BALLARD MISSIONS FOUNDATION
Ballard Missions Foundation, a not-for-profit organization organized under the laws of the State of Texas and exempt as a public charity under Section 501(c)(3) of the Internal Revenue Code, encourages the solicitation and acceptance of gifts for purposes that will assist Ballard Missions Foundation to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to Ballard Missions Foundation or for the benefit of any of its programs.
I. Purpose of Policies and Guidelines
The Board of Directors of Ballard Missions Foundation and its Chief Executive Officer and staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of Ballard Missions Foundation. It is the purpose of these Policies and Guidelines to govern the acceptance of gifts (including grants) by Ballard Missions Foundation and to provide guidance to prospective donors and their advisors when making gifts to Ballard Missions Foundation. The provisions of these Policies shall apply to all gifts received by Ballard Missions Foundation for any of its programs or services.
II. Restrictions on Gifts
Ballard Missions Foundation will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission, purposes, and priorities. Ballard Missions Foundation will not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violate the charitable trust of Ballard Missions Foundation, gifts that are accompanied by an improper economic benefit to the donor such as a gift that is conditioned on a commercial preference to the donor or affiliated company, or gifts that vest the donor with inappropriate control such as a gift that requires Ballard Missions Foundation to hire a specific person or take some other unacceptable action. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Board of Directors.
III. Gift Vehicles
Ballard Missions Foundation will accept gifts through the following gift vehicles:
• Outright donations
• Testamentary bequests
• Charitable remainder trusts
• Charitable lead trusts
Ballard Missions Foundation does not offer the following gift vehicles:
• Charitable gift annuities
• Pooled income funds
IV. Assets
Ballard Missions Foundation is authorized to accept the following assets, subject to these Policies and Guidelines:
Cash or Cash Equivalents Acceptable.
Charitable Pledge Agreements Acceptable if payable only in assets listed herein.
Publicly Traded Securities Acceptable. Ballard Missions Foundation shall promptly sell any contributed securities in accordance with Ballard Missions Foundation’s investment policies.
Closely-Held Securities and Acceptable. Ballard Missions Foundation shall
Other Intangibles not accept securities and other intangible assets which may not be sold, have no value, or may result in additional liability to Ballard Missions Foundation.
Tangible Personal Property Acceptable, subject to review by the Board of Directors. Ballard Missions Foundation shall not offer to value the contributed property. The donor shall sign a statement of ownership and disclose any liens on the property. Ballard Missions Foundation will not accept any property subject to a restriction on Ballard Missions Foundation’s ability to use, sell, or otherwise deal with the property as it deems necessary.
Life Insurance Acceptable. Ballard Missions Foundation may accept the gift of a life insurance policy, provided that Ballard Missions Foundation is the owner and the irrevocable beneficiary of the policy. If the policy is not fully paid-up, the donor shall be encouraged to make annual gifts to Ballard Missions Foundation sufficient to cover additional premiums. Ballard Missions
Foundation shall have the right to retain the life insurance policy, cash it in, or otherwise make use of its value.
Real Estate Acceptable subject to review by the Board of Directors. Ballard Missions Foundation will not accept any real estate subject to a restriction on Ballard Missions Foundation’s ability to use, sell, or otherwise deal with the property as it deems necessary. The basic policy of Ballard Missions Foundation is to sell all contributed property as soon as practicable. Costs related to acceptance of gifts of real property such as legal fees, surveying costs, hazardous waste surveys, etc., will be allocated as mutually agreed and will not affect the recorded value of the gift. Appraisal costs are the responsibility of the donor.
In-Kind Gifts Acceptable if approved by the Chief Executive Officer. In-kind contributions include gifts of supplies, equipment, services and the like which are beneficial to Ballard Missions Foundation. Costs incurred as a result of accepting the gift, such as transportation and storage, must be approved by the Chief Executive Officer. The CEO shall report all inkind gifts to the Board.
Ballard Missions Foundation shall accept all bequests of real estate unless the Board of Directors determines otherwise. Ballard Missions Foundation shall review all proposed inter vivos gifts of real estate and shall consider such factors as sale and holding costs, current and expected future value, encumbrances, liabilities, title, restrictions, and any potential environmental issues prior to acceptance.
Prior to accepting an inter vivos gift of real estate, the following steps will generally
be taken:
• Complete a profile of the property.
• Obtain a copy of the deed, any encumbrances, leases, and current tax bill.
• Consider obtaining a title report.
• Inspect the property.
• Consult with a real estate advisor as to marketability.
• Evaluate the potential for any environmental liabilities. Consult with an
environmental engineer or comparable advisor if necessary.
V. Miscellaneous Provisions
A. Chief Executive Officer. Except as provided in Article II above, the Chief Executive Officer shall have discretion and authority to accept unrestricted gifts, allowable under these Policies and Guidelines, of a value up to $100,000. As to restricted gifts, the Chief Executive Officer shall have discretion and authority to accept restricted gifts of a value up to $50,000. Gifts above those amounts may be accepted only by the Board of Directors.
B. Legal counsel. The Chief Executive Officer may seek the advice of legal counsel where appropriate and shall seek the advice of legal counsel in all matters pertaining to the acceptance of a gift which may have adverse legal, ethical, or policy consequences to Ballard Missions Foundation. All prospective donors shall be urged to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning implications.
C. Securing appraisals and legal fees for gifts to Ballard Missions Foundation. Ballard Missions Foundation shall not appraise property. It shall be the responsibility of the donor to secure an appraisal where required. Ballard Missions Foundation shall not pay the legal fees of the donor. The donor shall pay any fees for appraisals and legal advice required.
D. Valuation of gifts for development purposes. Ballard Missions Foundation shall record a gift received by Ballard Missions Foundation at its valuation for gift purposes on the date of gift, following generally accepted accounting principles (GAAP).
E. Responsibility for IRS filings upon sale of gift items. Ballard Missions Foundation is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold by Ballard Missions Foundation within two years of receipt where the charitable deduction value of the item was $5,000 or greater. Ballard Missions Foundation must file such form within 125 days of the date of sale or disposition of the asset.
F. Written acknowledgment. Written acknowledgment of all gifts made to Ballard Missions Foundation and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of Ballard Missions Foundation.