Gift Acceptance Policy

The Natural Resources Foundation of Wisconsin, Inc. (“NRF”) is a 501(c)(3) publicly supported philanthropic institution governed by a board of private citizens representing the public interests of the State of Wisconsin and its natural resources.  NRF's Federal Tax ID # is 39-1572034.  It in part acts as a fiduciary of individual funds contributed and bequeathed by individuals and other sources. NRF encourages the solicitation and acceptance of all gifts for purposes that will help it further and fulfill its mission. The following policies and guidelines govern acceptance of such gifts made to NRF for the benefit of any of its programs.

1. Purpose of Policy and Guidelines

   The Board of Directors and staff of NRF solicit current and deferred gifts from individuals, corporations, and foundations to secure its future growth and accomplish its mission. These policies and guidelines govern the acceptance of gifts by NRF and provide guidance to prospective donors and their advisors when making gifts. The provisions of these policies shall apply to all gifts received by NRF for any of its programs or services. These policies are policies of the Board of Directors of NRF and must be created and amended by majority vote of that Board.

   The Executive Committee is charged with the responsibility of reviewing all gifts made to NRF, properly screening and accepting those gifts, and making recommendations to the Board of Directors on gift acceptance issues when appropriate. It is the purpose of this instrument to provide guidelines to the Executive Committee, so that all decisions regarding these policies and the enforcement of these policies will be vested in the Executive Committee. The Executive Committee, together with NRF legal counsel and appropriate NRF staff as may be pertinent, shall also adopt standard forms for agreements with donors and annually review Acceptance Guidelines for all gifts, consistent with policies and guidelines established and approved by the Board of Directors of NRF.

2. GeneralPolicy
   • The general policy of NRF is to inform, serve, guide or otherwise assist donors who wish to support its activities, but never under any circumstances to pressure or unduly persuade a donor to complete a gift.
   • Persons acting on behalf of NRF shall encourage the donor to discuss a proposed gift with legal and/or tax advisor(s) of the donor’s choice and at the donor’s expense. This is to ensure that the donor receives a full, accurate and independent explanation of all aspects of the proposed charitable gift.
   • Persons acting on behalf of NRF shall advise the donor that it is the donor’s responsibility to obtain any necessary appraisals, file appropriate personal tax returns and defend against any challenges to claims for tax benefits
   • The Chairman of NRF, Vice-Chairman, Executive Director, Financial Officer, Development Director (when pertinent) and consultants retained by NRF for the purpose of the financial advancement of NRF, if any, are authorized to negotiate planned giving agreements with prospective donors, following guidelines outlined in this policy statement
   • Planned giving agreements requiring execution by NRF shall first be reviewed and approved by NRF’s Legal Counsel. However, each agreement executed with a donor need not be reviewed provided it is based on a prototype agreement that has previously been reviewed and approved.
   • NRF will accept charitable gift annuities only under conditions described below. NRF may appoint or employ agents and advisors to facilitate the solicitation and investment of such annuities.
   • NRF may serve as trustee for irrevocable charitable remainder trusts under circumstances outlined below. Expenses related to investments and administrative services shall be charged to the respective trusts. However, NRF will not serve as trustee or co-trustee for any revocable trusts or for other trusts that are not qualified charitable remainder trusts or charitable lead trusts.
3. Use of LegalCounsel

   NRF shall seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by Legal Counsel is recommended for:

   1. Closely held stock transfers that are subject to restrictions or buy-sell agreements.
   2. Documents naming NRF as Trustee.
   3. Gifts involving contracts, such as bargain sales or other documents requiring NRF to assume an obligation.
   4. Transactions with potential conflict of interest that may invoke IRS sanctions.
   5. Other instances in which use of counsel is deemed appropriate by the Executive Committee.
4. Conflict of Intrest

   To assure that each donor has a complete and independent explanation of their charitable gift and to avoid any potential conflicts of interest that might arise in the explanation of a gift to a potential donor, NRF will urge all prospective donors to seek independent counsel through their own personal legal and financial advisors. NRF will comply with the Model Standards of Practice for the Charitable Gift Planner promulgated by the National Committee on Planned Giving, shown as an appendix to this document.

5. Procedures for Review of Gifts

   NRF will accept unrestricted gifts and gifts for specific programs and purposes, provided that such gifts are consistent with its stated mission, purposes, and priorities. NRF will not accept gifts that are excessively restrictive in purpose. Gifts that are too restrictive are those that violate the terms of the corporate charter of NRF, gifts that are too difficult to administer, or gifts that are for purposes entirely outside the mission of NRF. All final decisions on the restrictive nature of a gift and its acceptance or refusal shall be made by the Executive Committee, as authorized by these guidelines as they may be modified from time to time by the Board of Directors of NRF.

   In reviewing gifts to NRF, the Executive Committee and/or staff will consider the following: the charitable intent and ultimate benefit of the gift, the nature of any restrictions, the permanency of the fund, the projected costs of managing the gift asset, and the fee revenues that may accrue to NRF for administering the gift.

6. Types of Gifts

   The following types of gifts that would be considered for acceptance are:

   • Cash
   • Bequests
   • Retirement Plan Beneficiary Designations
   • Life Insurance and Life Insurance Beneficiary Designations
   • Securities or qualified appreciated stock (See instructions on transferring securities to NRF)
   • Real Estate
   • Remainder Interests in Real Property
   • Tangible Personal Property
   • Charitable Gift Annuities.
   • Charitable Remainder Trusts.
   • Charitable Lead Trusts.
   • Royalties and Distribution Rights
   • Oil, Gas, and Mineral Interests
   • Bargain Sales
   • Interests in Limited Liability Companies (LLC)

   The following criteria govern the acceptance of each gift type.

   1. Cash. Cash is acceptable in any form. Checks shall be made payable to “NRF” and shall be delivered to NRF in care of its office (P.O. Box 2317, Madison, WI 53701-2317).
   2. Bequests. Donors and supporters of NRF will be encouraged to make bequests to NRF through their wills and trusts. Such bequests will not be recorded as gifts to NRF until such time as the gift is irrevocable and NRF has knowledge of such bequest. When 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.
   3. Retirement Plan Beneficiary Designations. Donors and supporters of NRF will be encouraged to name NRF as beneficiary of their retirement plans. Such designations will not be recorded as gifts to NRF until such time as the gift is irrevocable and NRF has knowledge of such designation. When 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.
   4. Life Insurance. Donors and supporters of NRF will be encouraged to name NRF as beneficiary or contingent beneficiary of their life insurance policies. Such designations shall not be recorded as gifts to NRF until such time as the gift is irrevocable and NRF has knowledge of such designation. 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
   5. Securities. NRF can accept both publicly traded securities and closely held securities.
      • Publicly Traded Securities. Marketable securities may be transferred to an account maintained at one or more brokerage firms or trust companies, commercial banks or delivered physically with the transferor’s stock power attached. As a general rule, all marketable securities will be sold upon receipt unless otherwise directed by the Investment Committee. In some cases applicable securities laws may restrict marketable securities. In such instance the Executive Committee shall make the final determination on the acceptance of the restricted securities.
      • Closely Held Securities. Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in limited partnerships and limited liability companies or other ownership forms, can be accepted subject to the approval of the Executive Committee. However, gifts must be reviewed prior to acceptance to determine:
        • There are no restrictions on the security that would prevent NRF from ultimately converting those assets to cash
        • The security is marketable; and
        • The security will not generate any undesirable tax consequences for NRF.

        To be accepted, closely held securities must have a qualified appraisal performed by an independent professional appraiser generally as the expense of the Donor. 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. Following advice by legal counsel, the Executive Committee shall make the final determination on the acceptance of closely held securities. Every effort will be made to sell closely held securities as quickly as possible. If not immediately marketable, the stock will be kept in the safe deposit box until they can be redeemed.

   6. Real Estate. Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. The real estate being gifted must be titled to the donor(s). When appropriate, a title binder shall be obtained by NRF prior to the acceptance of the real property gift. The cost of this title binder shall generally be an expense of the donor. Prior to acceptance of real estate, donor is requested to advise the Foundation of any environmental issues that may be readily identified. NRF may require an initial environmental review of the property to ensure that the property has no environmental damage. Environmental inspection forms are attached as an appendix to this document. The NRF Board of Directors may, at its own discretion, waive the environmental inspection requirement. In the event that the initial inspection reveals a potential problem, NRF shall retain a qualified inspection firm to conduct an environmental audit. The cost of the environmental audit shall generally be an expense of the donor, although NRF will consider such expense at the advice of the Executive Committee. Prior to acceptance of the real property, the gift shall by approved by the Executive Committee of NRF and by NRF’s Legal Counsel. The Board of Directors, at its discretion, may refuse any gift of real estate. Criteria for acceptance of the property shall include:
      • Is the property useful for the purposes of NRF?
      • 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, if required, reflect that the property is not damaged?

      Remainder Interests in Property. NRF will accept a remainder interest in a personal residence, farm, or vacation property subject to the provisions of paragraph 4 above. The donor or other occupants may continue to occupy the real property for the duration of the stated life. At the death of the donor, NRF may use the property or reduce it to cash. Where NRF receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or primary beneficiary.

   7. Tangible Personal Property. All other gifts of tangible personal property shall be examined in light of the following criteria:
      • Does the property fulfill the mission of NRF?
      • Is the property marketable?
      • Are there any undue restrictions on the use, display, or sale of the property?
      • Are there any carrying costs for the property?
      • Can the property be sold easily?
      • Are there costs associated with transportation, storage, selling, maintenance and repair for the property?

      The Executive Committee will make the final determination on the acceptance of other tangible property gifts.

   8. Charitable Gift Annuities. NRF may offer charitable gift annuities. Gift annuity rates will be based on the current gift annuity rates in force as adopted by the American Council on Gift Annuities. The minimum gift for funding is $10,000. The minimum age for life income beneficiaries of a gift annuity shall be 55. Where a deferred gift annuity is offered, the minimum age for life income beneficiaries shall be 45. No more than two life income beneficiaries will be permitted for any gift annuity. Annuity payments are normally made on a quarterly schedule, although NRF’s Executive Director and Financial Officer may approve exceptions to this payment schedule. NRF will not accept real estate, tangible personal property, or any other illiquid asset in exchange for current charitable gift annuities. NRF may accept real estate, tangible personal property, or other illiquid asset– subject to the conditions set forth for these kinds of gifts in these policies -- in exchange for deferred gift annuities so long as there is at least a 5-year period before the commencement of the annuity payment date, the value of the property is reasonably certain, and the Executive Committee approves the gift arrangement. Currently, all gift annuities shall be reinsured through a reputable provider of such services.
   9. Charitable Remainder Trusts. NRF may accept designation as remainder beneficiary of a charitable remainder trust at any time without the approval of the Executive Committee. It is the stated policy that NRF will accept appointment as trustee of a charitable remainder trust only under the following conditions:
      1. That NRF has at least a 75% beneficial interest as the remainderman of these trusts, with the trust having a minimum value of $200,000
      2. That NRF not generally accepts real estate or interests in limited partnerships as assets for the creation of these trusts; exceptions, however, can be made depending on the nature of the gift/trust.
      3. That the Executive Committee accepts the trust only after thorough review of the proposed trust by the Legal Counsel of NRF
      4. If such trusteeship is accepted, NRF may serve directly as trustee or appoint a trustee. For example, NRF may contract with a trust company as its agent, paying the same fees as it may normally receive as a trustee.
   10. Charitable Lead Trusts. NRF may accept a designation as income beneficiary of a charitable lead trust at any time. However, the Board of Directors of NRF will not accept an appointment as trustee of a charitable lead trust.
   11. Royalties and Distribution Rights. NRF may accept gifts of royalties or distribution rights on published works (such as books or films) where there is clear evidence of marketability or assurance of an income stream. The Executive Committee will determine whether such a gift should be accepted after receiving a qualified appraisal, the cost of which shall generally be borne by the donor.
   12. Oil, Gas, and Mineral Interests. NRF may accept oil, gas and mineral interests, when appropriate. Prior to acceptance of such interests, the gift shall be approved by the Executive Committee, and if necessary, by NRF’s Legal Counsel. Criteria for acceptance of the property shall include:
       • Gifts of surface rights should have a value of $20,000 or greater.
       • Gifts of oil, gas, and mineral interests should generate at least $3,000 per year in royalties or other income (as determined by the average of the three years prior to the gift).
       • The property should not have extended liabilities or other considerations that make receipt of the gift inappropriate.
       • A working interest is rarely accepted. A working interest may only be accepted when there is a plan to minimize potential liability and tax consequences.
       • The property should undergo an environmental review to ensure that there is no current or potential exposure to environmental liability.
   13. Bargain Sales. NRF will enter into a bargain sale arrangement in instances only when it furthers the mission and purposes of NRF. All bargain sales must be reviewed and approved by the Executive Committee. Factors used in determining the appropriateness of the transaction include:
       • Obtaining an independent appraisal to substantiate the value of the property.
       • Determining that if NRF assumes debt with the property, the debt ratio is less than 50% of the appraised market value.
       • Determining that there is a market for sale of the property, allowing sale within 12 months of receipt.
       • Calculating the costs to safeguard, insure, and expense the property (including property tax, if applicable) during the holding period.
   14. Interests in Limited Liability Companies (LLC) and Partnership Interests. Prior to approval of gifts of any other limited partnership interests or interests in an LLC, all relevant partnership and LLC agreements will be reviewed by Legal Counsel with particular attention given to the activity of the partnership/LLC and how allocations are made. Further, the underlying assets and liabilities of the partnership/LLC will be reviewed. NRF does not accept gifts of general partnership interests.
7. Classification of Donations

   A donor can establish any of the following types of funds within NRF. Exceptions to these Types of Funds can be made only through the consent of the Executive Committee:

   1. Unrestricted Funds – These funds are broadly discretionary to NRF and are available to meet operating and program needs as determined by the Board of Directors.
   2. Named Endowed Funds – These funds can be for a general or specific purpose at the request of the donor, or established as part of NRF’s general endowment. A minimum gift of $10,000 is required for the establishment of named funds.
   3. Donor Advised Funds – These funds are created and are broadly discretionary to the Board of Directors of NRF, but the input and advice from donors is sought in the distribution of grants from the Fund. In many cases, NRF provides suggestions to donors on specific needs in the conservation community. All suggestions from donors are investigated and NRF adheres to all procedures developed by the Internal Revenue Service in regard to the administration of donor advised funds. A minimum gift of $20,000 is required for establishing a donor-advised fund.
   4. Special Project Funds -- These may include funds accepted for broad general purposes that enhance or support conservation efforts in some manner. In some cases, groups requesting the creation of Special Project Funds may not previously have had a formal affiliation with NRF. The Executive Committee must approve all proposed Special Project Funds. If the Committee approves such funds, they must operate strictly as component funds of NRF. Thus, all fundraising conducted for such funds must be under the direct control of NRF. For example, in advance of any fundraising, all proposals for events or efforts to raise money for such funds must be put in writing and approved by the Executive Director of NRF. NRF names must be clearly prominent in all funds as the sponsor of the effort so that proper State and Federal solicitation guidelines can be clearly maintained. All invoices, payments for expenses and receipts must be directed to NRF. Raffles and rummages are not permitted in any form. Auctions will be reviewed by Legal Counsel for NRF on a case-by-case basis to determine their appropriateness and tax-deductibility.
   5. 5. Restricted Funds – These funds have a donor-placed restriction as to the purpose or timing of the use of the funds.
8. Minimum Requirements to Create a New Fund

   While all contributions may be accepted by NRF, the Board of Directors of NRF has designated the following amounts as minimums needed to create a Fund through NRF:

   1. Named Endowed Fund -- $10,000
   2. Donor Advised Endowed Fund -- $20,000
   3. Special Project Fund – Minimums will be determined by the Executive Committee when such a fund is approved.
9. Donor Acknowledgement

   All gifts to NRF will be acknowledged regardless of the amount of the gift. An ongoing master list of named gifts will be maintained by NRF.

10. Confidentiality of Gifts

    All information concerning donors and prospective donors shall be held in strict confidence by NRF, subject to legally authorized and enforceable requests for information by government agencies and courts. NRF will not disclose the amount of any gift through any publication or other public document without the permission of the donor.

11. Periodic Reporting to Fund Donors

    For donors establishing a Fund, NRF provides a financial statement to all living donors or fund advisors on a quarterly basis, unless less frequently, as requested by the donor.

12. Miscellaneous Provisions
    1. Securing appraisals and legal fees for gifts. Costs for appraisals and/or legal fees will generally be borne by the donor, although in exceptional situations and with the advice of the Executive Committee, such costs may be borne by NRF.
    2. Valuation of gifts for development purposes. NRF will record a gift received by NRF at its current market valuation for gift purposes on the date of gift.
    3. Responsibility for IRS Filings upon sale of gift items. The Financial Manager of NRF is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within two years of receipt by NRF when the charitable deduction value of the item is more than $5,000. The form must be filed within 125 days of the date of sale or disposition of the asset. Form 8282 with Filing Instructions is attached as an appendix to these policies. Acknowledgement of all gifts made to NRF and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of the Board of Directors of NRF. IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions are attached to these policies as an Appendix
13. Changes to Gift Acceptance Policies

    The Board of Directors must approve any changes to, or deviations from, these policies at its regular Board meetings or during a special session called by the Chair.