Overview

Board Reviewed

This sub-section has been reviewed and accepted by the Board of Directors of Reliant. The Board of Directors of Reliant must approve any changes to or deviations from these policies. Approved on the 6th day of December, 2003. Amended on the 1st day of December, 2006.

General Purpose

Reliant Mission (Reliant), a nonprofit organization organized under the laws of the State of Ohio , encourages the solicitation and acceptance of gifts to Reliant for purposes that will help Reliant to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to Reliant or for the benefit of that organization or any of its affiliates or programs.

The Board of Directors of Reliant and its staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of Reliant. It is the purpose of these policies and guidelines to govern the acceptance of gifts by Reliant and to provide guidance to prospective donors and their advisors when making gifts to Reliant. The provisions of these policies shall apply to all gifts received by Reliant for any of its programs or services.

Use of Legal Counsel

Reliant shall seek the advice of legal counsel in matters relating to acceptance of gifts where appropriate. Review by counsel shall be obtained for:

1. 1. Documents naming Reliant as Trustee.
   2. All gifts involving contracts, such as bargain sales or other documents requiring Reliant to assume an obligation.
   3. All transactions with a potential conflict of interest.
   4. Such other instances in which use of counsel is deemed appropriate by the Director of Organizational Affairs.

Ethics and Conflict of Interest

All prospective donors shall be strongly urged to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. Reliant will comply with ECFA Standards of Fund Raising.

Restrictions on Gifts

Reliant will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are consistent with its stated mission, priorities, and board approved purposes. Reliant will not accept gifts that are overly restrictive in purpose. Gifts that are overly restrictive are those that violate the terms of the corporate By-Laws, gifts that are too difficult to administer, or gifts for purposes outside the mission of Reliant. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Executive Director or his or her designee.

Types of Gifts

The following gifts are acceptable:

1. 1. Cash
   2. Tangible Personal Property
   3. Securities and Stocks
   4. Real Estate
   5. Remainder Interests in Property
   6. Oil, Gas, and Mineral Interests
   7. Bargain Sales
   8. Life Insurance
   9. Charitable Gift Annuities
   10. Charitable Remainder trusts
   11. Charitable Lead Trusts
   12. Retirement Plan Beneficiary Designations
   13. Bequests
   14. Life Insurance Beneficiary Designations
   15. Cryptocurries

The following criteria govern the acceptance of each gift from donors. All non-cash gifts should be sold as quickly as possible upon receipt to realize the donor's gift value unless the item is donated for use by Reliant in its operations.

Cash

Cash is acceptable in any form (Note: this means payment methods such as check or credit card; see Contributions to Reliant). Gifts are made payable to Reliant Mission and shall be delivered to Reliant's administrative headquarters offices.

Tangible Personal Property

Gifts-in-kind and non-monetary gifts cannot be recognized by Reliant for the use of Reliant missionaries or local ministries. Reliant will only accept non-monetary/gift-in-kind donations that are strictly intended for the overall ministry of Reliant.

All other gifts of tangible personal property shall be examined in light of the following criteria:

• • If the property will be used by Reliant, the cost of insurance, transportation, maintenance, and other expenses should be identified.
  • If the property will be sold, the market for sale should be determined, together with the costs of holding and delivering the property for sale.
  • If restrictions are placed on the use, display, or sale of the property, the Director of Organizational Affairs should determine if those are reasonable.
  • The final determination on the acceptance of other tangible property gifts shall be made by the Executive Director or his or her designee.

If a donor wishes to donate a non-monetary/gift-in-kind donation to the overall ministry of Reliant, the donor needs to contact Reliant to obtain more information on the possible steps such as appraisal, completing tax forms, method of transfer, etc. Donors will normally receive a Reliant charitable receipt letter for non-monetary/gift-in-kind contributions that meet the proper criteria. In such cases, the donor must provide a letter to Reliant containing a detailed description of the donated item(s), the appraised fair market value of the donated item(s), a statement declaring that the employee has possession of the item(s), and the signature of the donor. The donor is responsible to have the item appraised, and if the fair market value of the item is over $5,000, the item must be appraised by an independent appraiser.

Vehicles

Unfortunately, due to IRS restrictions, Reliant cannot accept vehicle donations from a donor that are ultimately intended for the personal use of a Reliant staff member or another specific person.

Reliant will only accept vehicle donations that are strictly intended for the overall ministry of Reliant. If a donor wishes to donate a vehicle to Reliant only , the donor needs to contact Reliant to obtain more information about possible steps such as vehicle inspection, appraisal, completing any tax forms, and transfer of title. Donors will normally receive a Reliant charitable receipt letter for vehicle contributions that meet the proper criteria.

Stock and Securities

Reliant can accept both publicly traded securities and closely held securities.

Publicly Traded Securities: Marketable securities may be transferred to an account maintained at one or more brokerage firms or delivered physically with the transferor's signature or stock power attached. As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Executive Director or his or her designee, or the donor. In some cases marketable securities may be restricted by applicable securities laws; in such instances the final determination of the acceptance of the restricted securities shall be made by the Executive Director or his or her designee.

Closely Held Securities: Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interest in Limited Liability Partnerships and Limited Liability Companies or other ownership forms, can be accepted subject to the approval of the Executive Director or his or her designee. Criteria for review of the gift include the following procedures:

• • The security should be reviewed for restrictions which prevent or hinder a timely sale of the asset.
  • A market for the security should be identified.
  • The form of the security should be reviewed to determine if the asset will generate unrelated business income to Reliant, or create an unanticipated tax result for the donor.

Real Estate

Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to acceptance of real estate, and if deemed necessary, Reliant will obtain an environmental inspection report (from a firm approved by Reliant) reflecting that the property is not environmentally damaged. The cost of the environmental audit may be an expense of the donor. If sufficient evidence exists that an environmental inspection is deemed unnecessary, then this step may be bypassed. Final determination will be the decision of the Executive Director or his or her designee. Where appropriate, a title binder shall be obtained by Reliant prior to the acceptance of the real property gift. The cost of this title binder shall generally be an expense of the donor. Prior to acceptance of the real property, the gift shall be approved by the Executive Director or his or her designee, and if deemed necessary by Reliant's legal counsel. Criteria and procedures for acceptance of the property shall include:

• • If the property is to be used in operations or programs, Reliant should determine the cash flow required to hold the property.
  • If the property is to be sold, an investigation of the marketability of the property should be identified.
  • Restrictions, reservations, easements, or other limitations associated with the property should be identified.
  • Carrying costs, including insurance, property taxes, mortgages, or notes, etc. associated with the property should be identified.
  • Reliant should have a current environmental inspection indicating that the property is environmentally clean if deemed necessary.

Remainder Interest in Property

Reliant will accept a remainder interest in a personal residence, farm, or vacation home subject to the provisions specified in the Gift Acceptance policy. The donor or other occupant may continue to occupy the real property for the duration of the stated life. At the death of the donor, Reliant may use the property or reduce it to cash. Where Reliant receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or primary beneficiary.

Oil, Gas and Mineral Interest

Reliant may accept oil and gas property interest, where appropriate, provided however that Reliant will not accept working interests. Prior to acceptance of an oil and gas interest the gift shall be approved by the Executive Director or his or her designee, and, if necessary, by Reliant's legal counsel. Criteria for acceptance of the property shall include:

• • Gift of surface rights should have a value of $20,000 or greater.
  • Gifts of oil, gas and mineral interest should generate at least $3,000 per year in royalties or other income (as determined by the average of the three years prior to the gift.)
  • The property should not have extended liabilities or other consideration that make receipt of the gift inappropriate.
  • The donor must provide a legal and/or environmental review to ensure that Reliant has no current or potential exposure to environmental liability.

Life Insurance

Reliant must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. The gift is valued at its interpolated terminal reserve value, or cash surrender value, upon receipt. If the donor contributes future premium payments, Reliant will include the entire amount of the additional premium payment as a gift in the year that it is made.

If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, Reliant may:

• • Continue to pay the premiums.
  • Convert the policy to paid-up insurance.
  • Select an alternative investment option.
  • Surrender the policy for its current cash value.

Charitable Remainder Trusts

Reliant may accept designation as remainder beneficiary of a charitable remainder trust with the approval of the Executive Director or his or her designee. Reliant will not accept appointment as Trustee of a charitable remainder trust.

Charitable Lead Trusts

Reliant may accept a designation as income beneficiary of a charitable lead trust. The Board of Reliant will not accept an appointment as Trustee of a charitable lead trust.

Retirement Plan Beneficiary Designations

Donors and supporters of Reliant shall be encouraged to name Reliant as beneficiary of their retirement plans. Such designations shall not be recorded on the books of Reliant until such time as the gift is irrevocable. Where 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.

Bequests

Donors and supporters of Reliant shall be encouraged to make bequests to Reliant under their wills and trusts. Such bequests shall not be recorded on the books of Reliant until such time as the gift is irrevocable. Where 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.

Life Insurance Beneficiary Designations

Donors and supporters of Reliant shall be encouraged to name Reliant as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded on the books of Reliant until such time as the gift is irrevocable. Where 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.

Cryptocurrencies

Reliant Mission may accept gifts of cryptocurrencies after due diligence is performed to determine that the asset is able to be transferred and liquidated. Cryptocurrencies including but not limited to Bitcoin, Ethereum, Cardano, Litecoin, Bitcoin Cash, Polkadot, Stellar, etc. that are commonly traded represent assets that are able to be transferred and liquidated. Other less traded and less liquidable cryptocurrencies will be assessed on a case-by-case basis to see if it is acceptable as a donation through our platform. It will be Reliant’s policy to sell digital assets immediately upon receipt, particularly because the price of these assets can be extremely volatile.

Miscellaneous Provisions

Securing appraisals and legal fees for gifts to Reliant

It shall be the responsibility of the donor to secure an appraisal (where required) and independent legal counsel (where required) for all gifts made to Reliant.

Valuation of gifts for development purposes

Reliant shall record a gift received by Reliant at its valuation for gift purposes on the date of gift. Valuation of gifts shall be made using proper appraisal services, comparisons of like property, and other procedures that are deemed necessary by the Director of Organizational Affairs.

Responsibility for IRS Filings upon sale of gift items

Reliant is responsible for filing IRS Form 9292 upon the sale or disposition of any asset sold within two years of receipt by Your Organization where the charitable deduction value of the item was greater than $5,000. Reliant must file this form within 125 days of the date of sale or disposition of the asset.

Acknowledgement

Acknowledgement of all gifts made to Reliant and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of the Director of Organizational Affairs.

Undue Influence

It is Reliant's policy that no donor gift to Reliant, whether restricted or unrestricted in nature, shall be permitted to afford undue influence to that donor with respect to strategic, policy, philosophical or practical ministry decisions by Reliant Board members, executives, employees or grant beneficiaries. In the event that Reliant perceives that a gift is being or has been given by a donor with the intent to exercise such influence, Reliant shall graciously decline that gift or, if already received, promptly return that gift to the donor.

Management and Board Approval Process

In order for a gift to be properly receipted by Reliant, the project, ministry, or program must be approved by Reliant. The Board authorizes the Executive Management Committee of Reliant to raise and spend up to $25,000 per year for each Reliant project, ministry, or program consistent with the mission of Reliant (including grants to Reliant affiliated churches and other ministries with purposes consistent with Reliant's). All such projects, ministries or programs will need to be first approved by the Executive Management Committee, before any gift can be properly receipted by Reliant. (The $25,000 limit is after deduction or net of any administration costs for fundraising.) Projects, ministries or programs that require Reliant to raise and spend more than $25,000 per year (either directly or by grant to an affiliated Reliant church or other ministry with purposes consistent with Reliant's), will require additional specific Board approval before any gift can be receipted by Reliant. If there is a situation of a project, ministry or program that requires raising and spending more than $25,000, and the formal Board approval process could adversely delay the raising funds for the ministry or project, then the Board authorizes the Chairman of the Board and the Chairman of the Audit Review Committee to give preliminary Board level approval for the project, ministry or program. (Both persons must approve the project, ministry or program). Then official Board approval must still be obtained. The Board reserves the right to overturn any prior approval received by the Board Chairman and the Audit Review Committee Chairman. Also, as with all funds granted by Reliant, they would be subject to Reliant's Grant Making Policy. Reliant would require that each church or ministry submit a full accounting in writing for how the funds were ultimately used. Reliant reserves the right to obtain a return of any funds not used for the purpose for which they were raised or granted, in accordance with IRS and ECFA rulings on charitable fundraising.

Related Pages: 

Ethical and Legal Gift Requirements