Friends of Hexagon


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Friends of Hexagon

Gift Acceptance Policy

[as adopted 8/12/03] 


I.          Purpose of Gift Acceptance Policy

II.         Definitions

III.        General Policies

IV.        Valuation of Gifts

V.          Types of Gifts Accepted

VI.         Standards for Declining Gifts

VII.        Gift Restrictions

VIII.       Procedures for Processing Gifts

IX.          Gift Acceptance Committee

X.           Amendment of Policy


I.                 Purpose of Gift Acceptance Policy


1.               The purpose of the Gift Acceptance Policy (the Policy) is to govern the acceptance of gifts offered to Friends of Hexagon (FoH) for the benefit of Hexagon, Inc.  This governance is achieved through the policies and procedures set forth herein.

2.               The Policy provides guidance to prospective donors and their advisors with respect to making gifts to FoH for the benefit of Hexagon, Inc. 

3.               The Policy is intended to protect the interests of Hexagon, Inc. and FoH.


II.               Definitions


1.               A Gift.      In general, a gift is a voluntary transfer of assets from a person or an organization to Friends of  Hexagon where in return no goods or services are expected, implied or forthcoming for the donor.  A gift may be either unrestricted or restricted to a general area of use that contributes to the benefit of Hexagon.

2.               Fair Market Value.     Fair Market Value is the value assigned to the gift by generally accepted accounting principles and governed by the Financial Accounting Standards Board (FASB) rules.

3.               Readily Marketable Securities.     Securities that are broadly or publicly traded are considered readily marketable.  Any securities that do not meet this standard are deemed to be Non-Readily Marketable Securities.

4.               Gift Acceptance Committee.     The Gift Acceptance Committee is composed of the FoH Treasurer, the Immediate Past President of Hexagon, Inc. during his or her term of service on the FoH Board, and other FoH Board members as may be appointed by the FoH President.


III.             General Policies


1.               Once FoH has accepted a gift, it becomes the property of FoH and the donor ceases to have any decision-making power regarding the gift assets or their disposition.

2.               FoH accepts gifts from individuals, estates, corporations, associations, societies and private foundations for the benefit of Hexagon, Inc.

3.               FoH shall not appraise or establish the value of any gift on behalf of any donor.  At the request of the donor it will assist the donor in finding a suitable professional appraiser.  Determining the deductibility of gifts for tax purposes is the responsibility of the donor.  FoH will not provide accounting advice to donors.

4.               FoH shall not pay a finder's fee for any gift or as a condition to receiving a gift.

5.               When appropriate, FoH may cause to be conducted professional appraisals, title searches, and other efforts to determine Fair Market Value and ownership. 

6.               The Gift Acceptance Committee shall review the acceptability of all gifts, other than unconditional gifts of cash or readily marketable securities, and bring its recommendations to the full Board for final action.

7.               FoH will process all gifts in a diligent and expeditious manner.


IV.            Valuation of Gifts


1.               All gifts shall be valued for FoH accounting and tax purposes according to generally accepted accounting principles and governed by FASB rules.

2.         The date used for computing the value of a gift shall be the date on which title is transferred to FoH.  With respect to securities, the value shall be determined by averaging the high and low value thereof on that date or, if not a trading day, the next trading day.


V.              Types of Gifts Accepted

1.               Cash

2.               Readily Marketable Securities

Such securities will be accepted and shall be held or sold in accordance with an investment policy established by FoH.

3.               Non-Readily Marketable Securities

Gifts of such securities will be accepted under the following condition: Gifts of closely held securities will be carried on FoH's books at a nominal value of $1.00, unless FoH is provided with an appraisal by an independent appraiser acceptable to FoH, establishing its Fair Market Value.

4.         Real Property

Gifts of real property will be accepted under the following conditions:

(a)            All offered gifts of real property are required to have an appraisal by an independent appraiser acceptable to FoH, establishing its Fair Market Value.  The date of the appraisal shall be within 60 days of the date of the gift.

(b)            Except in the case of residential property that has been used solely for residential purposes for at least 20 years, all proposed gifts of real property shall be accompanied by a Phase I environmental audit.

(c)             It is the responsibility of the donor to pay for the appraisal and the environmental audit.

(d)       The Gift Acceptance Committee shall determine the acceptability of mortgaged property.

5.               Personal Property

Gifts of personal property accepted pursuant to review by the Gift Acceptance Committee and approval by the Board, will be valued at $1.00 unless an appraisal by an independent appraiser acceptable to FoH is provided at the donor's expense.

6.               Planned Gifts

FoH will accept the following types of planned gifts.  Donors will be encouraged to have their planned gift agreements reviewed by their legal and financial advisors.

(a)      Charitable Trust.         A Charitable Trust shall be subject to the following rules:

1.     FoH prefers that a donor who creates a charitable trust name an outside trustee.

2.     However, if the donor requests FoH to act as trustee, FoH shall do so under the following conditions: (i) the initial funding of the trust must have a Fair Market Value of at least $200,000; (ii) except in the case of a Lead trust, FoH must be a vested beneficiary of the trust for at least 75% of the remainder; (iii) the trust shall be responsible for its own expenses; (iv) payments from the trust will be made not less than quarterly, and (v) an annual statement will be provided to beneficiaries in compliance with the rules of the Internal Revenue Service.

(b)       Other Types of Acceptable Planned Gifts.      Other types of acceptable planned gifts include bequests; remainder interests in property; retirement plan beneficiary designations; and life insurance beneficiary designations.


VI.            Standards for Declining Gifts


FoH may decline a gift for one or more of the following reasons:

1.               There are conditions to a gift that are not consistent with the purposes, values, and objectives of Hexagon, Inc. or FoH.

2.               The gift could financially jeopardize the donor or FoH.

3.               The gift or its terms are illegal.

4.               FoH does not have the resources to honor the terms of the gift.

5.               Acceptance of the gift will result in unwarranted or unmanageable expense to FoH.

6.               There are physical or environmental hazards related to the gift.

7.               The gift could improperly benefit any individual.

8.               FoH or Hexagon, Inc. is unable to or uninterested in meeting donor restrictions.

9.               The cost to Hexagon, Inc. or FoH of maintaining the gift or meeting the restrictions placed on the gift by the donor is deemed to be excessive.

10.            The gift is inappropriate with respect to the tax-exempt purposes of Hexagon, Inc. or FoH.

11.            The gift may result in inappropriate or undesirable publicity for Hexagon, Inc. or FoH.

12.            The Gift Acceptance Committee determines any other reason that the gift is not in the best interests of Hexagon, Inc. or FoH.


VII.          Gift Restrictions


1.             Gifts restricted for a specific purpose by the donor will be reserved for that purpose in keeping with the wishes of the donor, provided that the specific purpose is consistent with the priorities, objectives, and financial resources of FoH and Hexagon, Inc.  In the event the restricted purpose initially established is no longer valid, FoH shall have the right to use the funds for a similar or related purpose, if possible.  If this is not possible, FoH may use the funds for any other purpose as it deems appropriate.

2.              Income generated by the investment of restricted gifts shall be considered unrestricted income unless specifically designated as restricted income by the donor.


VIII.        Procedures for Processing Gifts


1.              Any cash or readily marketable security received by FoH shall be sent immediately to the FoH Treasurer for appropriate processing, acknowledgment and recognition.

2.              Any other gift offered to FoH (including non-readily marketable securities, real property, personal property or planned gifts) shall be forwarded to the Gift Acceptance Committee for review and recommendation prior to any action by the Treasurer.

3.               Pursuant to acceptance of a gift, copies of all related correspondence, gift documentation, and a complete description of the gift, the date received, and the estimated value shall be forwarded to the Treasurer. 


IX.            Gift Acceptance Committee


In addition to any other responsibilities imposed by this Policy, the Gift Acceptance Committee shall review and recommend the acceptance of unique gifts.  It also may be convened to determine if a restricted gift meets the criteria set forth in this Policy.


X.              Amendment of the Policy


From time to time, the FoH Board of Directors may amend this Policy.