PROGRESSIVE MULTIPLIER - GIFT ACCEPTANCE POLICY
The 501(c)(3) Progressive Multiplier Fund and the 501(c)(4) Progressive Multiplier Action Fund (or, in combination, referred to as the “Progressive Multiplier”) are funding intermediaries, and best practice resource centers that possess a superior understanding of small donor fundraising and member benefit programs; that specialize in risk management for investing in such programs; and that execute a unique, compliant approach to generate both 501(c)(3) and 501(c)(4) resources.
To set forth a standard operating procedure (SOP) for accepting gifts received by the Progressive Multiplier.
This policy applies to all gifts offered to the Progressive Multiplier by any individual or organization (formal or informal) and must be followed by all employees.
DEFINITIONS & ABBREVIATIONS
Gifts-In-Kind Non-cash donations
Restricted Gifts Gifts for which the donor specifies the use/or purpose of the funds
Unrestricted Gifts Gifts for which the donor does not specify the use and purpose of the funds
IRS Internal Revenue Service
The Gift Acceptance Committee comprised PM Director of Development, the Executive Director, and two appointed Board Members. The Full Board or the Finance Committee may act instead of a Gift Acceptance Committee.
The mission of the Progressive Multiplier is to raise capital, innovate creative financing products, invest in projects designed specifically to generate scalable revenue for a diverse, ever-expanding universe of non-profit organizations, and share best practices and lessons learned across the sector.
The Development Department seeks to further the Progressive Multiplier's mission by soliciting, accepting, and administering gifts of various kinds. In pursuing and facilitating such gifts, the Development Department shall maximize the benefit to the Progressive Multiplier by acting in accordance with the policies established herein, and shall foster and steward relations so as to make the experience of donors and prospective donors as pleasant and rewarding as possible. Any exceptions to these policies must be approved by the Director of Development in consultation with the Chief Financial Officer and other appropriate officers of the Progressive Multiplier as needed.
All fundraising activities shall be conducted in a manner that does not conflict with any administrative policies, and that protects the interests of the Progressive Multiplier. Concurrently, each donor's interests shall be protected, and the Progressive Multiplier shall not knowingly enter any arrangement that would be inconsistent with the donor’s intent. Gifts shall be made directly to the organization (not to an individual staff member or board member) and shall be consistent with IRS rules and regulations governing gifts to tax-exempt organizations. The Progressive Multiplier, in the management and reporting of gifts to the Progressive Multiplier, shall be guided by the standards of accounting and reporting established by the Financial Accounting Standards Board (FASB).
Types of Funding Accepted
The Progressive Multiplier accepts financial support from foundations, individuals, corporate donors, and others. All pledges, pledge payments, and gifts in the form of cash, checks, credit cards, wire transfers and ACH transactions will generally be accepted as long as they conform to all Progressive Multiplier Gift Acceptance Policies. Gifts will be credited and receipted to the legal donor. Recognition credit can be provided as appropriate.
Checks are to be made out to either the Progressive Multiplier Fund or Progressive Multiplier Action Fund. In no event shall a check be made payable to an employee, agent, or volunteer representing the Progressive Multiplier.
In addition to cash, pledges, and pledge payments, the following will also be recognized:
- Stock, mutual funds, bonds, or other securities
- Unrestricted testamentary bequests and gifts
- Gifts of existing life insurance policies
- Gifts of personal property
- Payments received from charitable trusts
Matching Gifts: The Progressive Multiplier accepts gifts from companies which sponsor matching gift programs for their employees or former employees. Any matching gift received is used for the same purpose as the original gift unless limitations are imposed by the issuing company/foundation that prohibit an identical use.
Gifts in Kind: The Gift Acceptance Committee may, at their discretion, choose to accept a gift of tangible personal property that is readily marketable to liquidate the asset. Property for the institution's use with an appraised or estimated fair market value of less than $5,000 may be accepted in consultation with the Director of Development and Executive Director. Gifts of property valued at $5,000 or more must be approved by the Gift Acceptance Committee.
Gifts of services, while often considered helpful to the Progressive Multiplier’s mission, are not considered charitable gifts for tax purposes. Services donated to PMF or PMAF should be acknowledged and the donor thanked, but no acknowledgement should suggest that services donated to PMF may entitle the donor to any tax deduction. However, the value of certain donated services may need to be reflected on either PMF or PMAF’s books, and Progressive Multiplier will collect the information necessary to make the appropriate entries.
Donors interested in discussing a potential planned gift or gift in kind to the Progressive Multiplier, should contact the Development Department by email: firstname.lastname@example.org, or mail: Progressive Multiplier, 714 G St SE, Suite 200, Washington, DC 20003.
For pledges of $50,000 or greater, the Progressive Multiplier strongly prefers a written Statement of Intent (or similar written documentation) signed by the donor, which includes a specific dollar amount, gift designation(s) and fixed time schedule. For pledges under $50,000, email documentation with the donor or some other non-signed documentation (like direct mail reply form or staff documentation of a conversation) is considered sufficient. Pledges are typically booked with payment schedules of up to five years.
Immediate Sale of Gifts of Stock
It is the policy of the Progressive Multiplier to liquidate gifts of stock immediately upon receipt, unless otherwise directed by the Board of Directors. The possible transaction cost of this sale is considered small compared to the risk of loss that can be experienced with delay in the sale of the stock. Proceeds from the sale of the stock are considered unrestricted contributed income unless the donor has imposed a restriction as a condition of the gift. In this case, procedures for accounting for restricted contributions will be followed.
An investment account will be maintained with a minimum balance of cash or stock as required to facilitate the donation of stock to Progressive Multiplier and liquidation of the stock. The maintenance of this account to accommodate these transactions is the responsibility of the Executive Director in conjunction with the organization's board of directors. As part of the Progressive Multiplier’s monthly close procedures, financial reports to the board of directors, and annual financial audit, Stock and Investment account balances and transactions will be reconciled and audited.
The Progressive Multiplier will not accept a proposed gift for reasons including, but not limited to, the following:
- The gift or gift transaction involves any illegality
- The gift or gift transaction in some manner conflicts with the Progressive Multiplier’s policies or mission
- The benefit of the gift is outweighed by the potential of negative publicity for the Progressive Multiplier that would result from the transaction
- The gift or gift transaction inhibits the Progressive Multiplier from seeking donations from other donors
- The benefit of the gift is insufficient to offset the extent of administrative and/or legal effort involved
- The gift or gift transaction is earmarked to be regranted to any specific organization.
- The donor or anyone acting on their behalf seeks to make even a non-binding request or suggestion that a contribution to PMAF be used to support a specific non-501(c) organization.
- The donor or anyone acting on their behalf seeks to make even a non-binding request or suggestion that a contribution to PMF be used to support a specific non-501(c)(3) organization. However, a gift that is restricted to a program area will be accepted.
Gift Acknowledgement & Recognition
All gifts shall be recognized appropriately and timely in accordance with the Progressive Multiplier’s Donor Acknowledgement and Stewardship procedures.
Gift Acceptance Committee
A Gift Acceptance Committee serves in an ad hoc capacity to review proposed Gifts-In-Kind and other complex assets to the Progressive Multiplier. The Committee will represent the Progressive Multiplier’s interest in evaluating the gift for a use related to the organization’s mission. Gifts that fall under this committee’s review include tangible personal property, real property, life insurance, and other complex assets. The category “other complex assets” can include, but is not limited to, intellectual property, partnership interests, and restricted or non-publicly traded securities. The PMF Gift Acceptance Committee is comprised of the Progressive Multiplier’s Director of Development, Executive Director, and two appointed PMF Board Members. The PMAF Gift Acceptance Committee is comprised of the Progressive Multiplier’s Director Development, Executive Director and two appointed PMAF Board Members. If no Gift Acceptance Committee is formed, the Finance Committee or the Full Board of Directors may act in lieu of the Gift Acceptance Committee.
Confidentiality of Information
The Progressive Multiplier is committed to protecting the privacy of people whose personal information is held by the PM through responsible information management. This includes information on constituents (donors and potential donors) that is held by the Progressive Multiplier Development Department. Confidential information about Progressive Multiplier constituents as well as confidential communications in oral form or on electronic, magnetic, or print media is protected to foster a trusting relationship between the constituent and the institution. This policy applies to all employees, including part-time, temporary, contractual, paid and unpaid interns, and agents of the institution who assist in the Progressive Multiplier’s fund-raising outreach mission. Each person with access to confidential information is personally responsible for the protection of it.
RIGHTS OF DONORS
The Progressive Multiplier is guided by this amended version of the Donor Bill of Rights created by the Association of Fundraising Professionals, the Association for Healthcare Philanthropy, the Council for Advancement and Support of Education, and the Giving Institute:
Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is primary to the quality of life. To assure that philanthropy merits the respect and trust of the public, and that donors and prospective donors can have full confidence in the organizations and causes they are asked to support, we declare that all donors have these 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 summary financial data.
- To be assured their gifts will be used for the purposes for which they were given.
- To receive appropriate acknowledgment and recognition.
- To be assured that information about their donation is handled with respect and 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.
Any exception to this Policy must be approved by the PMF or PMAF Board and Development Director.