APLF Gift Acceptance Policy (adopted 4/28/2022)
The Albuquerque Public Library Foundation (“Foundation”) was founded to provide community support to the Public Library, Albuquerque and Bernalillo County. The Foundation raises funds to enrich Library programs, services, and facilities, specifically those not funded in the operations budgets allocated by the City of Albuquerque and by the County of Bernalillo.
The Foundation receives donations from individuals, businesses, foundations and income from investments and events.
These policies are provided as guidance and counsel. Flexibility will be maintained as some gift situations may be complex and decisions may require the consideration of numerous factors. The Library Director is an integral part of any decision-making process. Any exception or variance from this Policy shall be made on an individual basis and shall require the approval of the Board.
All gifts other than cash will be reviewed by the Finance Committee. Using this policy as the basis for evaluation, the Finance Committee will make a recommendation to the Board of Directors for final approval. This work will be done as expediently as possible.
The Foundation does not accept gifts that would endanger the organization’s 501c3 status.
All qualified appraisers used to assess the value of a potential gift of real property must be licensed by the State of New Mexico. It is hoped that all other appraisers would meet the minimum qualifications established by
The Appraisal Foundation.
The Board of Directors as a whole may modify or lift restrictions outlined in this document. Legal counsel will be consulted as appropriate.
These policies shall be reviewed on an annual basis by the Fundraising Committee and may be amended by the Board of Directors as needed.
Definitions of Responsibilities:
The Board of Directors controls and manages the property, business and affairs of the Foundation.
The Board President supervises and controls the Foundation’s business affairs.
The Executive Committee consists of the officers APLF Board of Directors: President, Vice-President, Treasurer, Recording Secretary and Corresponding Secretary.
The Finance Committee consists of three or more board members, charged with communicating budget priorities to the Treasurer, establishing and overseeing Foundation investments and implementing the Gift Acceptance Policy. The Library Director is a member of the Finance Committee. The Finance Committee reports to the Board as stipulated in the Gift Acceptance Policy.
The Library Director is the head library administrator in the City of Albuquerque’s Department of Arts and Culture who reports to the Director of the Department of Arts and Culture and who oversees the library services throughout the City and County.
The Treasurer is the member of the Board of Directors who oversees the financial affairs of the Foundation and ensures that the organization adheres to all legal accounting practices.
Types of Gifts
- Cash, Checks and Credit Cards
- Cash, Checks and Credit Cards
- Checks shall be made payable to “The Albuquerque Public Library Foundation.”
- The value of any cash gift is the face value of the check, cash or credit card charge.
- Publicly Traded Securities
- Publicly traded securities and mutual funds in negotiable form shall be accepted by the Foundation. Such securities and funds will generally be sold immediately by the Foundation according to instructions given by the Finance Committee and the Board and the proceeds deposited in the appropriate account.
- The value of a gift of such securities and funds will be determined according to IRS regulations and the date, value and method of valuation of the gift will be communicated to the donor in the gift acknowledgement letter./li>
- No volunteer working on behalf of the Foundation may commit to a donor that a particular security or fund will be held by the Foundation, sold through a specific broker or traded on instruction of the donors without the written approval of the Foundation President and Finance Committee.
- Less active or rarely traded securities, or securities that do not trade on the gift date, may be accepted upon written approval of the Foundation President and Finance Committee in consultation with the Foundation’s investment company since such gifts present more complex valuation questions. The fair market value of such securities should be determined by a qualified outside expert.
- Closely Held Securities
- Closely held or non-publicly traded securities are defined as securities that are not broadly or publicly traded and include not only debt and equity issues of C and S corporations, but also limited liability companies (LLCs) and limited partnerships (LPs). These securities may be accepted only after approval of the Foundation’s Finance Committee and the Board.
- Valuation of stock in this category is the responsibility of the donor. In the absence of a recent sale, the fair market value should be determined by an acceptable authority. Regardless, if the value of the gift is estimated to be $10,000 or more, a qualified appraisal shall be required and paid for by the donor.
- Such securities may be subsequently sold only with the approval of the Finance Committee and the Board.
- Restricted Securities
Restricted securities are sometimes given as gifts, but because of the complexity of transferring ownership and the limits on the sale of the stock, such a gift is subject to the review and approval of the Finance Committee and the Board. Should the Foundation accept a gift of restricted securities, the donor must work cooperatively with the Foundation regarding the disposition of the stock.
- Real Estate
- All gifts of real estate [improved & unimproved (e.g., single-family residences,
timeshares, condominiums, apartment buildings, rental property, commercial property, commercial property, farms, acreage, etc.)], are subject to review by the Finance Committee.
- Criteria for acceptance of gifts of real estate include:
- Is the property useful for the Foundation’s purposes?
- Is the property readily marketable?
- Are covenants, conditions, restrictions, reservations, easements, encumbrances or other limitations associated with the property?
- Are carrying costs (including insurance, property taxes, mortgages, notes,
or the like) or maintenance expenses associated with the property?
- Does the environmental review or audit reflect that the property is damaged or otherwise requires remediation?
Prior to acceptance, a current appraisal by a qualified appraiser, as required by the IRS, must be obtained. The appraisal is the responsibility of the donor. There may be situations in which the Foundation’s Finance Committee recommends to the Board that an independent appraisal, in addition to any obtained by the donor, is needed.
- In addition to a current appraisal, all gifts of real estate must include the following, with all costs covered by the donor, unless waived by the Finance Committee:
- Title search, title commitment, and title policy
- Current appraisal and marketability check
- On-site evaluation by the President of the Foundation or designee
- Appropriate environmental impact assessment of the property to ascertain if it is subject to environmental restrictions, toxic wastes, or otherwise encumbered, to
determine if possible economic or mission-conflicting liabilities for the
Foundation might occur, unless the study is waived by a vote of the Finance
- Conveyance by warranty deed or special warranty deed.
- No gift of real estate will be accepted with the understanding that it will be held in perpetuity or subject to rights of reversion or other conditions.
The Board must approve any exceptions to the gift policy for all real estate gifts.
- Tangible Personal Property
- Tangible personal property are physical assets exclusive of real property and financial instruments. Such property may include art, antiques, furniture, manuscripts, books, jewelry, stamps, coins and other collections, boats, or motor vehicles.
- Tangible personal property may be donated for charitable purposes but will only be accepted when the Finance Committee makes a recommendation to the Board for final approval. Such gifts will be accepted only when the gift is consistent with the Foundation’s mission and can either be utilized in its operations or when it is reasonably expected that the gift can be converted into cash. All such gifts to the Foundation will be sold at the discretion of the Foundation, at the earliest opportunity, keeping in mind current market conditions and the potential use of the gift in the accomplishment of the Foundation’s mission. No personal property shall be accepted subject to ownership in perpetuity or other restrictions without a recommendation from the Finance Committee to the Board and the Library Director for final approval.
- In determining whether to accept gifts of tangible property, the Finance Committee will consider the following:
- Does the property further the Foundation’s mission?
- Is the property marketable?
- Are there any unacceptable restrictions imposed on the property?
- Are there carrying costs for the property for which the Foundation may be
- Is the title/provenance of the property clear?
- All tangible personal property must have values assessed by qualified appraisers retained and paid for by the donor for appropriate gift tax credit.
- Gifts of tangible personal property received in the form of a bequest, which may be appropriate for the Public Library, Albuquerque and Bernalillo County’s collections, shall be offered to the Library Director. If the Library does not wish to accept the property, the Foundation may accept said property upon review by the Finance Committee and its recommendation to the Board for final approval. Typically, such property will be sold.
- The Foundation’s acceptance of such gifts cannot involve significant additional expense for their present or future display, maintenance, or administration. Unless otherwise authorized by the Board, the Foundation will seek to liquidate such assets.
- In general, the Foundation will not accept gifts of books or audiovisual materials. Rather such donations can be made directly to branch libraries of the Public Library, Albuquerque and Bernalillo County where the donation will be reviewed and selected either for the collection or be turned over to The Friends of the Public Library and sold at book sales for the benefit of the Public Library, Albuquerque and Bernalillo County. Such books and other materials need to be in good condition to be accepted.
- The library system’s website lists the types of books and other materials that will be accepted.
- Other Property
Other property of any description, including but not limited to mortgages, notes, rights of all types, royalties, easements, whether real or personal, may be accepted only upon review by the Finance Committee and its recommendation to the Board for final approval.
- Matching Gifts
Matching gifts are where individual donations are matched by companies where a donor is employed. It is the donor’s responsibility to determine if the donation is match eligible and complete the required processing for the match. The Foundation will verify the transaction for the funds to be received.
A donor whose gift is matched by an employer will be recognized for the total amount of the individual gift plus the matching portion on their gift and will receive name recognition associated with the appropriate level of tier giving for the total amount.
The corporation will also be recognized with the matching gift so it can be stewarded appropriately.
- Out of Pocket Expenses and In-Kind Donations
- Out of Pocket Expenses. If an individual hosts a function on behalf of the Foundation or expends funds for the Foundation’s benefit and wishes to claim a tax deduction there are two ways this may be accomplished:
- Receipts or other forms of valuation of the expenditure(s) may be presented to the Foundation Treasurer for the contribution to be qualified and acknowledged. The acknowledgment letter will serve as the donor’s documentation for the Internal Revenue Service (IRS), along with the receipts for the expenses.
- Preferably, bills from the event may be submitted to the Foundation Treasurer for payment along with a check made payable to the “Albuquerque Public Library Foundation” in the amount of the expenses. The check will be acknowledged as a gift to the Foundation, restricted to reimbursement of the activity in question.
In-Kind Donations. In-kind gifts to the Library or to the Foundation must be approved in advance by the Library Director, in consultation with the Finance Committee. Gifts of materials, products or services may be accepted when the form of the gift is immediately available and is either directly useable for the mission of the Library or can be used by the Foundation in direct support of the Library. Donated services must either create or enhance the non-financial assets of the Foundation or require skills that typically would need to be purchased if not provided by a donation. It is the sole responsibility of the donor to determine the value of the gift for tax purposes. If a business or individual provides the Library or the Foundation with an in-kind donation of goods or services, the Foundation also must receive a receipt or invoice of valuation of the goods or service donated. The Foundation’s acknowledgment letter will serve as the donor’s documentation for the IRS.
Gifts of volunteer time and services are not deductible by an individual donor and letters of thanks will not serve as documentation for the IRS.
- Planned Giving
- The Foundation accepts a wide variety of planned gifts. Making a planned gift to the
Foundation will enable donors to support their public library system into the future, and,
in some instances, receive tax benefits. If a donor is considering any of these types of
planned gifts, the donor should be advised by a competent independent estate planner
or financial planner in making a planned gift. The Foundation is not a source of legal,
tax, or financial advice.
- That being said, the simplest way to make a planned gift is to name the Foundation in a
will or family trust. An example of wording that might be used to designate a fixed sum
or a percentage of one’s assets to the Foundation is as follows: “I give to The
Albuquerque Public Library Foundation, Inc., a 501c3 nonprofit corporation, PO Box
25792, Albuquerque, NM 87125 (Federal Tax I.D. # 45-2688338), the amount of
$___________ or ______ % of the residue of my estate for purposes deemed
appropriate by the APLF Board of Directors.”
- Examples of Planned Gifts include:
- Gifts by Will or Bequest are completed upon the death of the donor and/or a
surviving beneficiary or beneficiaries. These gifts may provide a specific dollar
amount, a specific property, or a share of the residue of the estate. Bequests
may be restricted or unrestricted. Restricted bequests support a certain purpose
or program designated by the donor, and such gifts can only be accepted after
the Finance Committee makes recommendation to the Board for final approval.
Unrestricted bequests above $100,000 within a fiscal year are reviewed and
designated by the Board to meet the best long term needs of the
Foundation. Unrestricted bequests under $100,000 within a fiscal year are
reviewed and allocated by the Finance Committee. If the bequest is designated
for the endowment, the will or other legal document establishing the gift will
serve as the Endowment Agreement.
- Charitable Trusts may also be created by deed or agreement in the lifetime of the
donor. The two most common forms are the Charitable Remainder Unitrust and
the Charitable Remainder Annuity Trust. Typically, Charitable Remainder Trusts
are managed by a commercial trust company rather than the Foundation. In
general, the Foundation will not serve as a trustee or co-trustee of a Charitable
Remainder Trust, though the Finance Committee can make an exception on an
individual basis. Charitable Lead Trusts provide immediate support for the
Foundation through income generated by assets in a trust for a set period-of-
time, after which the assets pass to a non-charitable beneficiary. The Foundation
will accept Charitable Lead Trusts but will not act as trustee for these trusts.
- Life Insurance policies, in which the donor has transferred ownership of the
policy to the Foundation, the Foundation is the named beneficiary, and the policy
is fully paid, will be accepted by the Foundation. Upon receiving a paid-up policy,
the Foundation may either surrender it or obtain the cash value or keep the
policy until the death of the donor. The charitable deduction to the donor is the
fair market value of the fully paid insurance policy. The decision to keep or
surrender the policy will be made by the Board, after consultation and
recommendation by the Finance Committee. The Foundation will not accept any
other forms of life insurance policies.
- Life Estate Gifts will not be accepted by the Foundation, although this policy may
be overridden by the Executive Committee in rare situations.
- Endowment Gifts create permanent and self-perpetuating income sources for
important Foundation and Library needs. Endowments are needed to finance
present and future initiatives. While the Foundation does not fund basic library
operations, it does work closely with the Library Director to determine where
private funding will expand and enhance the library’s work, help the library offer
services and programs, and undertake building enhancements that might not be
possible otherwise. An endowment is perpetual and provides that donated
funds are to be conserved and augmented. In all cases, the establishment of a
named endowment fund requires the approval of the Board, and no
endowment will be separately invested without the approval of the Finance
Foundation Endowment Policy
Endowment assets are invested by the Foundation in accordance with the Foundation’s
Statement of Investment Policies. The Finance Committee of the Foundation sets the spending rate of the endowment funds on an annual basis, in accordance with the guidelines in the Investment Policy.
The minimum amount required for establishing a restricted or named endowment fund is $100,000. This substantial gift may be contributed as a single donation or arranged as a multi- year pledge, not to exceed five years in duration. A gift of any amount may be given to an established Endowment Fund.
When there is a living donor who has contributed, or will contribute, to an endowment fund, the donor must sign an Endowment Agreement to define, govern, and direct the use of the fund and which indicates approval of the proposed procedures. An Endowment Agreement is also required when a gift is made through a charitable remainder trust. If a bequest is designated for the endowment, the will or other legal document establishing the gift will serve as the Endowment Agreement.
All documents used to establish endowments should emphasize a general use and avoid specific requirements that could become outdated. All gifts received for restricted endowment purposes will be accepted only on the condition that the Board retains the right to allocate such funds to purposes as near as possible to the original intent of the donor, should the purpose for which the funds are provided be or become indefinite, impossible or impractical of fulfillment. All endowments should contain language similar to: “Should the purpose(s) of the gift, as detailed herein, be or become indefinite, impossible or impractical of fulfillment, the Foundation Board shall direct the funds as, in its discretion, it most nearly fulfills the intentions of the donor.”
The preparation of the Endowment Agreement is the responsibility of the Foundation and when one is executed, two copies are to be signed and dated by the donor and the Foundation president. One copy is for the Foundation and the other is for the donor.
A restricted endowment fund must be funded for a minimum of one year before earnings are available for spending. As a general rule, spending will not be made until the restricted endowment is fully funded, unless otherwise stipulated in the Endowment Agreement. The Board may make exceptions to the general rule, particularly in cases where partial funding is in place and the balance is irrevocably committed. In cases where it becomes evident that full funding will not occur within the time frame specified in the Endowment Agreement, the Board may choose to apply earnings toward another related objective and remove the restrictions to that endowment.
Announcement of a major endowment will be made only when a signed agreement is in place and at least 50% of the funds are in hand.
Gift Reporting and Stewardship
The Foundation is responsible for good stewardship of the assets donated to
it. The Foundation will maintain records and provide appropriate receipts
and documentation for donors to avail themselves of all tax benefits to which
they are entitled.
- All gifts will be acknowledged within a reasonable period of time, ideally within 10 business days after receipt by the Foundation. Annual gifts paid monthly will be acknowledged within 10 business days of the close of a 12-month period.
- All official gift acknowledgements will include a gift letter by the Foundation.
- A database of donors and donations will be maintained by the Foundation.
- Files, records, and mailing lists regarding all donors and donor prospects are maintained and controlled by the Foundation. Written reports of interviews and solicitations will be maintained in the donor file. The donor has the right to review the file upon prior notice at a mutually convenient date and time.
- Donor and prospect information is confidential and is strictly for the benefit of the Foundation
- All donor requests for anonymity will be honored and the Foundation will take reasonable steps to safeguard donors’ identities.
- Names of donors will not be provided by the Foundation to other organizations, nor will any lists be sold or given to other organizations.
Donor Responsibilities and Donor Bill of Rights
- While the Foundation will provide all appropriate assistance, the ultimate responsibility regarding asset evaluations, tax deductibility, and similar federal, state, and/or local legal compliance issues, rests with the donor(s) and/or with such financial advisors as the donor(s) secure. The Foundation recommends that all donors consult with their legal tax counsel when planning all gifts, especially non-cash gifts or future planned gifts.
- The Foundation will not knowingly seek, nor accept, any commitment regardless of size, designation or other condition that it believes is not in the potential donor’s best interest.
The Donor Bill of Rights
In accordance with the standards established by the Association of Fundraising
Professionals, the Foundation adheres to the following donor bill of rights:
- To be informed of the organization’s mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
- To be informed of the identity of those serving on the organization’s governing board, and to expect the board to exercise prudent judgment in its stewardship responsibilities.
- To have access to the organization’s most recent financial statements.
- To receive appropriate acknowledgement and recognition.
- To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law.
- To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
- To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors.
- To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share.
- To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.
Adopted by the Board of Directors, April 28 2022.