United Way of Miami-Dade Endowment Gift Acceptance Policies and Guidelines

Gift Acceptance Policy UNITED WAY OF MIAMI-DADE, INC.

United Way of Miami-Dade, a not for profit organization under the laws of the State of Florida, encourages the solicitation and acceptance of gifts to United Way of Miami- Dade for purposes that will help United Way to further and fulfill its mission. The following policies and guidelines govern acceptance of gifts made to United Way of Miami-Dade for the benefit of any of its programs.

I. Purpose of Policies and Guidelines

The Board of Directors of United Way and its staff solicit current and deferred gifts from individuals, corporations, and foundations to secure the future growth and mission of United Way. The goal is to encourage funding without encumbering the organization with gifts which may prove to generate more cost than benefit, or which are restricted in a manner not consistent in with our organization’s goals.

To optimize funding from individuals and other entities, United Way must be capable of responding quickly, and in the affirmative, where possible, to all gifts offered by prospective contributors. It is understood except where stated otherwise, these policies are intended as guidelines, and that flexibility must be maintained since some gift situations can be complex, and decisions can only be made after careful consideration of a number of interrelated factors. Therefore, these policies, in some instances, will require the merits of a particular gift to be considered by appropriate United Way of Miami-Dade staff, as determined by the President and/or designee(s), and/or The Gift Acceptance Committee (GAC), and where appropriate, the United Way Board.

United Way of Miami-Dade staff and the GAC will make recommendations to the Board on gift acceptance issues where appropriate. All final gift acceptances are subject to the policies and by-laws of United Way of Miami-Dade.

II. The Gift Acceptance Committee (GAC) The Gift Acceptance Committee is charged with the responsibility of screening, reviewing and advising United Way of Miami-Dade staff regarding the acceptance of gifts. The Gift Acceptance Committee shall consist of one member of the Executive Committee, appointed by the Chairman of the Board, three to five Professional Advisory Committee Members as appointed by the Endowment Committee/Professional Advisory Committee Chair, Legal Counsel of United Way Board, the Finance Committee Chair or designee, and United Way of Miami-Dade President or his/her designee(s).

The Gift Acceptance Committee reports to the Executive Committee which is then governed by the United Way of Miami-Dade Board of Directors and is charged with the responsibility of screening, reviewing and advising regarding the acceptance of gifts.

4/3/2018 1 Gift Acceptance Policy UNITED WAY OF MIAMI-DADE, INC. III. Use of Legal Counsel

United Way shall seek the advice of legal counsel in matters relating to acceptance of gifts where appropriate. In all cases, as noted in VII-G, the contributor shall be advised to consult with his/her own attorney, accountant, or other professional advisors, on matters related to tax, financial and estate planning implications.

IV. Trustee/Executor/Personal Representative Appointment

It will be the practice of United Way to recommend that an outside party serve as trustee/executor/personal representative for any estate to which United Way is the beneficiary. It will be the practice of United Way that an outside party serve as trustee of any trust to which United Way is a beneficiary. United Way will not serve as trustee unless approved by the Board. (See sample form, Attachment: GAP-1).

V. Restrictions of Gifts

Any restricted gifts to United Way of Miami-Dade may be eligible for acceptance subject to the terms and restrictions of the United Way of Miami-Dade’s mission.

In the event that a program or contributor designation shall cease to operate or exist, then the Board of Directors of United Way shall designate a program, agency or field of service similar to that designated by the contributor of the designated fund.

VI. Types of Gifts

The following gifts are eligible for acceptance: a) Cash b) Tangible Personal Property c) Securities Publicly Traded and Closely Held d) Real Estate e) Remainder Interests in Property f) Life Insurance g) Life Insurance Beneficiary Designations h) Retirement Plan Beneficiary Designations i) Charitable Gift Annuities/Pooled Income Funds j) Charitable Remainder Trusts k) Charitable Lead Trusts l) Bequests m) Donor Advised Fund

Items not listed on the list will be reviewed on a case by case basis and properly recorded as not eligible. The following criteria govern the acceptance of each gift form:

4/3/2018 2 Gift Acceptance Policy UNITED WAY OF MIAMI-DADE, INC. A. Cash: is acceptable in any form. Checks shall be made payable to United Way of Miami-Dade and shall be delivered to United Way’s administrative offices. The gift will be recorded based on either the postmark or actual receipt date.

B. Tangible Personal Property: Gifts of tangible personal property will not be accepted if: 1. Made on the condition that the property will be loaned back to the contributor or to anyone else designated by the contributor for any period of time. 2. If the property does not fulfill the mission of United Way. 3. If the property is not marketable. 4. If the property has any carrying costs (to be handled on a case-by-case basis).

C. Securities: United Way can accept both publicly traded securities and closely held securities.

1. Publicly Traded Securities: Marketable securities may be transferred to an account maintained at one or more brokerage firms or delivered physically with the transferor’s signature or stock power attached (see GAP-2). As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Finance and Administration Committee. In some cases, marketable securities may be restricted by applicable securities laws; in such instance the final determination on the acceptance of the restricted securities shall be made by the Gift Acceptance Committee or by retained legal counsel. (See Stock Transfer Instructions, Attachment: GAP-2)

2. Closely Held Securities: Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other ownership forms, can be accepted subject to the approval of the Gift Acceptance Committee of United Way or retained legal counsel. However, gifts must be reviewed prior to acceptance to determine that: a. The gift is free from restrictions that would prevent the conversion of these assets to cash. b. The security is marketable. c. The security will not generate any undesirable tax consequences for United Way.

If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. The Gift Acceptance

4/3/2018 3 Gift Acceptance Policy UNITED WAY OF MIAMI-DADE, INC. Committee and legal counsel shall make the final determination. Every effort will be made to sell non-marketable securities as quickly as possible.

D. Real Estate: Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. “Real property” includes but is not limited to Real Estate, Shared Interest in Real Estate, Tangible Personal Property, Gifts of Equipment, or Gifts of Art. “Real Estate” includes but is not limited to real property including improved and unimproved land with single and multiple family residences, condominiums, apartment buildings, rental property, and commercial property. “Shared Interests” include leases of property, time-share property, and any other property not owned outright by the donor.

Prior to acceptance of the real property, the Gift Acceptance Committee and United Way’s legal counsel shall review the gift. Criteria for acceptance of the property shall include, but not be limited to the following (See Real Estate and Personal Property Gift Evaluation Survey, GAP-1, for comprehensive acceptance criteria.):

 Is the property useful for the purposes of United Way?  Is the property marketable?  Are there any restrictions, reservations, easements, or other limitations associated with the property?  Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property?  Does the environmental audit reflect that the property is not damaged?

Prior to acceptance of real estate, evidence of clear title must be provided. Following confirmation of clear title, United Way shall require an initial environmental review of the property to insure that the property is not contaminated with environmental damage. In the event that the initial inspection reveals a potential problem, United Way shall retain a qualified inspection firm to conduct an environmental audit. Any and all costs related to inspections including but not limited to environmental audit and initial audit shall generally be the expense of the contributor. (See Real Estate Gift Environmental Interview, GAP-4 for the comprehensive environmental questionnaire.)

4/3/2018 4 Gift Acceptance Policy UNITED WAY OF MIAMI-DADE, INC. Where appropriate, a title binder shall be obtained by United Way prior to the acceptance of the real property gift. The cost of this title binder shall generally be an expense of the contributor.

E. Remainder Interests in Property: United Way will accept a remainder interest or retained life interest in a personal residence or vacation home, subject to the provisions of paragraph D above. The contributor or other occupants may continue to occupy the real property for the duration of the stated life. At the death of the contributor, or at the death of a (one) beneficiary designated by the contributor, United Way may use the property or reduce it to cash. The expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the contributor or primary beneficiary, not the United Way of Miami-Dade.

F. Life Insurance: United Way must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. The gift is valued at its interpolated terminal reserve value, or cash surrender value. It will be the contributor who will determine which gift value they will use in accordance with all tax laws and regulations. If the contributor contributes future premium payments, United Way will include the entire amount of the additional premium payment as a gift in the year that it is made.

If the contributor does not elect to continue to make gifts to cover premium payments on the life insurance policy, United Way may:

 Continue to pay the premiums.  Convert the policy to “paid up” insurance.  Surrender the policy for its current cash value.

United Way of Miami-Dade may use income from the Endowment to match donor premium payments, for those contributors participating in the United Way Life Program. The dollars allocated to the match may be capped in the aggregate, or by individual, as determined by management.

United Way of Miami-Dade will not accept variable or equity-based policies or term life policies as gifts.

United Way of Miami-Dade may engage an insurance professional to review any proposed insurance gifts, as needed.

G. Life Insurance Beneficiary Designations: Contributors and supporters of United Way shall be encouraged to name United Way of Miami-Dade as beneficiary or contingent beneficiary of their life insurance policies. Such

4/3/2018 5 Gift Acceptance Policy UNITED WAY OF MIAMI-DADE, INC. designations shall not be recorded as gifts to United Way until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

H. Retirement Plan Beneficiary Designations: Contributors and supporters of United Way shall be encouraged to name United Way of Miami-Dade as beneficiary of all or part of their qualified retirement plans. Such designations shall not be recorded as gifts to United Way until such time as the gift is received.

I. Charitable Gift Annuities (CGA) and Pooled Income Funds (PIF): It is anticipated that these vehicles will be offered in partnership with the United Way Worldwide Charitable Gifts program. The contributor will enter into an agreement with United Way Worldwide and United Way of Miami-Dade. United Way of Miami-Dade will be beneficiary of said agreement. United Way Worldwide will assume all legal responsibility for the issuance of CGA’s and PIF’s, provide marketing materials, manage the fund at a below market cost and will partner with United Way of Miami- Dade on building relationships with each contributor.

(See United Way of Worldwide Charitable Gift Annuity Policies dated 12/28/00, Attachment: GAP-5 and United Way Worldwide Administration of the Pooled Income Fund, Attachment: -GAP-6)

J. Charitable Remainder Trusts: United Way may accept designation as remainder beneficiary of a charitable remainder trust subject to the legal review of the documents. United Way will not accept appointment as Trustee of a charitable remainder trust.

K. Charitable Lead Trusts: United Way may accept a designation as current beneficiary of a charitable lead trust. United Way will not accept an appointment as Trustee of a charitable lead trust.

L. Bequests: Contributors and supporters of United Way shall be encouraged to make bequests to United Way under their will and trusts. Such bequests shall not be recorded as gifts to United Way until such time as the gift is irrevocable. Where the gift is irrevocable, but is not due until a future date, the present value of that gift may be recorded at the time the gift becomes irrevocable.

M. Donor Advised Fund (DAF): DAF may be accepted after staff review and with the advice of the Gift Acceptance Committee, as needed.

4/3/2018 6 Gift Acceptance Policy UNITED WAY OF MIAMI-DADE, INC. VII. Miscellaneous Provisions

A. Securing appraisals and legal fees for gifts to United Way: It shall be the responsibility of the contributor to secure an appraisal (where required) and independent legal counsel for all gifts made to United Way. United Way of Miami-Dade may also engage independent advice and counsel in the review of any proposed gift.

B. Responsibility for IRS Filings upon sale of gift items: Filing of IRS tax form 8283 is the responsibility of the contributor. If a donated asset is sold within three years of receipt and the donated gift was listed in section B of form 8283 and the value of the item(s) was (is) $5,000 or greater, the Finance and Administration Committee of United Way is responsible for filing IRS Form 8282 upon the sale or disposition and within 125 days of the date of sale or disposition of the asset; a copy must be provided to the donor. Form 8282 with Filing Instructions is an attachment to these policies.

C. Acknowledgement of all gifts made to United Way and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of the Board of United Way, pursuant to IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions.

D. Finder’ Fees or Commissions: United Way will pay no fee to any person as consideration for directing a gift to United Way. It is understood that such fees may not be legal and that in the case of irrevocable deferred gifts which involve management of assets, the payment of such a fee may subject United Way, its management and Board to federal and state security regulation.

In no event will a commission or finder’s fee of any type be paid to any party in connection with the completion of a gift to United Way.

E. Professional Fees: United Way will consider paying reasonable fees for professional services rendered in connection with a gift to United Way. Such fees will be paid only with prior written approval of the Gift Acceptance Committee.

F. Gift Valuation: United Way shall record a gift received by United Way at its valuation for gift purposes on the date of gift. The gift will be recorded based on either the postmark or actual receipt date. United Way will not determine the value of any asset for tax purposes. Such determination will be the responsibility of the contributor.

4/3/2018 7 Gift Acceptance Policy UNITED WAY OF MIAMI-DADE, INC.

G. Tax and Legal Counsel: It shall always be the policy of United Way to always advise contributors to consult with their attorney or financial advisors on gift and estate planning consequences.

VIII. Changes to Policies

These policies and guidelines have been reviewed by the Gift Acceptance Committee of United Way of Miami-Dade and approved by the Board. Changes to these policies will require the consent of 75% of the entire United Way of Miami-Dade Board of Directors.

Approved on the 25th day of June, 2014.

Attachments: o Attachment 1: Real Estate and Personal Property Gift Evaluation Interview o Attachment 2: Real Estate Gifts: Environmental Interview o Attachment 3: United Way Worldwide National Charitable Gift Annuity Policies

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