In the midst of a nation-wide housing crisis, Bridge of Hope is inviting supporters who own property to make the gift of rental housing, which will allow Bridge of Hope to use the property for affordable housing for families facing homelessness, as long-term stable rental units.
3 reasons to gift real estate:
- No more real estate taxes
- No more maintenance headaches or the hassle of selling
- Property can immediately be used for a purpose you believe in – fair and affordable rental housing
Bridge of Hope’s board of directors recently updated our Gift Acceptance Policy, which is as follows:
GIFT ACCEPTANCE POLICY
Bridge of Hope, a public charity headquartered in Exton, Pennsylvania, encourages the solicitation and acceptance of donor gifts that will help Bridge of Hope fulfill and further its mission. The following policies and guidelines govern the acceptance of proposed gifts to Bridge of Hope for the purpose of supporting its programs and services or contributing to its endowment.
The purpose of this Gift Acceptance Policy (“Policy”) is to inform prospective donors and their advisors of the types of gifts that Bridge of Hope accepts and to set forth the criteria that Bridge of Hope uses to determine whether a proposed gift is acceptable. This Policy shall apply to all gifts offered to Bridge of Hope for any of its programs or services. However, while this Policy establishes best practices, it is intended to be flexible and to allow the Gift Acceptance Committee to consider proposed gifts on a case-by-case basis.
II. Gift Acceptance Committee
Final authority on whether to accept or reject a gift rests with the Gift Acceptance Committee, which is appointed by the Board of Directors. All restricted gifts that are outside of budgeted expenses, and gifts of non-cash property will be reviewed by the Gift Acceptance Committee. Unrestricted cash gifts will generally be accepted by the CEO, without review by the Gift Acceptance Committee. Unrestricted gifts and gifts for specific programs and purposes will generally be accepted if they are consistent with Bridge of Hope’s mission, purposes, and priorities. The Gift Acceptance Committee reserves the right to reject both restricted and unrestricted gifts if they are inconsistent with Bridge of Hope’s mission, purposes, or priorities. In addition, the Gift Acceptance Committee may reject gifts that are determined to be too difficult to administer, are too difficult to convert to cash, or have originated from an inappropriate source.
III. Review and Approval of Gifts
All gifts, other than unrestricted gifts of cash or gifts designated for specific budgeted projects already approved by the board, require the CEO to obtain approval from the Gift Acceptance Committee prior to acceptance. When appropriate, the Gift Acceptance Committee may obtain guidance and assistance from accountants, legal counsel, or other financial professionals, as set forth in more detail below. The CEO may accept unrestricted gifts of cash without prior review by the Gift Acceptance Committee.
IV. Types of Gifts
Bridge of Hope accepts current and deferred gifts from individuals, corporations, and foundations. Gifts may be made by cash, check, credit/debit card, Qualified Charitable Distributions from IRAs, Donor Advised Funds, digital platform services, and stock donations. Bridge of Hope accepts annuities, gifts of real estate, lead and remainder interests in charitable trusts, bequests under wills, and other types of planned gifts. Gifts are also accepted in honor or memory of a family member or loved one. Monetary gifts received by Bridge of Hope are deposited and promptly acknowledged in writing, generally within seven days of receipt. Specific types of gifts that may be accepted include, but are not limited to, the following:
- Tangible personal property;
- Interests in closely-held companies;
- Life insurance policies;
- Life insurance policy proceeds pursuant to a beneficiary designation;
- Retirement plan benefits pursuant to a beneficiary designation;
- Charitable gift annuities;
- Interests in charitable trusts;
- Property conveyed in a bargain sale;
- Real estate, including remainder interests in real estate;
- Intellectual property; and
- Digital assets, including cryptocurrency and non-fungible tokens.
V. Guidelines for Real Estate
Gifts of real estate may include improved or unimproved property, and property subject to a life estate (i.e., an interest that is payable during life but ceases with death). Fractional interests in property will not be accepted. Prior to acceptance, a gift of real estate must first be valued by a qualified independent appraiser, at the expense of the donor. Also prior to acceptance, Bridge of Hope shall require an environmental review of the property to ensure that there is no environmental contamination or damage. If the initial review reveals a potential problem, Bridge of Hope shall retain a qualified inspection firm to conduct an environmental audit. The donor must bear the cost of the environmental audit.
In the discretion of the Gift Acceptance Committee, a title binder (temporary form of real estate insurance coverage related to the transfer of ownership to protect both the seller and buyer of real property during the transitional phase of a sale when insurance policies do not overlap) may be required and, if so, shall be obtained by Bridge of Hope prior to the acceptance of the real estate gift. The cost of the title binder shall be negotiated between Bridge of Hope and the donor.
The Gift Acceptance Committee may consider the following factors, among others, when determining whether to accept a gift of real estate:
- Usefulness of the property relative to the Bridge of Hope mission;
- Marketability of the property;
- Whether the property is used to secure debt or is otherwise encumbered;
- Restrictions, reservations, easements, liens, or other limitations associated with the property;
- Whether the property is subject to an existing lease;
- Whether a home owners association (HOA) agreement applies;
- Carrying costs, including taxes and insurance, and expenses for upkeep and maintenance of the property; and
- Results of the environmental audit.
VI. Use of Legal Counsel
When appropriate, the Gift Acceptance Committee will seek the advice of legal or other professional counsel regarding the acceptance of gifts. Review by counsel is recommended for the following transactions:
- Transfers of interests in a closely-held company, regardless of whether such interests are subject to restrictions or buy-sell agreements;
- Documents naming Bridge of Hope as Trustee;
- Gifts involving contracts, such as bargain sales;
- Agreements requiring Bridge of Hope to assume an obligation;
- Gifts of any interest in real estate;
- Gifts of cryptocurrency and non-fungible tokens; and
- Any transfer with the potential to trigger tax on prohibited transactions under the Internal Revenue Code.
VII. Conflicts of Interest
Bridge of Hope will urge all prospective donors to seek the assistance of personal, legal, and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. Bridge of Hope will comply with the Model Standards of Practice of the Charitable Gift Planning promulgated by the National Committee on Planned Giving.
VIII. Donor Communications
Bridge of Hope holds all communications with donors and information concerning donors and prospective donors in strict confidence, subject to legally authorized and enforceable requests for information by government agencies and courts. All other requests for or releases of information concerning a donor or a prospective donor will be granted only if permission is first obtained from the donor.
IX. Responsibility for IRS Filings
Except as otherwise required to comply with current law, Bridge of Hope or a designated professional firm will file IRS Form 8282 upon the sale or disposition of any asset within three years of receipt by Bridge of Hope when the charitable deduction value of the item as reported by the donor on Form 8283 is more than $500. Bridge of Hope must file this form within 125 days of the date of sale or disposition of the asset.
Approved by the Board October 2003