Types of Contributions Accepted
The names of all donors will be listed in our publications unless the donor or their representative requests anonymity. Amounts of contributions, except in accordance with law, will not be listed. Contributions are reported as a whole in the annual report. Gifts and contributors are reported in the IRS Form 990 as required by law.
- Cash
On-line donations can be made at Network for Good
- Securities
Publicly traded Securities: These securities will be accepted at fair market value on the day they are booked in our financial institution. Securities will be sold as soon as possible and either gain or loss will be booked to the same fund of the initial donation.
Closely held Securities: It is the donor's responsibility to obtain any necessary appraisals of securities. (Accepted with board approval only.)
- Bequests /Trusts/Retirement Plan Assets Pledges
Bequests/Trust: Bequests received will be applied for the charitable purpose requested by the donor, as long as those purposes are reasonable and practical, and within the broad mission of the Foundation.
Retirement Plan Assets: Retirement Plan Assets received will be applied for charitable purposes documented by the donor, and as with a bequest, a permanent named fund can be established, assuming proceeds are greater than $5,000.
Pledges: Under a pledge, the donor irrevocably pledges to make a sizeable donation payable over a several year period. Payments are usually made annually over a five-year period.
- Real Estate
Unencumbered real estate will be accepted at fair market value as established by at least one qualified appraisal. As a general rule, real estate valued at less than $25,000 will not be accepted. Before acceptance of real estate as a gift, the Foundation and the donor must agree in writing on arrangements for paying expenses associated with the property prior to sale, such as taxes, environmental evaluations, insurance and maintenance. The Foundation cannot be legally obligated as to the disposition of the property following the gift. (Accepted with board approval only.)
- Tangible Personal Property
Tangible property may be accepted as a gift. The Foundation and donor must comply with Treasury regulations for obtaining and reporting qualified appraisals. (Accepted with board approval only.)
- Life Insurance Policy
The Foundation may accept gifts of life insurance policies where we are named as both owner and beneficiary. Prior to accepting a policy requiring ongoing premium payment, the Foundation shall reserve the right to decide the policy future in the event the donor defaults on premium payments. (Accepted with board approval only.)
- Partnership Interests
The acceptability of a gift of a limited partnership interest will depend on the ultimate financial liability of the Foundation and the amount of management attention required. Each case will be evaluated prior to acceptance. (Accepted with board approval only.)
Charitable Gift Annuities Under a charitable gift annuity, a donor irrevocably transfers assets to the Foundation in exchange for a commitment by the Foundation to pay the donor or beneficiaries designated by the donor, a specified amount each year for the life or lives of the designated beneficiaries. The annuity payments can either commence immediately or commencement can be deferred to a later date specified by the donor. (Accepted with board approval only.)
As a donor to the Community Foundation of the Upper Peninsula, you are entitled to:
• receive prompt gift acknowledgement and "thank you"
• be listed in foundation annual reports and other publications, unless you have requested anonymity
• be added to the community foundation's mailing list
• receive community foundation publications, including an annual report that contains full financial information, a description of its grant-making program and information concerning its staff and board
• be assured information about the size/nature of your gift will be held in confidence, unless permission is given to publish it
• receive information about the foundation's administrative fees and its spending and investment policies
• receive information regarding our financial/investment managers upon request
• your gift will be used for the purpose for which it was given subject to the foundation's variance power
As a donor who has established a separate fund you have the right to:
• select the name of the fund, or have it remain anonymous
• to receive fund status reports (fund's financial statements) at least semi-annually
Unrestricted Funds:
If the fund is established during your lifetime, you may request the community foundation furnish you information periodically concerning grants made from the fund. If the fund is created as part of your estate plan, your family members will be accorded the same courtesy.
Field of Interest Funds/Scholarship Funds:
The same rights apply to field of interest funds as those cited for Unrestricted Funds. In cases in which an advisory committee is created to recommend distributions from the fund, you may be allowed to designate the nature of that committee and may sit on it yourself, always being mindful that there is no conflict of interest inherent in the composition of the committee.
Designated/Organization/Community Endowment Funds:
Both individuals/organizations who establish designated and/or organization endowments should be fully informed concerning the variance power of the community foundation.
Donor Advised Funds
Creators of donor advised funds may:
• recommend grants from the fund
• have a clear understanding whether or not you will be able to recommend distributions of income only or income and principal. This issue should be resolved and described in the fund agreement when the fund is created. Use of principal will need the approval of the executive director upon inception of the fund
• resolve the issue of the right of a spouse or succeeding generations to advise distributions from your fund. Resolve the number of years or generations, limited to two, that would advise on fund. This should be determined at the time the fund is created
• understand whether or not the community foundation will allow you to recommend distributions that benefit eligible recipients outside the normal geographic area served by the foundation. This should be determined at the time the fund is created
• be apprised, in writing, as to the limitations of the uses of a donor advised fund
Creators of donor advised funds:
• there can be no benefit accruing to you, directly or indirectly, as a result of a distribution
• the uses of the fund must be charitable
• you cannot suggest a distribution from a donor advised fund to fulfill financial pledges all the distributions you suggest must be approved by the board of the community foundation
Unendowed Community Funds:
Individuals/organizations who establish fund should be fully informed concerning the variance power of the community foundation. An administrative fee (currently one and three-quarter percent annually) will be assessed to beginning fund balance and subsequent donations. Board may waive fee.
Minimum Donation Required to Create a New Fund:
The minimum donation currently required to create a new named fund in the Community Foundation is $1,000.00.
Community Foundation Variance Power:
Through fund agreements, community foundations carry out donors' intentions. Over the course of time conditions change. Changes in law or other circumstances may make it impossible to carry out the fund's original purpose. In other cases, the needs that gave rise to the fund's creation may no longer exist. As a consequence, every community foundation is required to have a variance provision in its bylaws and every fund agreement. This provision permits the board of trustees to vary, when needed, from the donor's original stated purpose to a similar new purpose. This new purpose is as closely aligned to the donor's original intent as possible. A copy of the variance provision language is available upon request.
