentation
Transaction Records: Maintain detailed records of all cryptocurrency transactions, including:
- Timestamps
- Amounts
- Exchange rates at the time of transactions
- Wallet addresses involved.
Annual Review: As part of the annual financial review:
- Cryptocurrency donations and their value in fiat currency should be explicitly detailed.
[RO1] Security Protocols
- Wallet Security: Use wallets with enhanced security features. Regularly back up and ensure multi-signature features are enabled, if available.
- Training: Provide training for staff involved in cryptocurrency transactions on best practices and emerging security threats.
Review
Regularly review this policy, at least annually, to accommodate changes in the cryptocurrency landscape and regulatory environment.
1.18 Change in Laws
The Mt Vernon Education Foundation recognizes that laws and regulations governing Mt Vernon Education Foundation may change, and the Mt Vernon Education Foundation is prepared to react promptly to make changes in policies where required. Any changes in the laws or regulations that impact the Mt Vernon Education Foundation will be reviewed by the Mt Vernon Education Foundation’s legal counsel and brought to the attention of the Board of Directors.
1.19 Periodic Review
These policies and guidelines shall be reviewed periodically (at least annually) by the Board of Directors. The review shall include a determination of whether any policies should be added, deleted, or changed.
1.20 Acknowledgements
All gifts will be acknowledged within a reasonable period of time. The form and nature of such acknowledgments shall be appropriate to the nature of the gift and the wishes of the donor.
1.21 Restrictions on Gifts
The Foundation will not accept gifts that (a) would result in the Foundation violating its corporate charter, (b) would result in the Foundation losing its status as an IRC § 501(c)(3) a not-for-profit organization, (c) are too difficult or too expensive to administer in relation to their value, (d) would result in any unacceptable consequences for the Foundation, or (e) are for purposes outside the Foundation’s mission. Decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by Senior Management.”
1.22Fiscal Year
The fiscal year of the Mt Vernon Education Foundation begins on August 1 and ends on July 31.
[RO1]We are not holding on to the crypto not applicable