New Mexico Philharmonic Foundation Gift Acceptance Policy

Purpose.  This gift acceptance policy will provide guidelines to the following:  (a) to the gift  Review committee (“Gift Review Committee”) of the New Mexico Philharmonic Foundation (“Foundation”); the Gift Review Committee will be involved in reviewing the acceptance of gifts to the Foundation, (b) to outside advisors who may assist in the gift planning process, and (c) to prospective donors who may wish to make gifts to the Foundation.  This policy is intended only as a guide and allows for some flexibility on a case-by-case basis.  However, in general, the gift review process outlined here is intended to be followed closely.

Prior to any acceptance of any of the following items as gifts to the Foundation, said items shall be subject to compliance with the applicable conditions set forth below, and said compliance shall be certified by the Gift Review Committee in its sole discretion.

A. Cash

• 1. Except in very unusual circumstances, all gifts by check shall be accepted regardless of amount

1. 2. Checks shall be made payable to the Foundation.  In no event shall a check be made payable to an individual who represents the Foundation, in any capacity.

B. Publicly Traded Securities

1. 1. Readily marketable securities, such as those traded on a recognized stock exchange, can be accepted by the Foundation

2. 2. Usually, for gift crediting and accounting purposes, the value of the gift of securities is the average of the high and low prices on the date the Foundation receives the marketable securities properly endorsed for transfer.

2. 3. A gift of securities to the Foundation normally would be liquidated immediately.  However, if the form or designation of the gift allows the possibility that it will be directed to an endowment fund or other fund, a decision regarding the liquidation of the securities may be deferred by the Gift Review Committee until that determination is made.

C. Closely Held Securities.  Prior to acceptance, the Gift Review Committee will explore methods and timing of liquidation of the closely held securities through immediate redemption or sale.  The Gift Review Committee will:

1. 1. Require confirmation of fair market value through appraisal or other acceptable valuation technique

3. 2. Determine any liens, encumbrances, and restrictions on transfer;

3. 3. Determine whether acceptance may involve, in any way, liability for past or future corporate actions;

3. 4. Determine the tax planning aspects of acceptance; and

3. 5. The foregoing required elements of clauses 1 through 4 shall be at the expense of the donor.

D. Real Estate

1. 1. The donor is responsible for obtaining and paying for an appraisal of the property.  The appraisal will be performed by an independent and professional appraiser, whose qualifications are acceptable to the Gift Review Committee.

4. 2. The appraisal must be based upon a personal visitation and internal inspection of the property by the appraiser.  Also, whenever possible, it must show documented valuation of comparable properties located in the same area.

4. 3. The formal appraisal should contain photographs of the property, the tax map number, the assessed value, the current asking price, a legal description of the property, the zoning status, complete information regarding all mortgages, liens, litigation or title disputes, and any other items determined by the Gift Review Committee.

4. 4. The Foundation reserves the right to require a Phase One and Phase Two environmental assessment or comparable assessment of any potential real estate gift.

4. 5. The property must be transferred to the Foundation prior to any binding contract for any subsequent sale or other disposition being signed by the relevant parties.  Any such contract shall be subject to review and approval by the Gift Review Committee.

4. 6. The donor shall be required to pay for all of the following to the effective date of the gift:

a. Maintenance costs;
b. Real estate taxes;
c. Insurance;
d. Real estate broker’s commission and other costs of sale;
e. Appraisal costs; and
f. Other costs as determined by the Gift Review Committee
g. Provided, however, on advice of counsel, the Foundation may modify any one or more of the foregoing.

4. 7. For gift crediting and accounting purposes, the value of the gift is the appraised value of the real estate; however, this value may be reduced by costs of maintenance, insurance, real estate taxes, broker’s commission, and other expense items.

E. Life Insurance

1. 1. The Foundation can be named a contingent beneficiary or the beneficiary of a percentage of a life insurance policy.

5. 2. If the gift is a paid-up policy, the value for gift crediting and accounting purposes is the policy’s replacement cost.

5. 3. If the policy is partially paid-up, the value for gift crediting and accounting purposes the policy’s interpolated terminal reserve.

F. Tangible Personal Property

1. 1. A gift of jewelry, artwork, collections, equipment, software, and other personal property shall be valued at that amount which may be realized either by being sold or by being used in connection with the Foundation’s exempt purpose.  Said value shall be certified solely by the donor of the personal property.

6. 2. A qualified outside appraiser may be required to determine the value of the personal property.  The cost of the appraisal shall be the responsibility of the donor.

6. 3. The Foundation shall adhere to all requirements of the Internal Revenue Service relating to disposing of gifts of personal property.

6. 4. The donor shall provide credible evidence of the donor’s history of ownership of the tangible personal property.

G. Deferred Gifts

1. 1. The Foundation encourages deferred gifts in its favor through any of a variety of vehicles, including, without limitation:

a. Charitable remainder trust;
b. Charitable lead trust;
c. Bequest;
d.Retained life estate.

7. 2. An employee or supporting member of the Foundation serving as personal representative, trustee, or other fiduciary for a donor does so in a personal capacity, and not as an agent of the Foundation.

7. 3. The Foundation shall not act as trustee of a charitable remainder or charitable lead trust.

7. 4. When donors are provided by the Gift Review Committee with planned gift illustrations or form documents, these may be provided free of charge.  For any planned gift related documents, materials, illustrations, letters or other correspondence, the following disclaimer should be included:

We strongly urge that you consult with your attorney, financial, and/or tax advisor to review and approve this material provided you.  This material in no way constitutes advice.  We will gladly work with your independent advisors to provide reasonable assistance in the planning process.

7. 5. All information obtained from or about donors/prospects shall be held in the strictest confidence by the Foundation, its staff, and volunteers.  Neither the name of the donor, the amount of any gift, nor the conditions of any gift shall be published without the express written or oral approval of the donor and/or beneficiary.

7. 6. The Foundation will seek qualified professional counsel in the exploration and execution of all planned gift agreements.  The Foundation, in all instances, shall be entitled to fair and just remuneration from the donor/prospect for professional services 

H. Non-Designated Gifts.  Any gifts made to the Foundation which are not designated for a specific fund or purpose shall be allocated among funds of the Foundation and its purposes as determined by Board of Directors of the Foundation, in its sole and absolute discretion.

I. General Requirements for All Gifts.  The board of Directors of the Foundation, upon the advice of the Gift Review Committee, reserves the right to decline any gift that does not further the mission or goals of the Foundation, or exposes the Foundation to risk.  Also, any gifts that would create an administrative burden or cause the Foundation to incur excessive expenses may be declined.