Sky’s the Limit Fund encourages the solicitation and acceptance of gifts for purposes that will assist Sky’s the Limit Fund (STLF) to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to STLF or for the benefit of any of its programs.
I. Purpose of Policies and Guidelines
The Board of Directors of Sky’s the Limit Fund, the Executive Director, and staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of STLF. It is the purpose of these Policies and Guidelines to govern the acceptance of gifts (including grants) by STLF and to provide guidance to prospective donors and their advisors when making gifts to STLF. The provisions of these Policies shall apply to all gifts received by STLF for any of its programs or services.
II. Restrictions on Gifts
Sky’s the Limit Fund will accept gifts, and gifts restricted for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission, purposes, and priorities, and provided that such restricted gifts shall be subject to the applicable provisions of this Gift Acceptance Policy set forth in Section V below. STLF will not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violate the charitable trust of STLF, gifts that are accompanied by an improper economic benefit to the donor such as a gift that is conditioned on a commercial preference to the donor or affiliated company, or gifts that vest the donor with inappropriate control such as a gift that requires STLF to hire a specific person or take some other unacceptable action. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Board of Directors.
III. Gift Vehicles
Sky’s the Limit Fund will accept gifts through the following gift vehicles, subject to the applicable provisions of this Gift Acceptance Policy:
- Outright donations
- Testamentary bequests
- Charitable remainder trusts
- Charitable lead trusts
Sky’s the Limit Fund does not offer the following gift vehicles:
- Charitable gift annuities
- Pooled income funds
Sky’s the Limit Fund (STLF) is authorized to accept the following assets, subject to subject to the applicable provisions of this Gift Acceptance Policy.
|Cash or Cash Equivalents||Acceptable.|
|Charitable Pledge Agreements||Acceptable if payable only in the form of other acceptable assets listed herein.|
|Publicly Traded Securities||Acceptable. STLF shall promptly sell, unless otherwise designated by donor, any contributed securities in accordance with STLF’s investment policies.|
|Closely-Held Securities and Other Intangibles||Acceptable; provided that, STLF shall not accept securities and other intangible assets which may not be sold, have no value, or may result in additional liability to STLF.|
|Tangible Personal Property||Acceptable, subject to review by the Board of Directors. STLF shall not offer to value the contributed property. The donor shall sign a statement of ownership and disclose any liens on the property. STLF will not accept any property subject to a restriction on STLF’s ability to use, sell, or otherwise deal with the property as it deems necessary.|
|Life Insurance||Acceptable, subject to review by the Board of Directors. STLF may accept the gift of a life insurance policy, provided that STLF is the owner and the irrevocable beneficiary of the policy. If the policy is not fully paid-up, the donor shall be encouraged to make annual gifts to STLF enough to cover additional premiums. STLF shall have the right to retain the life insurance policy, cash it in, or otherwise make use of its value.|
|Real Estate||Acceptable, subject to review by the Board of Directors; provided that STLF will not accept any real estate subject to a restriction on STLF’s ability to use, sell, or otherwise deal with the property as it deems necessary. The basic policy of STLF is to sell all contributed property as soon as practicable. Costs related to acceptance of gifts of real property such as legal fees, surveying costs, hazardous waste surveys, etc., will be allocated as mutually agreed and such costs will not affect the recorded value of the gift. Appraisal costs are the responsibility of the donor.|
|In-Kind Gifts||Acceptable, subject to approval by the Executive Director. In-kind contributions include gifts of supplies, equipment, services and the like which are beneficial to STLF. In addition, costs incurred as a result of accepting the gift, such as transportation and storage, must be approved by the Executive Director.|
In addition to the above policies, bequests of real estate to the Sky’s the Limit Fund shall be subject to approval by the Board of Directors. In this connection, STLF shall review all proposed inter vivos gifts of real estate and shall consider such factors as sale and holding costs, current and expected future value, encumbrances, liabilities, title, restrictions, and any potential environmental issues prior to acceptance. Prior to accepting an inter vivos gift of real estate, the following steps will generally be taken:
Complete a profile of the property.
Obtain a copy of the deed, any encumbrances, leases, and current tax bill.
- Obtain a title report.
- Inspect the property.
- Consult with a real estate advisor as to marketability.
- Evaluate the potential for any environmental liabilities, including consulting with an environmental engineer or comparable advisor if deemed appropriate.
V. Miscellaneous Provisions
A. Planned Gifts: A “planned gift” is a gift a donor arranges during his or her lifetime. STLF may not receive the donation until the death of the donor and of any designated beneficiaries.
B. Legal counsel: The Executive Director and Board of Directors may seek the advice of legal counsel where appropriate and shall seek the advice of legal counsel in all matters pertaining to the acceptance of a gift which may have adverse legal, ethical, or policy consequences to STLF. All prospective donors are urged to seek the assistance of personal legal, tax and financial advisors in matters relating to their gifts and the resulting tax and estate planning implications as STLF and its personnel do not give such personal legal, tax, financial or other advice to prospective donors or donors.
C. Securing appraisals and legal fees for gifts to Sky’s the Limit Fund: STLF shall not appraise property. It shall be the responsibility of the donor to secure an appraisal where required. STLF shall not pay the legal, appraisal or other fees or costs of the donor in this connection.
D. Valuation of gifts for development purposes: STLF shall record a gift received by STLF at its valuation for gift purposes on the date of gift, following generally accepted accounting principles (GAAP).
E. Responsibility for IRS filings upon sale of gift items: STLF is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold by STLF within two years of receipt where the charitable deduction value of the item was $5,000 or greater. STLF must file such form within 125 days of the date of sale or disposition of the asset.
F. Written acknowledgment: Written acknowledgment of all gifts made to STLF and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of STLF.