Shared Harvest Foodbank Gift Acceptance Policy

Gift Acceptance

Acceptance of any contribution, gift or grant is at the discretion of Shared Harvest Foodbank (SHF). SHF will not accept any gift unless it can be used or expended consistently with the purpose and mission of the organization. Donors shall always be encouraged to make unrestricted gifts to provide SHF with the maximum flexibility in the pursuit of its mission.

SHF will accept restricted gifts for specific programs and purposes, provided that such gifts are consistent with its stated mission, purposes, and priorities. Certain other gifts, real property, personal property, in-kind gifts, non-liquid securities, and contributions whose sources are not transparent or whose use is restricted in some manner, must be reviewed prior to acceptance due to the special obligations raised or liabilities they may pose for SHF.

No irrevocable gift, whether outright or life-income in character, will be accepted if under any reasonable set of circumstances, the gift would jeopardize the donor’s financial security.

Gifts of Cash

All gifts of money, whether received in cash or by check, credit card, or electronic transfer, are acceptable, subject to all applicable policies. All payments shall be made payable to "Shared Harvest Foodbank" and not to any individual acting on behalf of SHF. Any board member or staff member who receives a donation to SHF shall immediately deliver such donation to SHF’s Accounting department for processing.

Gifts, Gratuities, and Business Courtesies

SHF will avoid any actions that create a perception that favorable treatment of outside entities by SHF was sought, received, or given in exchange for personal business courtesies. Business courtesies include gifts, gratuities, meals, refreshments, entertainment or other benefits from persons or companies with whom SHF does or may do business. We will neither give nor accept business courtesies that constitute, or could reasonably be perceived as constituting, unfair business inducements that would violate law, regulation or polices of SHF or customers, or would reflect negatively on SHF’s reputation. Employees may accept unsolicited gifts, other than money, that conform to the reasonable ethical practices of the marketplace, including:

  • Flowers, fruit baskets and other modest presents that commemorate a special occasion.
  • Gifts of nominal value, such as calendars, pens, mugs, caps, and t-shirts (or other novelty, advertising, or promotional items).

Generally, employees may not accept compensation, honoraria, or money of any amount from entities with whom SHF does or may do business. Tangible gifts (including tickets to a sporting or entertainment event) that have a market value greater than $50 may not be accepted unless approval is obtained from management or such items will be made generally available to SHF. Employees with questions about accepting business courtesies should consult with the Executive Director.

Confidentiality of Donor Records

SHF will respect the intent of the donor relating to gifts for restricted purposes and those relating to the desire to remain anonymous. With respect to anonymous gifts, SHF will restrict information about the donor to only those staff members with a need to know.

Gift Dates

For accounting purposes, the date of the gift is considered the date of physical receipt into the foodbank’s facility or bank accounts.

For donation (tax) receipt purposes, the date of a gift is considered the date of physical receipt by the foodbank unless received via mail and the postmark on the accompanying envelope is considered the gift (donation/tax) receipt date.

Gift Valuations

In cases where gifts are made in cash, the valuation is the amount of the cash received.

  • Gifts of securities will be valued at the average of the high and low quoted selling price on the date that the donor transfers title to the securities.
  • Gifts of privately held securities are accepted only when SHF is reasonably sure it can convert the securities to cash within five years. The donation will be valued at the average of the high and low quoted selling price on the date that the donor transfers title to the securities.
  • Gifts of real property will require approval of the Board and be recorded based upon the appraised value, as determined by a qualified independent appraiser within 60 days of the date of transfer.
  • Gifts of food will be valued at an average rate of $1 per pound and will be reevaluated annually to determine if the average is still a reasonable valuation.

Bequests

  • Bequests, living trusts and life insurance are typical examples of revocable gifts that can be accepted by SHF, but can be recorded as revenue only when the gift becomes irrevocable (donor’s death) and after the will is probated.
  • If the amount is a one-time distribution, SHF will record the receivable upon receipt of supporting documentation from the executor of the will, when the exact amount of distribution is established.
  • If the amount is a multi-year distribution, SHF will record a pledge upon receipt of supporting documentation from the executor of the will, when the exact amount of annual distribution is determined.
  • At no time will the bequest be recognized prior to the death of the donor or prior to the probate of the will.

Gift from Unknown Donor

In cases when the donor is unknown and/or has not disclosed their identity, we will record the donation as anonymous until the time the donor’s name can be determined. Donors who request anonymity will not be disclosed in publications.

Payroll Deductions from SHF Employees for Gifts

SHF is provided with the option of payroll deductions for recurring donations or pledge payments such as United Way. Details of the payroll deductions are provided to Accounting who ensures it is recorded in the Donation Management database. The impact of the various deductions is reconciled as part of the balance reconciliation process.

Gifts of Stock

It is the policy of SHF to liquidate gifts of stock upon receipt to minimize the risk associated with the stock market. The donation value credited to the donor is the fair market value of the stock on the date of sale.

  • Fair market value is the average between the high and low share prices on the date the gift is given.
  • SHF absorbs all fees including those associated with liquidation and transfer to the SHF bank account.

Pass-Through Gifts

In accordance with FASB SFAS 116, gifts to an organization that is only acting as an agent or intermediary for another organization should not be reported as gifts by the intermediary. Since we do have discretion over the ultimate disposition of the assets, we do not count the gift as SHF revenue.

Pass-thru gifts are accepted only on behalf of existing partner agencies or organizations eligible to become SHF agencies.

Revenue from Special Events

Special events are organized to raise contributions to support SHF’s operations. The participants of these events are offered something of value (a meal, theater ticket, entertainment) for a sum that exceeds the costs of the benefits provided to the participants. The difference between the amount paid by the donor and the fair value of the benefit received by the donor is considered a contribution. The items of value given to the donor in this situation are referred to as “Direct Benefits to Donors.” These are the actual costs of the items and services furnished to the attendees as inducements to attend the special event (dinner, ballroom, decorations, meals, and refreshments, etc.). These costs are program costs and should not be classified as fund-raising expenses in the nonprofit’s financial statements.

Donor Acknowledgments

Receipts shall be provided to all donors, thanking them for their gifts and providing the statement required by the IRS, if applicable, to the effect that no goods or services have been provided to the donor in consideration for the gift. The receipt shall document the date and amount of the gift. SHF will not provide a valuation of any non-cash gift received. SHF will refrain from providing advice about the tax or other treatment of gifts and will encourage donors to seek guidance from their own professional advisors to assist them in the process of making their contribution.