North Country School/Camp Treetops Gift and Naming Policy

Gift Acceptance and Naming Policy Approved by the Board of Trustees on April 23, 2016 I.

INTRODUCTION

This manual, with respect to all gifts, except as noted herein, to North Country School and Camp Treetops (hereinafter “NCT”) is designed to set policy which will serve to protect both our aims and the intentions of our donors. Except where stated otherwise, we intend these policies as guidelines. In order to advance the financial support of NCT, we recognize that we must be able to respond quickly, clearly and flexibly to gift proposals that prospective donors offer.

II.

GIFT AND NAMING COMMITTEE

A.

A Gift and Naming Committee (hereinafter “the Committee”) will consist of five voting members: Three Trustees, appointed by the Board Chair and to include the Development Chair, the Director of Advancement and one other member of the Administrative Team named by the Head of School and Camp (hereinafter the “Head”). The Head and Board Chair shall be ex officio members.

B.

Oversight: The Committee will administer the policy and will make recommendations to the Board so that it can, among other things: 1. Determine whether to accept offered gifts, 2. Set or revise minimum gift amounts for funds, projects and campaigns to qualify for discrete tracking and naming, 3. Provide guidelines for payment of pledges, and 4. Determine whether to offer and accept named gift opportunities and recognition.

5. Determine whether the gift furthers the charitable purpose, goals and objectives of NCT

C.

Exceptions: We may make exceptions to this policy, but only upon recommendation of the Committee and approval of the Board.

III. OUTRIGHT GIFTS A.

General Policies 1. NCT’s staff and Trustees will encourage donors to give to the NCT without restriction.

2. NCT shall not accept any gift where there is any substantial question as to whether the donor has title to the assets or is mentally competent to transfer the funds or assets being offered.

3. All checks should be made payable to "North Country School, Inc.”, “North Country School,” “Camp Treetops", “NCT”, “Treetops North Country” “NCS”, “CTT”, “NCS Treetops,” and may designate a named fund or project or some combination, and not to an employee, agent, or volunteer or in any other manner.

4. NCT accepts and books pledges (up to five years) once the donor makes the commitment in writing and signs the commitment form. We will not book verbal pledges. Donors should fulfill a portion of their commitment in each year of a multi-year pledge. If a donor wishes to make a pledge that exceeds five years or is a conditional pledge, NCT may only accept and book the commitment after approval of the Committee.

5. For various reasons, some donors may choose to denote an “intention” in writing and signed, as opposed to a “pledge.” NCT will not book such written and signed intentions as pledges, but only as income once we receive the gifts.

We may count such intentions in a separate pipeline as “intentions.”

6. We encourage recurring gifts that donors make on a monthly, quarterly, biannual, or annual basis. We will book such gifts as income only as we receive them, and not in advance as pledges.

7. We also encourage matching gift programs. The Annual Report will list the donor in a category that reflects the sum of the personal gift and the employer’s match. The Annual Report will list the employer in a category that reflects the match amount. We will assign the employer a matching gift pledge designation until the company actually pays the match.

8. Gifts generally accepted without review are those that are unrestricted gifts or those to existing named annual, capital and endowment funds.

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B.

C.

D.

Publicly-Traded Securities 1.

NCT may accept unrestricted marketable securities that trade regularly on the New York or NASDAQ Stock Exchanges, or other readily marketable securities, including shares of publicly traded mutual funds.

2.

We value securities in accordance with IRS regulations. Currently, those regulations direct the valuing of securities at the mean of the highest and lowest quoted selling prices on the date the donor officially delivers the securities to the institution’s broker or representative. As soon as possible after receiving such securities, NCT will sell them through its agent or representative. No employee or volunteer working on behalf of NCT shall commit to a donor that we will hold a particular security without approval of the Committee.

Closely-Held (Privately-Traded) Securities 1.

NCT may accept gifts of non-publicly traded securities only after the Committee approves the gift and, for such gifts with a claimed value of $5,000 or more, only after a qualified appraisal obtained by the donor.

2.

We require the approval of the Committee to liquidate such securities.

The Committee shall review and decide whether to accept closely-held securities based on the following factors: a. Restrictions on the security that would prevent NCT from ultimately converting the securities to cash; b. The marketability of the securities, including the potential need for SEC compliance; and c. Any undesirable consequence for NCT from accepting the securities.

3.

No one at NCT shall make any commitment or arrangement for a third party to repurchase or redeem such securities before a gift of closely held securities is complete.

Real Property (Real Estate) 1.

We will accept gifts of real estate only after recommendation from the Committee and approval of the Board.

Gifts of real estate will be reviewed by the Committee on an individual basis. The Committee will review, but is not limited to basing their 3

decision of acceptance on results of the following criteria, as determined necessary in the Committee’s discretion: a.

A preliminary title report shall be ordered. The report shall be reviewed for: (i) Proper legal ownership by the donor. (ii) The existence of any covenants, conditions, or restrictions which may affect its value. (iii) Use or compatibility with NCT. (iv) Rights that any other party may have in the property; (v) The existence of any tax, judgment liens, mortgage liens or other similar encumbrances; b.

An Environmental Audit subject to paragraph D8 below. c.

An appraisal subject to paragraph D2 below. d.

The general physical condition of the property will be evaluated either by a licensed inspector or a general contractor. The circumstance of a property being devalued from the time it is pledged as a gift and the time the Committee can sell needs to be considered. The classic example is a property that sustains a significant environmental damage. f.

Property with tenants needs to be evaluated carefully. If the property does not generate enough cash flow to support management, then it may be difficult to administer. g.

The Committee will check with the zoning officer in the town where the property is located to determine if there are any code violations or issues.

2.

We will accept gifts of real estate only after appraisal, obtained and/or paid for by the donor, in a manner conforming to the guidelines of the Internal Revenue Service; that is, an appraisal by someone meeting the IRS definition of a qualified appraiser. For complex properties, it may be desirable to obtain two separate qualified appraisals, one obtained by the donor and the other by NCT.

3.

In general, NCT will consider residential and commercial real estate or land located within 25 miles of Lake Placid, NY, with a net realizable value that the prospective donor or others estimate at $50,000 or greater, unless the Board, upon recommendation of the Committee, determines that the property is not suitable as a gift.

4.

In general, NCT will not consider as a gift residential real estate or land located more than 25 miles from NCT, unless the property’s net realizable 4

value appears to be in excess of $100,000 and there is reason to believe that it is highly marketable.

E.

5.

We will accept real estate to fund an Annuity, Trust or another planned giving mechanism upon (i) approval from legal counsel regarding the permissibility of this type of transaction under the laws of the state or states involved, (ii) recommendation from the Committee, and (iii) approval of the Board.

6.

We will pay special attention before accepting any gift of real estate encumbered by a mortgage, as the ownership of such property may give rise to unrelated business income for the institution, and may result in disqualification of certain split interest gifts.

7.

In general, with the possible exception of properties within 25 miles of NCT, we will liquidate gifts of real estate on the public market as soon as possible, rather than hold and manage such gifts for investment purposes.

8.

A qualified individual shall complete an environmental assessment of all proposed gift properties, regardless of value, before we accept the gift, unless the Committee recommends an exception and the Board approves.

Tangible Personal Property ("Collectibles") 1.

All tangible personal property gifts are subject to Gift-in-Kind stipulations in paragraph “G” below. We will not accept jewelry, art works, collections, antiques, and other tangible personal property unless we have reason to believe the property has a value in excess of $1,000. We will accept such property only with the approval of the Committee. The following factors will be considered in acceptance of tangible personal property: a.

The marketability of the property; b.

The restrictions on the use, display or sale of the property; and c.

Carrying costs and possible liability for the property.

2.

All tangible personal property gifts are subject to Gift-in-Kind stipulations in paragraph “G” below. NCT will not accept tangible personal property unless there is reason to believe that we can liquidate the property, if necessary. Nor will we accept property that requires ownership in perpetuity. Reduced tax benefits for the donor may result in these circumstances. In gift acknowledgements of such property, we will assess no specific fair market value of said property, providing only a description of the item and its approximate condition. Rather, we leave to the donor 5

the securing of his or her own professional appraisal of value for tax purposes.

F.

G.

3.

If there is reason to believe that tangible personal property has a value of $5,000 or more, we may only accept the property after (a) a review by the Committee, and (b) the receipt of an appraisal qualified under the guidelines of the Internal Revenue Service.

4.

Only the Committee may represent to a donor that NCT will or will not hold property for a specific period of time or for purposes related to its tax-exempt status.

5.

In general, NCT will retain for a minimum of three years (36 months) tangible personal property that the institution accepts as an outright gift.

Other Property 1.

Only the Committee or an officer acting on its behalf will accept other noncash property of any description, including mortgages, notes, copyrights, royalties, and easements.

2.

Before the institution accepts any such property, we will make appropriate inquiry and give special consideration to the nature of the property and whether it is in keeping with our tax-exempt status and mission.

Gifts in Kind 1.

Instead of cash, donors may also offer in-kind donations of goods or services. Gifts in-kind may include professional services, tickets to events, outdoor equipment, trips, building materials, or school supplies that NCT can use for its benefit. We may also solicit these items for use in a fundraising auction.

2.

The Committee will review and recommend to the Board for approval gifts of outdoor equipment, building materials or other gifts of in-kind property that may affect the aesthetics or culture of NCT.

3.

We acknowledge receipt of in-kind gifts by describing them and their condition, leaving it to donors to appraise the fair market value of these donations for their tax purposes. In the event of sale of in-kind donations for fundraising, NCT will notify the donor of the sale amount so that he or she can determine with a tax advisor how and whether to treat the gift as a charitable deduction.

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IV

DEFERRED/PLANNED GIFTS

A.

Bequests 1. We actively encourage gifts through estates, bequests and other charitable transfers (e.g., life insurance contracts and retirement plans) at the time of a death.

2. Only the Board, upon recommendation of the Committee, may disclaim gifts from the estates of deceased donors. A designated representative of NCT will communicate the decision of the Board to the legal representative of the estate. If there is any indication that the representatives of the estate or any family member of the deceased is dissatisfied with the decision, the representative will share this fact with the Head and the Committee as quickly as possible.

3. Where possible, we encourage donors or their representatives to bring to our attention intended bequests of property other than cash or marketable securities. We will work with the donor to ensure a match between his or her plans and this policy.

4. Unrestricted planned gifts will be allocated to the board designated endowment. The Board may approve exceptions for unrestricted planned gifts, as recommended by the Committee.

B.

Split Interest Charitable Trusts (Unitrusts and Annuity Trusts) 1.

We actively encourage charitable gift annuities, charitable remainder trusts and charitable lead trusts that make NCT a beneficiary. The institution will not serve as the trustee or fiduciary of any trust of which it is a beneficiary.

2.

Should a prospective donor express an intention to name NCT as a trustee or fiduciary, NCT staff will attempt to identify to the prospective donor a fiduciary other than the Institution.

3.

Management fees shall be paid from the charitable gift annuity, charitable remainder trust or charitable lead trust. The Board may approve exceptions, as recommended by the Committee.

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4.

C.

No person acting on behalf of NCT make any representations as to the manner in which the trustee or fiduciary will manage or invest the assets of the trust or annuity.

Life Estate Gifts (Retained Life Estate or Tenancy) 1. For NCT to enter into a contract for a gift of property subject to a retained life tenancy, the property should have a minimum value of $100,000 as established by a qualified appraisal.

2. Subject to any contrary determination by the Committee and approved by the Board, life tenancy contracts must include provisions stipulating the tenant/donor’s life-time obligation to maintain the property and his or her financial responsibility for all taxes, utilities and any other expenses associated with the improvement, property maintenance and repair of the real property, including replacement of all items associated the real property while donor remains in possession of the property and sufficient hazard and liability insurance naming NCT as an additional insured and other similar requirements as may be provide by the NCT’s legal counsel at the time of such gift. The donor shall enter into an agreement setting forth donor’s responsibilities while in possession of the property during the retained life estate.

3. Before NCT accepts such gifts, the Committee should satisfy itself that there has been full disclosure to the donor of the possible future ramifications (both positive and negative) of the transaction.

4. The Board, upon recommendation by the Committee will review and accept these proposed gifts on a case by case basis.

D.

Life Insurance / Retirement Plans 1. We encourage donors to name NCT to receive the benefits of life insurance and retirement plan contracts that have been purchased on the donors’ lives.

2. We do not, however, accept outright gifts from a donor for the purpose of purchasing life insurance on the donor's life.

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3. Nor do we accept insurance products that a donor endorses for the purpose of funding gifts to the Institution. Also, NCT will not furnish lists of the Institution's donors to anyone for the purpose of marketing life insurance.

4. We encourage donors to name us as full or partial beneficiaries of their 401Ks, IRAs or other retirement plans.

V.

RESTRICTIONS

A.

In General

B.

1.

We accept purpose-restricted gifts of more than $50,000 only if the restriction is in writing and the Board, upon recommendation by the Committee, determines that the restriction is consistent with NCT’s ethos, mission, program, policies and strategic priorities and can be met without disruption to NCT’s operations and does not violate public policy.

2.

Upon review with legal counsel when appropriate.

Specific Restrictions on Use and Investment of Gifts 1.

We accept no gift with restrictions that, in the Institution’s judgment, unlawfully discriminate on the basis of race, creed, color, citizenship, national origin, sexual orientation, gender, age, veteran status, or disability.

2.

NCT will not honor extraordinary restrictions on its use of gifts without prior recommendation by the Committee and approval of the Board and review by legal counsel.

3.

A donor may establish a permanent, named endowment fund only by making a gift of $25,000 or more. In the case of a pledge establishing such a fund, the balance is due in no more than five years. If the donor does not pay the balance within that period of time, the monies already in the fund shall go to the general endowment unless we make arrangements with the donor that satisfy NCT.

3.

A donor may establish a term-of-years fund only with the approval of the Committee.

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VI.

GENERAL

A.

Acknowledgement & Recognition

B.

1.

We acknowledge all gifts in writing (by email or mail) to the donor and include any IRS requirements for acknowledgement.

2.

With the exception of anonymous gifts, we recognize all gifts publicly in the Institution’s Annual Report.

3.

Gifts that create named funds, named buildings, named spaces, as well as memorials and honorariums will appear in the Institution’s Annual Report for the full amount of the gift or pledge in the year that the donor makes the gift or pledge. In the case of pledged gifts, NCT will also list the pledge payment amounts annually until the donor completes payment.

4.

Balanced Rocks Circle members (Hereinafter BRC) will be listed as anonymous in the Annual Report unless the BRC member approves, preferably with written consent, of their name being listed. Subsequent Annual Reports, Balanced Rocks Circle updates and other planned giving materials may also list BRC members.

5.

To the extent applicable, NCT will file IRS form 8282 upon the sale or disposition of any charitable deduction property sold within three (3) years of receipt by NCT. “Charitable deduction property” means any donated property (other than money or publicly traded securities) if the value claimed by the donor exceeds $5,000 per item or group of similar items donated by the donor to one or more done organizations, (e.g. the property listed in Section B on Form 8283). NCT will file this form within 125 days of the date of sale or disposition the asset.

Named Funds, Buildings, Programs, Spaces, Land and other 1.

Upon recommendation of the Committee, the Board may provide donors making a lead gift for a particular unit (fund, facilities project, program, land project or other strategic priority) the ability to name the unit, subject to temporal restrictions as the Committee and the donor may agree in writing. Upon the Committee’s recommendation, the Board may also provide naming opportunities for those making a gift of $25,000 or more for other spaces within the unit. We will work with the donor to ensure that the display and other aspects of such namings occur in a 10

manner consistent with the mission, values and culture of the institution.

Final control of all such decisions resides in the Board.

2.

NCT may collaborate with lead donors to a new building project on the project’s design, but ultimate decisions on design shall remain exclusively within the control of the Board.

3.

Because namings forge a permanent link in the public mind between donors and the Institution, the Committee determines whether a particular link is appropriate and desirable for recommendation to the Board, based upon the facts and circumstances associated with a particular proposed gift.

4.

The Committee will ensure the thorough review of a donor’s background and potential legacy with regard to integrity and public standing. The process for investigating and accepting a naming gift should be careful, deliberate and proportional to the project.

5.

In the unlikely event that a unit’s previous naming comes to shed unfavorable light on NCT because of possible wrongdoing, upon recommendation of the Committee, the Board in its sole discretion may authorize removal of a unit’s naming. In such cases, NCT will notify the donor(s) but will not return contribution(s) to the donor(s).

6.

NCT will use its best efforts to maintain any naming for the lifetime of the institution. In the very rare circumstance that a removal of a named unit is necessary or a donor’s giving comes with naming stipulations that call for relocation of the named unit, NCT will do everything in its power to work with donors’ families to create parallel naming scenarios that honor the intentions underlying the original gift.

7.

In order to preserve the named unit at NCT, we encourage donors for the initial naming to establish an endowment fund to provide ongoing maintenance or renovation funding.

8.

In the event that we deem renovation of, rebuilding of or an addition to a named unit necessary, and a sufficient endowment fund of the kind described immediately above is not available, we will approach and consult with the donors for the initial naming or their successors and determine if it is possible for an additional contribution towards the project. If additional funding from other sources is needed, NCT may provide new contributors with naming opportunities, while preserving and honoring the legacy of the initial contribution and naming.

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9.

C.

D.

We will make an effort to provide any donor seeking a naming opportunity a copy of our gift and naming policy in advance of any gift.

Confidentiality 1.

All information received from prospects and donors regarding their assets, heirs, gifts, advisors, and other personal information shall remain strictly confidential, with only those staff members, legal counsel, and volunteers on a "need to know" basis having access to such information or as subject to local, state and/or federal regulations, laws, statutes or court orders.

2.

In appropriate circumstances, we may request permission from a donor to use her or his name or personal information to assist the institution in its ongoing advancement efforts.

Ethical Principles and Standards 1. The attached statement of the Association of Fundraising Professionals Code of Ethical Principles and Standards�, as adopted in 1964 and amended in Sept. 2007, establishes guidelines and obligations for members and member organizations.

2. By inclusion of this statement as an addendum to this Gift Acceptance Policies document, North Country School and Camp Treetops affirms the statement and agrees to comply with its provisions.

E.

Use of Legal Counsel 1. NCT shall seek the advice of legal counsel in matters relating to acceptance and crediting of gifts when either the Committee or the board deems that such counsel is appropriate. Review by counsel if recommended for: 1.

Closely Held stock transfer that are subject to restrictions or buy-sell agreement; 2.

Documents naming NCT as Trustee; 3.

Gifts involving contracts, such as bargain sales or other documents require NCT to assume an obligation; 4.

Transactions with potential conflict of interest that may invoke IRS sanctions; 5.

Other instances in which use of counsel is deemed appropriate by NCT.

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F.

Conflict of Interest 1. NCT shall urge all prospective donors to seek the assistance of independent legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences.

Addendum Association of Fundraising Professionals ETHICAL STANDARDS (Adopted 1964; amended Oct 2014) The Association of Fundraising Professionals believes that ethical behavior fosters the development and growth of fundraising professionals and the fundraising profession and enhances philanthropy and volunteerism. AFP Members recognize their responsibility to ethically generate or support ethical generation of philanthropic support.

Violation of the standards may subject the member to disciplinary sanctions as provided in the AFP Ethics Enforcement Procedures. AFP members, both individual and business, agree to abide (and ensure, to the best of their ability, that all members of their staff abide) by the AFP standards.

PUBLIC TRUST, TRANSPARENCY & CONFLICTS OF INTEREST Members shall: 1. not engage in activities that harm the members’ organizations, clients or profession or knowingly bring the profession into disrepute.

2. not engage in activities that conflict with their fiduciary, ethical and legal obligations to their organizations, clients or profession.

3. effectively disclose all potential and actual conflicts of interest; such disclosure does not preclude or imply ethical impropriety.

4. not exploit any relationship with a donor, prospect, volunteer, client or employee for the benefit of the members or the members’ organizations.

5. comply with all applicable local, state, provincial and federal civil and criminal laws.

6. recognize their individual boundaries of professional competence.

7. present and supply products and/or services honestly and without misrepresentation.

8. establish the nature and purpose of any contractual relationship at the outset and be responsive and available to parties before, during and after any sale of materials and/or services.

9. never knowingly infringe the intellectual property rights of other parties.

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10. protect the confidentiality of all privileged information relating to the provider/client relationships.

11. never disparage competitors untruthfully.

SOLICITATION & STEWARDSHIP OF PHILANTHROPIC FUNDS Members shall: 1. ensure that all solicitation and communication materials are accurate and correctly reflect their organization’s mission and use of solicited funds.

2. ensure that donors receive informed, accurate and ethical advice about the value and tax implications of contributions.

3. ensure that contributions are used in accordance with donors’ intentions. ensure proper stewardship of all revenue sources, including timely reports on the use and management of such funds.

4. obtain explicit consent by donors before altering the conditions of financial transactions.

TREATMENT OF CONFIDENTIAL & PROPRIETARY INFORMATION Members shall: 1. not disclose privileged or confidential information to unauthorized parties.

2. adhere to the principle that all donor and prospect information created by, or on behalf of, an organization or a client is the property of that organization or client.

3. give donors and clients the opportunity to have their names removed from lists that are sold to, rented to or exchanged with other organizations.

4. when stating fundraising results, use accurate and consistent accounting methods that conform to the relevant guidelines adopted by the appropriate authority.

COMPENSATION, BONUSES & FINDER’S FEES Members shall: 1. not accept compensation or enter into a contract that is based on a percentage of contributions; nor shall members accept finder’s fees or contingent fees.

2. be permitted to accept performance-based compensation, such as bonuses, only if such bonuses are in accord with prevailing practices within the members’ own organizations and are not based on a percentage of contributions.

3. neither offer nor accept payments or special considerations for the purpose of influencing the selection of products or services.

4. not pay finder’s fees, commissions or percentage compensation based on contributions.

5. meet the legal requirements for the disbursement of funds if they receive funds on behalf of a donor or client.

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