DDA - Gift Policy
I. Organization and Coordination
It is the responsibility of the Kearsarge Regional School District to implement and organize programs for obtaining gift support from alumni, parents, parents of alumni, grandparents, faculty and staff, corportions and foundations on an annual basis and for capital purposes as they arise. Fund raising campaigns at the Kearsarge Regional School District are authorized by the Kearsarge Regional School Board to enhance the efforts of the schools and will be implemented with the help of the SAU.
All fundraising activities must be cleared by the School Board and/or the Superintendent of Schools. This policy is to ensure that only authorized solicitations will be made in the school’s name and to prevent multiple appeals to a single donor.
II. Types of Gifts
A. Restricted Gifts
Restricted gifts are accepted if they are consistent with the Kearsarge Regional School District’s mission, goals, and programs. Restricted gifts are placed in restricted budget accounts, and used only for the designated purpose.
B. Capital Gifts
Periodically the Kearsarge Regional School District conducts a capital campaign for new construction, renovation, endowment, and major equipment. The goals for each campaign are established by the Kearsarge Regional School Board.
C. Endowment Gifts
The Kearsarge Regional School District Endowment Fund accepts gifts toward general endowment funds and for specific purposes. When no fund is specified, gifts are placed in the overall endowment. The specified funds currently are for endowments for departments, financial aid, faculty continuing education, operation and maintenance of the facilities, and for specific education, operation maintenance of the facilities, and for specific teaching programs. There are guidelines for gifts of specific levels to effectively sustain these programs. There are guidelines for gifts of specific levels to effectively sustain these programs which will be periodically reviewed. Gifts for scholarship aid to students will be accepted with the understanding that recipients will be determined solely by the appropriate school selection committee. The terms of any fund must be documented in writing and must include language to permit the Kearsarge Regional School District to assign a different but related use of the funds if changing conditions (the purpose becomes obsolete or non-existent) indicate the need.
A minimum of $15,000 is required to establish an unrestricted named fund to commemorate a special occasion or memorialize a death. A minimum of $50,000 is required to establish a restricted named fund. Memorial gifts may be restricted to the purposed intended by the surviving family, although the District reserves the right of refusal. When the surviving family does not restrict the use of memorial gifts, the District has discretion in allocating these funds.
D. Corporate Matching Gifts
Matching gifts from corporations will be combined with a donor’s personal gift for purposes of recognition and named gift opportunities, unless it is against the stated policy of the corporation. Corporations will also be receipted and recognized for their matching contributions.
E. Special Gifts
The Kearsarge Regional School District encourages gifts in addition to cash or in place of cash. When tax consequences are a factor, donors must be advised to contact their own legal and/or tax counselors.
1. Securities:
The SAU processes all gifts of securities given to the Kearsarge Regional School District. The District will establish an account with one brokerage firm, which handles the transfer of securities to the school. It is generally the Kearsarge Regional School District’s policy to sell marketable securities immediately unless otherwise instructed by the donor. Short-term retention of securities requires approval of the School Board.
Many gifts of securities are made to the Kearsarge Regional School District via electronic transfer. A gift of transferred securities is considered complete when it is received in the Kearsarge Regional School District’s account and the date of the gift is this date. If actual shares are delivered to the District for sale, the date of the gift is considered complete on the post-marked date of the mailing or the date of delivery. In either case, a letter to the Kearsarge Regional School District from the donor gifting the stock is required. The Kearsarge Regional School District values securities by averaging the high and low sales price of the security on the date of a gift. The averaging can cause the value of a gift to be slightly different from the actual sales price.
2. Gifts in Kind:
Gifts in kind are generally accepted if they are consistent with the work of the school. The Kearsarge Regional School District will issue a receipt for the item donated, but it is the responsibility of the donor to place value on the gift, through appraisal if necessary.
3. Gifts of Tangible Personal Property:
Gifts of tangible personal property should be reviewed with special care to ensure that they will not invoke any financial or contingent liability and may require School Board approval. The Kearsarge Regional School District will issue a receipt for the item donated, but it is the responsibility of the donor to place a value on the gift, through approval if necessary.
F. Deferred Gifts
1. Charitable Trusts:
The Kearsarge Regional School District will accept gifts of charitable trusts upon approval. The District shall seek the advice of legal counsel before entering into an agreement with a donor or accepting a gift of this nature. The minimum gift needed to establish a trust is $50,000. Deferred gifts will be counted at the present value of Kearsarge Regional School District’s interest.
2. Bequests:
The Kearsarge Regional School District will accept bequests. Unless otherwise restricted, all bequests will be placed in the general endowment fund.
3. Real Estate:
The Kearsarge Regional School District welcomes gifts of real property as a means of providing for the current and future support of the Kearsarge Regional School District. The Kearsarge Regional School District wishes to allow maximum flexibility for itself and donors in the acceptance of gifts of real property, but also recognizes that certain unique issues associated with real property require the establishment of clear guidelines for acceptance of such gifts.
A. Gifts of real property may be accepted after a thorough review of the following relevant facts:
- Marketability of the property as determined by, among other things, the Kearsarge Regional School District’s ability to sell within a reasonable period of time;
- Liability for environmental risks associated with the property;
- The existence of public and private restrictions, reservations, easements and other limitations;
- The existence of any encumbrances such as mortgages and mechanics liens;
- Donors must fund continuing carry costs such as property owner’s management, association dues, maintenance, taxes and insurance;
- Fair market value in relation to the factor listed above;
- The usefulness of the property for the school’s purposes; and
- Such other factors that may be relevant to the particular property of the Kearsarge Regional School District.
B. Because of the liability assumed by charitable institutions for environmental hazards on donated property, donors are expected to provide an environmental site assessment issued in favor of the Kearsarge Regional School District by an approved contractor in advance of the gift except for gifts of established improved residential real estate. The costs of the environment site assessment and any remedial work will be paid by the donor. The environmental site assessment must be less than six months old.
C. The fair market value of any proposed real property gift will be determined by a qualified appraisal in accordance with IRS standards. The cost of the appraisal will be paid by the donor.
D. The donor will provide copies of all available surveys.
E. The donor will provide appropriate evidence of title ownership including title insurance, if required by the Kearsarge Regional School District.
F. The school is required to fill out Form 8283 if the property is sold within two years after the date of the gift. All IRS forms requiring execution by the school will be signed by the Business Manager.
G. The gift will be completed by the execution and delivery of a deed of gift or other appropriate conveyance and written acceptance by the Kearsarge Regional School District, together with such other instruments, releases, consents and deliveries as may be required by the Kearsarge Regional School district. The costs associated with the conveyance and delivery will be paid by the donor unless otherwise agreed upon.
H. At the time of the sale of property, the sale proceeds, net of any costs of selling, holding or maintaining the property, shall be used by the Kearsarge Regional School District as directed by the terms of the gift. Undesignated gifts will be used at the discretion of the School Board.
III. Gift Acknowledgment and Receipts
It is the responsibility of the SAU to officially record, receipt and acknowledge all gifts to the Kearsarge Regional School District. Therefore, all gifts should be processed through this office before being deposited to any school account. Gift and pledge receipts will be dated, recorded and mailed to the donor within one week.
Each month, the Business Office will reconcile monthly accounts. Donor anonymity will be respected whenever desired. All gifts are personally acknowledged by the Superintendent of Schools and the School Board.
The Kearsarge Regional School District will comply with current IRS regulations regarding tax deductibility. Receipts will be provided to all donors and any benefits provided to the donor that exceed IRS “insubstantial benefit” definition will be clearly stated. When other tax consequences are a factor, the donor will be advised to contact their own legal and/or tax counselors.
IV. Donor Recognition
A. Publications:
All donors to the Kearsarge Regional School District will be recognized in Annual Report unless anonymity is requested.
B. Plaques, etc.:
When appropriate, e.g., after a capital campaign, donors will be notified that their names will be displayed in appropriate locations to commemorate their gift.
C. Naming Opportunities:
- Buildings: Gift levels to name buildings, classrooms and other spaces will be determined in individual capital campaigns. In general, the naming of a building will require a gift of at least 50% of the cost of construction.
- Endowment: A minimum of $50,000 is required to establish a named endowment.
- Memorial Funds: A minimum of $25,000 is required for a restricted fund and a minimum gift of $15,000 is required for an unrestricted fund. Any gift which qualified for a named endowment fund, commemorative fund, fellowship or building fund, will be recognized in the Annual Report and other appropriate places.
V. Confidentiality
The integrity of donors and their record will be a high priority of the school. Information regarding the amounts of individual gifts is confidential. Appropriate biographical and financial information will be shared with volunteers only when relevant to fund raising programs. All requests for anonymity will be respected. No individual, other than authorized staff, will have access to individual donor files.
See Also: DAA -R- The Campaign for Kearsarge – Letter of Intended Support form)
Legal References:
First Reading: 2/11/99
Second Reading: 4/08/99
Adopted: 5/12/99