LIM Fashion Education Foundation Gifts
LIM Fashion Education Foundation accepts the following gifts from donors:
- Publicly Traded Securities
- Non Publicly Traded Securities
- Real Estate
- Life Insurance
- Tangible Personal Property
The LIM Fashion Education Foundation Gift Acceptance Policy provides a guideline to the gift planning process.
This policy serves as a guideline to members of the Laboratory Institute of Merchandising Fashion Education Foundation (also referred to as FEF) staff involved with accepting gifts, to outside advisors who assist in the gift planning process, and to prospective donors who wish to make gifts to the LIM Fashion Education Foundation. This policy is intended only as a guide and allows for some flexibility on a case-by-case basis.
- All gifts by check shall be accepted by FEF regardless of amount.
- Checks shall be made payable to FEF. In no event shall a check be made payable to an individual who represents FEF, as opposed to FEF itself. If a donor wishes to direct a contribution to a particular program, this can be noted in the note section of the check or in a letter accompanying the contribution, and this wish will be respected as long as it is in accordance with FEF’s by-laws, IRS regulations and applicable law. If FEF cannot honor the request, the donor will be notified, and the gift will be returned to the donor if the donor so directs, unless the law allows FEF to use the gift in other ways without the donor’s consent.
Pledges to FEF may be payable in single or multiple installments and must have a value of a least $1,000. The pledge may not exceed 5 years in duration. All donors must complete a pledge form or confirm the pledge in writing, and the pledge will be considered binding once confirmed in writing.
Publicly Traded Securities
- Marketable securities, such as those traded on a stock exchange, shall be accepted by FEF.
- Gift securities shall be sold promptly by FEF, in accordance with the policy previously adopted by the Board.
- For the FEF’s gift crediting and accounting purposes, the value of the securities shall be the average of the high and low on the date of the transfer of the shares to FEF, or as otherwise required by IRS regulations. For receipting purposes, FEF should acknowledge the shares of stock, not the cash value.
Non Publicly Traded Securities
- Gifts of non-publicly traded securities may be accepted after consultation with the Treasurer, but need not be accepted.
- Prior to acceptance, FEF shall explore methods of liquidation for the securities through redemption or sale. A representative of FEF shall try to contact the corporation to determine:
- An estimate of fair market value
- Any restriction on transfer
- No commitment for repurchase of securities which are not publicly traded shall be made prior to completion of the gift of the securities.
- The donor is responsible for obtaining an appraisal, at donor’s expense, to substantiate the value of donor’s contribution.
- Gifts of real estate may be accepted after review by FEF’s Treasurer, but need not be accepted.
- The donor is responsible for obtaining an appraisal of the property, at the donor’s expense, to substantiate the value of donor’s contribution.
- Prior to presentation to FEF’s Treasurer, a member of the staff must conduct a visual inspection of the property. If the property is located in a geographically isolated area, a real estate broker chosen by FEF can substitute for a member of the staff in conducting the visual inspection.
- Due to expenses associated with gifts of real estate, only gifts with a net value in excess of $150,000 after expenses will be considered for acceptance.
- Prior to presentation to FEF’s Treasurer, the donor must provide the following documents:
- Real estate deed
- Real estate tax bill
- Plot plan
- Substantiation of zoning status
- Depending on the value and desirability of the gift, the donor’s connection FEF, and the donor’s past gift record, the donor may be asked as a condition of FEF’s accepting the gift to pay for all or a portion of the following until the property is sold by the Foundation:
- Maintenance costs
- Real estate taxes
- Real estate broker’s commission and other costs of sale
- Appraisal costs
- For FEF’s gift crediting and accounting purposes, the value of the gift is the appraised value of the real estate less any costs incurred by FEF to acquire the property, or as otherwise is required by IRS regulations.
- The LIM Fashion Education Foundation may accept life insurance policies as gifts only when FEF is named as the owner and beneficiary of 100% of the policy.
- If the policy is a paid-up policy, the value of the gift for the FEF’s gift crediting and accounting purposes is the policy’s replacement cost, or as otherwise is required by IRS regulations.
- If the policy is partially paid up, the value of the gift for FEF’s gift crediting and accounting purposes is the policy’s cash surrender value, or as otherwise required by IRS regulations.
Tangible Personal Property
- Gifts of tangible personal property may, but need not be accepted. Such gifts should have a use related to FEF’s exempt purpose. If that is not the case, the donor will be advised that FEF will be selling the property and the donor will be entitled to a deduction equal to the lower of the cost basis or fair market value or as otherwise provided by IRS regulations.
- Gifts of jewelry, artwork, collections, equipment, and software may be accepted only after approval by FEF’s Treasurer.
- Such gifts of tangible personal property defined above shall be used by or sold for the benefit of FEF.
- No property which requires special display facilities or security measures shall be accepted by the FEF without consultation with the Treasurer.
- The donor is responsible for obtaining an appraisal, at donor’s expense, to substantiate the nature of donor’s gift.
- FEF may consult with donors concerning potential bequests and may accept bequests.
- Assets transferred through bequests that have immediate value to the FEF or can be liquidated shall be encouraged by the development staff. Gifts that appear to require more cost than benefit shall be discouraged or rejected.
- Donors who have indicated that they have made a bequest to the FEF may, depending upon the individual situation, be asked to disclose, in writing or by copy of the will, the relevant clause that benefits the FEF as evidence of their gift. This information is used for internal financial purposes and is not binding on the donor.
- When property other than cash or publicly traded securities is involved, the approval of FEF’s Treasurer shall be required.
Other Planned Gifts
- FEF may work with potential donors to discuss and develop, and may accept other planned gifts, including without limitation, charitable gift annuities, deferred gift annuities, charitable remainder trusts. Charitable lead trusts, retained Life estates, and pooled income funds
- FEF shall seek the advice of legal counsel whenever necessary with regard to planned giving and shall execute no legal agreements without the advice and approval of legal counsel. Prospective donors shall be urged to seek their own counsel in matters relating to their planned gifts, tax and estate planning.
- When property other than cash or publicly traded securities is involved, the approval of: FEF’s Treasurer shall be required.
- FEF shall not act as an executor or other personal representative for a donor’s estate.
- FEF will not pay fees to financial planners or others who promise to “deliver” gifts to the FEF from their clients.
- As a general practice, FEF will not pay the legal fees, trustee charges, appraisal fees, etc. of a donor who wishes to make a planned gift to the FEF. Such costs are usually the responsibility of the donor. Any exceptions to this practice must be approved by the FEF