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ASHT Purpose
ASHT seeks to foster improved treatment techniques and modalities for hand rehabilitation and to sponsor educational activities relating to better care of the hand, thereby advancing the specialty of hand therapy through communication, education, research and the establishment of clinical standards.
Gifts to the American Society of Hand Therapists may be made in any amount for the benefit of an existing fund or to donor advised, designated or field of interest funds.
Types of Funds
1. Unrestricted Funds
2. Pass-Through Funds
Pass-through funds are created primarily for time-specific projects and are not invested in ASHT’s long-term pooled assets. Rather, they are invested in highly liquid money market accounts in order to meet the needs of the funds. These funds allow disbursement of principle, rather than being restricted to ASHT’s spending practices.
3. Designated Endowment Funds
ASHT recognizes that the Society’s charitable interests are best served by a long-term commitment of resources. Therefore, ASHT encourages permanent endowment whenever possible. Permanent endowment funds are invested in the pooled assets for maximum appreciation.
4. Donor Advised Funds
Donor advised funds enable the original donor and the successor generation to make grant recommendations. Generally, once all successor advisors, if any, are deceased, the principal and income from the fund may be directed to an alternate funding area, as determined by ASHT’s Board of Directors.
5. Scholarship Funds
6. Community or Affiliate Funds
Minimum Gifts/Fund Balance
ASHT will accept gifts to existing funds of any size. The minimum for a new fund is $1,000. Higher minimums may be required depending on the type of gift, such as real estate or gifts of other property. Funds may be established with a lower minimum if the donor arranges regular payments to bring the Fund’s assets to the minimum within a reasonable period of time. No grants/funding may be made from funds until the minimum is reached.
If the principal of the fund falls below the minimum, and the donor does not arrange for regular payments to bring the Fund’s assets to the minimum within a reasonable period of time, the viability of the Fund is at the discretion of ASHT.
Acceptance of Restricted Gifts
It is the responsibility of ASHT to comply with requirements of donors mandating restricted use of gift property by ASHT. The Executive Director will prepare a written summary of the gift proposal and submit to the Executive Committee. The summary will include, at a minimum, the following information: 1) description of gift; 2) the purpose of the gift (as stipulated by donor) and the benefit to ASHT from said gift; 3) an appraisal of gift; 4) any risks; and 5) any special arrangements requested by the donor.
Authority to Solicit Gifts
The ASHT Board of Directors, designated staff members, and ASHT members are encouraged to identify and to assist in soliciting gifts from prospective donors. In order to ensure that solicitations are made in a manner that will best serve the interests of ASHT as a whole and will not conflict with other solicitations being conducted or planned by ASHT, the Executive Committee must review all plans for solicitations prior to implementation.
Fundraising for a Component Fund
Donor initiated fundraising events for a Fund must be approved by ASHT, which is legally responsible for all fundraising undertaken on its behalf. All such fundraising activities are subject to the approval and supervision of ASHT.
Payout Allowance
ASHT has a spending policy, which allows distribution based on the percentage of total assets of the fund balance to be paid out as grants, scholarships, etc., in the current granting year. The spending policy preserves principal and maximizes appreciation. Any donor who wishes to exceed the distribution rate should establish a pass-through fund, in addition to the endowed fund, to provide a source of aditional granting dollars.
Appraisals
Legal and ethical requirements designed to protect both the donor and ASHT prohibit ASHT, as an interested party, from appraising gifts. Such appraisals, if required by law or particular circumstances, are to be conducted by appraisers independent from ASHT, at the donor’s cost.
Responsibility to Donors
ASHT is committed to the highest ethical standards of philanthropy and development. In all transactions between potential donors and ASHT, the Society will provide accurate information and full disclosure of the benefits and liabilities that could influence the donor’s decision. This will include IRS regulations, ASHT fees, the irrevocability of a gift, prohibitions on donor restrictions, investment policies and other information needed by individuals to make an informed choice about using ASHT as a vehicle for charitable gifts. In addition, all donors will be strongly encouraged to discuss their gifts with their financial advisor before signing the gift agreement.
Donor Recognition
All donors will be recognized for contributing to the mission of ASHT and for providing the resources to serve mission-related activities. However, ASHT also respects the confidentiality of donors who do not want to be publicly recognized. Each donor is given the freedom to determine the degree and type of recognition that they prefer.
Administrative Responsibility for Gift Acceptance Policy
Overall responsibility for coordinating fundraising efforts and for assuring compliance with the requirements of this policy is assigned to the Executive Director. The Executive Director shall inform the President and President-Elect in advance of proposed fund-raising efforts.
Types of Contributions
1. Cash
ASHT accepts cash, credit cards, checks or money orders made payable to the American Society of Hand Therapists or any of its Funds.
2. Marketable Securities
ASHT accepts readily marketable securities and will make all decisions regarding the disposition or retention of these gifts, within existing investment parameters and policies.
Securities given to endowed Funds will be sold upon receipt if ASHT has no position in the same stock. Securities may be retained if ASHT has a position in the stock. Securities given to a pass-through Fund will be sold upon receipt, regardless of ASHT’s portfolio holdings.
The value of a gift of securities to ASHT will be determined by taking the mean average of the high and low sale transactions of the security on the date that the donor instructs his or her broker to transfer the irrevocable gift to ASHT, multiplied by the number of shares tendered. A contribution of stock is completed upon the delivery of an endorsed stock certificate to ASHT or the date that the security is transferred on the books of the brokerage firm.
3. Securities that are not Readily Marketable
Securities from privately held corporations will be recorded at value, if ASHT receives an appraisal from an independent professional appraiser to substantiate the value, at the cost of the donor. Otherwise, gifts of closely held stock will be carried on ASHT’s books as $1.00. Disposition of those assets will follow the same guidelines as regular securities, once they become marketable. The fund will reflect only the principal and income of the restricted stock and not the activity of the endowed pool, until the securities become readily marketable. ASHT will not accept securities that cannot be assigned, such as series, or those that are assessable and could create a net liability for ASHT.
Stock in subchapter S corporations require a qualified appraisal by an independent professional appraiser.
Gifts of bonds that require a holding period will be accepted and cashed when the holding period has expired.
ASHT does not accept gifts of general partnership interests. Partnerships in Limited Liability Companies (LLC) or family limited partnerships are reviewed to determine the underlying assets and liabilities, the activity of the partnership, how allocations are made and the liquidity of ASHT’s potential interest. ASHT must be the beneficiary of both the income and liquidation proceeds of the limited partnership interest. Any costs to ASHT in holding the interest is the responsibility of the donor. ASHT will not accept limited partnership interests that subject it to cash calls or other liabilities or that have adverse tax consequences.
4. Real Estate
Gifts of real estate may be accepted based on the outcome of a property analysis, including physical condition, likelihood of an immediate sale, current market analysis of value and environmental issues, among other factors. ASHT may accept property subject to a mortgage provided the property has sufficient equity and the property is marketable.
Before the gift is accepted, the donor must provide items to assist in preparing the property analysis, including the deed, current property tax bill, title reports, notes or mortgages and Phase I environmental impact report. The donor needs to have a qualified appraisal done, completing IRS Form 8283. If ASHT sells the property within two years, it will file IRS Form 8282 informing the donor and IRS of the amount of the sale.
ASHT will dispose of the property at the earliest possible time. If the property is accepted, ASHT will pay for the expenses associated with ownership (insurance, taxes) until the property can be sold. However, all costs associated with preparing the property analysis are the responsibility of the donor.
5. Tangible Personal Property
ASHT may accept tangible personal property as a gift. The property must be saleable and the donor must agree that it can be sold, but ASHT has sole discretion whether or not the item is sold or put to a use related to its exempt purposes. If current law views gifts of tangible personal property for an unrelated use unfavorable, the donor will be advised if ASHT is not able to put such gifts to related use.
Other criteria considered before accepting the gift include transportation and storage costs, costs of insurance, selling, maintenance or repair and potential usefulness to ASHT. If a lengthy selling period is anticipated, ASHT may refuse the gift or request that the donor cover the expenses with a cash gift.
The donor is responsible for establishing the value of the gift. If the perceived value is over $5,000, the donor is required to obtain a qualified appraisal and submit on IRS Form 8283. Until then, the gift is recorded with a value of $1.00 in ASHT’s financial statements. If ASHT sells the property within two years, IRS Form 8282 will be filed by ASHT, informing the donor and IRS of the sale price.
6. Bequests
Bequests should be left to the “American Society of Hand Therapists.” Sample bequest language is available to donors to ensure that the bequest is properly designated. ASHT appreciates a copy of documents naming ASHT as a beneficiary for our files.
7. Life Insurance Policies
ASHT may accept a life insurance policy as a gift if ASHT is named irrevocable owner and sole beneficiary. The gift is valued at its replacement cost for paid-up policies. The value of non-paid up policy is determined by adding to the interpolated terminal reserve plus any unearned premium and accrued dividends, less any policy loan. The issuing insurance company is consulted for assistance with valuation. The cash surrender value and any premium paid by the donor should be recorded as income from fundraising and as an asset on the balance sheet.
Any premiums due are the responsibility of the donor. If the insurance policy lapses for non-payment prior to maturity because a donor fails to provide for premium payments, ASHT may redeem the policy.
ASHT does not participate in charitable split dollar insurance plans.
8. Charitable Remainder Trusts/Charitable Unitrusts/ Charitable Lead Trusts
ASHT does not currently serve as the trustee, custodian or manager of trusts it negotiates, but relies on the donor as self-trustee or commercial trust companies or trust departments of banks. ASHT will seek to be included as a remainderman in every trust for which its services are provided. ASHT recommends that the beneficiaries be at least 50 years old, unless the trust is for a term of years. With charitable lead trust, the trust term may be at the discretion of the donor.
9. Charitable Gift Annuity
ASHT will enter into a contract with the donor. The Society will agree to pay the donor (or other person named by the donor) a lifetime annuity in return for a gift of cash or marketable securities. The rates for the Charitable Gift Annuity will be determined by ASHT, based on life expectancy. The minimum gift is $5,000. Agreements shall be limited to two lives, and ordinarily the minimum age for the annuitants will be 60 for immediate annuities and 45 for deferred annuities. Gift Annuities shall be managed by ASHT and the Society may employ agents and advisors to assist with the administration and investment of gift annuity assets. Upon maturity of the gift annuity, ASHT agrees to pay the remainder to the charity designated either into an endowed fund to benefit named charity for a fee of 5% or directly to the charity for a fee of 10% of the original assets. This choice will be made by the donor at the time of the gift annuity.
10. In-Kind Donations
ASHT may accept certain types of gifts-in-kind valued at less than $5,000, including, but not limited to, computer software, medical equipment and/or supplies.
Any gift-in-kind with a value exceeding $100, but less than $5,000, will be recorded as $1.00, unless independent verification of the fair market value of the gift is provided.
If the perceived value is over $5,000, the donor is required to obtain a qualified appraisal and submit on IRS Form 8283.
Any questions about this policy, or contributions in general, should be directed to ASHT's Development Department at 312.321.6866.
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