Isabella Stewart Gardner Museum Gift Policies Statement

ISABELLA STEWART GARDNER MUSEUM GIFT POLICIES STATEMENT (As of September 2019)

ISABELLA STEWART GARDNER MUSEUM GIFT POLICIES STATEMENT TABLE OF CONTENTS PAGE I.

INTRODUCTION..................................................................................................1

II.

AUTHORIZATION ...............................................................................................3

II.

DEFINITIONS .......................................................................................................5 A. B. C. D.

IV.

ACCEPTANCE AND VALUATION OF GIFTS AND PLEDGES ..................8 A. B. C. D. E. F. G.

V.

General Definitions ......................................................................................5 Definitions of Non-Cash Gifts .....................................................................5 Definitions of Planned Gifts ........................................................................6 Definitions of Unrestricted and Restricted Gifts .........................................7

General Acceptance Guidelines ...................................................................8 General Valuation Guidelines ....................................................................11 Gifts of Real Property ................................................................................12 Gifts of Tangible Personal Property ..........................................................14 Gifts of Securities ......................................................................................15 Gifts of Life Insurance ...............................................................................16 Gifts in Trust/Planned Giving ....................................................................16

GIFT ASSIGNMENT AND REPORTING .......................................................22 A. B. C. D. E.

Gift Assignment, General ..........................................................................22 Consideration in the Assignment of Restricted Gifts ................................23 Assignment of Unrestricted Gifts: Special Cases .....................................23 Gift Reporting ............................................................................................24 Pledges and Letters of Intent......................................................................24

APPENDICES: APPENDIX A - GIFT POLICIES EXECUTIVE SUMMARY ........................................26 APPENDIX B - MINIMUM REQUIREMENTS FOR PLANNED GIFTS .....................27 APPENDIX C - NAMING POLICY ……………………………………….…………...28

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I.

INTRODUCTION When Isabella Stewart Gardner established her museum in 1903, she was betting on the idea that outstanding works of art from across the globe and the centuries, displayed in a multisensory environment and activated by multidisciplinary performance, would create a space where people of all backgrounds would find uplift and beauty, education and enjoyment. It would be her contribution to a young nation and a rapidly transforming city, embodying not only her unique and personal aesthetic vision, but her civic leadership.

The Gardner Museum’s Strategic Plan (2020-2024) helps to put Isabella’s extraordinary vision into contemporary context like never before. The Plan positions the Gardner to advance its impact through new investments in dynamic exhibitions and vibrant public programs; an enhanced visitor experience; and a more purpose-driven organizational culture with diversity, equity and inclusion at the center—all within the context of our mission to preserve the collection and make it accessible “for the education and enjoyment of the public forever.”

Gifts raised by the Gardner’s development efforts support the Gardner in carrying out its mission both today and for future generations. The Gardner welcomes gifts of cash, securities, and other forms of property to defray general operating costs, to help build the Gardner’s endowment, and to assist in a variety of special purposes that reflect both the needs of the Gardner and the interests of its donors.

The following pages outline general policies regarding the types of assets and the forms of gifts that the Gardner accepts. It also describes the administrative responsibilities and procedures developed in connection with the Gardner’s fund-raising programs. By defining the types of gifts that are acceptable, the different forms gifts may take, and the requirements for accepting gifts, these guidelines will facilitate the appropriate use and accountability of gifts received by the Isabella Stewart Gardner Museum.

The purpose of this Gift Policies Statement is also to provide the Gardner’s management, development staff, and volunteers with guidelines that enable them to assist prospective donors, their families, and advisors in making gifts to the Gardner. The ideal gift to the Gardner is one that is both consistent with the donor’s intent and financial plans, and also supports the Gardner’s stated goals and programs without imposing undue financial or legal burden upon the Gardner. It is hoped that these guidelines will encourage more gifts to the Gardner and will at the same time provide discipline in the acceptance and administration of gifts. These guidelines are intended to be both flexible and realistic in order to accommodate unpredictable giving situations and opportunities as well as variability in donor expectations.

The Gardner does not provide tax, financial, or legal advice to donors. The Gardner strongly recommends that donors seek advice from professional financial advisors or attorneys.

Consistent with the Gardner’s non-discrimination policies, terms of a gift must not

1

discriminate against anyone on the basis of race, religion, color, age, gender, sexual orientation or disability.

The Gardner’s staff will take all reasonable efforts to respect the privacy of its donors.

Subject to any legal or ethical reporting or other requirements, and otherwise except as approved by donors, any information obtained about current or prospective donors, including their names, gift amounts, personal assets or other financial and estate information, shall be kept strictly confidential.

These guidelines supersede all existing gift policies at the Gardner; they are subject to change, in keeping with the Gardner’s mission and programs, without prior notice by the Gardner.

The Board may from time to time approve a separate Campaign Gift Statement and/or a separate Campaign Operating Protocols and Reports document for an individual Campaign. With respect to donors giving to particular Campaigns, please be sure to review any Campaign-specific Board-approved documentation to confirm any variations from this Gift Policies Statement that may apply to the particular Campaign.

Approved by the Board of Trustees on September 24, 2019.

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II.

AUTHORIZATION 1.

The Board of Trustees of the Isabella Stewart Gardner Museum has full and final authority over all policies and procedures for solicitation activities and acceptance of all gifts to the Gardner.

2.

Operationally, the Museum Director (“Director”) has the authority to implement policy and make day-to-day decisions. In making those decisions the Director will normally consult with the Chief External Engagement Officer and the Chief Financial and Administrative Officer.

3.

The Chief External Engagement Officer is responsible for the development of advancement-related policies for Board approval and subsequent implementation of Board-approved policies.

4.

All fund-raising efforts, campaigns and appeals made on behalf of the Gardner must be approved by the Director and/or the Board of Trustees as appropriate. 

No general or group solicitation of funds for specific purposes may be undertaken by any staff, department or operating unit of the Gardner without the approval of the Director or the Chief External Engagement Officer.



Solicitation of all gifts from individuals, foundations or corporations must be cleared through the Director or the Chief External Engagement Officer.

5.

No fund-raising consultants, individuals or firms, will be hired to work for the Gardner or any department thereof without the recommendation and/or approval of the Director.

6.

Only the Director or a person designated from time to time by the Director to act on the Director’s behalf in this regard (referred to in this Gift Policies Statement as the Director’s “designee”) is authorized to accept gifts to the Gardner that meet the guidelines stated in this document.

7.

The Development Office is responsible for the following functions: a.

coordinating and managing the solicitation, receipt, acknowledgment, documentation and stewardship of all gifts to the Gardner, as well as reviewing and, where appropriate, examining the funding source for the gift to ensure that it is consistent with the mission and values of the Gardner;

b.

transmitting and documenting cash and non-cash gifts to the Finance Office for timely deposit and safeguarding of gift receipts;

c.

documenting all pledge and gift receipts for input into the Financial Accounting System;

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d.

following-up on and collecting pledge payments; and

e.

implementing and enforcing the Gift Policies as adopted by the Board of Trustees.

8.

The Gardner’s financial records and statements are produced in accordance with Generally Accepted Accounting Principles (GAAP) and Financial Accounting Standards Board (FASB) pronouncements. For financial statement purposes, the Finance Office is responsible for accounting for gifts to the Gardner in accordance with these guidelines. More information regarding accounting practices and records is available from the Finance Office.

9.

Requests for waivers to these guidelines will be directed to the Director for review. The Director will make recommendations to the Board of Trustees, or a designated committee, for their approval to grant exceptions to the policies contained herein. The Chief External Engagement Officer as well as representatives from individual departments or programs will be consulted, as necessary, on a per case basis.

10.

Any formal changes made to the gift policies that follow will be made only after approval of the Board of Trustees.

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III.

DEFINITIONS A.

General Definitions 1.

The legal name of the institution is the Isabella Stewart Gardner Museum.

2.

A gift is defined as a voluntary, irrevocable transfer of assets from an individual or private organization to the Gardner.

A non-cash gift refers to a gift of any asset other than cash or check. This includes marketable securities, closely held stock, real estate, tangible personal property, and life insurance.

A gift-in-kind is a gift of tangible items, such as equipment or supplies, as well as contract or professional services.

B.

3.

A binding pledge is defined as a pledge that is enforceable as a matter of law against the donor or the donor’s estate. To constitute a binding pledge, a pledge generally must state clearly that it is intended to be legally binding, and that the pledge is made for consideration (i.e., in exchange for something, like naming rights) or that the Gardner is relying on the pledge as part of a campaign or project.

4.

A conditional pledge is a pledge that includes terms established by the donor that must be met by the Gardner before the gift is made. A conditional pledge is not the same as a binding pledge. Finance is unable to count a conditional pledge until all the conditions are met.

5.

A letter of intent or gift intention statement is a non-binding, written statement of a donor’s intention to make a gift.

6.

A grant is defined as a voluntary transfer of assets or awards for specific or general purposes to the Gardner from a corporation, foundation, government agency, or association.

Definitions of Non-Cash Gifts 1.

Real Property is defined as land, buildings erected on or affixed to land, and rights (e.g., mineral, air, water) and easements connected with land.

2.

Tangible Personal Property is defined as movable and physical objects such as works of art, books, antiques, furniture, merchandise, equipment, or clothing.

3.

Securities are defined as marketable or non-marketable securities, options, and closely-held stock.

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C.

Definitions of Planned Gifts 1.

A Planned Gift is a gift in which the donor makes a written gift commitment to the Gardner but the receipt of funds from the gift may be delayed until a future time. The gift may involve a deferred gift of a remainder interest (generally a Charitable Remainder Unitrust or Charitable Remainder Annuity Trust, or a remainder interest in a residence or farm subject to a Retained Life Estate); or a gift that is payable over time, such as an annuity interest in a Charitable Lead Trust.

2.

A Bequest is defined as a gift by will of personal or real property. For more information regarding Bequests, see Section IV.G.4.

3.

A Bequest Intention is the written notification by a donor that the Gardner is a beneficiary of a donor’s estate.

4.

A Charitable Remainder Unitrust is a trust that provides for payments to beneficiaries based upon annual valuation of the trust’s assets for a period of years. At the end of the trust term, all remaining property will pass to the Gardner and/or one or more charities. For more information regarding Charitable Remainder Unitrusts, see Section IV.G.5.a.

5.

A Charitable Remainder Annuity Trust is a trust that pays the beneficiary(ies) a fixed dollar amount annually for a term of years (or for the beneficiary’s (ies’) lifetime), no matter how much the trust earns. At the end of the trust term, all remaining property will pass to the Gardner and/or one or more charities. For more information regarding Charitable Remainder Annuity Trusts, see Section IV.G.5.b.

6.

A Gift Annuity is an irrevocable transfer of money or property to the Gardner in exchange for which the Gardner promises to pay the donor and, if the donor wishes, no more than one survivor (which may include a surviving spouse), fixed annual payments for life. A Deferred Gift Annuity allows for payment of the annuity to start at a later time than the date of the gift. For more information regarding Gift Annuities, see Section IV.G.5.c.

7.

A Charitable Lead Trust is a trust that pays a fixed percentage of its assets (in the case of a Charitable Lead Unitrust) or a fixed amount (in the case of a Charitable Lead Annuity Trust) to the Gardner annually for the life of the trust, after which time the remaining principal is paid back to the donor or to others of his or her choice. For more information regarding Charitable Lead Trusts, see Section IV.G.5.d.

8.

A gift of a remainder interest in a residence or farm subject to a Retained Life Estate allows the donor to reserve the right to occupy or use the property for life, or for the lifetime of more than one tenant, after which 6

the residence or farm becomes the property of the Gardner. For more information regarding Retained Life Estates, see Section IV.G.5.e.

9.

D.

A gift of Retirement Plan Assets may involve either a qualifying lifetime gift from an IRA or a death benefit from an IRA, 401(k) or other retirement plan. For more information regarding gifts of Retirement Plan Assets, see Section IV.G.5.f.

Definitions of Unrestricted and Restricted Gifts 1.

Unrestricted Gifts are those given by donors with no limitation, prohibition or constraint on the specific purpose or use of the gift funds regardless of any subsequent designation by the Gardner. Board designated gifts include unrestricted gifts functioning as endowment which may be used for any purpose designated by the Board of Trustees.

2.

Restricted Gifts are those given by a donor for a specific purpose set forth in writing by the donor. The donor’s written instructions shall be part of the permanent record. Ambiguities regarding the purpose of a restricted gift shall be resolved by the Director, in consultation with the Trustees, the donor (if possible) and the Gardner’s counsel (if possible). See section V.B. below.

3.

Endowment Funds are gifts restricted with respect to how much may be appropriated each year. The drawdown of endowment gifts will be in accordance with the Gardner’s spending policy as approved by the Board of Trustees. Income from endowed funds may be restricted or unrestricted:

4.

a.

Endowment, Unrestricted Income refers to gifts in which the donor specifies that the principal must be maintained in perpetuity, but not bearing any restriction from the donor as to the use of the income the endowment produces.

b.

Endowment, Restricted Income refers to gifts in which the donor specifies that the principal must be maintained in perpetuity and that the return is restricted to a specific use, such as curatorial support, program support, or other purposes.

Income refers to the amount that may be appropriated each year pursuant to Massachusetts law applicable to endowment funds. In general, Massachusetts law allows appropriation and expenditure of a “reasonable” amount each year, taking into account various facts and circumstances, including the donor’s desire that the fund be maintained in perpetuity.

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IV.

ACCEPTANCE AND VALUATION OF GIFTS AND PLEDGES Section A provides general guidelines for accepting gifts and pledges, and Section B provides general guidelines for valuation of gifts and pledges. For particular information regarding certain kinds of gifts, see Section IV.C (Real Property), IV.D (Tangible Personal Property), IV.E (Securities), IV.F (Life Insurance), and IV.G (Planned Gifts, including Gifts in Trust).

A.

General Acceptance Guidelines 1.

Types of Gifts Accepted. The Gardner accepts a wide range of gifts, including cash, securities, real property, tangible personal property, insurance, retirement assets, gifts in trust, gifts in exchange for annuities, and other gifts, subject to these policies. While the Gardner appreciates unrestricted gifts, it will accept appropriate restricted and conditional gifts.

The Gardner also appreciates pledges, gift intention statements, bequests, and other planned and structured gifts.

2.

Transfer Documents and Expenses. The donor is responsible for supplying and signing all legal documents necessary or advisable in connection with the transfer of any property to the Gardner, and for payment of all expenses required to complete the transfer.

3.

No Tax, Financial or Legal Advice. The Gardner does not provide tax, financial, or legal advice to donors. The Gardner strongly recommends that donors seek advice from professional financial advisors or attorneys.

Any tax deduction or income tax projections sent to donors should include a disclaimer noting that the information provided is for illustration purposes only, and that each donor should confirm with his or her tax advisors what the actual tax impacts of any gift would be in the donor’s particular circumstances. The responsibility for reporting any gift to the Internal Revenue Service in a manner consistent with federal tax rules belongs to the donor. No Museum representative, or person retained by the Gardner, shall perform valuations or appraisals of a gift of property for a donor’s tax purposes.

4.

Form Documents. The Gardner shall use only Gift Agreements, statement of intention forms, pledge forms, and acknowledgement forms approved by the Director. The Director must approve any material changes to forms that have been previously approved. a.

Gift Agreements. Any gift to be made subject to specific restrictions or requirements imposed by a donor (in excess of restrictions referenced in any general fundraising materials) must be made pursuant to a Gift Agreement, unless the Director determines otherwise. Any Gift Agreement shall be approved by

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the Director, and shall include provisions consistent with these General Acceptance Guidelines. b.

Pledges. A simple statement of intention to make a gift, without more, generally will not be legally binding on a donor. In most cases in which a binding pledge may be appropriate, that pledge will be made as part of a Gift Agreement. Situations in which a binding pledge may be appropriate include when: i.

The donor indicates a desire to ensure that the pledge will be honored in the future, including because of incapacity of the donor.

ii.

The pledge involves a bequest intention.

iii.

The Gardner wishes to rely legally on the pledge for purposes of fundraising and/or planning.

If there is a need or desire to make a pledge legally binding, please consult with the Director to ensure that the correct language is included in the pledge form or Gift Agreement. c.

Acknowledgement Letters. Where appropriate, the Gardner will issue the donor a written acknowledgement letter with IRSrequired substantiation information, guidelines for which can be found in IRS Publication 1771.

5.

Anonymity. A donor’s request for anonymity will be kept in the Gardner’s permanent file for the applicable gift. When a donor makes an anonymous gift, the Gardner’s staff will take all reasonable efforts to preserve the anonymity of the donor, subject to any legal or ethical reporting or other requirements that may apply from time to time.

6.

Naming Opportunities. Naming opportunities are available for endowed funds, rooms, facilities or other capital projects for which the Trustees have authorized construction or have approved for donor recognition, memorial, or other purposes. All naming opportunities must be approved by the Trustees. Policies regarding naming will be outlined separately in a Naming Policy.

7.

Right to Decline. The Gardner reserves the right to decline any gift that the Director determines is not consistent with the mission of the Gardner or in its best interests. This may include gifts with significant financial liabilities, restrictions on use, or other risky or burdensome elements. This may also include gifts the acceptance of which may cause reputational, regulatory or other concerns for the Gardner. Any gift involving any such concerns, or any other concerns that an employee of the Gardner negotiating a potential gift with a donor believes warrants further 9

discussion, should be discussed with the Director, who will determine whether review by the Board of Trustees is warranted.

8.

Disposal of Gifts. The Gardner reserves the right to dispose of gifts of any property at any time, and on whatever terms the Gardner determines to be in its best interests, unless otherwise expressly agreed with a donor.

Generally, the Gardner will sell any property not intended to be used directly as part of the Gardner’s mission as soon as practicable after receipt. No commitment will be made regarding the retention or investment of a gift asset, or regarding to whom or on what terms property will be sold by the Gardner, unless specifically authorized by the Director.

Where such a commitment is important to the donor, the gift will be referred to the Director who will then seek the appropriate level of Board review and approval before authorizing a commitment to retain or invest a gift asset. Any proposal to sell gifted property back to the donor, or to a related party, should be discussed with legal counsel—such a sale may be appropriate, but in many cases such arrangements are treated as abusive by the Internal Revenue Service.

9.

Administrative Costs. The Gardner reserves the right to allocate administrative costs, including overhead expenses, incurred by the Gardner to a gift, to the extent that such costs are appropriately attributable to that gift.

10.

Foundations and Donor-Advised Funds. The Gardner may receive grants from private foundations and from donor-advised funds from time to time.

Such grants should not be treated as contributions from individuals for purposes of the tax deduction substantiation rules. In addition, the Gardner should not accept a grant from a private foundation or donor-advised fund if the Gardner’s representatives are aware that the grant is in satisfaction of an individual’s binding pledge.

11.

Matching and Leveraged Gifts. Donors may coordinate with one another, with related organizations (including foundations and donor-advised funds), or with corporations as part of a corporate matching program or otherwise. While it is of course important for tax reporting and accounting purposes to record accurately the source of each gift, the Gardner is happy to discuss with coordinators of matching and leveraged gift programs the ways in which the Gardner may be able to attribute such gifts for campaign and publicity purposes. See Section V, Gift Assignment and Reporting.

12.

Notice to Donors Regarding Policies. Any campaign or charitable solicitation materials anticipating donations that may be subject to purpose, endowment or other restrictions (i.e., for other than unrestricted gifts) and all Gift Agreements and other contracts with donors, should state clearly any purposes and restrictions that will apply to gifts made in 10

response to the campaign, should state that all gifts are subject to these policies, and should include a copy of these policies, a summary of their key provisions that has been approved by the Director, or clear directions on how a donor may access that information.

B.

General Valuation Guidelines: 1.

Gifts will be valued on the date they are transferred to and accepted by the Gardner in accordance with the Gardner’s policies.

2.

Valuation for federal tax purposes shall follow all IRS and Treasury rules and regulations from time to time.

3.

Valuation for accounting purposes shall follow industry standards, in particular those established by the Financial Accounting Standards Board of the Financial Accounting Foundation (FASB) from time to time.

4.

The Gardner will value gifts for development purposes in accordance with the guidelines outlined below. See also the following sections of this Section IV and Appendix B, Minimum Requirements and Gift Credit Guidelines for Planned Gifts, for more information regarding valuation for campaign credit purposes of certain kinds of gifts.

Type of Gift

Gift Credit

Real Property (land and buildings)

Fair market value undiminished by selling costs (by qualified appraisal)

Tangible Personal Property (works of art, books, furniture, merchandise, jewelry, equipment, etc.)

Fair market value undiminished by selling costs (by qualified appraisal, if estimated value is greater than $5,000, otherwise by estimate)

Securities (marketable)

Mean market value on date of transfer

Securities (non-marketable)

Fair market value undiminished by selling costs (by qualified appraisal)

Life Insurance

Cash surrender value/value of premium payments as paid

Planned Gifts (Bequests, Gifts in Trust, Gift Annuities, Gifts of Remainder Interests)

See Appendix B, Minimum Requirements and Gift Credit Guidelines for Planned Gifts

Pledges and Letters of Intent

Face value of pledge (if written and signed, and no more than five years in advance)

Other

Consult with Director

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C.

5.

A written signed pledge will be accepted on behalf of the Gardner and credited as a formal commitment to make a gift. Verbal pledges and conditional pledges may be acknowledged but cannot be credited for financial purposes.

6.

Neither gains nor losses realized by the Gardner’s sale of a non-cash gift will affect the value credited toward fund-raising goals. Realized gains or losses, and any fees incurred by the Gardner in the disposition of the asset, or the maintenance of the asset until sale (e.g., utilities, taxes, insurance, etc.) will be added to or deducted from the amount available for the purpose designated by the donor.

Gifts of Real Property 1.

Real Property is defined as land, and buildings erected on or affixed to land and rights (e.g., mineral, air, water) and easements connected with land. Ordinarily, real property will be sold by the Gardner after acceptance, except for property to be used directly for institutional purposes as determined by the Trustees.

2.

Donors may contribute real estate as a fee interest, as a life estate, or as a life income gift. If a donor chooses to fund a trust with a gift of real estate, such a trust must be a net-income unitrust. Prior to acceptance, the donor must submit to the Gardner a qualified third-party appraisal of the property’s fair market value, conducted by a qualified independent appraiser retained by the donor and approved by the Director. The appraisal must be dated no more than sixty (60) days prior to the date of the gift. It is the donor’s responsibility to obtain and bear the cost of the qualified independent appraisal. The Gardner will make no representation to the donor as to the value of the property for purposes of claiming a charitable deduction.

3.

Real property must have a clear record and marketable title. Easements and/or restrictions must be disclosed. Prior to acceptance, the property should be thoroughly investigated, especially with regard to any environmental or marketability issues. The donor is responsible for obtaining a real estate property disclosure checklist that is acceptable to the Gardner containing relevant information, such as the following: 

Third-Party Appraisal (from appraiser retained by donor and approved

by Director)



General description of property



Title of ownership



Date of acquisition and cost basis



Value of land versus value of buildings 12



Complete mortgage information



Form of acquisition



Property tax assessment



Zoning restrictions



Environmental history



Deed containing deed restrictions



Tenant information



Appropriate documentation if property is part of a condominium or cooperative i. The donor is responsible for all costs, expenses and taxes incurred by the donor in maintaining the property and securing proper and legal documentation, until legal transfer of the property is completed. ii. Any effects of defective title must be understood by the Gardner and accepted as such. Title to property that is contaminated with hazardous waste will not be accepted by the Gardner. iii. Consideration must be given to the costs of holding and maintaining any gift of real property prior to its sale. When appropriate, the donor will be approached to supplement the gift of real estate with cash or securities to cover operating costs and expenses. iv. Holding real property, especially when subject to a mortgage, may raise issues related to unrelated business income, taxable to the Gardner. Unrelated business income issues will be considered prior to acceptance of the gift. Real property subject to a mortgage will not be accepted in connection with the funding of a Charitable Remainder Trust. v. The Chief Financial and Administrative Officer is responsible for performing due diligence procedures in order to recommend accepting gifts of real property or may delegate authority to a committee appointed by the Chief Financial and Administrative Officer and Director. The Chief Financial and Administrative Officer is responsible for recommending acceptance of any such gift to the Director. The Director is responsible for accepting gifts of real property subject to the approval of the Board of Trustees or its designee. Title will not be transferred or acknowledged until after acceptance of the gift of real property in accordance with this policy.

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D.

Gifts of Tangible Personal Property 1.

Tangible Personal Property is defined as movable and physical objects such as works of art, books, musical instruments, antiques, furniture, merchandise, jewelry, equipment, or clothing.

2.

Only those gifts of tangible personal property that are readily marketable (sold or traded on the open market) or useful in carrying out the mission of the Gardner will be accepted. The Gardner reserves the right to sell personal property at any time unless otherwise agreed to with the donor.

3.

The Director is authorized to accept gifts of tangible personal property, except where such gifts pose unreasonable constraints or conditions upon the Gardner or would not be in accordance with the Gardner’s capacity to provide the appropriate care for such property.

4.

Whenever the acceptance of a gift of personal property will commit the Gardner to a financial or other obligation, the Director will seek the appropriate level of Board review and approval before authorizing acceptance of the gift. The Director and/or Board should consider the following: 

Can the Gardner use the assets in connection with its mission and programs?



Are the assets marketable?



Are there any unreasonable restrictions on the use, display, or sale of the assets?



Are there any carrying costs associated with the assets (e.g., insurance, lease, space, maintenance, appraisals, etc.)?



Is there any intellectual property connected with the property (including copyright with respect to artwork), and is that intellectual property to be transferred with the artwork?

5.

Items donated in connection with a special event, such as an auction, are exceptions to this policy and fall under the procedures adopted for such special event.

6.

No representations shall be made that an item of tangible personal property will be used by the Gardner for its exempt purposes (rather than sold) without the Director’s consent.

7.

Gifts of tangible personal property with an apparent market value exceeding $5,000 will ordinarily be credited at the value placed upon them by a qualified independent appraiser approved by the Director. It is the 14

donor’s responsibility to obtain and bear the cost of the qualified independent appraisal. The appraisal must be dated no more than sixty (60) days prior to the date of the gift. Gifts of tangible personal property with a value in excess of $5,000 may only be accepted upon written notice to the donor of this gift-in-kind acceptance policy.

8.

E.

Gifts of tangible personal property with an apparent value of $5,000 or less will be credited at the value placed upon them by a member of the staff, or other person with proven expertise, and that informal valuation may be used for the Gardner’s reporting purposes.

Gifts of Securities 1.

Gifts of securities include marketable or non-marketable securities, options and closely held stock.

2.

The Chief External Engagement Officer and/or Chief Financial and Administrative Officer is/are responsible for accepting gifts of marketable securities in accordance with established Gardner policies. Any restrictions by the donor on the management or investment of a gifted security will be referred to the Director and/or appropriate Board committee prior to acceptance of the gift.

3.

Gifts of non-marketable securities require the approval of the Chief Financial and Administrative Officer, after consultation with the Chair of the appropriate Board committee (e.g., Finance and/or Investment).

Consideration should be given to where there are any restrictions on sale and whether the sale will generate any adverse tax consequences to the Gardner (for example, in connection with the sale of stock of an S corporation). Gifts of closely held stock, limited partnership units and similar business interests may be accepted, so long as the Gardner either assumes no liability or considers the amount of liability to be acceptable, and so long as the property can be sold within a reasonable period of time.

4.

All marketable securities will be valued at the mean of their high and low market values on the date of transfer. The date of transfer is the date that: 

the electronically transferred securities are deposited in the Gardner’s brokerage account; or



the mailed stock certificate and a properly endorsed stock power are postmarked. If the postmarks on the documents differ, the later date will determine the date of transfer; or



the physical certificate and the properly completed transfer documents (i.e., stock power) are received by the Gardner, or its broker; or

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

F.

G.

the Gardner has received and countersigned a properly endorsed stock power, in advance of receipt of the physical certificate, using a form of stock power that has been approved in advance by the Director.

5.

Securities not negotiable on the date of delivery will require a qualified appraisal furnished by the donor to determine the value of the stock.

6.

Gifts of otherwise publicly traded securities that are subject to tender offers or securities law restrictions may present peculiar tax or administrative issues for the donor and/or for the Gardner that may be referred to the appropriate Board committee(s) prior to acceptance of the gift.

Gifts of Life Insurance 1.

The Gardner must be assigned as both an irrevocable beneficiary and owner of an insurance policy before a policy can be recorded as a gift.

2.

The current cash surrender value of the policy (or for a policy with no cash surrender value, the value stated on a Form 712 issued by the carrier) will be credited toward fund-raising goals. If the donor pays further premiums on the policy, the Gardner will include the entire amount of the premium payment in its gift totals. If the Gardner pays the premiums, it will treat those payments as operating expenditures and not report increases in the cash surrender value as gifts.

3.

If a donor pays future premiums on a policy with no cash surrender value, only the future premiums will be recorded as gift receipts.

4.

Regardless of whether the donor or the Gardner pays the premiums on a policy that the Gardner owns, the difference between the cash value and the insurance company's settlement at the donor's death should not be reported as a gift, but as a gain on the disposition of assets.

5.

In cases where the Gardner receives the proceeds of an insurance policy in which it is named beneficiary but not the owner, the full amount received will be reported as an estate gift on the date the proceeds are delivered.

Gifts in Trust/Planned Giving Planned Giving allows a donor to make a gift in which the commitment to the Gardner is made in the present, but the Gardner’s receipt of funds from the gift may be delayed until a future time. Donors who make planned gifts normally receive tax (gift, estate, and/or income) benefits.

1.

Donors may make planned gifts to the Gardner in a variety of ways, including the following: a bequest; a Charitable Gift Annuity; a Charitable Remainder Trust; a Charitable Lead Trust; by making the Gardner the 16

beneficiary and owner of an insurance policy; a gift of a remainder interest in a personal residence; and/or other appropriate and legal charitable gift arrangements.

2.

Because certain kinds of planned gifts may involve particular time and administrative costs, the Gardner has established minimum required funding amounts before it will accept certain kinds of gifts. See Appendix B, Minimum Requirements and Gift Credit Guidelines for Planned Gifts, for more information regarding these requirements. The Director may update these minimum requirements from time to time by amending Appendix B.

3.

The Development Office, in consultation with the Chief Financial and Administrative Officer, will take responsibility for the following functions related to planned gifts:

4.

a.

Prepare with legal counsel and the donor's attorney all planned gift documents for execution by the donor and the Director, with the advice and consent of the Board of Trustees, as appropriate;

b.

Secure all necessary gift information for the donor to calculate applicable charitable tax deductions and income tax treatment of life income payments;

c.

Convey such information to the donor (including an appropriate disclaimer regarding tax calculations and advice, as described in Section IV.A.4);

d.

Notify the appropriate beneficiary regarding any life income gifts and their purpose; and

e.

Arrange for stewardship.

Bequests. Donors may leave property to the Gardner on death in a variety of ways: a.

A donor may bequeath a specific dollar amount, a specific asset (or interest in an asset), or a percentage of an estate or trust.

b.

Bequests may be payable on death in any event, or only upon occurrence of certain events prior to death (for example, only if all close family members predecease the donor), or after death (for example, only after the lifetime of one or more surviving trust beneficiaries).

c.

A bequest may be found in a will, or it may be found in a trust instrument.

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5.

d.

A donor may also provide for assets on his or her death to be distributed from a bank or investment account (by way of a “POD” or “payable-on-death” provision in the account documents), or by way of a beneficiary designation form for an insurance policy or retirement plan.

e.

If a donor indicates that he or she intends to leave property to the Gardner in his or her will or estate plan, the donor should be encouraged to share a copy of the relevant portions of the donor’s estate planning documents. By sharing this information, the donor can be better assured that the Gardner will be aware of the bequest and will be in a position to ensure that the donor’s wishes are met following the donor’s death. In addition, this will give the Gardner the opportunity to discuss with the donor any proposed restrictions or requirements connected with the bequest, to limit the potential need for the donor’s estate to seek judicial relief if restrictions or requirements turn out to be impossible or impracticable to fulfill.

f.

A bequest to the Gardner may be phrased as follows: “I leave [dollar amount / specific asset / percentage of estate] to the Isabella Stewart Gardner Museum, of Boston, Massachusetts (or its successor, if any).” If the donor wishes to impose restrictions, the donor may add: “This bequest shall be used for [description of purpose or other restrictions], subject to the Museum’s Gift Policies Statement as in effect at the time of my death.”

g.

The Gardner may decline to accept a bequest for any reason. For example, restrictions on the bequest may be too onerous or may be inconsistent with the Gardner’s purposes. The Gardner may also decide that declining a troublesome bequest may best protect the reputation and mission of the Gardner. Any concerns about accepting a bequest should be discussed with the Director, and with legal counsel, to ensure that any disclaimer of the bequest is legally effective. Alternatively, the Gardner may accept a bequest subject to modification (generally by a petition in court) of any restrictions or requirements imposed upon the bequest.

Other Planned Gifts. The Gardner will accept planned gifts involving trusts, gift annuities, and remainder interests in real property, subject to the minimum value and minimum age requirements as authorized by the Trustees and existing federal and state law. These minimum value and minimum age requirements are set forth in Appendix B, Minimum Requirements and Gift Credit Guidelines for Planned Gifts, which may be updated from time to time by the Board of Trustees. It is the responsibility of the donor to ensure that his/her gift is made in the form required by the Internal Revenue Code in effect at the time the gift is made.

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a.

Charitable Remainder Unitrusts. A Charitable Remainder Unitrust is a trust that provides for payments to beneficiaries based upon annual valuation of the trust’s assets for a period of years, after which all remaining property will pass to the Gardner and/or one or more charities. At the time the unitrust is created, the donor specifies a fixed percentage of not less than five percent to be paid to the beneficiary(ies) for life or for an express number of years up to 20 years. At the end of the trust term the remaining principal is paid to the Gardner and/or other charities. There are different types of Charitable Remainder Unitrusts, defined by the manner in which income is paid to beneficiaries. i.

A “straight” or “regular” unitrust requires the trustee to invade the principal, if necessary, in order to meet the required percentage payout.

ii.

A “net income” unitrust stipulates that the trust will distribute either the actual amount of income earned or the established percentage payout rate, whichever is less.

iii.

A “net income with make up” unitrust uses excess income from the trust to pay the beneficiary(ies) income lost during the years when earnings were less than the established payout rate.

iv.

A “flip” unitrust functions initially as either a net-income unitrust or a net-income with make-up provision unitrust but then becomes a standard unitrust at a later point in the trust’s existence.

By law, a Charitable Remainder Unitrust may not be established if the charitable remainder value is less than ten percent of the initial principal. b.

A Charitable Remainder Annuity Trust is a trust that pays the beneficiary(ies) a fixed dollar amount annually for a term of years (or for the beneficiary’s (ies’) lifetime), no matter how much the trust earns. The amount must be specified in the trust instrument as either a dollar figure or a percentage (not less than five percent) of the initial value of the asset used to fund the trust. At the end of the trust term the remaining principal is paid to the Gardner and/or other charities. No additions may be made to a Charitable Remainder Annuity Trust. By law, a Charitable Remainder Annuity Trust may not be established if the charitable remainder value is less than ten percent of the initial principal, or if there is a more than five percent chance at the time the trust is established

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that there will be no property left for the charitable remainder beneficiary. c.

A Gift Annuity is an irrevocable transfer of money or property to the Gardner in exchange for which the Gardner promises to pay the donor and, if the donor wishes, no more than one survivor (which may include a surviving spouse), fixed annual payments for life.

Gift annuity maximum rates of return are determined by the donor's age at the time of the agreement. Normally, these rates will be guided by those approved by the American Council on Gift Annuities (a national organization representing more than 250 nonprofit institutions that issue gift annuity agreements). Total annual payments are made in calendar quarter installments. A Deferred Gift Annuity allows for payment of the annuity to start at a later time than the date of the gift. Sales of Gift Annuities are subject to insurance regulation laws in many states. Consult with legal counsel before selling any Gift Annuity to a resident of a state other than Massachusetts.

d.

A Charitable Lead Trust is a trust that pays a fixed percentage of its assets (in the case of a Charitable Lead Unitrust) or a fixed amount (in the case of a Charitable Lead Annuity Trust) to the Gardner annually for the life of the trust, after which time the remaining principal is paid back to the donor or to others of his or her choice. If the donor creates a Charitable Lead Trust, the total anticipated payments to the Gardner may be recorded as a pledge; in such cases, the payment period may exceed five years, but must not exceed the period of the Trust.

e.

A Retained Life Estate is a gift of a residence or farm to the Gardner where the donor reserves the right to occupy or use the property for life, or for the lifetime of more than one tenant, after which the residence or farm becomes the property of the Gardner.

f.

Gifts of Retirement Plan Assets can be made in one of two ways.

IRAs or other retirement assets can be used to make current outright gifts, or the Gardner can be named beneficiary of retirement plan assets upon death of the donor. For current outright gifts, donors can make direct distributions of up to a certain amount per year (current $100,000) without including that amount as taxable income (a “Qualified Charitable Distribution�), as long as certain requirements are satisfied. One of those requirements is that the donor not receive any goods or services in exchange for any part of the IRA distribution (including, for example, the value of tickets to a dinner or gala). Donors should confirm with their tax advisors whether a particular IRA distribution will be eligible for treatment as a Qualified Charitable Distribution.

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6.

From time to time, the nature of donor assets or IRS regulations may provide opportunities for other forms of planned gifts not enumerated above, or blending more than one form of gift. Such possible gift arrangements will be reviewed jointly by the Development Committee and the Finance Committee in conjunction with the Gardner’s legal counsel, so as to provide the appropriate recognition to the donor, while fulfilling the Trustees’ fiduciary obligation and presenting the Gardner’s financial condition fairly. Such gifts may involve a partial or future interest in a donor asset (e.g., a pension fund) or other forms of gift.

7.

Trusts will be credited at a value calculated by the Finance Office for financial statement purposes. The calculation used is a formula devised by the IRS to determine present value of a deferred gift. a.

The payments received each year from Charitable Lead Trusts will be recorded as a gift. (If the total estimated receipt from the Trust has been recorded as a pledge, the amounts received will be recorded annually as a pledge payment.)

b.

Charitable Remainder Trusts will be credited for development purposes at net present value of assets projected to be received on termination of the trust.

c.

A change in this valuation policy requires approval by the Board of Trustees based on the recommendation of the Director and the Chief Financial and Administrative Officer.

8.

The Gardner reserves the right to determine or change the trustee(s) of any charitable funds established by the Gardner.

9.

Changes in the value of the trust assets will be considered a gain or loss on the disposition of the assets and will be recorded annually on the Gardner’s financial statements.

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V.

GIFT ASSIGNMENT AND REPORTING Gifts raised by the Gardner’s development program serve several broad, general purposes: budget support/relief and new programs, capital, or program enhancement. All solicitations for gifts fall into these broad categories. While it is crucial that the Gardner sustain and increase unrestricted gifts, periodic special projects or “campaign” fundraising will result in restricted gifts.

During the course of a special, capital, or comprehensive campaign, gifts will be solicited for a variety of purposes, according to both the needs of the Gardner and the interests of the donor. Best efforts will be made to seek and receive gifts that fulfill the expressed or known desire of the donor while providing sufficient flexibility for the Gardner in use of funds.

The Gardner’s financial records and statements will comply with the general guidelines set forth in ASU 2016-14, Presentation of Financial Statements of Not-For-Profit Entities, published by the Financial Accounting Standards Board. In those guidelines, the Board recommended that revenues and changes in net assets be classified into two broad categories: net assets without donor restrictions, and net assets with donor restrictions.

Within these broad categories, however, institutions may, at their discretion, maintain “disaggregated” information as to particular, planned uses of unrestricted funds.

Accordingly, reference is made below to traditional designations which correspond both to the Gardner’s stated and ongoing planning objectives, and to donor interest, understanding that they will be reflected on the Gardner’s financial statements in the two “aggregated” categories.

A.

Gift Assignment, General 1.

All gifts received will be assigned to a specific restricted or unrestricted gift category.

2.

The determination of whether a gift is restricted or unrestricted shall be determined jointly by the Chief External Engagement Officer and the Chief Financial and Administrative Officer in consultation with professional advisors as necessary.

3.

All gifts will be recorded by the Development Office and will be recorded by donor, by date, by type of gift (see #1 above), by purpose (general ledger account number) and by solicitation program (e.g., Annual Fund).

4.

In addition to recording all gifts, all documents related to a gift (e.g., wills, trusts, deeds, annuity agreements, contracts, correspondence establishing gift conditions, etc.) will be retained by the Development Office. Copies of relevant documents must be provided to the Finance Office and the Director’s Office where appropriate. In all cases, the Development Office will require a written signed pledge in order to properly credit the gift.

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B.

C.

5.

Under corporate matching gifts programs, matching gifts will be credited to the fund-raising program and to the purpose for which the donor’s gift was made, as long as it is consistent with the company’s policy. The matching gift is credited to the corporate donor’s record; the individual donor whose gift is matched will receive associated acknowledgement and recognition credit for the matching amount in the Gardner’s giving societies.

6.

During the course of a capital campaign, all gifts given in support of campaign objectives will be recorded against campaign goals. The Development Office may report non-qualifying gifts separately as a measure of total fund-raising activity. A separate gift policy clarifying the procedure for crediting gifts during a campaign will be prepared in connection with each capital campaign undertaken by the Gardner and such policy will be approved by the Board.

7.

Adjustments of incorrect postings may be made by the Finance Office upon receipt of proper donor documentation.

Consideration in the Assignment of Restricted Gifts 1.

All restricted gifts will be recorded according to the assigned restricted purpose category. The donor’s written instructions shall be made part of the permanent record.

2.

Gift restrictions must be received and accepted by the Director or the Director’s designee.

3.

Should ambiguities regarding a donor’s intention exist, they will be resolved by the Development Office, in consultation with the Trustees, donor (if possible), and the Gardner’s legal counsel where necessary.

4.

Funds received for restricted plant or endowment purposes and expected to be held long enough prior to expenditure to accrue income will retain that income for the benefit of the restricted purpose.

Assignment of Unrestricted Gifts: Special Cases 1.

The Board of Trustees of the Gardner may internally designate unrestricted gifts to specific purposes. The Development Office and the Finance Office will record these gifts in accordance with the purpose assigned, using the following guidelines. a.

Annual Fund gifts with no donor-imposed designations will be credited to the unrestricted gift income account and credited toward Annual Fund program goals.

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D.

E.

b.

Special or campaign gifts with no donor-imposed designations will be credited towards campaign goals and will be recorded accordingly in the Gardner’s accounts.

c.

Undesignated bequests will be assigned to unrestricted funds unless otherwise designated by the Board of Trustees.

Gift Reporting 1.

A complete understanding of the impact of fund-raising results requires a review of both fund-raising and financial statements.

2.

For campaign and fund-raising purposes, gifts will normally be credited according to the standards promulgated by this document.

3.

For financial statement and audit purposes, the Gardner will follow and adhere to the rules and standards of the Financial Accounting Standards Board (FASB).

4.

For tax reporting purposes, the Gardner will follow the requirements of the Internal Revenue Code and regulations thereunder, as amended from time to time.

Pledges and Letters of Intent 1.

The Development Office will maintain all pledge documentation.

2.

Pledges for special projects or capital campaigns will generally be limited to five years. The Board of Trustees must approve pledges of longer duration.

3.

Pledges made prior to a campaign accounting period will be credited to the campaign only where they pertain to campaign objectives. Payments made during the campaign period in fulfillment of such pledges will be credited to the campaign. Payments made after the campaign accounting period on pledges made during a campaign period will be credited to the campaign.

4.

If a donor creates a Charitable Lead Trust, the total anticipated payments from the Charitable Lead Trust may be recorded as a pledge; in such cases, the payment period may exceed five years, but may not exceed the period of the trust.

5.

A letter of intent may be used to substantiate a donor’s intention for purposes of achievement and recognition.

6.

A bequest intention shall be recorded as a pledge for the purpose of fundraising achievement and recognition when the following three conditions are met: 24

a.

Bequest intentions will be credited for fund-raising purposes at either face value or net present value, depending on the age of the donor, in accordance with generally accepted accounting principles.

b.

The commitment must have a specified amount or percentage of the estate stated in the will based on a credible estimate of the future value of the estate at the time the commitment is made.

c.

The Gardner must have verification of the commitment in the form of a letter from the donor or the donor’s attorney affirming the commitment and stating that the institution will be informed of any changes in the will that might be made in the future.

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APPENDIX A GIFT POLICIES EXECUTIVE SUMMARY AUTHORIZATIONS: The Board of Trustees of the Isabella Stewart Gardner Museum has full and final authority over all policies and procedures for solicitation activities and acceptance of all gifts to the Gardner.

The Chief External Engagement Officer is responsible for the development of advancementrelated policies for Board approval and subsequent implementation of Board-approved policies.

Only the Director is authorized to accept gifts to the Gardner, although the Director may designate someone from time to time to accept some or all gifts on the Director’s behalf.

The Director and/or the Board of Trustees (or a designated committee) must approve all fundraising efforts, campaigns and appeals made on behalf of the Gardner.

ACCEPTANCE AND VALUATION OF GIFTS The Gardner accepts a wide range of gifts, including cash, securities, real property, tangible personal property, insurance, retirement assets, gifts in trust, gifts in exchange for annuities, and other gifts, subject to its policies from time to time.

While the Gardner appreciates unrestricted gifts, it will accept appropriate restricted and conditional gifts subject to its policies from time to time.

The Gardner also appreciates pledges, gift intention statements, bequests, and other planned and structured gifts.

The donor is responsible for all documents and expenses necessary to complete a gift.

The Gardner cannot provide tax, financial or legal advice to donors.

The Gardner may decline any gift that is not consistent with the mission of the Gardner or in its best interests.

All campaign and charitable solicitation materials shall be approved in advance by the Director (or the Director’s designee), and shall include information and disclaimers sufficient to put potential donors on notice of the application of these policies.

Gifts will be valued on the date they are transferred to and accepted by the Gardner in accordance with the Gardner’s policies. Valuation for development purposes may differ from valuation for tax reporting purposes, which will comply with Internal Revenue Service and Treasury Department guidance, and valuation for financial statement purposes, which will comply with the Financial Accounting Standards Board of the Financial Accounting Foundation (FASB).

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APPENDIX B MINIMUM REQUIREMENTS AND GIFT CREDIT GUIDELINES FOR PLANNED GIFTS The Gardner has established a policy of offering planned giving options subject to certain minimum investment and minimum age requirements. These requirements are a matter of policy—the donor must also confirm with his or her tax counsel that all IRS and other legal requirements are satisfied.

Vehicles

Minimum Investment

Minimum Age

Bequests

None

None

Age 75 or older: Face value of bequest to the Gardner on the donor’s death.

Younger donors may receive credit upon reaching age 75 and delivering a copy of relevant portions of current estate planning documents.

Charitable Remainder Unitrust

$250,000

Youngest annuitant must be age 65 or older (no age requirement if for term of up to 20 years)

Net present value of remainder interest

Charitable Remainder Annuity Trust

$250,000

Youngest annuitant must be age 65 or older (no age requirement if for term of up to 20 years)

Charitable Lead Trust

$500,000

None

Value of total anticipated payments, up to first five years, credited when trust established. Subsequent annuity payments credited as annual gifts thereafter.

Residence/Farm with N/A retained life estate

None

Net present value of remainder interest

Charitable Gift Annuity

$100,000

Youngest annuitant must be 65 or older

Fair market value of gift reduced by net present value of retained annuity rights

Deferred Gift Annuity

$100,000

Age 55 to establish, starting no sooner than age 65

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Gift Credit

APPENDIX C NAMING POLICY 1. The Gardner welcomes the naming of facilities and endowed funds that meet the funding requirements outlined below.

2. Naming opportunities are available for endowed funds, programs, rooms, facilities or other capital projects for which the Trustees have authorized construction or have approved for donor recognition, memorial, or other purposes.

3. The Chief External Engagement Officer is authorized to develop and revise, for Trustee approval, lists of gift opportunities, with an indication of the amounts required for naming.

4. The Director will submit recommendations to the Trustees for their approval of all major naming opportunities for any large projects, or, if conditions are attached to a gift that may have a significant financial impact, affect the public image of the Gardner, or add or change a major program.

5. Simple bequest intentions will not be associated with naming opportunities. Upon occasion, however, the Trustees may wish to honor an individual based on his or her long-term commitment to the Gardner in addition to his or her bequest intention.

6. Planned gifts are eligible for approved naming opportunities only if the remainder value equals or exceeds the minimum amount required to name a gift or if the gift is designated for an endowment purpose.

7. The actual placing of a name on a room or other capital project will be completed once 50% of the pledge associated with the naming opportunity has been received by the Gardner. Donors will be given the opportunity to review the signage design concept prior to the installation of interior and exterior signage bearing the donor’s name.

8. As a matter of course, the Gardner will impose a time limit after which any naming rights will expire, that limit to be determined on a case-by-case basis depending in part on the nature of the purpose, fund, project, or program to which the name is attached.

9. Naming rights shall be granted only pursuant to a Gift Agreement or other contract, which includes provisions consistent with the General Acceptance Guidelines in Section IV.A. B. Minimum Required to Establish or Name Endowed Funds 1. Named endowed funds will not generally be established for gifts less than $500,000.

The Gardner may approve the establishment of named or memorial funds upon the receipt of gifts or bequests in specified minimum amounts for specific purposes.

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These minimum amounts will generally be set at approximately twenty times the required income value.

2. Generally, where possible, gifts should be paid in full within five years of the original gift commitment.

3. Upon occasion, endowed funds may be established at less than the required amount when the donor’s written or verbal intent is to meet the funding requirements within five years. Such funds must be approved by the Trustees.

4. If, after five years, the gifts received for a fund are not sufficient to establish the named, endowed fund intended by the donor, the Development Office will contact the donor to discuss alternate naming opportunities. If the donor is not available, the Director, in consultation with the Trustees as appropriate, will determine how the funds will be managed in accordance with legal requirements. Solicitation discussions and materials, as well as any gift acknowledgements, should be clear that gifts to a specific fund are subject to this contingency.

5. To the extent a sign, named area or program of the Gardner is altered, all reasonable efforts will be made to continue to display or use the donor’s name. If the named area is destroyed or the program eliminated, the ISGM will make reasonable efforts to name a comparable space or program in keeping with the wishes of the donor as soon as practicable.

6. Whenever an endowed fund is established to support a new activity (i.e., an activity not provided for in the current operating budget), the new activity shall not begin until the endowment fund balance reaches fifty percent (50%) of the amount required by the Gift Policies for that activity. The planned activity must be phased to coincide with the income stream and with the Gardner’s expressed spending policies. The Trustees, or a designated committee, may recommend a waiver of this policy in exceptional circumstances.

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Renewing the Promise: Supporting the Gardner’s Next Chapter Operating Protocols and Reports The Operating Protocols and Reports for the Renewing the Promise fundraising effort supplement the Gardner’s Gift Policies Statement and serve multiple purposes. First, they reflect commonly accepted standards and best practices. Second, they ensure appropriate recognition for gifts to the fundraising effort and provide a common set of assumptions for volunteers seeking commitments. Third, they provide a critical means for tracking and reporting the Gardner’s progress against fundraising goals.

The Board of Trustees adopts these Operating Protocols and Reports for use during the comprehensive fundraising effort commencing in September 2019.

1.

Renewing the Promise: Supporting the Gardner’s Next Chapter is a fundraising effort to support the implementation of the Strategic Plan (which covers fiscal years 20202024) and ensure the continued success of its vision and values for future generations.

2.

This effort comprises three components that total ~$55 million in funding needs:  Multi-year (5-year) unrestricted operating support (~$20 million)  Restricted support for programs, exhibitions, and capital projects (~$15 million)  Endowment for both unrestricted and designated purposes (~$20 million)

3.

Given that this is a comprehensive fundraising effort, all operating, endowment, and capital gifts received during the time period of Renewing the Promise will be credited to the effort.

4.

In addition to considering a multi-year commitment, every donor will be asked to maintain or increase his or her level of annual support.

5.

Because the major features of this fundraising effort are current-use and endowment to support the Gardner’s Strategic Plan and its lasting effect for future generations, best efforts will be made to secure outright gifts and pledges payable over a period of up to five years.

6.

All gifts from individuals, corporations, foundations, and other private organizations will be credited for purposes of this fundraising effort as stated in the Gardner’s approved Gift Policies Statement (see in particular the Gift Credit table in Section IV.B.4 of, and Appendix B to, the Gift Policies Statement).

7.

In order to be credited to the fundraising effort, pledges must be made in writing and must specify a dollar amount to be paid according to an agreed time schedule. All commitments must include written documentation substantiating the donor’s intent (i.e., letter, pledge form, email).

8.

No gift that has been counted in a previous campaign will be counted in this fundraising effort.

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9.

For naming opportunity purposes, please refer to the Appendix C of the Gardner’s Gift Policies Statement (“Naming Policy”).

10.

Planned gifts will be sought as part of this fundraising effort. Irrevocable, qualifying planned gifts (as outlined in Appendix B of the Gift Policies Statement), while not considered in fulfillment of the Museum’s immediate funding needs, will be credited over and above the stated fundraising goals.

11.

Matching corporate gifts will only be recorded and counted when the funds are received. Such gifts will be recorded as gifts from the corporation and credited toward the individual’s personal gift total.

12.

The value of any canceled or unfulfilled pledges will be subtracted from fundraising totals when it is determined they will not be realized, in a manner consistent with generally accepted accounting principles.

13.

Verbal commitments will not normally be included in fundraising reports. On those occasions when, in the opinion of the Development Office, an exception is warranted, the Gardner will summarize its understanding of the commitment in writing to the individual. A copy of this communication will be kept on file, and the commitment will be added to the fundraising totals. Verbal commitments that have not been included in fundraising totals will be internally tracked by the Development Office and will be reviewed regularly for action.

Reports 1.

Fundraising reports will separate results by (1) cash gifts in hand and (2) gift intentions/commitments.

2.

Reports will separate outright/current gifts and pledges from deferred gifts.

3.

Deferred gifts should be reported to the Board of Trustees at both face value and their net present value. They will be reflected in the Gardner’s financial statements in accordance with the Gardner’s auditing and accounting standards.

4.

In fundraising reports to the public, the Gardner will report only the face value of gifts.

5.

Deferred gifts will be reported publicly only when assets are transferred or when the donor consummates a legally binding, deferred pledge agreement or other irrevocable document with the Gardner.

6.

A complete set of fundraising reports will be used to track and report progress on the Renewing the Promise effort quarterly at Board meetings.

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