GIFT ACCEPTANCE AND CREDITING POLICIES

For each type of gift described below, an example is given followed by: 1) an explanation of the Roland Park Country School policy with respect to that type of gift, and 2) an explanation of how RPCS will credit that gift. This document does not address the tax consequences of gifts.  

LIFETIME GIFTS

Cash

• Example: Mr. A. sends a $5,000 check to the School.
• Policy: RPCS will accept cash in any amount. RPCS will give Mr. A. credit for the full amount of the gift.

Securities

• Example: Mrs. B. transfers to the School marketable, i.e., publicly-traded securities valued at $100,000.  
• Policy: RPCS will accept securities and sell them upon receipt. Consideration will be given to deferring the sale of gifts from major stockholders, officers, and directors for which there may be security law restrictions on prompt sale. RPCS will give Mrs. B. credit for the value of the securities on the date of the gift. If, however, the sale is deferred at the request of the donor, credit will be given for the value on the date of the deferred sale. For federal tax purposes, the donor must use the value on the gift date.

Tangible Personal Property

• Example: Mr. C. delivers a valuable painting to RPCS for the
School to sell.
• Policy: RPCS will accept tangible personal property on the conditions that it has a value of at least $5,000, that the gift is approved by the Gift Acceptance Committee, and that the gift can be transferred directly to a sales agent approved by the School. RPCS will give Mr. C. credit for the cash realized from the sale of the gift net of sales commission and other direct expense for storage or sale. Mr. C. will cover the cost of any appraisal.  

• Example: Mr. C. delivers a new computer for RPCS to use in its
computer program.
• Policy: RPCS will accept gifts of tangible property to be used in the School's educational program provided that such property is in good working condition and is, in fact, needed by and useful to the School. RPCS will give Mr. C. credit for the estimated value, as determined by a qualified appraisal at the donor's expense.

Primary Home or Vacation Home

• Example: Mrs. D. transfers a readily saleable vacation home (with no mortgage and no environmental hazards) to RPCS, or she transfers the home to the School but retains the right of occupancy for life.  
• Policy: RPCS will accept an outright gift of a primary home or vacation home or a remainder gift in a home provided that the property is approved by the Gift Acceptance Committee, that there is no mortgage, and that the interim ownership before a sale will not create the risk of liability, including under federal or state environmental laws. RPCS will give Mrs. D. credit for the cash realized from the sale of the home, net of sales commission and other direct expenses, or, if Mrs. D. retains the right to occupy the home for life, for the present value of the remainder, as of the date of the gift, as computed for federal tax purposes.

Life Insurance Policy

• Example: Mr. E. irrevocably assigns a life insurance policy to RPCS and each year contributes to RPCS an amount equal to the annual premium.
• Policy: RPCS will accept a life insurance gift if the donor contributes an existing policy or if the donor pays for a new policy. If RPCS is both the owner and the beneficiary of the policy, RPCS will give Mr. E. credit for the cash value, if any, on the date of the gift plus any post-gift premiums paid by the donor.

Charitable Lead Annuity Trust

• Example: Mrs. F. establishes a trust, transfers stock worth $2 million to the trust, and directs that the trustee pay the School $140,000 each year for 15 years. (If this were a charitable lead unitrust, the annual payment would be calculated, not as a fixed amount, but rather as a percentage of the principal revalued annually.) After 15 years, the trust terminates, and the remaining principal is distributed to her grandchildren.
• Policy: RPCS will accept an income interest gift provided that there is no management responsibility. RPCS will give Mrs. F. credit, for the present value of the income interest, as computed for federal tax purposes.

Charitable Remainder Unitrust

• Example: Mr. G. establishes a trust, transfers stock worth $2 million to the trust, and directs that the trustee pay him or another designated beneficiary an annual payment of 7 percent of the principal, revalued each year, for life. (If this were a charitable remainder annuity trust, the annual payment would be a fixed amount.) Upon the beneficiary's death, the trust terminates and the principal is distributed to the School.
• Policy: RPCS will accept a gift of a remainder provided that it has no management responsibility during the period prior to taking possession of the remainder. RPCS will give Mr. G. credit for the present value of the remainder, as computed for federal tax purposes.

TESTAMENTARY GIFTS

Bequest

• Example: Mr. H. includes in his will an outright bequest of $250,000 to the School, or he leaves to the School by will a specified percentage of
his estate.  
• Policy: RPCS will accept bequests, including those for a specific amount, for a percentage of the donor's residual estate, or for a specific asset owned by the donor. RPCS will give the donor's estate credit for a bequest when it is received. However, if the bequest is distributed to RPCS in a form other than cash, ordinarily RPCS will sell the non-cash bequest and give the donor credit for the sales proceeds, net of sales commissions and other
direct expenses.
• Exception: An exception to this crediting policy will be made for bequest intent donors age 80 or older who document their bequests in writing.   In this case, donors will be given credit for the actuarial value of the bequest.

Life Insurance Proceeds

• Example: Mrs. I. designates the School as the revocable beneficiary of a life insurance policy.
• Policy: RPCS will accept and give credit for the net proceeds of life insurance if and when received by RPCS.

Charitable Lead Annuity Trust Created By Will

• Example: Mr. J.'s will directs the transfer of $2 million in trust providing for an annual payment of $140,000 to the school for 15 years. At the end of the trust term, the principal is distributed to the donor's grandchildren.
• Policy: RPCS will accept the bequest of an income interest and, upon the death of Mr. J., will give credit for the present value of the interest, as computed for federal tax purposes.

Charitable Remainder Unitrust Created By Will

• Example: Mrs. K.'s will directs the transfer of $2 million in trust providing for an annual payment of 7 percent of the principal, revalued annually, to her sibling or to another designated beneficiary. Upon the income beneficiary's death, the principal is distributed to the School.  
• Policy: RPCS will accept the bequest of a remainder interest and, upon the death of Mrs. M., will give credit for the present value of the remainder, as computed for federal tax purposes.     

Qualified Retirement Plan Benefits

• Example: Mr. L. designates the School as the post-mortem lump sum beneficiary of any balance remaining in his qualified plan (IRA, 401(k) plan, pension, or profit-sharing plan) on his death or, alternatively, on the death of his wife if she survives him.    
• Policy: RPCS will accept the qualified retirementplan benefits and, upon the death of Mr. L. (or his wife), will give credit for the amount received.

GENERAL POLICIES REGARDING GIFTS  

• RPCS will maintain a Gift Acceptance Committee, composed of the Head of School, Board President, Board Treasurer, Chair of the Development Committee, and the Directors of Development and Finance, with wide discretion to monitor the acceptability of all gifts. All proposed gifts that present unusual circumstances or conditions will be reviewed, in advance of acceptance, by the Gift Acceptance Committee.
• RPCS will encourage all donors of planned gifts to consult their own attorneys before making a commitment to the School.
• RPCS will not act as trustee or co-trustee of charitable lead or remainder trusts.
• RPCS has not established a pooled income fund. However, donors may contact the Baltimore Community Foundation through which such a gift can be made to the School.
• RPCS does not issue gift annuities.
• Gifts to RPCS must not involve unlawful discrimination based upon race, creed, national origin, or disability. Gifts will not be accepted if they are designated for a purpose which RPCS does not find useful or appropriate, or if they require the School to violate any law or RPCS's ethical standards.
• In addition, gifts will not be accepted if they prevent the School from implementing its mission, or if they are likely to provide adverse publicity for the School.

For futher information about gift acceptance policies at Roland Park Country School,
please contact:
Evelyn Zink, Director of Development, at 410-323-5500 x3041 or zinke@rpcs.org