Groundswell
Gift Policies and Procedures
Groundswell is a non-profit, tax-exempt charitable organization and is approved as a 501(c)(3) organization under the Internal Revenue Code. Qualifying contributions are tax-deductible.
Groundswell handles charitable contributions according to Internal Revenue Code and in accordance with philanthropic solicitation and stewardship guidelines established by the Association for Fundraising Professionals (AFP) Code of Ethical Standards.
I. Gift Restrictions, Preferences, and Donor Involvement and Recognition
Groundswell will not accept any gift that contains unlawful restrictions.
Groundswell accepts only unrestricted charitable gifts to its Annual Operating Fund.
To be considered a tax-deductible gift for charitable purposes, a gift may not allow the donor (whether individual, organization, or corporation) to retain any explicit or implicit control over the use of a gift after acceptance by the organization. For example, no language may be inserted into the gift agreement that permits the donor to:
designates an individual recipient, or relative of the donor as a recipient of the program, event, activity, award, or other type of gift;
affect the future employment of the recipient; except where such restriction is consistent with the purpose of the establishment of the award and does not inure to the benefit of the donor or any other private individual or corporation;
require repayment of the donated funds or their proceeds;
allow the donor to derive personal benefit from the gift.
Is likely to undermine or negatively impact the image, reputation or public respect for Groundswell and/or its programs;
Could be perceived by the public to be an endorsement of a partisan political or ideological position;
Creates or is likely to lead to a conflict of interest;
Is likely to be perceived as controversial or divisive in the communities Groundswell serves.
A naming or corporate branding may be revoked at any time if the named individual, family, foundation, or corporation behaves in a manner that is inconsistent with the terms stated above.
Recognition of the donor by use of the donor’s personal name or corporate logo in the naming or sponsorship of a program or activity--including online recognition, social media mentions, print publications, event inclusion or invitation, branding at events, etc.--is not considered a substantial return benefit or substantial receipt of goods or services.
II. Documentation of Gifts to Groundswell
All gifts to Groundswell shall be considered to be unrestricted and expendable in the calendar year in which it is given.
All gifts will be promptly acknowledged with the appropriate receipt for tax purposes.
Non-cash in-kind gifts require that the donor independently values the non-cash gift for contribution and tax deduction purposes; therefore, the Organization’s tax receipt will contain only a description of the non-cash contribution, not its value.
III. Gift Types and Minimums for Namings or Corporate Branding of a Groundwell Program or Activity.
For purposes of conciseness, “namings” in this document refers to the use of an individual, family, fy foundation, or other non-corporate name in the one-year naming of a Groundwell Program. “Corporate branding” in this document refers to the use of a corporate name and logo in the one-year naming of a Groundswell program. In virtually all instances, donor and corporate names/logos will be paired with the Groundswell name. EXAMPLE: “The Groundswell Young Gardeners Program supported by Bob and Penny Schmidt.” Corporate brandings typically include the corporation’s name and its logo. EXAMPLE: “The Groundswell Young Gardeners Program supported by Organic Seed Company [logo].”
New expendable, unrestricted gifts that conform to the gift types and minimums as described in the current Groundswell gift opportunities menu may be utilized as part of Groundswell’s donor recognition practices for naming or corporate branding the program, event or other activity that the gift supports.
Namings/ Corporate brandings are in effect only for the calendar year that the gift is given and supports the named activity. Being able to name or corporate brand a Groundswell program, event, or activity occurs only after the receipt of the necessary funds, not before.
All namings/corporate brandings are subject to approval by the Executive Director and should reflect the vision, mission, values, integrity and character of the organization.
Namings or sponsorships of programs or other Groundswell activities may require language that recognizes additional, collaborating, or secondary gift support, underwriting or sponsorships by other organizations. For example, a broad umbrella program named/ corporate branded in recognition of a gift may also have multiple activities operating under the umbrella of the program that may be named/receive corporate branding by other donors. These multiple, tiered, or collaborative gift contributions and their accompanying recognitions will be clearly discussed in advance with donors as necessary.
Individuals other than the named donor may contribute to any existing naming or corporate branding gift, or a pool of donors may contribute together to create a naming or sponsorship/underwriting gift.
VII. Personal Property, In-Kind Gifts, and other common Non-Cash Contributions
Although Groundswell’s preference is for cash gifts, certain non-cash contributions may be accepted, subject to approval by the President of the Organization. The most common non-cash contributions are gifts-in-kind, gifts of personal property, and contributed services (which are not counted as gifts)
Gifts-in-kind are generally defined as non-cash donations of materials or long-lived assets, other than real and personal property. Gifts-in-kind might include such items as equipment, software, printed materials, food or other items used for hosting dinners, etc. Gifts-in-kind usually (although not always) come from companies, corporations, or vendors, in contrast to individuals, who typically give personal or real property.
Gifts of Real or Personal Property: IRS Code requirements for gift substantiation note that the donor has the responsibility for independently valuing property for contribution and tax deduction purposes.
Large gifts of real estate or other privately held non-cash gifts such as privately held stock, life insurance, or substantial tangible personal property (boats, land, homes) must be first approved by the President of the Organization. Gifts of real or personal property are typically liquidated.
For smaller personal property contributions, such as those of supplies or equipment, the donor will receive an in-kind receipt from Groundswell that does NOT list the value of the item donated.
Contributed Services. The value of a person’s or organization’s time or service is not considered a charitable contribution, regardless of whether the individual assists as a volunteer or as a professional providing a specialized service (e.g., accounting, legal work, consulting, or printing).
Individuals providing professional services are encouraged to bill the Organization for the service, accept payment from the institution, and then make an equivalent cash gift to the institution. This cash donation is usually 100 percent tax-deductible. In contrast, an individual could not claim the same deduction for their time.
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Donor questions regarding cash or non-cash gifts may be directed to info@groundswellgalveston.com