Professional Documents
Culture Documents
LAUSANNE COLLEGIATE SCHOOL
GIFT POLICIES
NOVEMBER, 2007
CONTENTS
GIFT ACCEPTANCE ................................................................................................................................................................. 1
MEMORIAL OR TRIBUTE FUNDS ...................................................................................................................................... 2
GIFT NAMING ............................................................................................................................................................................ 2
PLANNED GIVING .................................................................................................................................................................... 3
LAUSANNE OPERATING PRINCIPLES AND ETHICAL STANDARDS ................................................................... 7
PRINCIPLES OF GOOD PRACTICE FUND RAISING ..................................................................................................... 8
AFP STATEMENT OF ETHICAL PRINCIPLES ................................................................................................................ 9
A DOOR BILL OF RIGHTS .................................................................................................................................................... 10
MODEL STANDARDS OF PRACTICE FOR THE CHARITABLE GIFT PLANNER ............................................. 11
GIFT ACCEPTANCE
Lausanne Collegiate School (“the School”) is deeply appreciative of donors who make the School a
priority when planning their charitable contributions. The School gladly accepts donations for the
support of its students, programs and facilities that are in keeping with the vision and mission of
the School. The following is meant to be a set of guidelines for the evaluation and acceptance of
donations.
While authority to accept all proffered gifts to Lausanne Collegiate School is vested in the School’s
Board of Trustees, the Board has delegated such authority as follows:
a. The School’s Assistant Headmaster ‐School Advancement with the approval of the
Headmaster shall have the authority to accept gifts of cash, cash equivalents, marketable
securities and gifts in kind to be used in the operations or activities of the School.
b. The Assistant Headmaster ‐School Advancement, with the approval of School Counsel, shall
have authority to accept gifts by charitable lead trusts and charitable remainder trusts, gift
annuities, and of life insurance.
c. The Assistant Headmaster ‐School Advancement, in consultation with the Advancement
Committee and Board of Trustees shall have authority to accept all other gifts, e.g.,
stock/interests in closely held companies, real estate (provided that there is an
accompanying clean Phase I environmental report thereon), artwork and “bargain sales”.
Gifts in paragraph c. above generally will need to be supported by a reliable appraisal; whereas, the
School will provide receipts for the value of gifts of the type specified in paragraphs a. and b. above.
As a general rule, the School will sell all marketable gift property (e.g., publicly traded securities) as
soon as practicable, and the School will not assume debt or other obligations or expenses
attributable to proposed gifts. Variances from these policies will require approval of the
Advancement Committee and/or Board of Trustees.
Disclaimers of testamentary gifts to the School must be made within nine months of the donor’s
date of death.
School Counsel will be available to assist on any gift questions or needed documentation (e.g.,
preparation of trust agreements); however, all donors are strongly encouraged to seek their own
legal and/or tax advice.
The School’s Board of Trustees retains the right and authority to alter, amend or revoke the
foregoing gift acceptance policies at any time and from time to time.
1
MEMORIAL OR TRIBUTE FUNDS
Donors may give “Memorial and Tribute Gifts” to Lausanne Collegiate School in two separate ways:
a. Class A Memorial/Tribute Gifts are given as part of an ongoing program or campaign such
as the Lausanne Collegiate Fund or a Capital Campaign. If the donor has requested a
memorial or tribute with the gift, the School will use the funds for the program for which
the donor was solicited, unless otherwise directed by the donor.
b. Class B gifts are given especially in memory of or in tribute to an individual and not as a
result of a solicitation for the Lausanne Collegiate Fund or Capital Campaign. Class B gifts
will be placed in a restricted account until such time as the family of the decedent or the
individual being honored makes a decision as to the disposition of the funds. The family
normally works with the Advancement Office to determine how to match their wishes with
the needs of the School. In cases where the family wishes would fall outside normal School
projects and would entail a change of program or policy, procedures outlined in the School’s
Gift Acceptance Policies will be followed.
GIFT NAMING
a. Donors wishing to name spaces and/or endowments may do so using guidelines approved
by the Advancement Committee and administered by the Assistant Headmaster ‐School
Advancement.
b. In general, full funding or a binding pledge must be received in order for naming rights to be
assigned to a building space. Full funding or a binding pledge with 50% of funding must be
obtained for naming rights for an endowment. Exceptions for either of these guidelines can
only be made by the Board of Trustees. Failure to fulfill a binding pledge will result in
forfeiture of naming rights.
c. Naming rights for buildings, spaces within buildings and areas outside within the campus
will be based on an approximation of 50% of the cost of the construction of that space.
d. The following are the guidelines for naming endowments
Plant and $ 100,000 $ 5,000 Endowment must be restricted to underwriting the
Facility operations and maintenance of an existing building or
Endowment athletic venue on campus or a building or athletic venue
which is under construction and approved by the Board of
Trustees
Financial Aid $ 75,000 $ 3,750 Endowment must be restricted to underwriting need‐based
Fund financial aid for general distribution by the School and may
not be set aside for a specifically identified student. Criteria
for the award restricting it to a student of a particular
talent, etc, may be part of the endowment, pending
approval by the School.
Program $ 50,000 $ 2,500 Endowment restricted to funding all or
Endowment portion of a program at the School. Such funding could
range from underwriting materials used in an existing
program to funding all of the expenses, including salaries
incurred by the program. Programs could be part of the
School day, and auxiliary offering by the School or a new
program which has received approval by the
Headmaster and Board of Trustees.
Unrestricted $ 50,000 $ 2,500 Gifts to the School's general endowment may be named
Endowment as a separate fund with this minimum gift
Fund
PLANNED GIVING
Introduction
This policy has been formulated as a guide to Lausanne Collegiate School’s planned giving program.
It is to be considered the official policy of the Lausanne Collegiate School’s Board, and is to be
implemented appropriately. Standard accounting principles will govern in all matters related to the
accounting practices of the planned giving program for Lausanne Collegiate School.
Acceptance of Gifts
1. Final acceptance of all gifts will rest with the Lausanne Collegiate School Board of
Trustees. Questions as to the acceptance of individual gifts should be submitted to the
Assistant Headmaster ‐School Advancement of Lausanne Collegiate School. A binding
gift agreement can be transacted at the donor’s option.
2. All gift, pledge and deferred gift commitments to Lausanne Collegiate School will
require formal documentation. Such documentation will usually be a signed and dated
pledge letter or a letter of intent. While a letter of confirmation from a School official to
the donor can confirm deferred gift arrangements, it cannot, in itself, substitute for an
actual pledged commitment of assets.
3. Outright gifts will be reported only when assets are transferred irrevocably to Lausanne
Collegiate School. Life income agreements as deferred gifts are reported only when
assets are transferred in favor of Lausanne Collegiate School. Deferred gifts will be
reported only when a letter of intent is filed.
3
4. All gifts and pledges properly documented and falling into the categories by these
standards shall be reported at the end of the fiscal year as follows:
a. A total of outright gifts and pledges;
b. A total of deferred gifts;
c. The grand total of all gifts, outright and deferred.
5. Lausanne Collegiate School will seek the advice of legal counsel in all matters pertaining
to planned giving and will execute no planned giving agreement without the advice of
our legal counsel. All agreements shall follow the format of the specimen agreements
approved by our legal counsel. All prospective donors shall be urged to seek their own
counsel in matters relating to their planned gifts, tax and estate planning.
6. Tax Aspects of Giving – Tax valuation and reporting requirements are complex subjects,
and donors should be encouraged to seek the advice of competent tax experts to obtain
the maximum tax benefit from their giving. It is important to note, however, that the tax
benefit of gifts made during the donor’s lifetime may reduce income taxes, and/or estate
taxes. Questions of a general nature concerning taxes should be referred to the Assistant
Headmaster ‐School Advancement. Specific tax advice most appropriately rests with the
donor’s own advisors.
Valuation of Gifts for Reporting Purposes
1. Cash Gifts – Gifts by cash, check or charge card will be credited at face value.
2. Marketable securities – Securities traded on the New York Stock Exchange, the
American Stock Exchange or the NASDAQ National Market will be accepted as outright
gifts or payments toward pledges. Such gifts will be valued at the average of the
high/low market value on the date of the gift.
3. Closelyheld securities – Securities not included in “Marketable securities” as defined
above may be accepted at the discretion of the Lausanne Collegiate School Board of
Trustees, and must be accompanied by an independent qualified appraisal from the
donor.
4. Tangible personal property – Gifts of tangible personal property will be accepted after
review by the Assistant Headmaster ‐School Advancement and approval of the Board of
Trustees, and will require an independent appraisal of the value of the gift for purposes
of the donor’s tax return. If restrictions are imposed by the donor on the use or
disposition of the gift, it will be accepted only if any expenses required by the
restrictions are underwritten by the donor or are determined to be reasonable by the
Board.
5. Real estate – Outright gifts of the donor’s entire interest in a property, or gifts with a
reserved life interest by the donor, will be accepted under conditions to be determined
after review by the Assistant Headmaster ‐School Advancement and approval by the
Board of Trustees. The fair market value of the gift of real estate will be determined by
an independent appraisal obtained by the donor. Gifts of real estate must be tested to be
in conformity with state and federal laws, including EPA regulations and the donor must
provide satisfactory evidence of environmental compliance. Gifts subject to a reserved
life estate shall include an obligation on the part of the life tenant to bear all expenses
connected with the property during the life tenancy.
6. Gifts in kind Gifts in kind for which donors are eligible for a charitable gift deduction
in accordance with current IRS regulations should be reported by the donor to the IRS
4
at the fair market value placed on them by an independent, expert appraiser. The School
will not provide the donor with such valuation.
7. Bequests
a. Outright Gifts: Distributions from estates and trusts received by Lausanne Collegiate
School can be counted during toward the current year’s giving records.
Distributions expected to be received during the year may be counted if confirmed
in writing by executors or trustees.
b. Deferred Gifts: Newly established or newly confirmed bequests will be counted as
deferred gifts in School records. All bequest provisions instituted by donors who
will reach age 70 by the end of the current fiscal year shall be credited at their full
estimated face value when proper documentation of the bequest commitment has
been completed. Similar bequests from individuals who will be younger than age 70
at the end of the fiscal year may be credited with proper documentation, but at the
following percentages of the total estimated value of the bequest:
i. Age65‐70...............Count100%
ii. Age60‐65...............Count90%
iii. Age55‐60...............Count80%
iv. Age50‐55...............Count70%
v. Bequests from people below the age of 50 will be gratefully acknowledged
but will not be counted toward the deferred gift totals for the fiscal year.
8. Life Insurance – Gifts of new or existing permanent life insurance policies naming
Lausanne Collegiate School as the owner and irrevocable beneficiary of the policies will
be credited to the deferred gifts total for the fiscal year:
a. The cash value of paid‐up policies on the date of the assignment;
b. The cash value plus the total amount of premium payments made during the fiscal
year on those polices not yet paid‐up;
c. Newly established policies on which the donor pledges to make premium payments.
The amount of the gift for the deferred gift report for the fiscal year shall be based
upon the death benefit payable at the normal mortality date projected on the
premium payments pledged but discounted for the age of the insured at the date of
the gift. If the insured is 65 years of age on the date the policy becomes owned by
Lausanne Collegiate School, the full projected death benefit shall be counted. A
decreasing percentage of the projected benefit shall be counted for younger insured
as follows
i. Age60‐65...............Count90%
ii. Age55‐60...............Count80%
iii. Age50‐55...............Count70%
Annuities and Trusts
Note: The following gift arrangements involve the donor, Lausanne Collegiate School and a third party acting as trustee. In
the case of CRUT and CRAT arrangements, the School will not act as trustee in any case. The School is currently investigating
issuing Gift Annuities. We do not participate in Pooled Income Funds.
1. Charitable Remainder Unitrusts – Generally, the School does not negotiate for
Charitable Remainder Trusts under the amount of $50,000. Further, the fixed
5
percentage to be paid shall be within IRS guidelines. No beneficiary shall be under the
age of twenty‐five (25) and the maximum number of beneficiaries shall be two (2).
2. Charitable Remainder Annuity Trusts – Generally, the School does not negotiate for
Charitable Remainder Trusts under the amount of $50,000. Further, the fixed dollar
amount to be paid annually shall be within boundaries set by the IRS. No beneficiary
shall be under the age of twenty‐five (25) and the maximum number of beneficiaries
shall be two (2).
3. Charitable Gift Annuities – No gift annuity shall be issued for an amount of less than
$5,000.00 or for the life of an individual under twenty‐five (25) years of age. No gift
annuity agreement shall be for more than two lives and no exception shall be made to
this requirement, otherwise, under law, Lausanne Collegiate School will be taxed on a
large part of the gift’s earnings. No gift annuity agreement shall be issued unless the
charitable gift, computed using the government tables, exceeds 10% of the amount
transferred for the annuity. No exception shall be made to this requirement, otherwise
the School will be taxed on a large part of the gift’s earnings. The School shall follow any
state law rate requirements.
4. Deferred Payment Charitable Gift Annuities – No deferred payment gift annuity shall
be issued for an amount less than $5,000.00 or for the life of an individual under
twenty‐five (25) years of age; and the period of deferral between the transfer for the
deferred payment annuity and the date the annuity payments start shall be no more
than thirty (30) years. No deferred payment gift annuity agreement shall be for more
than two lives and no exception shall be made to this requirement, otherwise under the
tax law, Lausanne Collegiate School will be taxed on a large part of the gifts earnings. No
deferred payment annuity agreement shall be issued unless the charitable gift,
computed using government tables, exceeds 10% of the amount transferred for the
annuity. No exception shall be made to this requirement, otherwise, the School will be
taxed on a large part of the gift’s earnings. The School shall follow any state law rate
requirements.
5. Revocable Charitable Remainder Trusts – Generally, the School does not negotiate
for Charitable Remainder Trusts under the amount of $50,000. Further, the trust shall
not be for more than two (2) lives and the youngest beneficiary shall be no younger
than twenty‐five (25) years of age.
6. Expenses Related to Gifts – Except in highly unusual circumstances, all appraisals,
estimates of value, tax advice, transfer costs or other expenses related to a gift or pledge
shall be borne by the donor. In the case of highly unusual circumstances, the Assistant
Headmaster ‐School Advancement may recommend that Lausanne Collegiate School
bear some specific expenses. Final approval of the decision to bear such expenses shall
rest with the Board of Trustees.
6
LAUSANNE OPERATING P RINCIPLES AN D ETHICAL STANDARDS
November, 2007
Lausanne Collegiate School’s Mission Statement
Lausanne Collegiate School, founded in 1926, is an independent nonsectarian college preparatory
School for boys and girls in grades PreK through 12th, dedicated to preparing every individual
student for college and life in a global environment.
Advancement Office Mission Statement
The Advancement Program at Lausanne Collegiate School will provide the human and financial
resources necessary to assure the future viability of Lausanne Collegiate School. To accomplish this
aim it will:
• Honor the past through our alumni and alumni parents and through valuing the traditions
of our School
• Celebrate the present through marketing our School, admitting qualified students and
taking an active role in the day‐to‐day life of our students
• Imagine the future through strategic planning and a broadly‐based donor‐centered approach to
fund‐raising.
As Advancement Staff we must
1. Abide by the NAIS Principles of Good Practice in Fundraising , the AFP Donor Bill of Rights
and the AGCA and the NPCG Model Standards Of Practice For The Charitable Gift Planner
2. Recognize that we represent both the donor’s and the School’s interest and as such must
behave at all times in the most ethical fashion possible.
3. Model the School’s behavior standard of Knowledge, Truth, and Honor.
4. Protect the donor’s confidentiality at all times
5. Provide conscientious and appropriate recognition and stewardship for our donors and
volunteers
6. Become servant leaders for all members of the Lausanne community
7. Be energetic and enthusiastic promoters of the School
8. Value and cultivate our alumni
9. Be accurate and accountable in our reporting
7
PRINCIPLES OF GOOD PRACTICE FUND RAISING
Revised and approved by the NAIS board in June 2006.
The advancement program of the School should exemplify the best qualities of the institution and
reflect the highest standards of personal and professional conduct. The following Principles of Good
Practice are addressed to those involved in the School's advancement operation ‐‐trustees, School
heads, development and alumni/ae officers and staff, volunteers, consultants, and business officers.
1. The School establishes a well‐constructed development plan to guide its fund‐raising
activities.
2. The School is mindful and respectful of the cultural and economic diversity of constituent
supporters.
3. The School accepts only gifts that support its mission, character, integrity, and
independence.
4. The School understands that accepting a gift is accepting the obligation to honor the donor's
intent.
5. The School advocates stewardship (preserving and growing the resources of the School), as
well as nurtures, appreciates, and sustains an ongoing healthy and effective relationship
with its constituents.
6. The School clearly articulates roles and responsibilities for volunteers.
7. The School safeguards its constituents' privacy and all confidential information.
8. The School encourages donors to consult with their own professional tax advisors when
making charitable gifts.
9. The School complies with all provisions of the U.S. Tax Code that affect charitable giving.
10. The School, as appropriate discloses to its constituents gifts received through philanthropy.
11. To ensure financial sustainability, the School makes certain that income earned from
endowment is spent wisely and equitably. In doing so, the School ensures that endowments
maintain their real value over the years so that future generations benefit as much or more
from endowment as current and past generations.
12. The School adheres to accepted standards concerning the management and reporting of gift
revenues and fund‐raising expenditures, and seeks to promote the profession by sharing its
data with relevant professional organizations, such as The Council for Advancement and
Support of Education (CASE), Council for Aid to Education (CAE), and NAIS.
The NAIS Principles of Good Practice for member Schools define high standards and ethical
behavior in key areas of School operations to guide Schools in becoming the best education
communities they can be. Accordingly, membership in NAIS is contingent upon agreement to abide
by "the spirit" of the PGPs. Principles are precepts grounded in an ethic and ethos of “doing the
right thing.” Practices are common activities.
8
AFP STATEMENT OF ETHICAL PRINCIPLES
Adopted 1964, Amended October 2004
The Association of Fundraising Professionals (AFP) exists to foster the development and growth of fundraising professionals and the profession, to promote
high ethical standards in the fundraising profession and to preserve and enhance philanthropy and volunteerism. Members of AFP are motivated by an inner
drive to improve the quality of life through the causes they serve. They serve the ideal of philanthropy; are committed to the preservation and enhancement
of volunteerism; and hold stewardship of these concepts as the overriding principle of their professional life. They recognize their responsibility to ensure
that needed resources are vigorously and ethically sought and that the intent of the donor is honestly fulfilled. To these ends, AFP members embrace certain
values that they strive to uphold in performing their responsibilities for generating philanthropic support. Amended October 2004
AFP members aspire to: 4.Members shall comply with all applicable local, state,
• practice their profession with integrity, honesty, provincial, federal, civil and criminal laws
truthfulness and adherence to the absolute obligation to 5. Members recognize their individual boundaries of
safeguard the public trust; competence and are forthcoming and truthful about their
• act according to the highest standards and visions of their professional experience and qualifications.
organization, profession and conscience;
SOLICITATION AND USE OF PHILANTHROPIC FUNDS
• put philanthropic mission above personal gain;
6. Members shall take care to ensure that all solicitation
• inspire others through their own sense of dedication and
materials are accurate and correctly reflect the
high purpose; organization’s mission and use of solicited funds
• improve their professional knowledge and skills so that 7. Members shall take care to ensure that donors receive
their performance will better serve others; informed, accurate and ethical advice about the value and
• demonstrate concern for the interests and well being of tax implications of contributions
individuals affected by their actions; 8. Members shall take care to ensure that contributions are
• value the privacy, freedom of choice and interests of all used in accordance with donors’ intentions
those affected by their actions; 9. Members shall take care to ensure proper stewardship of
• foster cultural diversity and pluralistic values, and treat all philanthropic contributions, including timely reports on the
people with dignity and respect; use and management of such funds
• affirm, through personal giving, a commitment to 10. Members shall obtain explicit consent by the donor before
philanthropy and its role in society; altering the conditions of contributions.
• adhere to the spirit as well as the letter of all applicable
PRESENTATION OF INFORMATION
laws and regulations;
11. Members shall not disclose privileged or confidential
• advocate within their organizations, adherence to all
information to unauthorized parties
applicable laws and regulations; 12. Members shall adhere to the principle that all donor and
• avoid even the appearance of any criminal offense or prospect information created by, or on behalf of, an
professional misconduct; organization is the property of that organization and shall
• bring credit to the fundraising profession by their public not be transferred or utilized except on behalf of that
demeanor; organization.
• encourage colleagues to embrace and practice these ethical 13. Members shall give donors the opportunity to have their
principles and standards of professional practice; and names removed from lists that are sold to, rented to, or
• be aware of the codes of ethics promulgated by other exchanged with other organizations.
professional organizations that serve philanthropy. 14. Members shall, when stating fundraising results, use
accurate and consistent accounting methods that conform
to the appropriate guidelines adopted by the American
STANDARDS OF PROFESSIONAL PRACTICE Institute of Certified Public Accountants (AICPA)* for the
Furthermore, while striving to act according to the above values, AFP type of organization involved. (* In countries outside of the
members agree to abide by the AFP Standards of Professional Practice, United States, comparable authority should be utilized.)
which are adopted and incorporated into the AFP Code of Ethical COMPENSATION
Principles. Violation of the Standard may subject the member to 15. Members shall not accept compensation that is based on a
disciplinary sanctions, including expulsion, as provided in the AFP percentage of contributions; nor shall they accept finder’s
Ethics Enforcement Procedures. fees.
16. Members may accept performance‐based compensation,
PROFESSIONAL OBLIGATIONS such as bonuses, provided such bonuses are in accord with
Members shall not engage in activities that harm the member’s prevailing practices within the members’ own
organization, clients, or profession. organizations, and are not based on a percentage of
1. Members shall not engage in activities that conflict with contributions.
their fiduciary, ethical and legal obligations to their 17. Members shall not pay finder’s fees, or commissions or
organizations and their clients. percentage compensation based on contributions, and shall
2. Members shall effectively disclose all potential and actual take care to discourage their organizations from making
conflicts of interest; such disclosure does not preclude or such payments.
3.
imply ethical impropriety.
Members shall not exploit any relationship with a donor,
prospect, volunteer or employee for the benefit of the
member or the member’s organization.
9
A DOOR BILL OF RIGHTS
PHILANTHROPY is based on voluntary action for the common good. It is a tradition of giving and
sharing that is primary to the quality of life. To assure that philanthropy merits the respect and
trust of the general public, and that donors and prospective donors can have full confidence in the
not‐for‐profit organizations and causes they are asked to support, we declare that all donors have
these rights:
1. To be informed of the organization’s mission, of the way the organization intends to use
donated resources, and of its capacity to use donations effectively for their intended
purposes.
2. To be informed of the identity of those serving on the organization’s governing board, and
to expect the board to exercise prudent judgment in its stewardship responsibilities
3. To have access to the organization’s most recent financial statements.
4. To be assured their gifts will be used for the purposes for which they were given.
5. To receive appropriate acknowledgement and recognition.
6. To be assured that information about their donations is handled with respect and with
confidentiality to the extent provided by law.
7. To expect that all relationships with individuals representing organizations of interest to
the donor will be professional in nature.
8. To be informed whether those seeking donations are volunteers, employees of the
organization or hired solicitors
9. To have the opportunity for their names to be deleted from mailing lists that an
organization may intend to share.
10. To feel free to ask questions when making a donation and to receive prompt, truthful and
forthright answers.
DEVELOPED BY American Association of Fund Raising Counsel (AAFRC) Association for Healthcare Philanthropy (AHP) Council for
Advancement and Support of Education (CASE) Association of Fundraising Professionals (AFP)
10
MODEL STANDARDS OF PRACTICE FOR THE CHARITABLE GIFT
PLANNER
The American Council on Gift Annuities and the National Committee on Planned Giving, May, 1991
PREAMBLE
The purpose of this statement is to encourage responsible gift planning by urging the adoption of the following Standards of Practice by
all individuals who work in the charitable gift planning process, gift planning officers, fund raising consultants, attorneys, accountants,
financial planners, life insurance agents and other financial services professionals (collectively referred to hereafter as "Gift Planners"),
and by the institutions that these persons represent.
This statement recognizes that the solicitation, planning and administration of a charitable gift is a complex process involving
philanthropic, personal, financial, and tax considerations, and as such often involves professionals from various disciplines whose goals
should include working together to structure a gift that achieves a fair and proper balance between the interests of the donor and the
purposes of the charitable institution.
I. PRIMACY OF PHILANTHROPIC Such relationships should be characterized by
MOTIVATION courtesy, tact and mutual respect.
The principal basis for making a charitable gift VI. CONSULTATION WITH INDEPENDENT
should be a desire on the part of the donor to ADVISORS
support the work of charitable institutions. A Gift Planner acting on behalf of a charity shall in all
II. EXPLANATION OF TAX IMPLICATIONS cases strongly encourage the donor to discuss the
proposed gift with competent independent legal and
Congress has provided tax incentives for charitable
tax advisers of the donor's choice.
giving, and the emphasis in this statement on
philanthropic motivation in no way minimizes the
VII. CONSULTATION WITH CHARITIES
Although Gift Planners frequently and properly
necessity and appropriateness of a full and accurate
counsel donors concerning specific charitable gifts
explanation by the Gift Planner of those incentives
without the prior knowledge or approval of the
and their implications.
donee organization, the Gift Planners, in order to
III. FULL DISCLOSURE insure that the gift will accomplish the donor's
It is essential to the gift planning process that the objectives, should encourage the donor, early in the
role and relationships of all parties involved, gift planning process, to discuss the proposed gift
including how and by whom each is compensated, with the charity to whom the gift is to be made. In
be fully disclosed to the donor. A Gift Planner shall cases where the donor desires anonymity, the Gift
not act or purport to act as a representative of any Planners shall endeavor, on behalf of the
charity without the express knowledge and approval undisclosed donor, to obtain the charity's input in
of the charity, and shall not, while employed by the the gift planning process.
charity, act or purport to act as a representative of VIII. DESCRIPTION AND REPRESENTATION OF
the donor, without the express consent of both the GIFT
charity and the donor. The Gift Planner shall make every effort to assure
IV. COMPENSATION that the donor receives a full description and an
Compensation paid to Gift Planners shall be accurate representation of all aspects of any
reasonable and proportionate to the services proposed charitable gift plan. The consequences for
provided. Payment of finders’ fees, commissions or the charity, the donor and, where applicable, the
other fees by a donee organization to an donor's family, should be apparent, and the
independent Gift Planner as a condition for the assumptions underlying any financial illustrations
delivery of a gift are never appropriate. Such should be realistic.
payments lead to abusive practices and may violate IX. FULL COMPLIANCE
certain state and federal regulations. Likewise, A Gift Planner shall fully comply with and shall
commission‐based compensation for Gift Planners encourage other parties in the gift planning process
who are employed by a charitable institution is to fully comply with both the letter and spirit of all
never appropriate. applicable federal and state laws and regulations.
V. COMPETENCE AND PROFESSIONALISM X. PUBLIC TRUST
The Gift Planner should strive to achieve and Gift Planners shall, in all dealings with donors,
maintain a high degree of competence in his or her institutions and other professionals, act with
chosen area, and shall advise donors only in areas in fairness, honesty, integrity and openness. Except for
which he or she is professionally qualified. It is a compensation received for services, the terms of
hallmark of professionalism for Gift Planners that which have been disclosed to the donor, they shall
they realize when they have reached the limits of have no vested interest that could result in personal
their knowledge and expertise, and as a result, gain.
should include other professionals in the process.
11