Types of Assets & Gift Vehicles
Types of Assets
Cash. Cash is acceptable in any form. Checks shall be made payable to the Benton Community Foundation and mailed to PO Box 911, Corvallis, Oregon 97339 or delivered to the foundation office located at 660 NW Harrison Blvd, Corvallis, Oregon 97330.
Publicly-Traded Securities. BCF will accept securities that are traded on the New York and NASDAQ Exchanges, as well as other major U.S. and foreign exchanges, corporate bonds, government issues, and agency securities. In general, all marketable securities shall be sold as soon as possible after their receipt unless otherwise determined by the Finance Committee, after consultation with BCF’s Investment Manager. The Chief Executive Officer of BCF must seek review by the Finance Committee and approval by the Board of any request by donor to hold, sell through a specific broker or trade on instruction of the donor. Securities may be physically delivered to BCF in person or by mail or may be wired to a designated BCF brokerage account. If the donor mails securities, certificates should be sent unsigned and by registered mail. Signed stock/bond powers should be sent separately to BCF by registered mail. It is imperative that the signature on the stock/bond power exactly match the name on the certificate.
Closely-Held Securities. Interests in closely-held or non-publicly traded entities, including, without limitation, sole proprietorships, general and limited partnerships, corporations, real estate investment trusts (REITs), and limited liability companies, may be accepted only after prior review by the Finance Committee and approval by the Board after consultation with the Investment Manager and legal counsel, if appropriate. Such review shall consider the marketability of the interest, any restrictions on its sale, any potential liability associated with the holding of such interest, and any tax consequences for BCF related to the holding and/or disposing of such interest. In general, if accepted, such securities shall be sold as soon as possible following their receipt.
Registered Securities. BCF may accept restricted securities (also known as unregistered securities, investment-letter stock, control stock or private placement stock). Because of the complexity in transferring ownership and determining the fair market value of restricted stock, such gifts may be accepted only after review by the Finance Committee and approval by the Board, after consultation with the Investment Manager and legal counsel, if appropriate.
Tangible Personal Property. Gifts of tangible personal property, including but not limited to art, antiques, collections, manuscripts, books, vehicles, marine vessels, and computer hardware may be accepted only after review by the Finance Committee and approval by the Board. A gift of tangible personal property should be accepted only when a review indicates that the property is readily marketable. No personal property shall be accepted under conditions that obligate BCF to continue to own the property in perpetuity. In addition, no perishable property or property that would require special facilities or security to be properly safeguarded shall be accepted. Tangible personal property given to BCF shall be sold as soon as possible following receipt.
Real Estate. Gifts of real estate, both improved and unimproved, may be accepted only after review by the Finance Committee and approval by the Board after consultation with legal counsel, if appropriate. Due to the expenses associated with gifts of real property, only gifts with a current fair market value in excess of $50,000 will generally be considered. No gift of real estate may be accepted until all mortgages, deeds of trust, liens and/or other encumbrances have been discharged. It is BCF's general policy to dispose of all gifts of real estate as expeditiously as possible. This policy will be communicated to a donor when BCF receives notification of the donor's intent to make a gift of real estate. Before accepting a gift of real estate, BCF shall obtain:
- A title insurance commitment showing marketable title in the donor, free and clear of unacceptable encumbrances, issued by a reputable title insurance company;
- An MAI appraisal by a qualified appraiser (not older than 60 days);
- A Phase I environmental audit by a qualified engineer indicating that ownership will not expose BCF to environmental liability;
- A market feasibility study for purposes of liquidation (when appropriate);
- An on-site evaluation by the Chief Executive Officer or his/her designee (or if the property is located in a geographically isolated area, a local real estate broker acceptable by the CEO.);
- A structural engineering report (when appropriate);
- A review of leases (for commercial property);
- Evidence of compliance with the Americans with Disabilities Act (when applicable);
- A disclosure statement from the donor reflecting any and all carrying costs, including but not limited to taxes, insurance, association dues, membership fees and transfer charges. All costs related to the environmental impact study, title search, appraisal, marketability study and any other related study shall be borne by the donor.
Other Property. Other property of any description (e.g.., mortgages, notes, copyrights, royalties, etc.) may be accepted only with review by the Finance Committee and approval of the Board after appropriate due diligence has been performed. The difficulty inherent in establishing the acceptability of this class of assets places additional importance on a thorough review of such gift proposals. In particular, the Finance Committee shall review the marketability of the gift, the carrying costs associated with it and the potential exposure of BCF to tax and other liabilities. Depending on the value of the proposed gift, consideration should be given to encouraging the donor to dispose of the property and donate the proceeds to BCF. Tangible personal property given to BCF shall be sold as soon as possible following receipt. BCF's intention to sell the property shall be communicated to the donor when BCF receives notification of the donor's intent to make a gift of personal property.
Gifts to Donor Advised Funds. Notwithstanding any other provision hereof, BCF shall not accept any gift of an interest in a business enterprise for a donor advised fund that would subject BCF to tax under section 4943 of the Internal Revenue Code, concerning “excess business holding.” Under the Pension Protection Act of 2006 (PPA), the private foundation excess business holdings rules now apply to donor advised funds as if they were private foundations. That is, the holdings of a donor advised fund in a business enterprise, together with the holdings of persons who are disqualified persons with respect to that fund, may not exceed any of the following: (i) a 20% or greater interest of voting stock; (ii) 20% of the profits interest of a partnership or joint venture; or, (iii) the beneficial interest of a trust or similar entity. Ownership of unincorporated businesses that are not substantially related to the fund’s purposes is also prohibited.
Outright Gifts. BCF accepts current, outright gifts of property that are consistent with BCF's Gift Policy.
Bequests. A bequest to BCF is made in the donor's Will or Revocable Trust. The donor can direct that a specific dollar amount, specific assets, a percentage of the donor's estate or trust, or the remainder of the donor's estate or trust be distributed to BCF. While all bequests are contingent, in that the donor can change his/her Will or Revocable Trust prior to the donor's death, the donor can further condition a bequest to BCF upon the occurrence or non-occurrence of a particular event (e.g.., survival of a named person, birth of a child, etc.). Accordingly, a bequest to BCF is not "complete" until the death of the donor and, where applicable, the satisfaction of the condition. Donors may also establish by will a charitable remainder trust or charitable lead trust. Bequests may be made to BCF through the execution of a new Will or Revocable Trust or by a Codicil or Amendment, respectively, thereto.
Beneficiary Designations. BCF may accept amounts it receives as a designated beneficiary (primary or contingent) of a life insurance policy, deferred annuity contract, IRA, defined benefit plan, 401(k) plan, profit-sharing plan or other qualified plan. If BCF is anything other than an outright beneficiary of such assets, the prior review of the Finance Committee and approval by the Board shall be required.
Charitable Gift Annuities. BCF is not currently registered to issue charitable gift annuities in any jurisdiction.
Charitable Remainder Trusts. A charitable remainder trust is established by an irrevocable gift to a trustee made during the donor's lifetime or upon the donor's death. The primary feature of a charitable remainder trust is that it provides for periodic payments of a fixed percentage (not less than 5%) of the value of the trust assets to the donor and/or another person specified by the donor, for life or a specified term of years (not to exceed 20), after which the trust assets pass to BCF. The most common forms of charitable remainder trusts are Charitable Remainder Annuity Trusts (CRATs) and Charitable Remainder Unitrusts (CRUTs). The significant difference between a CRAT and a CRUT is that the annual payment from a CRAT is a fixed percentage of the initial value of the trust, while the payout from a CRUT is calculated by applying the fixed percentage to the value of trust, valued annually. Additional contributions may be made to a CRUT, but no additional contributions may be made to a CRAT. BCF may accept a designation as remainder beneficiary of a charitable remainder trust, provided that the gift does not violate any other provision of this policy as it relates to the types of assets or restrictions that may be accepted.
Charitable Lead Trusts. A charitable lead trust is a trust from which the income or "lead" interest is paid to BCF for a set number of years (not to exceed 20), after which the remaining trust assets pass to one or more non-charitable beneficiaries designated by the donor. The amount paid to BCF may be either a fixed sum (an "annuity" interest) or a percentage of the trust assets valued each year (a "unitrust" interest). Moreover, charitable lead trusts may be established during the donor's lifetime or upon the donor's death pursuant to a Will or Revocable Trust. BCF may accept a designation as remainder beneficiary of a charitable remainder trust with the approval of the Chief Executive Officer, provided that the gift does not violate any other provision of this Gift Acceptance Policy as it relates to the types or purposes of gifts that may be accepted. BCF will not serve as the Trustee of a charitable lead trust.
Retained Life Estates. BCF may accept a gift of a personal residence or farm where the donor (and/or another person) retains the right to use the property for a term of years or for the life or lives of the donor and/or another person. Upon the expiration of the retained interest, BCF may use or sell the property as it sees fit. Such gifts are subject to the conditions and guidelines applicable to gifts of real estate. The gift is accomplished by the execution of a Deed to BCF, pursuant to which the retained interest is expressly reserved. In addition, the donor must enter into a Retained Life Estate Agreement (RLEA) which provides that the donor and/or the life tenant shall remain responsible for maintenance, taxes, utilities, insurance and other costs associated with the property, unless other arrangements, approved by BCF, are made for the payment of these expenses. The Deed and the RLEA shall be reviewed and approved by BCF's legal counsel.
Bargain Sales. BCF may enter into a bargain sale arrangement with respect to an unrestricted gift (i.e.., not to a particular fund) only with prior review of the Finance Committee and approval of the Board. Such arrangements are subject to the conditions and guidelines applicable to gifts of real estate.