Atlantic Gateway Communications, Inc., doing business as WGTS 91.9 and organized under the laws of Maryland, solicits and accepts gifts for purposes that further and fulfill its mission. The following policy governs acceptance of gifts made to WGTS 91.9.
The mission of WGTS 91.9 is to:
Encourage everyone we encounter to take one step closer to Christ.
I. Purpose of Policies and Guidelines
The WGTS 91.9 Board of Directors and staff solicit current and deferred gifts from individuals, corporations including nonprofits and churches, and foundations to secure its future growth and mission. This policy provides guidance to prospective donors and their advisors when making charitable contributions. The provisions of these policies shall apply to all gifts received by WGTS 91.9 and organizations acting on its behalf for funding its programs and services. This policy does not govern gifts in-kind or any contribution of goods and services which are directly used by WGTS 91.9 in the administration and delivery of its programs and services.
II. Relationship with Donors
While the primary purpose of this policy is to protect WGTS 91.9, donors are viewed as partners in ministry whose best interest is also a priority. Members of the WGTS 91.9 Board of Directors, employees, and development volunteers are expected to operate within the boundaries of this policy and assist wherever possible with all available information, knowledge, and foresight to further the philanthropic goals of the donor and WGTS 91.9.
WGTS 91.9 does not provide personal, legal, financial, or other professional advice to donors. All prospective donors are strongly encouraged to seek the assistance of their own professional advisors in matters relating to their gifts and the resulting tax and estate planning consequences. WGTS 91.9 endorses the Model Standards of Practice for the Charitable Gift Planner promulgated by the National Committee on Planned Giving, which is considered part of this policy and guidelines, and included as an attachment to this document.
III. Use of Legal Counsel
WGTS 91.9 may seek the advice of legal counsel in matters relating to the acceptance of gifts, particularly when considering:
·Closely held stock transfers that are subject to restrictions or buy-sell agreements
·Gifts involving contracts or requiring WGTS 91.9 or its affiliates to assume an obligation of any nature
·Transactions with a potential conflict of interest or that may otherwise invoke IRS sanctions, penalties, income taxes, or other consequences
·Other instances in which use of counsel is deemed appropriate.
IV. Restrictions on Gifts
WGTS 91.9 accepts unrestricted gifts and gifts restricted for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission, purposes, and priorities. WGTS 91.9 does not accept gifts that are too restrictive in purpose. Gifts that are too restrictive are those that violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of WGTS 91.9. The final determination on the acceptance of gifts for which the value to WGTS 91.9 is questioned due to their restrictive nature is made by the WGTS 91.9 Gift Acceptance Committee.
WGTS 91.9 reserves the right to change the designated purpose or terms of any restricted gift or endowment fund if it prevents the gift from being used to fulfill the donor’s intentions or becomes impractical, unnecessary, or undesirable. At the time a change is made, WGTS 91.9 will make a reasonable effort to hold a discussion with the relevant donor, or if then deceased, his or her heirs, or such other persons designated by the donor.
V. The Gift Acceptance Committee
The Gift Acceptance Committee shall consist of the following five (5) members:
·WGTS 91.9 President, Chair
·WGTS 91.9 Chief Development Officer
·WGTS 91.9 Controller
·WGTS 91.9 Major and Planned Gift Officer
·WGTS 91.9 Board of Directors Treasurer (presence not required to make committee meetings valid).
The WGTS 91.9 Gift Acceptance Committee is charged with the responsibility to monitor the gift policies and practices of WGTS 91.9 to ensure that contributions received are consistent with this policy, and to make recommendations to the WGTS 91.9 executives and Board of Directors on gift acceptance issues when appropriate.
VI. Outright Gifts
A. Cash: Cash is acceptable in any form. Checks are to be made payable to WGTS 91.9.
B. Donor Advised Funds and Foundations: WGTS 91.9 accepts gifts from donor-advised funds (“DAFs”) and private foundations. Due to legal restrictions, WGTS 91.9 will not accept contributions from a private foundation to satisfy an individual’s legally binding pledge obligation to WGTS 91.9. A donor who wishes to make a pledge to WGTS 91.9 that will be satisfied using a private foundation is encouraged to cause the private foundation to make the pledge. WGTS 91.9 may, in its discretion, choose to treat a DAF contribution toward satisfaction of an individual’s legally binding pledge.
C. Tangible Personal Property: All gifts of tangible personal property are examined in light of the following criteria:
·Does the property fulfill the mission of WGTS 91.9?
·Is the title clear and transferrable?
·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?
The final determination on the acceptance of gifts of tangible personal property for which the value to WGTS 91.9 is questionable is made by the WGTS 91.9 Gift Acceptance Committee.
D. Securities: WGTS 91.9 can accept both publicly traded 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. As a general rule, all marketable securities are sold upon receipt unless otherwise directed by the WGTS 91.9 Finance Committee. In some cases, marketable securities may be restricted by applicable securities laws; in such instances the final determination on the acceptance of the restricted securities is made by the WGTS 91.9 Gift Acceptance Committee. If the security is transmitted through the mail or other delivery service, it is important that the signed stock power form be sent to WGTS 91.9 separately.
2. Closely Held Securities: Closely held securities, which include debt and equity positions in non-publicly traded companies as well as interests in limited liability partnerships and limited liability companies or other ownership forms can be accepted subject to the approval of the WGTS 91.9 Gift Acceptance Committee. Gifts are reviewed prior to acceptance to determine that:
·There are no restrictions on the security that would prevent WGTS 91.9 from ultimately converting the assets to cash
·The security is marketable
·The security does not generate any undesirable tax consequences or other adverse financial consequences for WGTS 91.9.
If potential problems arise on initial review of the security, further review and recommendation may be sought before making a final decision on acceptance of the gift. The final determination on the acceptance of closely held securities is made by the WGTS 91.9 Gift Acceptance Committee following review by WGTS 91.9 legal counsel. Every effort is made to sell non-marketable securities as quickly as possible.
E. Real Estate: Gifts of real estate may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to acceptance of real estate, WGTS 91.9 generally requires an environmental screening, which may include a Phase I Environmental Site Assessment, to ensure that the property has no environmental damage. The environmental screening must include testing for asbestos-containing materials, lead-based paint, mold, radon gas, drinking water quality, and regulatory compliance issues. In the event that the initial environmental assessment reveals a potential problem, WGTS 91.9 shall retain a qualified inspection firm to conduct additional testing and/or an environmental audit. The cost of the environmental assessment and audit is an expense of the donor.
When appropriate, a title insurance binder is obtained by WGTS 91.9 prior to the acceptance of the real property gift. The cost of this title binder is an expense of the donor.
The final determination on the acceptance of real property is made by the WGTS 91.9 Gift Acceptance Committee, following review by legal counsel. Criteria for acceptance of real property include:
·Is the property useful for the purposes of WGTS 91.9?
·Is the title clear and transferrable?
·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?
·Are there any potentially adverse income tax or other financial consequences?
·Does the environmental assessment and audit reflect that the property is not damaged?
F. Remainder Interests in Property: WGTS 91.9 will accept a remainder interest in a personal residence, farm, or vacation property subject to the provisions of the paragraph above titled Real Estate. The donor or other occupants may continue to occupy the real property for the duration of the stated life or a specified term of years. At the death of the donor or the end of the specified term, WGTS 91.9 may use the property or convert it to cash.
Where WGTS 91.9 receives a gift of a remainder interest, expenses for capital improvements, maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or primary beneficiary. WGTS 91.9 only accepts a gift of remainder interest in property if it and the donor or other life tenant have entered into a life tenancy or life income agreement prepared by WGTS 91.9 legal counsel and signed by all applicable parties.
G. IRA Rollover Designations: Donors over the age of 70.5 years may give to WGTS 91.9 through the required minimum distribution from their individual retirement accounts. Donors are encouraged to use an independent financial advisor with expertise in tax regulations when transacting this type of gift. WGTS 91.9 will work with the donor and their financial advisor, if applicable, to ensure a smooth transaction, whether this is done in the form of check, ACH, or money order. The gift shall be receipted on the day the donation is mailed (postmarked) or the donation arrives at the office of WGTS 91.9. It will not be receipted the day the withdrawal is made.
H. Oil, Gas, and Mineral Interests: WGTS 91.9 may accept oil, gas, and mineral property interests, when appropriate. The final determination on the acceptance of an oil, gas, or mineral interest is made by the WGTS 91.9 Gift Acceptance Committee, following review by WGTS 91.9 legal counsel. Criteria for acceptance of these property interests 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 $2,000 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 and may only be accepted if there is a plan to minimize potential liability and tax consequences)
·The property should undergo an environmental review to ensure that WGTS 91.9 has no current or potential exposure to environmental liability.
VII. Deferred Gifts
A. Pledges: Unconditional promises to give at a future date are considered pledges and accounted for as receivables. When a promise is made to give only if future or certain conditions are met, revenue for the gift will not be recognized until the conditions are no longer in place.
B. Matching Gift Offers: Vital to WGTS 91.9 fundraising campaigns are dollar-for-dollar and similar types of matching gift incentives. Supporters who sponsor a match offer are requested to fulfill their portion of the match following the agreed upon period for the matching gift incentive. Pending agreement with the match sponsor, any unmatched portion may be subsequently offered in order for the match offer to be fully met. If the match offer is not fully subscribed during the period, the gift expected from the match sponsor will be only for the amount matched by other supporters. When funds are received from a match sponsor prior to the agreed upon period for the matching gift incentive, WGTS 91.9 will at the request of match sponsor return to them that part of their gift which was not matched by other donors.
C. Bargain Sales: WGTS 91.9 may enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of WGTS 91.9. All bargain sales must be approved by the WGTS 91.9 Gift Acceptance Committee. Factors used in determining the appropriateness of the transaction include:
·WGTS 91.9 must obtain an independent appraisal substantiating the value of the property
·If WGTS 91.9 assumes debt with the property, the debt ratio must be less than 50% of the appraised market value and there must be no potential for adverse income tax, capital gains tax, or other financial consequences for WGTS 91.9
·WGTS 91.9 must determine that it will use the property, or that there is a market for sale of the property allowing sale within 12 months of receipt
·WGTS 91.9 must calculate the costs to safeguard, insure, and expense the property, including property tax, if applicable, during the holding period.
D. Life Insurance: WGTS 91.9 must be named as both beneficiary and irrevocable owner of an insurance policy before a life insurance policy can be recorded as a gift. Cash value policies, such as whole life, are valued at fair market value, limited by the donor’s cost basis. A paid up policy is valued at its replacement cost. A policy that is not fully paid up is valued at the lesser of premiums paid, or its interpolated terminal reserve amount. If the donor contributes future premium payments, WGTS 91.9 includes the entire amount of the additional premium payment as a gift in the year that it is made.
If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, WGTS 91.9 may:
·Continue to pay the premiums
·Convert the policy to paid up insurance
·Surrender the policy for its current cash value.
E. Charitable Gift Annuities: The following national foundations offer charitable gift annuities for the benefit of WGTS 91.9:
·National Christian Foundation
·National Gift Annuity Foundation
·Western Adventist Foundation.
Other issuers of charitable gift annuities may be considered at the discretion of the donor.
The terms for charitable gift annuities vary by foundation including gift annuity payment rates, minimum gift amount, minimum age for life income beneficiaries at the time of initial annuity payment, and minimum deferral period for a deferred charitable gift annuity. As specified by the United States Internal Revenue Code, no more than two life income beneficiaries are permitted for any charitable gift annuity. For donors with limited assets, other types of charitable gifts, including bequest planning, may be more appropriate.
Gift annuity funds are invested in accordance with the policies of each foundation. These foundations typically do not accept real estate, tangible personal property, or any other non-liquid asset in exchange for current charitable gift annuities, though these gifts may be accepted in exchange for a deferred gift annuity so long as the value of the property is reasonably certain.
Payments to annuitants are backed solely by the foundation each donor selects to create their annuity and are not insured or otherwise guaranteed by WGTS 91.9 or any government agency.
F. Charitable Remainder Trusts: WGTS 91.9 may be designated as remainder beneficiary of a charitable remainder trust. WGTS 91.9 will not accept appointment as trustee of a charitable remainder trust.
G. Charitable Lead Trusts: WGTS 91.9 may be designated as income beneficiary of a charitable lead trust. WGTS 91.9 will not accept an appointment as trustee of a charitable lead trust.
H. Bequests: Donors and supporters of WGTS 91.9 are encouraged to make bequests to WGTS 91.9 in their wills and trusts. WGTS 91.9 suggests donors disclose their bequest intentions to WGTS 91.9 in writing to ensure that WGTS 91.9 is able to carry out their wishes. Gifts from estates of deceased donors which do not conform to WGTS 91.9 policies may be determined to be unacceptable. When possible, a mutually agreeable plan is negotiated between WGTS 91.9 and the representative to make the gift acceptable. Such bequests are not recorded as gifts until such time as the gift is irrevocable. When the gift is irrevocable, but is not due until a future date, the present value of that gift is recorded at the time the gift becomes irrevocable.
I. Beneficiary Designations: Donors and supporters are encouraged to name WGTS 91.9 as beneficiary or contingent beneficiary of their bank accounts, brokerage accounts, retirement plans, life insurance policies, and annuity contracts.
VIII. Endowment Gifts
Endowment gifts contribute to the long-term financial health of WGTS 91.9 and give donors the opportunity to support this ministry into perpetuity and/or for a stated term of years.
A. Oversight: Gifts made to an endowment fund are subject to review by the WGTS 91.9 Gift Acceptance Committee if such gifts otherwise are subject to review prior to acceptance in accordance with these policies. WGTS 91.9 manages all endowment funds in accordance with the Uniform Prudent Management of Institutional Funds Act and other applicable regulations.
B. Investment Strategy: Investment of endowment funds will be done in accordance with investment policies established by the WGTS 91.9 Board of Directors. These funds are invested to maximize revenue from interest using generally accepted capital preservation investment strategies.
C. Endowment Fund Distributions: The principal of each gift given to the WGTS 91.9 Endowment Fund is perpetually retained and interest revenues are transferred annually from the endowment fund to support WGTS 91.9 ministry operations. Other perpetual and/or term of years endowment funds may be established by WGTS 91.9 to provide funding for specific long-term needs. The timing and percentage of fund transfers from these endowments to the programs for which they were established will be at the direction of the WGTS 91.9 Gift Acceptance Committee and consistent with related endowment fund agreements between WGTS 91.9 and the donors to the fund.
D. Endowment Fund Agreements: A WGTS 91.9 Endowment Fund Agreement must be completed prior to establishing a new endowment fund or making a gift to an existing fund This agreement may be amended by the mutual consent of the donor and WGTS 91.9. Following the death or disability of the donor, if changed circumstances should at some future time cause the purpose(s) of the fund to be inappropriate or impractical, or any of the restrictions on the use of or the investment of the fund imposed by this agreement to become obsolete, inappropriate, or impracticable as determined by the WGTS 91.9 Gift Acceptance Committee, in its sole discretion, then the WGTS 91.9 Gift Acceptance Committee may redesignate the purpose of the fund, and the distributions therefrom, or release such restriction, provided that the amended use of the fund shall adhere as closely as possible to the original intent.
IX. Naming of Activities or Property
WGTS 91.9 welcomes the opportunity to honor individuals whose philanthropic contributions make possible the delivery of its faith-based media programs and services. Name recognition is limited to those situations where a donor funds all or a major part of the cost of an activity or facility. WGTS 91.9 reserves the right to determine the physical displays associated with the naming of an activity or property.
No naming will be approved or, once approved, continued when WGTS 91.9 deems that such action:
Calls into question the reputation of WGTS 91.9
Serves as an endorsement of a commercial product or partisan political position
Represents an ideology which is inconsistent with the published mission, values, identification, and operating principles for WGTS 91.9.
WGTS 91.9 reserves the right to, at any time, limit the duration of named recognition. WGTS 91.9 may at its discretion modify or eliminate the nature of the named recognition in the event of changed circumstances, such as the completion of a named activity, breech of donor agreement, and disposal or renovation of property.
X. Miscellaneous Provisions
A. Securing appraisals and legal fees for gifts to WGTS 91.9: It is the responsibility of the donor to secure a qualified appraisal, where required, and independent legal counsel for all gifts made to WGTS 91.9.
B. Valuation of gifts for development purposes: WGTS 91.9 determines the value of non-cash gifts and records all gifts on the date received.
C. Gifts resulting in joint ownership: WGTS 91.9 does not accept contributions resulting in joint ownership of tangible personal property, property interests, or financial accounts.
D. Responsibility for IRS filings of non-cash gift items: In the event the value of a non-cash donation is greater than $5,000, the IRS requires that the donor obtain an independent appraisal of the property and that WGTS 91.9 sign IRS Form 8283 acknowledging receipt of the gift. To be acceptable to the IRS, the appraisal of such gifts must be made no more than 60 days prior to the date of the contribution and before the due date of the tax return. The Donor is asked to present a copy of the appraisal and completed IRS Form 8283 to WGTS 91.9 at the time of the gift. The form will be returned to the donor with the proper signature. To the extent applicable, WGTS 91.9 will file IRS Form 8282 within 125 days of the sale or disposition of any charitable deduction property sold within three (3) years of receipt by the WGTS 91.9. “Charitable deduction property” means any donated property (other than money and publicly traded securities) if the value claimed by the donor exceeds $5,000 per item or group of similar items donated by the donor to one or more organizations.
E. Signatories to gift agreements: All charitable gift agreements with WGTS 91.9 are signed by the donor and President of WGTS 91.9, or his/her designee.
F. Gift Acknowledgement: Acknowledgement of all gifts made to WGTS 91.9 and compliance with the current IRS requirements in acknowledgement of such gifts is the responsibility of the President of WGTS 91.9 or his/her designee. IRS Publication 561 Determining the Value of Donated Property and IRS Publication 526 Charitable Contributions provide excellent guidance and can be downloaded from www.irs.gov.
XI. Changes to the Gift Acceptance Policy
This policy has been reviewed and accepted by the WGTS 91.9 Board of Directors. The WGTS 91.9 Gift Acceptance Committee must approve any changes to this policy.
Approved on December 2, 2021
Charles A. Tapp, Chairman Board of Directors, WGTS 91.9