Legacy Haven Academy Gift Acceptance Policy

1. Introduction and Purpose

Legacy Haven Academy Foundation (the "Academy") supports the mission of Legacy Haven Academy to provide hope, purpose, and a reimagined future for youth aged 10-18 who are orphans or homeless through inspirational, values-based education, mentorship, and holistic development (Legacy Haven Academy, n.d.). This Gift Acceptance Policy (the "Policy") establishes guidelines for the solicitation, acceptance, and administration of gifts to ensure alignment with the Academy's mission, ethical standards, and legal obligations. The Policy promotes transparency, manages risks associated with non-standard gifts, and protects the Academy's interests while fostering strong donor relationships.

The Academy is currently in the process of applying for recognition of tax-exempt status under Section 501(c)(3) of the Internal Revenue Code (IRC) and has not yet received an affirmative determination letter from the Internal Revenue Service (IRS). During this pendency period, the Academy may treat contributions as tax-deductible to the extent permitted by law if exemption is ultimately granted, potentially on a retroactive basis (Internal Revenue Service, 2024a). However, until approval, donors should be advised that contributions may not qualify for federal income tax deductions under IRC § 170 (Internal Revenue Service, 2025a). Arizona does not impose charitable solicitation registration or renewal requirements for nonprofits, including those pending tax-exempt status (Harbor Compliance, 2021; Arizona Department of Revenue, 2023). No specific fundraising regulations apply at the Mohave County level beyond general state compliance (Ballotpedia, n.d.).

This Policy complies with federal (IRS), Arizona state, and applicable local regulations. It will be reviewed annually by the Board of Directors or as needed to reflect changes in law or Academy priorities (National Council of Nonprofits, n.d.a).

2. Authority to Solicit and Accept Gifts

The Board of Directors (the "Board") holds ultimate authority for approving the solicitation and acceptance of gifts. The Executive Director, in consultation with the Development Committee, may accept unrestricted gifts and standard restricted gifts that align with the Academy's mission. Gifts requiring Board approval include those exceeding $50,000, real property, closely held securities, or those with significant restrictions (Double the Donation, 2024; Public Counsel, 2021).

All solicitations must disclose the Academy's pending 501(c)(3) status and advise donors to consult their tax advisors regarding deductibility (National Council of Nonprofits, n.d.b).

3. Types of Gifts Accepted

The Academy welcomes gifts that support its mission without imposing undue administrative or financial burdens. Accepted gift types include:

• Cash and Cash Equivalents: Unrestricted or restricted cash, checks, credit/debit card payments, and electronic transfers. These are the preferred form of giving due to ease of processing and valuation (Bloomerang, n.d.).
• Pledges: Written pledges payable over up to five years, documented with enforceable terms. Pledges are recognized as revenue when enforceable and collectible (Internal Revenue Service, 2025b).
• Securities: Publicly traded stocks, bonds, and mutual funds. The Academy will accept these and may sell them immediately upon receipt to avoid market risks, unless donor restrictions specify otherwise (Association of Fundraising Professionals, 2017).
• Tangible Personal Property: Art, equipment, or vehicles with fair market value (FMV) under $5,000, provided they can be used or sold to further the mission. Items requiring maintenance exceeding 10% of value will be declined (Nonprofit Risk Management Center, n.d.).
• Real Property: Improved or unimproved land, subject to environmental and title reviews. Acceptance requires Board approval and legal counsel review (United Way of New York City, n.d.).
• Life Insurance Policies: New or existing policies where the Academy is named irrevocable beneficiary. Premium payments may be accepted as additional gifts.
• Retirement Plan Beneficiary Designations and Bequests: Encouraged through planned giving, with no immediate acceptance required.
• Charitable Remainder Trusts (CRTs) and Annuities: Accepted as remainder interests, with the Academy serving as trustee only if resources permit.

All gifts must align with the Academy's mission of supporting youth education and development (BerryDunn, n.d.).

4. Gifts That Will Not Be Accepted

To safeguard resources and compliance, the Academy reserves the right to decline gifts that:

• Conflict with its mission, values, or public image (e.g., gifts tied to tobacco or gambling interests).
• Impose restrictions incompatible with programmatic needs or requiring expenditure exceeding the gift's value.
• Present environmental, legal, or financial liabilities (e.g., contaminated property).
• Are illiquid or difficult to administer (e.g., closely held business interests without clear exit strategy).
• Violate IRS rules, such as quid pro quo arrangements exceeding $75 without proper disclosure (Internal Revenue Service, 2025c).

Declined gifts will be communicated courteously, with suggestions for alternative uses or redirection to aligned charities (Nonprofit Fixer, 2023).

5. Valuation of Gifts

• Cash: Valued at face amount.
• Securities: Average of high and low trading prices on donation date.
• Property: FMV determined by qualified appraisers for gifts over $5,000, per IRS substantiation rules (Internal Revenue Service, 2025d). Donors bear appraisal costs.

The Academy will not provide tax advice; donors are responsible for valuations (Charity Lawyer Blog, 2023).

6. Acknowledgment and Substantiation

The Academy will provide timely written acknowledgments for all gifts, including:

• Donor name and address.
• Description and amount/FMV of gift.
• Disclosure of any goods/services received in exchange.
• Pending tax status note.

For noncash gifts over $250, contemporaneous written acknowledgments are required (Internal Revenue Service, 2025e). Schedule M of Form 990 will report noncash contributions over $25,000 upon filing.

7. Gift Agreements and Restrictions

Restricted gifts require written agreements outlining terms, ensuring compliance with donor intent and IRS variance powers under state law. The Academy retains the right to reallocate if the original purpose becomes unlawful, impossible, or impracticable (Internal Revenue Service, 2025f).

8. Conflicts of Interest

Board members, staff, and volunteers must disclose potential conflicts in gift acceptance. No individual may solicit or accept gifts benefiting themselves or related parties without Board approval (Candid Learning, n.d.).

9. Legal Review and Insurance

Complex gifts (e.g., real estate, intellectual property) require review by independent legal counsel. The Academy maintains directors and officers (D&O) insurance and may require donors to indemnify against liabilities.

10. Recordkeeping and Reporting

All gifts will be recorded in the Academy's donor management system. Compliance with IRS Form 8283 for noncash gifts over $500 and Form 990 reporting is mandatory upon tax-exempt status (Internal Revenue Service, 2024b).

11. Policy Review and Amendments

This Policy will be reviewed annually by the Development Committee and approved by the Board. Amendments require a majority vote.