CHILDREN’S HUNGER FUND DONATION POLICIES
Children’s Hunger Fund (CHF) is a non-profit 501(c)(3) organization and its operating budget is comprised mostly of financial contributions, donations, and gifts. Because so much of CHF’s budget to carry out its worldwide mission depends on financial contributions, donations and gifts, it is important for CHF to communicate to its supporters how it handles such donations and to create a consistent organizational approach and practice regarding this vital part of its ministry.
- Funds (see footnote) shall be solicited in a respectful manner and without pressure.
- Donor designated restrictions on contributions shall be honored to the fullest extent possible so long as they are consistent with CHF ministry goals and values.
- Children’s Hunger Fund (CHF) is a non-profit 501(c)(3) organization and contributions made to the organization are tax deductible to the fullest extent allowed by law.
- Written tax receipts shall be issued for all donations. If the donor receives anything in exchange for their donation, such as a dinner or event admission, the tax receipt shall clearly state what portion of the donation is tax deductible.
- At the beginning of each calendar year CHF shall provide each donor who has contributed over the course of the prior year, with written documentation of all tax deductible gifts received during the prior calendar year.
Gift Acceptance PolicyGifts to Children’s Hunger Fund (CHF) may be made in any amount for the benefit of any of CHF’s domestic or international programs. Gifts may be designated for a specific program or purpose. Gifts may also be unrestricted in which case they will be disbursed to the area of greatest need at the sole discretion of the CHF President, Executive Directors of Children’s Hunger Fund, or the CHF President’s designee.
Gifts of Cash.CHF will accept gifts of cash, checks, money orders and payments via credit or debit card.
Marketable Securities.CHF will accept gifts of publicly traded securities, stocks and bonds. Gifts of stock will be valued at the average of the high and low trading prices for the day the stock transfers into the control of CHF. Stock that is held electronically with a brokerage firm may be electronically transferred to CHF’s brokerage account by first calling CHF Executive Director Christopher Sue at 800- 708-7589 in order to receive specific instructions for such a transfer. To donate stock that is held in certificate form, CHF must be notified in advance so that specific instructions can be provided to the donor.
Stock in privately owned companies.To be acceptable by CHF, stock in privately owned companies must have a qualified appraisal performed by an independent professional appraiser and the appraiser report must accompany such stock when given to CHF. Prior to approval and acceptance of such a gift, such gifts must first be reviewed by the CHF Board of Directors, Finance Committee in conjunction with CHF’s legal counsel. If immediately marketable, the stock in privately owned companies will be sold. If such stock is not immediately marketable, they will be kept in a secure facility such as a bank or other financial institution until such time when they can be redeemed, sold or liquidated.
Stock in Subchapter S corporations.To be accepted, such stocks must have a qualified appraisal performed by an independent professional appraiser. Prior to approval and acceptance of such a gift, such gifts must first be reviewed by the CHF Board of Directors, Finance Committee in conjunction with CHF’s legal counsel.
Real Estate.Gifts of real estate may be accepted by CHF. CHF review of gifts of real estate shall include, but not be limited to, legality, title, encumberances, liens, mortgages, easements, restrictions, and environmental issues. Until the real estate or property is sold and proceeds are deposited into the CHF account, all legal obligations related to ownership of the real estate such as taxes, insurance, utilities and security shall remain with the donor.
Tangible personal property.The property must be saleable and the donor must agree that the property can be sold unless CHF agrees to use the property for a purpose related to the exempt purpose of the organization. At least one qualified appraisal by an independent professional appraiser is required and such appraisal must be shared with CHF prior to any CHF decision to accept such a gift of tangible personal property.
Appraisals.In any of the cases where an appraisal is required, it is the sole responsibility of the donor to obtain and pay for competent appraisal services and to share the results of such appraisal with CHF.
Substantiation.It shall be the responsibility and legal obligation of the donor to seek and obtain advice from his or her professional financial advisors, to substantiate any tax deductions, and to comply with IRS regulations and policies, including the filing of IRS Form 8283.
Gift Agreements.Where appropriate and advisable, CHF may enter into a written gift agreement with a donor which shall specify the terms of any restricted gift, which may include provisions regarding donor recognition.
Pledge Agreements.CHF’s acceptance of pledges of future support (including by way of matching gift commitments) shall be contingent upon the execution and fulfillment of a written Charitable Pledge Agreement, on a form supplied by CHF, which shall specify the terms and conditions of the pledge including any provisions regarding donor recognition.
Fees.The donor is responsible for (a) the fees of independent legal counsel retained by donor for completing a gift to CHF; (b) any appraisal and appraisal report fees; (c) the cost of any environmental assessments, audits and reviews; (d) any title searches, reports, insurance or binders (in the case of real property); and (e) all other third-party costs and fees associated with the transfer of the gift to CHF.
Valuation of Gifts.CHF shall record gifts received at their valuation on the date of gift, except that, when a gift is irrevocable, but is not due until a future date, the gift may be recorded at the time the gift becomes irrevocable in accordance with GAAP.
IRS Filings upon Sale of Gifts.To the extent applicable, CHF shall file IRS Form 8282 upon the sale or disposition of any charitable deduction property sold within three (3) years of receipt by CHF. “Charitable deduction property” means any donated property (other than money and publicly traded securities) if the value claimed by the donor exceeds $5,000 per item or group of similar items donated by the donor to one or more donee organizations (e.g., the property listed in Section B on Form 8283). CHF shall file this form within 125 days of the date of sale or disposition of the asset in accordance with applicable IRS rules and regulations.
Written Acknowledgement.CHF shall provide written acknowledgement of all gifts made to CHF and comply with the current IRS requirements in acknowledgement of the gifts.
Changes to or Deviations from the Policy.This Policy has been reviewed and accepted by the CHF’s Board of Directors, which has the sole authority and discretion to change this Policy. In addition, the Board of Directors must approve in writing any deviations from this Policy.
- All gifts given to Children’s Hunger Fund (CHF) for the purpose of establishing an endowment or contributing to an existing endowment must first be completely reviewed and then formally accepted by the CHF Board of Directors, Finance Committee.
- Establishment and management of endowment funds represent a significant legal and financial commitment on the part of CHF. Therefore, the minimum amount for an initial gift for individual named endowment purposes is $25,000.
- Recognizing that such sums must often be accumulated over a period of years, CHF will allow a donor to spread the payments for a period of up to five years to meet the minimum endowment policy amount.
- An endowment fund is not activated until the minimum funding level has been reached.
- An endowment fund may be designated for a specific purpose, program, or department depending on the wishes of the donor and is subject to approval of the CHF Board of Directors, Finance Committee.
- In the case of a pure endowment–that is, one created when the donor specifies that a contribution is to be used for an endowment—the principal may not be expended under circumstances not expressly set out in gift documents.
- In the case of a quasi-endowment–usually, one created by CHF itself using funds that were not specifically designated for an endowment or one designated as quasi by the donor––the principal may be invaded only after review and approval of the Board of Directors at the recommendation of its Finance Committee.
The terms “funds,” “contributions,” “gifts” and “donations” are used interchangeably throughout this policy document unless otherwise stated.