Policies and Procedures
The CNI Board of Directors adopted an updated version of its planned
giving and endowment policies and procedures. The final decision
was based on the following.
Executive Summary for the CNI Board (2006)
Purpose of Planned Giving
and Endowment Policies
The purpose of the Planned Giving and Endowment Policies is to:
- Protect donors
- Protect your organization from liability
- Guide donors’ professional advisors
- Provide guidance to development staff and volunteers as they meet
with donors to discuss how donors may make gifts to your organization
- Provide a way to deal tactfully with prospects and donors who may
attempt to make unacceptable gifts to your organization
Four Major Considerations for the Board in Accepting Gifts:
- Is the gift readily negotiable or readily convertible into cash?
- Will the gift create any legal liability for your organization?
- Will the gift be cost effective?
- Are there any unreasonable conditions, restrictions or prearrangements
on the gift?
1. Is the Gift Readily Negotiable/Readily Convertible into
Cash?
Under the Planned Giving and Endowment Policies, outright
gifts of cash and publicly traded securities will generally not require
approval by the Board. These gifts are readily negotiable and readily
convertible into cash.
All other gifts should be reviewed and approved by the Board. This includes
gifts of real estate, private securities or closely held stock, life
insurance, tangible personal property, and other real and personal property
interests. These gifts are usually not readily negotiable or readily
convertible into cash.
Charitable remainder trusts, charitable lead trusts, charitable gift
annuities, pooled income funds, retained life estate agreements and bargain
sales should also be reviewed and approved by the Board. If the
organization is using an approved prototype agreement for a gift annuity
agreement, it need not be reviewed each time provided the agreement was
based on an approved and the prototype agreement is not modified in any
way.
2. Does the Gift Create Legal Liability to Your Organization?
No gift will be accepted which is not in the best interests of the
donor or violates the policies or bylaws of the organization. Gifts of
real estate are of particular concern to the Board. A policy on accepting
and managing real estate would be necessary if the Board were to hold
property. The immediate sale of real estate is the preferred
policy for most charitable organizations.
3. Will the Gift Be Cost Effective?
Gifts accepted by the Colorado Neurological Institute should be cost
effective. Donors are encouraged to pay all costs associated with completing
gifts. Exceptions to this policy must be reviewed and approved by the
Board.
4. Are There Conditions, Restrictions and Prearrangements on
the Gift?
Securing outright and unrestricted gifts is the Colorado Neurological
Institute’s highest priority and donors who are able to make an
outright gift will be encouraged to do so. No gift may be received if
it is subject to any conditions, restrictions or prearrangements unless
full disclosure in writing has been made to the Board and reviewed and
approved by the Board.
If you’d like a complete copy of our
Planned Giving and Endowment
Policies
please contact Melissa Francis at 303-788-4010.
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