Thornwell recognizes and affirms the importance of earning and sustaining the public’s trust in fulfilling its mission. With regard to its fund development efforts, Thornwell accomplishes this level of trust through honest, truthful and responsible transactions, partnerships and relationships with all agency stakeholders.
Rights and Privacy Statement
THORNWELL’S DONOR PRIVACY STATEMENT
Thornwell is concerned about the privacy of donors and individuals who express interest in this ministry, as well as the privacy of our clients, volunteers, and employees. The principles and guidelines included in our Donor Privacy Statement pertain to online and offline donors.
- Thornwell adheres to the Donor Bill of Rights created by the American Association of Fundraising Counsel and other fundraising associations. We do not sell, rent, loan, or otherwise make available your personal information to others.
- We request and use only that information required for legitimate business purposes.
- We protect the confidentiality of all personal information in our records.
- We permit only authorized employees and pre-screened volunteers to access the information they need to perform their duties.
With Regard to Donors and Individuals Who Express Interest in this Ministry:
You provide us with most of the information we need when you make a gift or request information about Thornwell’s ministry. This includes your name, current address, phone numbers, and email address. Credit card and bank account information is only collected when you choose to make a charitable gift by one of these methods.
Our records may contain information we develop and maintain based upon our experiences with you, such as your contributions and other history with this ministry.
You have the right, by notifying us at any time, to modify your communications preferences or to opt out from receiving communications from Thornwell. Please include your complete name and address in any correspondence.
With Regard to the Thornwell Website- www.Thornwell.org:
We do not obtain personal information about you when you visit our website unless you voluntarily choose to provide the information to us. This occurs when you send us an email or submit an online form. These communication methods are not necessarily secure. If you are concerned about the privacy of your message, we encourage you to use a different method to communicate with us.
Our web server automatically compiles conventional log files that we use to monitor website activity. These logs do not identify any individual user.
Questions About Privacy:
302 S. Broad Street
Clinton, SC 29325
Toll Free: 888-310-9387
DONOR BILL OF RIGHTS
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 ensure that philanthropy merits the respect and trust of the general public, and that donors and prospective donors can have full confidence in the nonprofit 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 most recent financial statements.
- To be assured their gifts will be used for the purposes for which they were given.
- 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.
The Donor Bill of Rights was created by the American Association of Fund Raising Counsel (AAFRC), the Association for Healthcare Philanthropy (AHP), the Association of Fundraising Professionals (AFP), and the Council for Advancement and Support of Education (CASE). It has been endorsed by numerous organizations.
Gift Acceptance Policy
In addition to the above Privacy Statement and adhering to the Donor Bill of Rights, the Board of Trustees of Thornwell have adopted the following gift acceptance policy:
The purpose of this policy is to provide guidelines for the acceptance, valuation, and reporting of gifts to THORNWELL. This policy is designed to protect the agency and its supporters, and ensure that all gifts to the agency are structured to provide the maximum benefit to the parties involved.
THORNWELL has tax-exempt status under Internal Revenue Code 501 (a) as an organization described in section 501 (c) (3). Therefore, gifts to the agency are tax deductible to the extent allowed by law. The agency does not render legal or tax advice to its donors.
Determination of Acceptance of Gifts
THORNWELL will not accept gifts, enter into business relationships, or accept external support that will compromise its integrity, autonomy or programmatic freedom. Thornwell may elect to accept or decline any gifts. The final decision to decline a gift rests with the Board of Trustees
- OUTRIGHT GIFTS
THORNWELL will accept the following gifts and report them according to the provisions of this Policy:
Checks should be made payable to Thornwell rather than to an individual who represents THORNWELL.
B. Quid Pro Quo Contributions
To the extent that donors receive value in exchange for their payment, donors who patronize galas, auctions and similar fund raising functions make quid pro quo contributions. The IRS defines a quid pro quo gift as “a payment made partly as a contribution and partly in consideration for goods and services provided to the payor by the donee organization.” The goods or services received by the payor are called “premiums.” For gift reporting purposes, the gift value of quid pro quo contributions is equal to the total contribution minus the value of the premium.
C. Publicly Traded Securities
Readily marketable securities, such as those traded on a stock exchange or in the over-the-counter market, may be accepted by THORNWELL.
Such securities will be valued at the mean of the high and low quoted selling prices on the date the donor relinquished control of the assets in favor of THORNWELL. For certain securities traded in the over-the-counter market, the mean of the bid and the asked price is used to value the gift.
It is the policy of THORNWELL to sell gift securities immediately in accordance with the agency’s Investment policy. In accordance with standard gift reporting guidelines, neither losses nor gains realized on the sale of the stock by THORNWELL, nor brokerage fees or other expenses associated with the transaction, will affect the valuation of the gift. Exceptions may occur, e.g. a large block of small publicly traded securities of which immediate sale may be undesirable due to some extraordinary event. In these circumstances the Investment Committee of the Board of Trustees shall decide if an exception to the rule is in order.
D. Mutual Fund Shares
Mutual fund shares will be valued at their public redemption price on the date of the gift. If there is no such quotation for the fund on the date of the gift (e.g. because the gift is made on a Saturday, Sunday or holiday,) THORNWELL will report the shares at the previous public redemption price quoted by the fund.
E. Closely Held Business Interests
THORNWELL will accept gifts of interest in closely held businesses (corporations, partnerships and limited liability companies) subject to the approval of the Investment Committee. Because the income they generate may subject THORNWELL to Unrelated Business Income Tax (UBIT), gifts of S Corporations will be subject to additional scrutiny. Acceptance may require review by legal counsel to THORNWELL.
Gifts of closely held business interests exceeding $10,000 will be valued at the fair market value placed on them by a qualified independent appraiser as required by the IRS for valuing gifts of stock that are not publicly traded. Typically, this value shall be obtained from IRS Form 8283, on which the donor must obtain the donee’s signature for such gifts.
Gifts of closely held business interests valued at $10,000 or less may be valued at the per-share cash purchase price of the most recent transaction. If no redemption was made recently, such a gift may be reported at the value placed on the shares by an independent certified public accountant that audits the books of the corporation.
F. Real Estate
In general, gifts of real estate will be acceptable (subject to review by the Finance Committee), unless there is reason to believe the property is not marketable or useful to THORNWELL. Prior to acceptance of gifts of real property, the donor must provide a qualified appraisal of the real estate.
A Phase 1 environmental and toxic waste assessment shall be required as condition for acceptance of a gift of real estate in the form of a residence, business, commercial building, or undeveloped land. This assessment shall be the donor’s responsibility and expense. In exceptional cases where the property is of high value, the agency may bear the cost of the assessment..
To be suitable for donation, title to the land must be clear and marketable, and the property must be unencumbered by mortgage or other liens. If the property comes with significant carrying costs for utilities, maintenance, or property owners’ association dues, restrictions on sale or use of the land, or if market conditions in the area are very unfavorable, acceptance shall be approved by the Finance Committee of the Board of Trustees.
THORNWELL may accept either a gift of real property with a retained life estate or subject to other interest(s) for terms of years, or other limitations as to the limit of the interest or use or sale restrictions only after review and approval by the Board of Trustees. The agreement creating the life interest must provide that the donor and/or life tenant will remain responsible for the payment of mortgages, taxes, insurance, utilities, maintenance/repairs and other costs associated with the property, unless other specific provisions are made for the payment of these expenses. The donor(s) shall not violate or allow to be violated any environmental laws/ordinances covering this property.
Regardless of their tax deduction value, gifts of real estate will be valued at their fair market value. Gifts with fair market values exceeding $5,000 will be counted at the value placed on them by qualified independent appraisers, as required by the IRS for valuing non-cash charitable contributions. Typically, this value can be obtained from IRS Form 8283, on which the donor must obtain the donee’s signature for such gifts. Gifts of $5,000 and under may be reported at the value declared by the donor. IRS requirements for gift substantiation place the responsibility for valuing real estate gifts on the donor for tax deduction purposes.
THORNWELL shall comply with all IRS requirements in connection with disposing of gifts of real estate and filing of appropriate tax reporting forms. If a gift of real estate is sold, exchanged, consumed or otherwise disposed of by THORNWELL within two years after the date of the gift, THORNWELL must file IRS Form 8283 with the IRS that discloses that fact. THORNWELL will also provide the donor with a copy of Form 8283.
G. Tangible Personal Property
Acting on a case-by-case basis, THORNWELL may accept gifts of tangible personal property. Examples include gifts of jewelry, artwork, collections, equipment and software.
All gifts of personal property will be considered unrestricted unless designations are provided and approved and at the time the gift is made. However, acceptance of the gift does not guarantee that the gift will be utilized in the manner consistent with the donor’s wishes. Tangible personal property will not be accepted unless THORNWELL determines the gift has substantial value or can be utilized or disposed of quickly. The Resource Development Office may consult with the Board of Trustees before accepting any gift that necessitates holding the gift for a requisite period of time or for purposes unrelated to its tax-exempt status.
The Resource Development Office will not furnish appraisals or otherwise make representations concerning the value of non-cash gifts. The Resource Development Office may require appraisals provided by the donor for certain non-cash gifts.
Regardless of their tax deduction value, gifts with fair market values will be valued at their fair market value. Gifts with fair market values exceeding $5,000 will be counted at the values placed on them by qualified independent appraisers, as required by the IRS for valuing non-cash charitable contributions. Typically, this value can be obtained from IRS Form 8283, on which the donor must obtain the donee’s signature for such gifts. Gifts of $5,000 and under may be reported at the value declared by the donor. IRS requirements for gift substantiation place the responsibility for valuing property gifts on the donor for tax deduction purposes.
THORNWELL shall comply with all IRS requirements in connection with disposing of gifts of tangible personal property and filing of appropriate tax reporting forms. If a gift of tangible personal property is sold, exchanged, consumed or otherwise disposed of by THORNWELL within two years after the date of the gift, THORNWELL must file IRS Form 8282 with the IRS that discloses that fact. THORNWELL will also provide the donor with a copy of Form 8282.
H. Life Insurance Polices Donated During Lifetime
For insurance policies to be accepted as gifts, the donor must make THORNWELL the owner and sole irrevocable beneficiary of the policy. For gift reporting purposes, the value of the gift is the lesser of (1) the fair market value of the policy or (2) the donor’s cost basis. The definition of cost basis is the cumulative net premiums paid by the policy owner as of the date of the gift. The donor should obtain this information from the insurance company. The definition of fair market value – which the donor can obtain from the insurance company on IRS Form 712 – depends on the age and type of contract (see below).
- Paid-up Life Insurance Policies
Fair market value is the replacement cost of the policy – the amount that the insurer would charge for a single-premium contract of the same face amount on the life of a person of the same age as the insured.
Existing Policies/Not Fully Paid Up
Fair market value is “the interpolated terminal reserve” value of the policy on the date of gift. This value is usually slightly more than the cash value of the policy. Unrestricted gifts made by the donor to THORNWELL to cover future premiums will be reported at face value.
- New Policies
For policies issued within one year of the gift, the fair market value is the net premium paid (i.e., gross premium reduced by any dividend received by the policy owner). Unrestricted gifts made by the donor to THORNWELL to cover future premiums will be reported at face value.
- Realized Death Benefits
The insurance company’s settlement amount for an insurance policy whose death benefits are realized, whether the policy is owned by THORNWELL or not, will be recorded as a gift to THORNWELL, net of any gift value reported earlier.
II. Charitable Lead Trusts
For annual reporting purposes, THORNWELL will report only the income received each year from a charitable lead trust.
II. PLANNED GIVING
In addition to the provisions of this Policy, the following gifts are subject to THORNWELL’S Planned Giving Guidelines.
THORNWELL encourages gifts through Wills (bequests). THORNWELL will follow to conclusion all probate proceedings where THORNWELL is a named beneficiary. Gifts of property through a bequest that would not be acceptable based on the above policy provisions will be referred to the Board of Trustees. The Board of Trustees will communicate its decision to the legal representatives of the estate.
B. Irrevocable Planned Gifts
- Charitable Gift Annuities
- Charitable Remainder Trusts
- Pooled Income Funds
- Remainder Interest in a Residence or Farm
For annual reporting purposes, the Irrevocable Planned Gifts listed above are reported both at face values and present values. The face value is the fair market value of assets used to create the planned gift. The present value is the charitable gift deduction value derived by the IRS calculations.
C. Revocable Planned Gifts
- Bequest intentions
- Beneficiary of a living trust
- Beneficiary of an IRA or retirement plan
For annual reporting purposes, the Revocable Planned Gifts listed above are reported both at face values and present values. The face value is the fair market value of amount used to create the planned gift. The present value is fair market value discounted by a four percent inflation rate over the life expectancy of the donor as determined by IRS tables.
III. Naming Policy
A. Ultimate authority to accept or decline any proposal for naming opportunities at Thornwell Home & School for Children rests with the Board of Trustees.
B. Ultimate authority to discontinue the designated name of a building, room, or area, or to transfer the name to another building, room or area at Thornwell rests with the Board of Trustees.
C. No naming will be approved or continued that will call into serious question the public respect of Thornwell.
D. Thornwell may choose to extend recognition through naming after a donor/donors provided that the donor will provide all or a major part of the cost of funding the facility or activity. “Major” is deemed to mean greater than 50% of the cost to the complete the facility or activity.
E. Provisions in this policy that refer to naming for a donor also apply to naming for a third party at the wish of a donor.
F. Thornwell reserves the right to decide on the physical displays that may accompany named recognition.
G. An endowment fund is a fund whose donor has stipulated that the fund principal must remain inviolate and that only income may be expended. In determining the minimum acceptable funds, projected annual endowment income, both now and in the future, should be sufficient to fulfill the donor’s intended purpose. A name for an endowed fund is selected by the donor, and, if necessary, approved by the Board of Trustees.
IV. RESTRICTIONS ON GIFTS
The President or the Vice President of Resource Development or the Vice President of Finance of THORNWELL are authorized to accept gifts whose designations or restrictions are consistent with Board-approved uses, named gift opportunities, or fund-raising plans or are styled according to generic gift agreements previously approved by the Board. Other restricted gifts – particularly those characterized by unique, unusual, demanding, or highly detailed restrictions – will be accepted on a case-by-case basis, contingent on a review by the Board of Trustees of THORNWELL.
B. Gift Agreements
The terms of named endowment gifts and any gifts with unique, unusual, demanding, or highly-detailed restrictions will be specified in a written gift agreement that outlines the program or purpose to be supported and the schedule of contributions. The donor and the President or the Vice President of Resource Development or the Vice President of Finance of THORNWELL will sign the gift agreement. Other gifts may be committed to a gift agreement. All donors are presumed to have directed THORNWELL to apply for any matching funds from federal, state or private sources that might be available as a result of their gifts.
C. Restricting Policies
- The fund-raising program of THORNWELL generally supports and encourages both unrestricted gifts and gifts designated for restricted purposes of the donor’s choice. The acceptance of designated or restricted gifts is contingent on their fidelity to the mission of THORNWELL and their compatibility with THORNWELL’S strategic plan.
- Clauses in proposals, gift agreements or solicitations that discriminate in favor of or against any race, color religion, nationality, or national origin are prohibited. Provisions that discriminate based on age, disability or sex are discouraged.
- The terms of any gift should be as flexible as possible to permit the most productive uses of the funds, and as nearly as possible be consistent with the original intent of the donor.
D. Changing Restrictions
The use of donated funds for a purpose other than that stipulated by the donor is prohibited. If another use is deemed necessary, consent for using the funds in a different manner may be sought from the donor or may be altered in accordance with the terms of the gift agreement. If the use becomes obsolete, inappropriate, or impracticable, court approval may be sought to alter the use. Similarly, for a donor to change the originally stated use of donated funds, the change must first be agreed to by appropriate THORNWELL officer(s).