Conflict of Interest Policy
Members of the Board of Trustees (“Trustee”) are elected to serve Overlook Foundation (the “Foundation”) and are expected to carry out their duties in a manner that inspires and assures the confidence of the Foundation and the broader community. It is the obligation of each Trustee to exercise the utmost good faith in all transactions touching upon his or her duties to the Foundation. In dealings with and on behalf of the Foundation, Trustees are held to a strict rule of honest and fair dealing between themselves and the Foundation. They should not use their positions as Trustee or knowledge gained there from so that a conflict might arise between the Foundation’s interest and that of any individual Trustee.
No Trustee of the Foundation or member of a committee shall be entitled to compensation for services rendered to the Foundation unless full disclosure of the financial gain or potential financial gain to the Trustee is made and unless such compensation is duly approved by the Board of Trustees or its Executive Committee (collectively “the Board”). For purposes of this policy statement, references to the “Board” shall mean the full Board of Trustees or the Board’s Executive Committee, as may be determined by the Chair.
The Foundation may, however, reimburse any volunteer, including a Trustee, for reasonable and necessary expenses incurred in the course of carrying out his or her Foundation duties.
The Foundation may only enter into a transaction or agreement for the receipt or provision of contributions, goods or services to the Foundation if the transaction is with a board member or major donor (or any member of a board member’s or a major donor’s family) or any person or entity with control over the affairs of the Foundation, or a family member of such person, provided that the transaction/agreement is in the best interests and at “arm’s length” or on fair and reasonable terms to the Foundation, provided the person’s or entity’s interest is disclosed or known to the Board. Such transactions or agreements must be approved by the Board.
Board members must disclose to the Foundation the fact that they serve on the Board of Trustees of any other organization(s), including foundations or other funding sources, with which the Foundation has business dealings or whose activities are similar to those of the Foundation.
The following are procedures to be followed in the event of a conflict or appearance of conflict:
- Any conflict of interest or potential conflict of interest must be disclosed in writing to the Board.
- Any Trustee having a conflict of interest shall not vote or use his or her personal influence on the matter, and he or she shall not be counted in determining the quorum for the meeting with respect to action to be taken on the matter pertaining to the conflict.
- The minutes of the meeting shall reflect any disclosures that are made as to conflicts, which board members abstained, and the fact that a quorum either was or was not achieved.
- On an annual basis and as a condition of office every Trustee, officer, and committee member shall complete and file with the Board a questionnaire provided by the Board fully disclosing any area of conflict of interest.
Records Retention and Filing Policy
Policy: Overlook Foundation’s record retention policy shall comply with generally accepted accounting principles and the Sarbanes-Oxley Act of 2002 to properly file, store, and destroy most records related to donor, financial, and operational information.
Central Donor Files
The foundation maintains central donor files in its main office. The criteria for establishing a donor file is a gift equal to or greater than $1,000. The donor files are maintained in alphabetical order in three categories: individuals, corporations, and foundations.
The gift processing officers, the data base coordinator, and office assistant file copies of checks and acknowledgement letters for these gifts.
The executive assistant files any communication pertinent to the donor given to her by the executive director, director of corporate and foundation relations, or the director of major gifts (or similar titled officer). The special project coordinator files pertinent communications given to her by the director of planned giving and finance or the director of trustee relations and special gifts.
The data base coordinator maintains the integrity of the files. She moves any files that have not had activity in a five-year period to the foundation’s attic storage area, where inactive donor files are kept in alphabetical order. The data base coordinator maintains a log of all files that have been marked as inactive. The inactive donor files are kept for seven years and then properly disposed. The data base coordinator and the office assistant place files to be destroyed in the shredding bins at Overlook Medical Center.
Board and Committee Meeting Agenda, Packets, and Minutes
The executive assistant maintains the board of trustee and committee meeting minutes and agenda packets. The meeting agenda packets only are destroyed after seven years when the executive assistant places the packets to be destroyed in the shredding bins at Overlook Medical Center. Board and committee meeting minutes are never destroyed.
The financial analyst retains the following financial information for seven years.
- Accounts payable files, filed alphabetically by major vendor, grant, or expense category.
- Bank statements and cancelled checks, filed by year and month.
- Unaudited financial statements, filed electronically by fiscal year and quarter.
- Journal entry backup, filed numerically by fiscal year and month.
The financial analyst places files to be destroyed in the shredding bins at Overlook Medical Center. Audited financial statements, 990’s, and 1099 tax filings are never destroyed. The financial analyst files them by fiscal year.
Cash Receipts, Batch Back-up
The office assistant and the data base coordinator file the batch back-ups numerically, as described in the accounting cash receipts/check-cashing policy. They maintain the files for seven years. The data base coordinator and the office assistant place files to be destroyed in the shred bins located at Overlook Medical Center.
Access to and Confidentiality of Donor Files
Only foundation employees have direct access to donor files, and donor files are not to leave the foundation premises. When an employee removes a file, he/she must fill in an out-card with his/her name and the date removed and leave that card in the folder from which the file was removed. When the employee returns the file, he/she must write the date returned on the card and pull it from the folder. Out-cards are stored atop the file cabinets.
Information from donor files and the files themselves are shared with trustees only on a need-to-know basis. Trustees involved with fundraising solicitation are permitted access to files for prospecting purposes but are subject to all provisions of this policy. Donors may examine their files at any time after providing the foundation with sufficient advanced notice of their wishes. Foundation employees may provide copies of a donor’s file only to the donor or to a third party upon a donor’s signed and written release to do so.
Conscientious Employee Protection Act (CEPA) Policy
Overlook Medical Center, in conformance with The Conscientious Employee Protection Act of New Jersey N.J.S.A. 34:19-1 et seq. (hereinafter “CEPA”), requires directors, officers, trustees, volunteers, independent contractors, and employees to observe high standards of professional conduct and ethics. They must demonstrate honesty and integrity, must abide by public policy and standards of proper patient care, and must comply with all applicable local, state, and federal laws and regulations (hereinafter referred to individually and collectively as the “Law”) in executing their duties and responsibilities. In addition, all Overlook Foundation (the “Foundation”) trustees, senior managers, and financial managers are required to sign the conflict-of-interest policy annually to acknowledge those responsibilities, and Foundation employees must also annually sign the Atlantic Health System code of conduct policy.
This policy shall serve to protect those trustees, officers, volunteers, independent contractors supervised by employees, and employees (“Individuals”) who provide either a notice of a breach of professional standards, code of conduct or the Law; notice of violations of public policy; a report of improper quality of patient care, practice, or procedure; notice of acts or failure to act that violates any law, rule, or declaratory ruling adopted pursuant to law; or report of a breach of material regulations governing the conduct of the Foundation’s business. This policy requires Individuals to seek resolution of serious concerns within the Foundation prior to seeking resolution outside the organization, consistent with the statutory provisions of CEPA.
II. Reporting Responsibility and Standard of Reportable Violation
All Individuals shall comply with the policies of Atlantic Health System and of the Foundation and shall report material violations or suspected material violations of 1) the Atlantic Health System’s employee manual of the Foundation’s regulations and policies, 2) code of conduct, 3) ethics, 4) the Law, 5) public policy, 6) standards of proper patient care, and 7) crucial foundation procedures. Reporting procedures are specified in section IV below. EXCEPTION: Where any Individual is reasonably certain that the activity, policy, or practice is known to one or more supervisors of the Individual, or where the Individual reasonably fears physical harm as a result of his or her reporting the violation and the situation is emergency in nature, the Individual may report the violation anonymously. Procedures for the anonymous reporting of violations are specified in Section V below.
III. Compliance Oversight and Interpretation of This Policy
The chair of the audit committee of the Foundation’s board of trustees shall act as the first arbiter and shall be responsible, with assistance from the Foundation’s executive director, for interpreting and implementing this policy where and when necessary. If the first arbiter is the subject of an allegation or otherwise prevented from acting as first arbiter, the chair of the board of trustees shall interpret and execute the procedures set forth in this policy. If the chair of board of trustees is also the subject of an allegation or is unavailable, the Foundation’s board of trustees shall appoint a nonpartisan authority with experience in so-called whistleblower issues and legal matters from outside the board of trustees to serve temporarily as the first arbiter. That appointed authority shall then act on behalf of the board of trustees for the duration of the case(s) involved.
IV. Reporting Violations
Overlook Foundation is expected to conduct an open-door policy that permits employees, volunteers, and independent contractors to share their questions, concerns, suggestions, or informal complaints with someone who can address them. In most cases an Individual’s supervisor or lead volunteer is in the best position to address such concerns. This policy encourages Individuals to discuss the matter with his or her supervisor or lead volunteer before filing a written formal notice of violation covered by this policy (hereinafter the “Notice of Violation”). If an Individual is uncomfortable speaking informally with his or her supervisor or lead volunteer, an Individual may speak with the Foundation’s executive director, the first arbiter, or the chair of the board of trustees. If after speaking to one of these officers the Individual wants to file a Notice of Violation, the Individual must follow the provisions of this policy in doing so. A Notice of Violation filed under this policy, though, must meet the standard defined in section II.
All trustees, directors, financial managers, supervisors, and lead volunteers are required at all times to maintain strict confidentiality concerning all matters related to a Notice of Violation and allegations discussed with an Individual, including the identity of that Individual. Any breach of this strict confidentiality may be deemed a violation of this policy and subject the trustee, director, financial manager, supervisor, and lead volunteer to disciplinary proceedings, including but not limited to termination of his or her employment or volunteer position with the foundation.
If an Individual decides to file a Notice of Violation under this policy, the Individual must file a written complaint using the Foundation’s Notice of Violation form (available from the director of planned giving and finance in the Foundation’s offices) and must sign and date the form. The reporting Individual shall personally deliver the Notice of Violation form in a sealed envelope, signed across the seal, to the Individual’s supervisor or to the Foundation’s executive director, unless both are subjects of the complaint, in which case the Individual must deliver the sealed envelope to the first arbiter. If the first arbiter is also a subject of the complaint or unavailable, then the Individual must personally deliver the sealed envelope to the chair of the board of trustees. If the complaint mentions all these officers, the Individual may then deliver the sealed envelope to the vice chair of the board of trustees, who then shall be responsible for delivering the Notice of Violation to the appropriate committee (see Sections VIII and IX). The vice chair shall initiate a board resolution 1) to appoint an independent authority, as defined in Section III and 2) to empower that authority to investigate the complaint. The vice chair shall then communicate with the reporting Individual as the first arbiter would have done.
V. Procedure for Anonymous Reporting
An Individual may submit a Notice of Violation anonymously if that Individual is reasonably certain that the activity, policy, or practice is known to one or more supervisors of the Individual, or in cases in which the Individual reasonably fears physical harm as a result of his or her reporting the violation and, in either instance, if the situation is emergency in nature. An anonymous report may then be made to the first arbiter (or successor as defined above) directly. Any Individual who anonymously files a Notice of Violation shall be deemed under this policy to understand fully that an anonymous filing may impair the ability of the first arbiter, the responsible committees, and the board of trustees to fully investigate and act in full knowledge upon the information in the Notice of Violation. If after filing an anonymous Notice of Violation a reporting Individual identifies himself or herself as the filer, he or she must prove to the satisfaction of the board of trustees that he or she did file the Notice of Violation by presenting a true and verifiable copy of the Notice of Violation in question.
VI. Acting in Good Faith
Anyone filing a Notice of Violation concerning a suspected violation of conduct, ethics, the Law, public policy, standards of proper patient care, or acts or failure to act that violates any law, rule, or declaratory ruling must act in good faith and have reasonable grounds for believing the information disclosed indicates a violation. Any allegations that prove to be made without a good-faith belief of a violation, or which prove to have been maliciously made or to be knowingly false, will be viewed as a serious offense and may invoke disciplinary penalties up to and including, but not limited to, the termination of an individual’s employment or a volunteer’s position.
VII. Handling Reported Violations
If a supervisor receives a Notice of Violation covered by this policy, he or she is required to relay that Notice of Violation to Overlook Medical Center’s president and to the first arbiter (or successor officer identified above) within one business day. If the first arbiter or successor is unavailable, the recipient shall deliver the Notice of Violation to the vice chair of the Board of Trustees.
The first arbiter (or successor) is then responsible for reporting to the chair of the board of trustees within five business days that an Individual has lodged a Notice of Violation. Within those same five business days, the first arbiter (or successor) shall acknowledge in writing to the reporting Individual receipt of the Notice of Violation and shall inform the reporting Individual of the date 45 days thereafter by which time the first arbiter (or successor) shall convey to the reporting Individual news of actions taken by the board of trustees and any results of the investigation deemed appropriate to share. The first arbiter (or successor) shall promptly investigate the Notice of Violation, with the assistance of the appropriate committee outlined in sections VIII and IX below. Those committees shall, in turn, recommend to the board of trustees corrective or other action, if warranted. The first arbiter (or successor) shall conclude the investigation and report the findings to the appropriate committee in sufficient time for that committee and the full Board of Trustees to deliberate, act, and notify the reporting Individual by the deadline established in the first arbiter’s communication. Sole authority for action upon the Notice of Violation rests with the board of trustees.
Reports of violations or suspected violations will be kept confidential to the extent possible, and consistent with the need to conduct a thorough investigation. Records of the Notice of Violation, related correspondence, investigative and other reports, and board deliberations and dispositions shall be maintained for 10 years, kept confidential, and stored in a fireproof location readily accessible to the executive director, the first arbiter, or the chair of the board of trustees. That location need not be in the Foundation’s offices. The executive director of the foundation (unless that executive director is the subject of the investigation, in which case the president of Overlook Medical Center shall serve) shall be responsible for those records, for identifying and tracking repeat violations and violators, for tracking the progress of the investigation, and for informing the board of trustees of pending deadlines for action.
VIII. Accounting and Auditing Matters
Upon notification by the first arbiter (or successor) of a Notice of Violation, the audit committee shall address all violations regarding corporate accounting practices, internal controls, the Law, or auditing. The first arbiter (or successor) shall work with the committee until the matter is investigated and the committee forwards its recommendation for action to the board of trustees.
IX. Personnel and Professional Matters
Upon notification by the first arbiter (or successor) of a Notice of Violation for any other reason—but especially on complaints regarding personnel, ethics, or professional conduct—the personnel committee shall investigate the allegation. The first arbiter (or successor) shall work with the committee until the matter is investigated and the committee forwards its recommendation for action to the board of trustees.
X. No Retaliation for Reporting
Any director, officer, trustee, volunteer, independent contractor supervised by employees, or employee is prohibited from retaliating against any Individual discussing or filing a Notice of Violation under this policy, including, but not limited to, instructing another person to act on his or her behalf. Disciplinary actions will be taken against any director, officer, trustee, volunteer, independent contractor supervised by employees, or employee who retaliates against any Individual for discussing or filing a Notice of Violation.
XI. Authority for Actions
It shall be the sole responsibility of the board of trustees o acting upon recommendation of the appropriate committee (see Sections VIII and IX) and after thorough investigation and consultation with counsel, if required, to decide what, if any action, to take against an Individual or person who has violated Sections VI or X of this policy. Discipline for violation of Section VI and/or X of this policy may include, but is not necessarily limited to, the termination of employment or volunteer position.
XII. Reserved Rights
This policy was drafted in compliance with the provisions of CEPA. Overlook Medical Center and Overlook Foundation specifically reserve any and all rights and privileges permitted under CEPA and the laws of the State of New Jersey and the United States of America.
Gift Acceptance Policy
This policy is designed to ensure that all gifts to and for the use of Overlook Foundation (the “Foundation”) and especially those for the benefit of Overlook Medical Center (the “Medical Center”) provide the maximum benefit for the donor, the Foundation, and the Medical Center. Because some gift situations may be complex, more costly than beneficial, or restricted in some manner, the Board of Trustees of the Foundation has established these standards by which to accept, evaluate, and manage gifts. The Foundation will accept all gifts of cash and publicly marketable securities. Other assets tendered to the Foundation or assets tendered with extreme or significant restrictions may require approval from the Foundation’s Strategic Fundraising Committee (the “Committee”) and review by and advice from qualified advisers, real estate experts, financial planners, or business executives, all of whom must have relevant experience and no conflicts of interest.
I. Guiding Principles
- The Foundation is a 501(c)(3) as defined by the Internal Revenue Code (“IRC”) and encourages gifts in support of its mission.
- The Foundation implements this gift acceptance policy to protect
- the interests of the donor;
- volunteer solicitors from misunderstandings when soliciting and accepting gifts;
- the welfare of the Foundation and the Medical Center; and
- employees charged with managing gifts and the gift planning program for the Foundation and its Medical Center.
- The Foundation shall always encourage donors to consult with qualified advisers (accountants, certified estate or financial planners, attorneys, investment brokers, etc.) before making a gift to the Foundation, especially a deferred gift.
- The Foundation strongly encourages donations of gifts for unrestricted, general purposes because of the flexibility such gifts provide in satisfying pressing needs, but it will also happily accept gifts of a more complex nature.
- The Foundation may spend gifts for current use in their entirety in the fiscal year in which the gift is made, at its sole discretion.
- For gifts that are permanently restricted (i.e., endowments, for which the donor has stipulated that the principal be kept intact in perpetuity or for a term of years), only the Foundation’s return on that gift may be expended, according to the Foundation’s spending policy then in effect.
- The Foundation shall acknowledge all donations in a way that respects and honors the donor.
- In accepting a gift, the Foundation accepts responsibility for administering the gift in a manner consistent with the donor’s wishes.
II. Gifts Covered by This Policy
This policy covers all gifts to the Foundation or to the Medical Center for which the Foundation is acting as agent, whether the gifts are made during a donor’s lifetime or after a donor’s death by will, trust, executor’s action, or by a planned gift such as a charitable gift annuity, charitable remainder trust or retained life estate. This policy covers but is not limited to gifts of cash, foreign currency, bank wires, credit cards, personal checks, matching gifts by employers, IRAs and other retirement plans, publicly traded securities, restricted or non-publicly traded securities, promissory notes, other financial instruments, life insurance policies, tangible personal property (including household goods, vehicles, art, etc.), real estate, partnership interests, royalties, gas and oil interests, and other gifts-in-kind. This policy covers but is not limited to gifts of cash, foreign currency, bank wires, credit cards, personal checks, matching gifts by employers, IRAs and other retirement plans, publicly traded securities, restricted or non-publicly traded securities, promissory notes, other financial instruments, life insurance policies, tangible personal property (including household goods, vehicles, art, etc.), real estate, partnership interests, royalties, gas and oil interests, and other gifts-in-kind.
This policy does not cover grants applied for, received through, or administered by the Office of Grants and Research at the Medical Center or Atlantic Health System.
III. Authority for Accepting Gifts and Responsibilities for Reporting Proposed Gifts
The Board of Trustees of the Foundation is authorized to seek and to accept gifts on behalf of the Medical Center and to support the Foundation’s mission. All officers of the Foundation and all administrators, physicians, directors, managers, and other leaders at the Medical Center should, when presented with a gift or the possibility of a gift to the Medical Center or any of its programs, refer the prospective donor to the Foundation’s Chief Development Officer (or his or her designee), who shall act as the representative of the Foundation’s Board of Trustees. In accepting a gift, the Chief Development Officer (or designee) will consider the donor’s reputation, whether the gift is consistent with and supports the Foundation’s mission, and whether the relevant costs of the program, activity, or building to be directed by the proposed terms provide appropriate flexibility for current and future needs. The Foundation’s authority to seek, accept, and administer gifts and grants does not extend to those grants obtained through the Office of Grants and Research at the Medical Center or Atlantic Health System.
The Foundation may not or will not accept gifts under the following circumstances.
- Gifts with terms that are so narrowly defined that effective use or administration would create problems for the Foundation or the Medical Center.
- Gifts with terms that would require involvement by the donor or third parties in directing the use and administration of the gifts.
- Gifts that would require discrimination on a basis that could be considered illegal under state or federal law or construed as unethical by the Foundation’s Board of Trustees.
- Gifts that demand “vendor rights” with the Foundation or the Medical Center in exchange for the contribution.
A. Ensuring Compliance with the Policy and the Gift Acceptance Committee:
The Board of Trustees of the Foundation designates the Chief Development Officer of the Foundation as the officer who shall ensure compliance with this policy. The Board of Trustees deems its own Strategic Fundraising Committee as the Gift Acceptance Committee (the “Committee”) for the Foundation for all gifts of non-liquid assets or deferred gifts. The Committee shall be responsible for recommending to the full Board of Trustees or its executive committee the acceptance or rejection of any specific gift. No trustee action is required in the case of gifts of cash, foreign currency, bank wires, credit cards, personal checks, matching gifts by employers, IRAs and other retirement plans, publicly traded securities, or other easily liquidated financial instruments (e.g., savings bonds, municipal bonds) that come with no or minimal restrictions.
The Committee or five of its members if a meeting is not imminent must review any proposed restrictions and conduct appropriate due diligence or assign some person(s) or entity to conduct such due diligence before recommending the proposed gift to the Board of Trustees. If no board meeting is imminent, the Committee may forward its recommendation to the executive committee of the Board of Trustees, which may act on behalf of the Board of Trustees when time is of the essence.
B. Use of Counsel and Disclosure of Counsel’s Role.
As necessary, the Committee may employ outside counsel for advice and other experts for due diligence. If the costs for such advice and expertise will exceed budgeted amounts, the Foundation staff shall seek the approval of the Chief Development Officer prior to additional expenditure. When advisers retained by the Foundation prepare documents or render service of any kind to the Foundation or a prospective donor to the Foundation, Foundation officers shall inform the prospective donor 1) that the professional involved is in the employ of Foundation, 2) that the professional is not acting on behalf of the donor, and 3) that the prospective donor’s own qualified counsel should review any information shared or documents prepared prior to completion of the gift. Furthermore, the Foundation will encourage prospective donors to seek the advice of qualified legal and financial counsel before making a gift to the Foundation or before signing any gift agreement or other contract with the Foundation.
C. Authorization to Negotiate and Execute Gift Agreements on Behalf of the Foundation
The following people are authorized to negotiate gift agreements and planned giving agreements with donors, subject to the provisions of this policy: 1) the chair of the Board of Trustees, 2) the vice chair of the Board of Trustees, 3) the Chief Development Officer of the Foundation, and 4) the Director of Gift Planning and Campaigns. The signing of any agreements is governed by the Foundation’s separate policy on cash disbursements and contracts.
Legal and ethical requirements designed to protect both the donor and the Foundation prohibit the Foundation from appraising gifts. Such appraisals, if required by law or advisable under the circumstances, are to be conducted by qualified appraisers independent from the Foundation. In most circumstances, the donor must obtain and pay for the appraisal.
E. Evaluation and Payment of Costs Associated with Acceptance of Certain Gifts:
Foundation staff and the Committee must evaluate proposed gifts of property and gifts-in-kind to determine the costs to the Foundation or the Medical Center that may bear in accepting and managing the gift and whether they are acceptable. Occasionally, costs associated with the gift may weigh against accepting it. The staff shall report all potential costs to the Committee for its use in deciding to accept or reject a gift. The Foundation may pay fair and reasonable fees for professional services rendered to the Foundation in connection with evaluating, accepting, or maintaining the gift.
F. Gift Acknowledgement.
The Foundation shall furnish all donors with gift acknowledgment letters and receipts in a reasonable amount of time and in accordance with the rules and regulations of the IRS. When appropriate, donors may be given tokens of appreciation within IRS-designated limits.
G. Acceptance and Administration of Restricted Gifts.
Donors frequently require that gifts be used by the Foundation in particular ways. The Foundation may accept restricted gifts upon consultation with the Committee. If the Foundation accepts a gift subject to restrictions, the Foundation shall comply with the donor’s requirements, which must be reduced to writing and which require a signature from the donor(s) and Foundation officers. Rules governing the signing of contracts shall apply. For the Committee to accept a gift with restrictions, the use of the proposed gift must be consistent with the mission, ethical standards, and best practices of the Foundation and the Medical Center.
H. Pledges and Gift Agreements.
A pledge is an oral or written promise to make a gift. The Financial Accounting Standards Board in SFAS No. 116 defines pledges. A pledge for a gift for a restricted purpose, the initiation of an endowment of any size, and the creation of a deferred gift of any kind shall be documented by the donor(s) and the Foundation by a signed gift agreement. In the absence of a pledge, gift agreement, or a letter of understanding, correspondence will carry the same weight. The signing of any agreements is governed by the Foundation’s separate policy on cash disbursements and contracts.
I. Minimum Gift Sizes for Endowed Funds.
Subject to other provisions in this policy, the Foundation shall accept gifts of any size to existing endowments. To create a new, named endowment the Foundation may require minimum amounts tied to the endowment’s use. As of the effective date of this policy, the Foundation requires $250,000 to create a named Excellence of Care endowment, $500,000 to create a named lecture endowment, from $250,000 to $1 million or more to create a named research or programmatic endowed fund, and from $1 million to $3 million, depending on the position, to create a named directorship or chair. The Foundation will not spend the corpus of an endowed fund (unless otherwise permitted in a gift agreement) and shall apply its annual endowment spending policy then in effect to determine the income available from the endowment for its restricted purpose. The Foundation reserves the right to change its minimum required gifts for endowments.
J. Date of a Gift.
The date of a gift is the date the asset ceases to be in the control of the donor. For gifts delivered by mail, that date shall be the date of the postmark. For assets delivered by hand or overnight service that date shall be the date the Foundation physically receives the asset. For wire transfers and journal entries, the date of a gift shall be the date the asset is received in the Foundation’s account.
K. Conditions under Which No Gift Is Possible.
The Foundation shall not accept gifts if the Foundation has any question that the donor has insufficient title to the assets, is mentally incompetent to legally effect a transfer, or the donor’s restrictions on the gift preclude acceptance.
At all times, employees and fundraising volunteers of the Foundation shall not disclose the size of a donor’s gift to a third party without the expressed consent of the donor and only on a need-to-know basis. Obtaining a donor’s confirmation of the proper spelling of his or her name for a donor recognition wall, an annual report, or a campaign report shall be sufficient consent to list the donor’s gift within a range of amounts.
V. Specific Policies for Liquid Assets and Financial Instruments
The Foundation shall accept outright gifts in the form of cash, a check made out to the Foundation, a credit card, or a wire transfer. The Foundation will accept no check made out by a donor to a Foundation volunteer, Foundation employee, or agent of the donor.
B. Publicly Traded Securities.
The Foundation shall accept gifts of mutual fund shares or securities traded on a recognized public exchange. The Foundation will accept no restrictions on the timing of the sale of securities, but the Foundation’s investment committee may recommend holding an issue in some instances, judged on a case-by-case basis. The asset(s) will be valued for purposes of payment or crediting towards a pledge based on the value of the asset(s) on the day the Foundation receives the asset(s) in its account.
C. Non-Publicly Traded Securities and Other Financial Instruments.
The Foundation may accept non-publicly traded securities and other financial instruments only after considering the costs associated with such a gift, after conducting due diligence, and upon recommendation by the investment committee to the Board of Trustees. The asset(s) will be valued for purposes of payment or credit towards a pledge based on the value of the asset(s) on the day the Foundation receives the asset(s) in its account.
VI. Specific Policies for Gifts of Tangible Personal Property
A. Criteria for Acceptance.
The Foundation may accept gifts of tangible personal property—including but not limited to jewelry, artwork, collections, equipment, motor vehicles, event tickets, antiques, furniture, or other gifts-in-kind—after following the procedures outlined in section IV.D. above and after determining that the proposed gift is marketable or needed by the Foundation or the Medical Center for use in a manner related the mission of the Foundation or Medical Center. The Foundation may also accept gifts of tangible personal property or gifts-in-kind when not related to the mission of either the Foundation or the Medical Center if the fair-market value of the item is sufficiently larger than the costs of accepting the gift. No personal property shall be accepted under conditions that obligate the Foundation or the Medical Center to own the property in perpetuity. The Committee may choose to seek expert advice, particularly in the case of art, antiques, and other objéts before approving a gift.
B. Approval and Acceptance Process.
In determining the costs of this kind of gift, the Foundation staff and the Committee will seek advice on the costs of transportation, storage, sale, maintenance, repair, and insurance and must determine the value and marketability of the property. As a part of any acceptance the Foundation will cooperate in the filing of IRS forms 8283 and 8282, if necessary.
VII. Specific Policies for Gifts of Real Estate
A. Criteria for Acceptance.
The Foundation will consider accepting gifts of real estate, both improved and unimproved land, including those involving a retained life estate, if the real estate is marketable. The Foundation will consider accepting gifts of detached single-family residences, condominiums, apartment buildings, rental property, commercial property, office buildings, agricultural land, leases, mineral rights, natural resource leases, industrial sites, and other sites as deemed advisable. The gift must represent a significant value to the Foundation after accounting for costs and potential liabilities and should, in most cases, come to the Foundation with no mortgages, deeds of trust, restrictions, reservations, easements, mechanic liens, or other limitations of record, all of which the donor must disclose. In the case of environmentally compromised real estate, the Foundation may accept the property only after extensive due diligence.
B. Approval and Acceptance Process.
Before acceptance the donor shall be required to complete and sign a Real Estate Disclosure Form, to present a real estate deed and the most recent real estate tax bill, and to obtain a plot plan and a zoning status substantiation. The Foundation may also require the donor to obtain an environmental site assessment, usually a Preliminary Assessment/Phase I environmental audit. The donor must disclose all carrying costs, including but not limited to liens, property owner’s association dues, country club membership dues, transfer charges, taxes, and insurance. The donor must certify that there are no other impediments to a transfer or pending liabilities of any kind.
VIII. Additional Specific Policies for Retained Life Estates
A. Criteria for Acceptance.
Donors of retained life estates and donors who exchange the remainder value of a retained life estate for a charitable gift annuity or charitable remainder trust are subject to additional policies governing the gift process. Except as the Committee may allow, donors who exchange the remainder value of a retained life estate for a charitable gift annuity or charitable remainder trust are required to pay for all of the costs of sustaining the real estate in its condition at the time of transfer, reasonable wear and tear excepted, including but not limited to maintenance costs, real estate taxes, and insurance.
B. Approval and Acceptance Process.
In deciding whether to accept a retained life estate and/or exchange the remainder value of a retained life estate for a charitable gift annuity or a charitable remainder trust, the Committee shall account for all the costs and potential liabilities it would envision with any gift of real estate and those additional costs or potential liabilities necessitated by the exchange of the remainder value for a planned gift. Those costs may include the cost to the endowment of the assets set aside for funding payouts.
The committee shall not approve any gift involving a retained life estate without the negotiation of a Life Estate Contract or a Life Tenancy Agreement which shall be imbedded in the deed of transfer. That contract or agreement must stipulate the right of donors (or life tenants) to all the benefits and burdens of ownership, except selling or mortgaging the property, the obligation to pay all taxes, the continuing obligation to pay all expenses of maintenance and upkeep, the obligation to conduct no business or activity on the property, the obligation to do those things “reasonable and prudent” to preserve its value, and provisions for enforcement if a party defaults.
After the life tenancy ends, disposing of the real estate shall follow the procedures outlined in Section VII above. It is the donor’s responsibility to comply with all IRS rules for substantiating the value of the gift. The Foundation shall record the initial gift of either a retained life estate and/or the exchange of the remainder value for a charitable gift annuity or a charitable remainder trust as it would a gift-in-kind and shall acknowledge it without assigning a value to the gift. For the purposes of gift crediting only, the Foundation may, without regard to the gift’s valuation under the rules of the IRS, offer a naming opportunity that, in its sole discretion, corresponds to the value of the gift for the Foundation’s use.
IX. Additional Specific Policies for Life Insurance Policies
The Committee shall, at its sole discretion, decide whether or not to accept an offered gift of an insurance policy after researching its terms. If the policy is accepted, the Foundation shall record the gift of a life insurance policy as a gift-in-kind.
X. Additional Specific Policies for Bequests
A. Criteria for Acceptance.
The Foundation encourages donors to remember the Foundation and the Medical Center in their estate plans and to disclose intended bequests via will or trust to the Foundation so it can properly thank them for their generosity and offer appropriate benefits. Disclosure of intended bequests also makes it possible to ensure that the Foundation can carry out their future wishes and that future bequeathed gifts conform to this policy. The Foundation shall maintain and make available to all who request it language demonstrating how to create a bequest to the Foundation, including the Foundation’s legal name and tax identification number.
B. Approval and Acceptance Process.
All bequests to the Foundation or to the Medical Center for which the Foundation acts as agent should conform to this policy and be useable for the mission of the Foundation or Medical Center. The Committee may choose to accept or reject gifts from estates of deceased donors that do not conform to this policy or to the mission of the Foundation or Medical Center. The Foundation will communicate its decision to accept or reject a bequest to the legal representative of the estate. If possible and if the terms of the bequest permit, the Foundation may attempt to negotiate with the representative of an estate to make a gift acceptable that may initially be deemed unacceptable.
XI. Additional Specific Policies for Charitable Gift Annuities.
A. Criteria for Acceptance.
When a donor wishes to fund a charitable gift annuity, the Foundation will accept all assets permitted under state and federal laws to fund such annuities, subject to other provisions of this policy. In setting rates for gift annuities, the Foundation will abide by the rates promulgated by the American Council on Gift Annuities and may only write immediate-payment or deferred-payment gift annuities for one life, two lives with joint receipt, or two lives with right of survivorship. The Foundation will write no immediate-payment gift annuity that names a beneficiary less than 65 years of age, unless the annuity is intended to pay college tuition and includes provisions for accelerated payments and early termination of the annuity. The Foundation will write no deferred-payment gift annuity that a) names a beneficiary currently less than 40 years of age and b) who has less than a 20-year deferral, unless the annuity is intended to pay college tuition and includes provisions for accelerated payments and early termination of the annuity. Exceptions to these minimum ages may only be accommodated upon approval by the Committee. The minimum initial contribution for a gift annuity funded by cash or marketable securities shall be $10,000. The minimum contribution for additional gift annuities by the same donor when funded with cash or marketable securities shall be $5,000. The minimum contribution for a gift annuity funded with any other asset shall be determined by the Foundation on a case-by-case basis. Donors are solely responsible for substantiating the value of assets used to fund a gift annuity to the satisfaction of the IRS. The Foundation will encourage the creation of a separate, written agreement concerning the purposes to which the annuity’s residuum is to be used at the Foundation, and the gift annuity agreement shall define the residuum.
B. Approval and Acceptance Process.
If the assets funding a gift annuity are cash, publicly traded securities, or easily liquidated financial instruments, a Foundation officer is empowered to prepare the gift annuity agreement without approval from the Committee. The Foundation’s separate policy governing the signing of contracts shall apply. For annuities to be funded with other kinds of assets, the Foundation’s officers must consult with the Committee and act only upon its instructions.
In administering its gift annuity program, the Foundation shall make timely payments, abide by all federal and New Jersey laws, abide by other state laws if the donor resides in another state, and comply with registration and reporting requirements in all states in which the Foundation chooses to write gift annuities. The New Jersey Department of Banking and Insurance allows the Foundation to write gift annuities in New Jersey, requires a reserve amount based on the value of all gift annuities in force, and permits the use of the prudent investor rule in managing and investing its segregated gift annuity assets.
Upon acceptance of any asset to fund a gift annuity, the Foundation will record the gift at its estimated fair-market value and note its present value. It may offer the donor the opportunity to create a naming opportunity at the Medical Center if the size of the annuity is sufficient to do so. If a gift agreement exists, that agreement shall govern the use and potential naming opportunities. If no agreement or instruction exists, the Board of Trustees shall, at its sole discretion, determine the use of an annuity’s residuum.
XII. Additional Specific Policies for Charitable Remainder Trusts
The Foundation does not formally accept gifts of charitable remainder trusts because it cannot, under New Jersey law, serve as trustees of such trusts. Foundation staff may, however, discuss such trusts with donors and their qualified advisers, raise questions for donors to explore with qualified counsel, and inform donors about the implications of assets used to fund such a trust or the funding levels of such a trust. The Foundation officer may at no time offer legal advice to a donor. The Foundation officer may prepare gift illustrations and may have qualified counsel prepare trust documents merely for educational purposes. The Foundation shall require the donor to employ his or her own counsel before executing such agreements or to formally waive the right to do so.
A. Acceptance of Remainders from Such Trusts.
The Foundation will accept remainders from charitable remainder trusts if and only if the purposes for which any remainder is to be used align with the mission of the Foundation and the Medical Center.
B. Status of the Trustee.
Under New Jersey law, the Foundation and its trustees shall not serve as the trustee of a charitable remainder trust, although a Foundation employee may act, as an individual, as a trustee of such a trust, but only with the permission of the Committee. As long as the employee is employed by the Foundation, that employee may not accept remuneration for serving as a trustee of a charitable remainder trust.
If a donor informs the Foundation that the Foundation is the irrevocable beneficiary of a charitable remainder trust and provides proof of such, the Foundation shall record the gift at its present value and revalue it annually. The Foundation may offer the donor the opportunity to create a naming opportunity at the Medical Center if the size of the Foundation’s remainder interest is sufficient to do so. If a separate gift agreement exists, then that agreement shall govern the use of the remainder and potential naming opportunities. If no agreement or instruction exists, the Board of Trustees shall, at its sole discretion, determine the use of the trust’s remainder, after consulting with the donor if the donor is alive or, if not, with the donor’s survivors.
XIII. Additional Specific Policies for Charitable Lead Trusts
The Foundation does not formally accept gifts of charitable lead trusts because it cannot, under New Jersey law, serve as trustees of such trusts. Foundation staff may, however, discuss such trusts with donors and their qualified advisers, raise questions for donors to explore with qualified counsel, and inform donors about the implications of assets used to fund such a trust or the funding levels of such a trust. The Foundation officer may at no time offer legal advice to a donor. The Foundation officer may prepare gift illustrations and may have qualified counsel prepare trust documents merely for educational purposes. The Foundation shall require the donor to employ his or her own counsel before executing such agreements or to formally waive the right to do so.
A. Acceptance of Payments from Such Trusts.
The Foundation will accept payments from charitable lead trusts, assuming the charitable purposes of such payments align with the mission of the Foundation.
B. Status of the Trustee.
Under New Jersey law, the Foundation and its trustees cannot serve as the trustee of a charitable lead trust, although a Foundation employee may act, as an individual, as a trustee of such a trust, but only with the permission of the Committee. As long as the employee is employed by the Foundation, that employee may not accept remuneration for serving as a trustee of a charitable lead trust.
If the donor of a charitable lead trust has not shared the trust document or notified the Foundation that it is an irrevocable beneficiary, the Foundation shall record gifts from a charitable lead trust at face value as they arrive. If the Foundation knows that it is an irrevocable beneficiary of a charitable lead trust, the Foundation shall record the gift at its net present value and revalue it annually. The Foundation may offer the donor a naming opportunity at the Medical Center if the size of the total value is sufficient to do so. If a separate gift agreement exists, that agreement shall govern the use and potential naming opportunities. If no agreement or instruction exists, the Board of Trustees shall, at its sole discretion, determine the use of the trust’s payments after consulting with the donor, if living, or, if not, with the donor’s survivors.
XIV. Additional Specific Policies for Gifts to a Pooled Income Fund
The Foundation will not accept any gifts for pooled income fund units and does not operate a pooled income fund.
XV. Reserved Rights
The Foundation reserves the right to decline certain gifts, particularly those 1) from which the Foundation will realize little or no financial gain, 2) made for purposes inconsistent with the Foundation’s or the Medical Center’s missions, 3) with restrictions that violate the Foundation’s or the Medical Center’s ethical standards or standards of best practice, 4) that will be too difficult to administer, 5) that require illegal discrimination, 6) given by individuals whose actions or notoriety would, at the sole discretion of the Board of Trustees, bring disrepute upon the Foundation or the Medical Center, or 7) whose work or financial well-being rests upon business activity proven to cause illness or death.
This policy does not attempt to be comprehensive and does not envision every type of gift or asset used to fund donations and thus permits the trustees of Foundation to amend or add to this policy at any time as other situations present themselves.
The Foundation also reserves the right to change the designated purpose or purposes of any restricted gift if the restriction prevents the Foundation or the Medical Center from using the gift to fulfill the donor’s intentions as expressed in a written agreement or if in the future the restrictions become impractical, unnecessary, or undesirable. Approval of changes in purpose shall require a majority vote of the Board of Trustees. Foundation staff shall inform potential donors, usually through a gift agreement or a letter of understanding, of the Foundation’s discretion to change the purpose of a restricted gift. The Foundation will make all reasonable efforts to consult with the donor or the donor’s survivors or designees before changing the use of a restricted fund and any change shall attempt to hew as close as possible to the donor’s wishes as expressed in a written gift agreement.