INTRODUCTION

The Mid Michigan College Foundation (Foundation) was established in 1987 as a 501(c)(3) non‐profit organization and has a governing Board of Directors made up of local community members. The Foundation harnesses the power of individual gifts that help provide for the needs of Mid Michigan College and its students. The Foundation works to provide financial assistance for students, support educational and cultural program development, encourage academic excellence and faculty enrichment, and assist with the continued improvement of facilities.

The Foundation relies on private gifts to fulfill its mission and reach its goals, and gratefully accepts such gifts. These gifts - given by generous individuals, corporations and foundations - enable Mid Michigan College to continue to set only the highest educational standards. While private philanthropy is essential to the fulfillment of its mission, the Foundation must use care and diligence during the gift acceptance process. The Foundation will endeavor in all instances to work with donors and their advisors to help assure that the goals of each contributor are accomplished.

This policy is intended for use as a guideline to the Foundation in accepting gifts; to outside advisors who assist in the gift planning process; and to prospective donors who wish to make gifts to the Foundation. This gift acceptance policy is intended as a guide and allows for flexibility on a case‐by‐case basis. The Foundation recognizes its responsibility to ensure that gifts:

  1. Are consistent with the mission of the Foundation;
  2. Do not carry restrictions or conditions that may compromise the Foundation at any time, now or in the future;
  3. Are in accordance with all applicable State and Federal laws;
  4. Are from donors whose intents are charitable; and
  5. Are administered to protect donors' rights and wishes.v

Donor Relations

In all gift arrangements the interest and wishes of the donor come before that of the Foundation. The task of all volunteers and staff is to inform, guide, or otherwise assist the donor in fulfilling his/her philanthropic wishes, but never to pressure or unduly influence such a decision. All prospective donors are advised to consult their own attorneys and/or tax adviser(s) regarding all aspects of their proposed gifts, whether as an outright gift or by bequest, trust agreement, contract or other means. Neither the College’s nor Foundation’s staff will act as advisers to the donor regarding the drafting of wills, trust agreements, or other estate planning issues because of potential conflict of interest.

The Foundation will follow IRS guidelines for disclosure and substantiation of charitable gifts. The Foundation will not engage in any doubtful arrangements which could jeopardize the Foundation’s exempt status or its financial stability.

All gifts shall be recorded and receipted appropriately. Donors will receive proper written acknowledgement of any single contribution.

No gift agreement shall be made between the Foundation and any agency, person, company or organization on any matter that would knowingly jeopardize the College’s or Foundation’s interests. No volunteer or staff member will execute an agreement, contract or other legal document with any donor that differs from the stated College and Foundation policies and procedures without prior approval from the Gift Acceptance Committee.

Confidentiality

Information learned by any representative of the Foundation about a donor or the donor's assets or philanthropic intentions shall be held in strict confidence. All gift instruments will be deemed confidential to the extent permitted by law. A donor may authorize public announcement of any feature of an agreement. For recognition purposes, the donor’s name and giving level will be publicly available unless the donor requests anonymity.

Gift Acceptance Committee

Any gift offer that falls outside the parameters of gifts as set forth in this policy will be considered on a case‐by‐case basis by the Gift Acceptance Committee (GAC). The committee consists of the Executive Director of the Foundation, the Mid Michigan College President, the VP of Finance and Administrative Services, and at least one Foundation Board member.

Legal Counsel

At its discretion, the Foundation will consult with professional counsel for gifts of real estate, closely held stock or partnership or limited liability company interests, intellectual property interests and tangible personal property. Legal counsel may be consulted prior to entering certain gift agreements concerning charitable gift annuities and charitable trusts. The Foundation shall encourage donors to consult independent tax and/or legal counsel prior to making all of the foregoing types of contributions. It is the donor's responsibility to employ directly and to compensate independent legal and tax counsel in these transactions. In situations where counsel retained by the Foundation prepare documents or render advice in any form to the Foundation and/or a donor to the Foundation, it shall be disclosed to the donor that the professional involved is in the employ of the Foundation and is not acting on behalf of the donor and that any documents or other advice rendered in the course of the relationship between the Foundation and the donor should be reviewed by counsel for the donor prior to the completion of the gift.

Ownership of Gifts

The Foundation shall follow the guidelines set forth in this policy when negotiating the terms of, and accepting, gifts from donors. Once the Foundation has accepted a gift on terms acceptable to both the Foundation and the donor, it becomes property of the Foundation and the donor should have no further control or authority over the gift. If it appears that a gift may not be acceptable from the outset of discussions with the donor, the Foundation will endeavor to reach that conclusion as soon as possible and convey such conclusion to the donor and suggest alternate types of contributions to the donor.

Gift Restrictions

The Foundation will accept restricted gifts for specific programs and purposes consistent with its stated mission, purposes, and priorities. Restricted gifts, including those which would violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of the Foundation, will not be accepted. Final acceptance or refusal decisions on restrictive gifts will be made by the GAC.

Types of Gifts

  1. Cash and Checks. Gifts of cash and checks are accepted regardless of the amount.
  2. Pledges. Pledges may be paid in single or multiple installments and must have a total value of at least $500. Generally, the pledge must be paid in full within five years of the date on which it was made. Pledge schedules exceeding five years will be considered on a case‐by‐case basis. All donors must complete a pledge form or confirm the pledge in writing.
  3. Tangible Personal Property. These gifts may also be referred to as in‐kind gifts. All gifts of tangible personal property will be examined with the following considerations:
    • Does the property fulfill the mission of the Foundation or College?
    • Is the property marketable?
    • Are there any undue restrictions on the use, display, or sale of the property?
    • Are there any costs associated with the property?
    1. Criteria for Acceptance: Gifts of tangible personal property include, but are not limited to boats, motor vehicles, works of art, manuscripts, literary works, and items solicited for special event auctions only after a thorough review indicates that the property is readily marketable or usable by a specific College unit in a manner that is related to the mission of the College. Deans must approve the acceptance of in‐kind gifts to instructional departments. Otherwise, the appropriate department administrator must provide approval for accepting the gift and identify a plan for use or sale of the gift.
    2. Gift Valuation:

      An item or group of similar items of donated property with a fair market value of more than $5,000 is recorded at the fair market value placed upon them by an independent qualified appraiser, as required by the Internal Revenue Services (IRS) for valuing non‐cash charitable contributions. The donor is responsible for obtaining an independent appraisal of the donation.

      In cases where an appraisal for a gift of more than $5,000 is not submitted because a donor is not claiming a tax deduction, the Foundation will obtain a qualified appraisal so as to value the gift appropriately in its records.

      Small gifts of tangible personal property with an apparent value of $5,000 or less are valued by the donor and their informal valuation is used for internal reporting purposes. The Foundation will acknowledge the receipt of the donation, but not the value of the donation, for the donor’s tax purposes.

  4. Securities. Gifts of publicly traded securities are accepted regardless of amount. Gifts of closely held securities (i.e., those that are not publicly traded and are held by only a few shareholders) are subject to prior approval of the GAC. Generally, all securities received as gifts may be sold and the proceeds reinvested in accordance with the Foundation Investment Policy. GAC approved departures from this policy will be considered in the event that a donor wishes to impose a transfer restriction on a gift.
  5. Life Insurance Policies. Donors can add the Foundation to an existing policy as a primary or contingent beneficiary. The Foundation accepts gifts of life insurance policies if the policy is paid‐up and if the Foundation is designated as the owner and the sole beneficiary.
  6. Bequests and Beneficiary Designations. Donors are encouraged to make bequests to the Foundation under their wills, and to name the Foundation as the beneficiary under trusts, life insurance policies, annuities and retirement plans. Such designations will not be recorded as gifts to the Foundation until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable. The Foundation and its staff shall not act as an executor or trustee (personal representative) for a donor’s estate or trust.
  7. Charitable Gift Annuities. Charitable Gift Annuity gifts will only be considered with approval of the GAC. Should a donor propose such a gift, the GAC and appropriate counsel will review the arrangement and make a decision.
  8. Charitable Remainder Trusts. The Foundation may accept a designation as remainder beneficiary of a charitable remainder trust with the approval of the GAC. The Foundation will not accept appointment as trustee of a charitable remainder trust.
  9. Charitable Lead Trusts. The Foundation may accept a designation as income beneficiary of a charitable lead trust. The Foundation will not accept an appointment as trustee of a charitable lead trust.
  10. Retirement Plan Beneficiary Designations. Donors and supporters of the Foundation will be encouraged to name the Foundation as beneficiary of their retirement plans. Such designations will not be recorded as gifts to the Foundation until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.
  11. Real Property.

    Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to acceptance, the Foundation will conduct an initial environmental review of the property by an expert in the area to ensure that the property has no environmental damage. In the event the inspection reveals potential problems, the Foundation may request an extensive environmental audit at the expense of the donor. When appropriate, title binders will be secured by the Foundation prior to acceptance of the real property gift at the expense of the donor.

    Real Estate gifts will only be considered with approval of the entire Foundation Board of Directors. Should a donor propose such a gift, the GAC and legal counsel will review and present a recommendation to the Board for approval.

    The following criteria will be used to determine approval based solely on its discretion:

    1. Is the property useful for the purposes of the Foundation or College?
    2. Is the property marketable?
    3. Are there any restrictions, reservations, easements, or other limitations associated with the property?
    4. Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property?
    5. Does the environmental audit reflect that the property is acceptable?
  12. Life Estate Agreements. With approval of the GAC, a donor may contribute improved or unimproved real property to the Foundation and retain a life estate, which is the right to occupy the property until death. Upon the donor's death, the Foundation will own all, or a substantial interest in the property. During their lifetimes the donors and the Foundation will sign a donor agreement specifying the use of the proceeds from the property. The Foundation will only accept a life estate contract on real property which is unencumbered. It is the responsibility of the donor to pay all property taxes, insurance, maintenance and upkeep on the gifted property.

Gift Acknowledgement

The receipt of all gifts will be acknowledged in writing and in a manner that satisfies the applicable IRS substantiation requirements for the deduction of charitable gifts. The Foundation will follow established guidelines with respect to public acknowledgment and recognition of donors in connection with various fundraising campaigns and events. Such guidelines will be established in advance of the initiation of a fundraising campaign or event and will typically provide for levels of recognition based upon the amount of a donor's contribution. Notwithstanding the foregoing, a donor will always have the option to remain anonymous or to forego elements of public recognition and acknowledgement to which the donor may be entitled in connection with a contribution.

  1. Generally, the Foundation will acknowledge all contributions. The Foundation will provide written acknowledgment to the donor, which contains:
    • The name of the Foundation;
    • The amount of the contribution;
    • A description (but not the value) of non‐cash contributions;
    • A statement that no goods or services were provided by the Foundation in return for the contribution, if that was the case; and
    • A description and good faith estimate of the value of goods or services, if any, that the Foundation provided in return for the contribution.
  2. IRS Form 8283 must be filed by a donor if the amount of their noncash gifts exceeds $500. If a noncash gift exceeds $5,000 and is other than publicly‐traded securities (the “Appraised Property"), the donor must attach a qualified appraisal to Form 8283, and the Foundation must acknowledge receipt of the property by signing Form 8283. The Foundation’s acknowledgement of the gift does not represent its agreement with the value placed on the property by the donor and the appraiser. It is the responsibility of the donor to complete the form and provide it to the Foundation. If the Foundation sells the Appraised Property within three years of the date of receipt of the property, it must file Form 8282 with the IRS and provide a copy to the donor within 125 days of the disposition of the property.

Endowed Accounts

If a gift is being used to establish an endowed fund, it is the policy of the Foundation to develop a signed donor agreement prior to accepting a current outright gift. The MMCC Foundation Endowment Fund Agreement outlines the policies related to endowed funds.

Payment of Fees Related To Gifts

The Foundation does not pay fees to any person in consideration for directing a gift to the Foundation. However, the Foundation may pay reasonable fees for professional services rendered to it by persons/firms it has engaged in connection with the completion of a gift to the Foundation. Donors are responsible for hiring independent legal counsel and for paying legal, appraisal, and other fees associated with making a contribution.

Authorization to Act for the Foundation

The GAC, in consultation with legal counsel as necessary, shall negotiate the terms and conditions of any gift with prospective donors or donors' legal counsel. As Foundation representatives, the GAC may accept or decline gift agreements on behalf of the Foundation.

Implementation

The Executive Director of the Foundation, at the direction of the Foundation Board of Directors, is charged with the responsibility of coordinating Foundation fundraising efforts and for implementing policy on a day‐to‐day basis. Any donation(s) that may be subject to review will be brought before the GAC in a timely manner.


Approved: March 10, 2011