Gift Acceptance Policy

    St. Luke’s Episcopal Church Durham, NCTax ID #56-6033279 

St. Luke’s gratefully accepts immediate and deferred gifts for the continuance of our mission and service to others.   

Purpose This Gift Acceptance Policy will provide guidelines to representatives of St. Luke’s Episcopal Church in Durham, NC, who may be involved in the acceptance of gifts, to outside advisors who may assist in the gift-planning process, and to prospective donors who may wish to make gifts to the St. Luke’s Episcopal Church.  This policy is intended only as a guide and allows for some flexibility on a case-by-case basis.  This gift review process outlined here is intended to be followed closely, however.  The Vestry reserves the right to decline any gifts that would 1) create an administrative or expense burden,  2) require restrictions from the donor that St. Luke’s might not be able to meet, or 3) not serve the mission or reflect the values of St. Luke’s. Any question which may arise in the review and acceptance of gifts to St. Luke’s Episcopal Church will be referred to the Vestry.  If any question arises about the best way for structuring a gift, it is recommended that donors consult with their financial, legal and/or tax advisors.  Particularly before proceeding to sell any asset which would trigger a taxable gain (e.g., closely held businesses, real estate, stocks, bonds, etc.), exploring the feasibility of incorporating a charitable gift to one or more charities as a part of the planning for such a sale can improve the outcome for the donor, the donor’s family and the charity(ies). No representative of St. Luke’s can provide any legal, financial or tax advice to a donor regarding gifts.   A member of St. Luke’s Episcopal Church staff or volunteer serving as an informal or formal advisor for a member of St. Luke’s Episcopal Church does so in a personal or professional capacity, and not as an agent of St. Luke’s Episcopal Church.  

Form of Gifts Accepted: 

Cash Gifts by Check 

• Gifts by check shall be accepted by St. Luke’s Episcopal Church, regardless of the amount. 
• Checks shall be made payable to St. Luke’s Episcopal Church, or to the St. Luke’s Heritage Fund.   In no event shall a check be made payable to an individual who represents St. Luke’s Episcopal Church or the church in any capacity.
• St. Luke's Episcopal Church cannot determine the legal date of a gift for tax deduction purposes or any other purpose.  We will issue a gift receipt that states the following facts: 
1. the date written on the check,
2. the amount of the check,
3. the postmark date and
4. the date St. Luke's received the check.  If a donor indicates the date they mailed the check, St. Luke's will note on the receipt that the donor indicated such a mailing date. 

Cash Gifts in Currency      

St. Luke’s will accept gifts in cash in the form of American currency.  If a receipt is requested for a cash gift, an appointment should be scheduled through the church office to deliver such gift and simultaneously receive a receipt.

Publicly Traded Securities 

• Readily marketable securities, such as those traded on a stock exchange, may be accepted by St. Luke's Episcopal Church.  Additional time should be allowed for completion of such gift transactions.  The church office and/or designated representative will provide information about how to transfer securities to St. Luke’s.  St. Luke's cannot be responsible for any delays in the transfer of stock, which might affect the timing of tax deductions for the donor. In general, consider giving only securities which have a taxable gain.  This may be more beneficial regarding tax deductions than would making an outright cash gift.  If you own securities with a taxable loss, from which you want to make a gift, your tax or financial advisor can determine if you should sell the securities first, take an income tax loss deduction, then make a gift from the cash proceeds. 
• Determination of the value of the gift of securities is normally the mean of the high and low prices on the date of the gift, for gift crediting and accounting purposes.  St. Luke’s will acknowledge the gift so that the donor may determine the date of the completed gift and the value of the gift for their tax filing purposes.  For record-keeping purposes, this is also the value St. Luke’s will assign to the gift. 
• A gift of securities to St. Luke’s Episcopal Church normally would be liquidated immediately.  If not liquidated on the date of the gift, any increase in value after the date of the gift will accrue to St. Luke’s and any decrease in market value would be absorbed by St. Luke’s.

Closely Held Securities or Partnership shares 

• Non-publicly traded securities or partnership shares, which have a higher value than their cost basis, may be an ideal asset choice for a charitable gift, while also providing substantial tax and financial benefits.  St. Luke's will consider accepting gifts of closely held securities, after consultation with the donor, their advisors and agreement with the Vestry or Vestry appointed representative(s).
• Prior to acceptance, the Vestry or Vestry-appointed representative(s) will explore with the donor, methods and timing of liquidation of the securities or shares through redemption or sale, with an effort to determine:
• an estimate of fair market value, in general determined by a qualified independent appraiser, as required by the IRS any restrictions on transfer
• whether and when an initial public offering might be anticipated
• No formal or written commitment for repurchase of closely held securities or partnership interests should be made prior to completion of the gift, in order to preserve all possible tax benefits for the donor.

Real Estate 

• Gifts of appreciated real estate may be an ideal asset choice, while also providing substantial tax and financial benefits.  All such gifts must be reviewed by the Vestry or Vestry appointed representative and BEFORE a sale of the asset is legally agreed upon or takes place.
• The donor normally is responsible for obtaining and paying for an appraisal of the property and updated abstract of title.  The appraisal will be performed by an independent and professional agent.
• The appraisal must be based upon a personal visitation and internal inspection of the property by the appraiser.  Also, when possible, it must show documented valuation of comparable properties located in the same area.
• The formal appraisal should contain photographs of the property, the tax map number, the assessed value, the current asking price, a legal description of the property, the zoning status, and complete information regarding all mortgages liens, litigation, or title disputes.
• St. Luke’s Episcopal Church reserves the right to require an environmental assessment of any potential real estate gift.
• The property must be transferred to St. Luke's Episcopal Church prior to any formal offer or contract for purchase being made.
• During and following the transfer of title, the donor may be asked to pay for all or a portion of the following:
• maintenance costs, real estate taxes, insurance, real estate broker’s commission and other costs of sale, appraisal costs, and abstract of title
• conveyance costs
• For gift crediting and accounting purposes, the value of the gift is the appraised value of the real estate; however, this value may be reduced by costs of maintenance, insurance, real estate taxes, broker’s commission, and other expenses of sale.  The donor must obtain the value for tax deduction purposes from their advisor(s).

Life Insurance 

• St. Luke’s will always welcome being named the beneficiary of a life insurance policy.
• An outright gift of a life insurance policy while the insured is living must be referred to and agreed upon by the Vestry or Vestry appointed representative. 
• The Vestry will accept a life insurance policy as a gift only if St. Luke’s Episcopal Church is named as the owner and beneficiary of 100 percent of the policy.  The transfer of an existing life insurance policy must be made by completing paperwork through the issuing life insurance company.  Such a gift would be considered completed on the date ownership rights are transferred to St. Luke’s. 
• The value of a gift of a life insurance policy for gift crediting and accounting purposes, whether paid up or partially paid up, must be requested from and is provided by the issuing life insurance company.  The donor agrees to provide this information to St. Luke’s. 
• The donor may communicate their preference as to whether St. Luke’s will hold the insurance policy until the time of the insured’s death or surrender it for its cash value.  Once St. Luke’s becomes owner of the policy, St. Luke’s has the legal right to hold or cash in the policy. 
• If a donor transfer’s ownership of a partially paid up policy to St. Luke’s, and continues to make future premium payments, they should coordinate these payments through St. Luke’s and with the guidance of their own advisors, in order to maintain ongoing tax deductions.

Note:  In some cases, life insurance is a cost-effective means to replace the value of donated assets (or the value of the asset after estate or income taxes), which the beneficiaries would have received. Depending on the circumstances, the charitable tax savings and any life income resulting from making a charitable gift may defray the cost of wealth replacement life insurance premiums.  

Tangible Personal Property 

• Any gift of tangible personal property shall be referred to the Vestry or Vestry - Appointed Representative prior to acceptance.
• A gift of tangible personal property, such as jewelry, artwork, collections, equipment, and software shall be assessed for its value to St. Luke’s Episcopal Church, which may be realized either by being sold or by being used in connection with St. Luke’s Episcopal Church’s exempt purposes.
• Depending upon the anticipated value of the gift, a qualified outside appraiser may be asked to determine its value.  If so, the donor normally is responsible for obtaining and paying for a qualified appraisal of the property. 
• St. Luke’s Episcopal Church shall adhere to all IRS requirements relating to disposing of gifts of tangible personal property and will provide appropriate forms to the donor and IRS.
• If accepted, an immediate insurance review will be made at St. Luke’s Episcopal Church’s expense.

 Deferred Gifts 

• St. Luke’s Episcopal Church encourages deferred gifts in its favor through any of a variety of vehicles.  Many of these may be coordinated with assistance from the Episcopal Church Foundation and/or with the assistance of the donor’s professional legal, tax and/or financial advisors:
• Charitable gift annuity (or deferred gift annuity), pooled income fund, charitable remainder trust, charitable lead trust, bequest via a will, bequest via a beneficiary designation (requires only the update/completion of a primary or beneficiary change form, which can be obtained from custodian of IRA or retirement plan or insurance company).
• Retained life estate, commonly used with gifts of real estate.
• St. Luke’s Episcopal Church (or its agent) shall not act as an executor (personal representative) for a donor’s estate.  A member of St. Luke’s Episcopal Church staff or volunteer serving as personal representative for a member of St. Luke’s Episcopal Church does so in a personal or professional capacity, and not as an agent of St. Luke’s Episcopal Church.
• St. Luke’s Episcopal Church (or its agent) shall not act as trustee of a charitable remainder trust.
• When appropriate, St. Luke’s Episcopal Church may invite prospective donors to consider the gift vehicles offered by the Episcopal Church Foundation (specifically, charitable remainder trusts, charitable gift annuities, and the pooled income fund).
• When donors are provided planned gift illustrations or form documents from the Episcopal Church Foundation, these are normally provided free of charge.  For any planned-gift-related documents, materials, illustrations, letters, or other correspondence, the following disclaimer is and shall be included:

We strongly urge that you consult with your attorney, financial and/or tax advisor to review and approve this information provided you without charge or obligation.  This information in no way constitutes advice. We will gladly work with your independent advisors to assist in any way. 

• All information obtained from or about donors/prospects shall be held in the strictest confidence by St. Luke's Episcopal Church, its staff and volunteers.  The name, amount, or conditions of any gift shall not be published without the express written or oral approval of the donor and/or beneficiary. 
• As appropriate, St. Luke's Episcopal Church will seek qualified professional counsel in the exploration and execution of all planned gift agreements.  St. Luke's Episcopal Church recognizes the right of fair and just remuneration for professional services.

Adopted by action of the Vestry of St. Luke's Episcopal Church this 11th day of May, 2009.