The Connecticut Architecture Foundation (CAF) solicits and accepts gifts that will help the Foundation fulfill its mission. The CAF urges all prospective donors to seek the assistance of personal legal counsel and financial advisors for advice relating to their gifts.
This advice includes tax and estate planning consequences. The following guidelines govern acceptance of gifts made to the CAF for the benefit of any of its programs or operations.
Use of Legal Counsel: The CAF will seek the advice of legal counsel in matters relating to the acceptance of gifts, where appropriate. Review by counsel is recommended for:
- Gifts of securities that are subject to restrictions or buy-sell agreements.
- Documents naming the CAF as trustee or requiring the CAF to act in any fiduciary capacity.
- Gifts requiring the CAF to assume financial or other obligations.
- Transactions with potential conflicts of interest.
- Gifts of property which may be subject to environmental or other regulatory restrictions.
Gifts Generally Accepted Without Review:
Cash: Cash gifts are acceptable in any form, including by check, money order, credit card or on-line.
Marketable Securities: marketable securities may be transferred to an account maintained at one or more brokerage firms or delivered physically with the transferor’s endorsement or signed stock power (with appropriate signature guarantees) attached. Marketable securities may be sold on receipt. In some cases, marketable securities may be restricted (for example, by applicable security laws or the terms of the proposed gift); in such instances, the decision whether to accept the restricted securities will be made by the CAF Executive Committee.
Bequests and Beneficiary Designations under Revocable Trusts, Life Insurance Policies, Commercial Annuities and Retirement Plans: Donors are encouraged to make bequests to the CAF under their wills, and to name the CAF as the beneficiary under trusts, life insurance policies, commercial annuities and retirement plans.
Life Insurance: The CAF will accept gifts of life insurance where the CAF is named as both beneficiary and irrevocable owner of the policy. The donor must agree to pay, before due, any future premiums owing on the policy.
Charitable Remainder Trusts: The CAF will accept designation as a remainder beneficiary of charitable remainder trusts.
Charitable Lead Trusts: The CAF will accept designation as an income beneficiary of charitable lead trusts.
Gifts Accepted Subject to Prior Review: Certain forms of gifts or donated properties may be subject to review prior to acceptance. Examples of gifts subject to prior review include, but are not limited to:
Tangible Personal Property: The Executive Committee shall review and determine whether to accept any gifts of tangible personal property in light of the following considerations:
- Does the property further the CAF mission?
- Is the property marketable?
- Are there any unacceptable restrictions on the property?
- Are there carrying costs for the property for which the CAF may be responsible?
- Is the title/provenance of the property clear?
Real Estate: All gifts of real estate ae subject to review by the Executive Committee and approval by the full Board of Directors. Prior to the acceptance of any gift of real estate other than a personal residence, the CAF shall require an initial environmental review by a qualified environmental firm, to be paid for by the donor. In the event that the initial review reveals a potential problem, the organization may retain a qualified environmental firm to conduit an environmental audit and assessment, to be paid for by the donor. Criteria for acceptance of gifts of real estate include:
- Is the property useful for the organization’s purpose?
- Is the property readily marketable?
- Are there covenants, conditions, restrictions, reservations, easements, encumbrances or other limitations associated with the property?
- Are there carrying costs (including insurance, property taxes, mortgages, notes, etc) or maintenance costs associated with the property?
- Does the environmental review or audit reflect that the property is damages or otherwise requires remediation?
Restriction on Gifts: The CAF will not accept gifts which:
- Violate its corporate charter.
- Are for purposes outside the CAF mission.
- Would result in the CAF losing its status as an IRC 501 (c) (3) not-for-profit organization.
- Are too difficult or expensive to administer in relation to their value.
- Would result in any unacceptable consequences for the CAF.
The CAF will not serve as trustee of charitable lead annuities and uni-trusts, funded revocable trusts or non-qualified trusts.
The CAF will not serve as the executor of any donor’s estate or as the successor trustee of a living trust without regard to whether the CAF is benefitted.
Decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the CAF Executive Committee and, when appropriate, by the full Board of Directors.
Gift Acceptance Policy reviewed and accepted by the Connecticut Architecture Foundation Board of Directors on April 2, 2020.