Prospective donors are urged to educate themselves and obtain independent professional counsel before making gifts. You may also print these for easy reference. My Place Teen Center (MPTC) is a charitable, 501(c)(3) tax-exempt organization. Donations are tax-deductible to the full extent of the law.
My Place Teen Center provides a safe haven for youth, ages 10 – 18, sustaining them with comfort, meals, resources, and hope.
All youth will have the academic, job readiness, and life skills necessary to lead independent adult lives filled with stewardship, courage, passion, and joy.
This policy serves as a guideline for donors, prospective donors, staff, board members, volunteers and outside advisors interested in and/or involved with contemplating or making a gift or gift commitment to My Place Teen Center.
Prospective donors are urged to educate themselves and obtain independent professional legal and financial counsel before making gifts. Please feel free to print these guidelines for easy reference. MPTC is a charitable, 501(c)(3) tax exempt organization. Donations to MPTC are tax deductible to the full extent of the law.
MPTC’s tax identification number is 01-0509578.
MPTC is governed by a volunteer Board of Directors. The Advancement Committee of that Board is responsible for gift acceptance matters. That committee is led by a Board member appointed as its chair. The committee includes other Board members, other volunteer members, MPTC’s President and Executive Director. MPTC’s Board (or the Executive Committee on its behalf) must ratify any restriction of gifts and any changes to these policies.
The President, the Executive Director or other authorized designees shall have the authority to negotiate gifts and gift pledges on behalf of MPTC, or issue receipts on behalf of the organization. However, only the President (or the Board chair if the President is incapacitated) is authorized to execute annuity contracts and newly established endowment funds on behalf of MPTC.
Contemporaneous receipts for gifts of $250 or more will be prepared in accordance with Internal Revenue Service requirements indicating as is best ascertainable by the organization, the gift date, amount of cash given or description of property received, and any goods or services given in exchange for the gift, a description and good faith estimate of the fair market
value of those goods or services. If no goods or services were received by the donor, the receipt will include a statement to that effect pursuant to IRC Section 170(f)(8).
For individual gifts or groups of related gifts valued at $5,000 or more, which are not cash or marketable securities, a donor seeking to claim a federal tax deduction for the gift must work with their appraiser and accountant to complete IRS Form 8283. MPTC will sign an acknowledgement of receipt of the gift on this form. While MPTC is not obliged to approve the claimed value, as an accredited land trust and a charitable 501(c)(3) organization operating for the public benefit, MPTC will review donor’s appraisals of assets and will not sign Forms 8283 if it has reason to believe that no charitable gift has been made or that a clearly fraudulent value has been claimed. If MPTC sells an asset gifted subject to a Form 8283 within three years of acceptance of the gift, it must file a Form 8282 with IRS to report the sale price and any other relevant information.
CASH: MPTC shall accept all gifts by cash, credit card, or check. Checks must be made payable to My Place Teen Center. In no event shall a check be made payable to an individual who represents MPTC.
PUBLICLY TRADED SECURITIES: MPTC shall accept readily marketable securities, such as those traded on a stock exchange. Gifted securities are likely to be sold immediately by MPTC. For MPTCs gift crediting and accounting purposes, the value of the securities contributed will be the average of the high and low values on the date the donor transfers control to MPTC (the official date of gift), in accordance with IRS regulations.
CLOSELY HELD SECURITIES: Gifts of closely held stock will be carried on MPTC’s books at a value of $1 in the absence of financial information that would enable determination of book value. That book value can be substantiated by receipt of appropriate audited financial statements or a qualified appraisal in compliance with IRS regulation. Gifts of securities that require a holding period will be accepted, after review and approval by the President, and sold when the holding period has expired. Gifts of securities that would not be accepted include: securities that may be determined to create a liability for MPTC; securities that, by their nature, may not be assigned; securities that on investigation have no apparent value.
TANGIBLE PERSONAL PROPERTY: Gifts of tangible personal property to MPTC should have a use related to MPTC’s exempt purpose. Gifts of art, collections, automobiles, boats, building supplies, equipment, software, and other forms of “related” tangible personal property may be accepted, with approval from the Advancement Committee. Such gifts as noted above will be used or sold for the benefit of MPTC. It shall be the responsibility of the donor to obtain and share with MPTC an independent qualified appraisal of the gift dated no earlier than 60 days before it is conveyed to MPTC, which adheres to all IRS requirements for disposing of gifts of tangible personal property, including filing appropriate forms.
For tangible personal property gifts made to MPTC that are unrelated to MPTC’s exempt purposes, its deduction value is limited to the donor’s basis or fair market value, whichever is less. For example a gift of jewelry to MPTC might be considered an unrelated use.
If the donor of personal property is required to file the appraisal portion of Form 8283 in connection with a deduction, MPTC is obligated to file Form 8282 if the tangible property is sold within three years of the gift. A sale of the property may raise the presumption that the property was unrelated to MPTC’s exempt purpose. A deduction for the fair market value will be allowed, despite a sale within three years, if, at the time of the gift, it was reasonable for the
donor to believe that the property would be put to related use.
Because of the special rules that apply to gifts of tangible personal property, prospective donors are advised to discuss such intended gifts with MPTC in advance of a contribution how the property will be used.
For many prospective donors to MPTC, making a gift via their estate plans is an effective method to support the long term mission of MPTC. There are a variety of ways to make a future gift:
BEQUEST: This is a gift by will or will codicil (will amendment or addition) that is payable according to the terms of that legal document. Bequests may provide for a specific dollar amount in cash, specific securities, a specific piece of real estate, specific articles of tangible personal property, a percentage of an estate, or a percentage of a residuary estate (that portion of an estate remaining after specific bequests have been made). A bequest of all or a portion of a revocable living trust may also be made to MPTC.
Samples of bequest language:
“I give (____ dollars) (or a specific asset) or (___percent of the rest, residue and remainder of my estate) to My Place Teen Center, the charitable, tax exempt organization located in Westbrook, Maine, for its general purposes.”
BEQUEST FOR SPECIFIC PURPOSE
“I give (____dollars) (or a specific asset) or (_ percent of the rest, residue and remainder of my estate) to My Place Teen Center, the charitable, tax exempt organization located in Westbrook, Maine, to be used for the following purposes: (state the purpose).”
NOTE: If a donor wishes to restrict a bequest to a specific purpose, he or she should contact the Development Office in advance to make sure that the language used will accomplish the donor’s wish and align with MPTC’s needs.
MPTC welcomes unrestricted and specific bequests that support its mission, and credits each bequest at the explicit value of the gift or gifts conveyed, to the full extent of the law. If a bequest will be used to establish an endowment fund for either a restricted or unrestricted purpose, its value should be at least $25,000.
RETIREMENT ACCOUNTS: For many donors, an easy way to earmark a future gift to support MPTC is to designate it as the beneficiary of a retirement account, such as a 401(k) or IRA. Because tax deferred retirement accounts are taxed at ordinary federal and state tax rates and may also be subject to estate taxes, those with significant retirement assets can also face significant tax liabilities. So making a gift of these assets often provides a very substantial tax savings and can be done easily by filling out a beneficiary designation form provided by the plan administrator and selecting MPTC as a recipient at death. MPTC will recognize the full value of the gift conveyed, consistent with tax law.
Also, direct transfers from an IRA may be made to MPTC for individuals 70 ½ and over, up to $100,000/year, without counting the withdrawal as current income for the donor’s federal tax purposes. Such transfers count toward minimum distribution requirements. Unless renewed by Congress, this so-called IRA Rollover provision will terminate December 31, 2013.
LIFE INSURANCE: MPTC will accept gifts of life insurance policies only when MPTC is named as both the owner and beneficiary. If the policy is fully paid, the value of the gift for MPTC’s gift crediting and accounting purposes is the policy’s replacement costs. If the policy is partially paid up, the value of the gift for MPTC’s gift crediting and accounting purposes is the policy’s cash surrender value. MPTC’s decision to cash in each donated policy will be determined on a case by case basis. In those cases where MPTC is a designated charitable recipient of an assigned life insurance death benefit, MPTC accepts such gifts with grateful appreciation.
Pooled Income Funds
Pooled income gifts are currently not accepted. Inquiries concerning them may be directed to the Director of Development.
Costs Of Gift Acceptance
MPTC will clarify with the donor under what circumstances, if any, MPTC will pay for legal fees or professional fees with respect to completing a gift.
Agent For The Trust
My Place Teen Center currently uses Ameriprise Financial as its Agent for investment management and administrative services for planned gift funds. MPTC reserves the right to change or add agents without notice to donors.
Confidential Gift Information
MPTC shall keep confidential all information obtained about prospective donors and specific gift arrangements regardless of whether or not a gift is made. MPTC may use selected information for purposes of referral, testimonial or example if a donor grants permission.
Standards Of Practice
MPTC staff that work in planned giving will adhere to the American Council on Gift Annuities Model Standards of Practice for the Charitable Gift Planner (which are available on the ACGA website).
MPTC may decline any gift that in its collective judgment creates unacceptable challenges,undue expense, or a perception of impropriety or conflict with the organization’s mission.
Responsibility For Policy Review
The Advancement Committee has the responsibility for implementing these policies and reviewing them biennially or as needed.
The donor has the right to designate a gift for specific purposes, and he or she should discuss the feasibility and practicality of intended restrictions with an MPTC development officer.
Particularly as planned gifts may not mature for many years, it is important for MPTC to be aware of and document a donor’s intentions for future implementation. The Board of Directors must expressly approve any donor restrictions.
Undesignated planned gifts up to $100,000 (and the first $100,000 of larger undesignated planned gifts) shall be used to fund then current operations at the time they are realized. Any amount in excess of the first $100,000 the Board shall restrict to the Operating Endowment or to another use in keeping with the donor’s interests. A report of any annual bequests received to date will go before the Board of Directors at its annual meeting.
Conflicts Of Interest
My Place Teen Center will conduct all gift transactions in accordance with its conflict of interest policy.
Other Administrative Issues
MPTC and its staff shall not act as an executor (personal representative) for a donor’s estate.
MPTC may act as trustee or co–trustee, or successor trustee, of a charitable trust when the trust names MPTC as an irrevocable beneficiary and the net charitable benefit to MPTC, measured in today’s dollars, is at least $100,000 and at least 50% of the trust assets.
Before an endowment fund is established at MPTC, whether during the donor’s life time or by testamentary form, it is advisable to consult with a representative of the Development Office at MPTC to discuss terms and conditions.
THE MOST RECENT GIFT ACCEPTANCE POLICY REVIEW AND APPROVAL BY THE ADVANCEMENT COMMITTEE OF THE BOARD OF DIRECTORS OF MY PLACE TEEN CENTER OCCURRED ON 11/12/14.
For additional information or consultation on these policies and related issues, please contact Donna Dwyer.