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Non Cash Gifts

Many types of assets may be used to provide gifts to the Alpha Phi Foundation. A variety of methods of giving allows donors to choose the most appropriate asset for their circumstances and interests.

Gifts of Securities

Publicly-traded securities, shares of stock in closely-held companies, bonds, and government issues may be given to the Foundation. Gifts of securities may be most easily made by using the Foundation’s free electronic processing, whereby a broker electronically transfers a donor’s shares of stock to the Foundation’s investment account at our broker. Complete information on this form of securities transfer is available from the Foundation office. The Foundation policy is to place these securities into the total Foundation investment portfolio, where they may be kept or sold, according to the portfolio manager’s decision.

Gifts of securities may also be made by sending the certificate and an executed stock power for each separate issue of stock or bond to the Executive Director, Alpha Phi Foundation, 1930 Sherman Avenue, Evanston, IL 60201.

If securities are hand-delivered to the Foundation, the value of the gift will be the mean of its fair market value on the date of delivery (or the GAAP amount). Donors should endorse stock certificates only upon delivery to the Foundation. For securities which are hand-delivered, the gift date is the day the securities are delivered to the Foundation.

If the securities are mailed to the Foundation, the value of the gift will be the mean of its fair market value on the date the securities were mailed, according to its postmark. A donor should obtain a stock power from her banker or broker, signing her name exactly as it appears on the certificates, and have her signature guaranteed by her banker or broker. The stock power and a letter of instruction should be mailed to the Foundation’s Executive Director under separate cover from the stock certificates. The Foundation should be designated on the stock certificate, stock power, or related instruments of transfer as the Alpha Phi Foundation. The stock certificates should be sent by registered mail, return receipt requested, to the Executive Director. Unendorsed stock certificates are non-negotiable. The postmark date on the stock power will be used as the gift date when the stock certificate and stock power are mailed under separate covers.

Publicly-Traded Securities

These are securities regularly traded on a public stock exchange. The value of the gift is the mean of the highest and lowest selling prices quoted for the stock on the day of the gift, as defined above.

Closely-Held Securities

These are shares of stock in entities which have been organized for profit-making purposes, and they are rarely traded on stock exchanges. Donors may give shares of closely-held corporate securities to the Foundation in the same manner as publicly-traded securities. However, because closely-held stock is not publicly traded, these securities present special concerns. To convert them into cash, the Foundation must own the securities. Thus, it will not, formally or informally, enter into any redemption agreement with the donor. Gifts of closely-held securities may only be accepted by the Executive Director after review by legal counsel.

Non-Traditional Investments

The Alpha Phi Foundation may accept gifts of non-traditional investments, such as partnership interests, after a thorough review and upon advice of legal counsel of the following factors:

  • Marketability
  • Nature of any applicable restrictions
  • Legal and other liabilities associated with the asset
  • Carrying costs such as administrative and legal fees and taxes
  • Exposure to unrelated business income tax liability

Real Estate

The Foundation may accept gifts of real estate, including houses, condominiums, commercial properties, farm land, rental property, and undeveloped land after a thorough review of the following factors:

  • Usefulness of the property for Foundation purposes
  • Marketability
  • Existence of restrictions, reservations, easements, and/or other limitations
  • Existence of encumbrances, such as mortgages and mechanics liens
  • Carrying costs, such as property owner’s association dues, taxes, insurance, and other maintenance expenses
  • Fair market value in relation to the costs and limits listed above as determined by a qualified appraisal conducted in accordance with Internal Revenue Service standards

Prior to the acceptance of any parcel of real property, an assessment of the potential environmental risks will be conducted by a qualified independent appraiser, usually at the expense of the donor. This assessment shall include the following:

  • An inquiry of the present owner regarding his, her, or its knowledge of the history of the property
  • A title search to determine the prior owners
  • A consultation with federal, state, and local environmental agencies to find out whether the property has any history of hazardous waste contamination
  • A visual inspection of the property for any evidence of environmental hazards

An environmental audit conducted by a professional service also may be required. For all gifts of real estate, the Executive Director will consult with the Board of Directors concerning the implications of accepting the gift. The decision to accept gifts of real estate resides with the Executive Director and the Board of Directors making a joint decision.

Tangible Personal Property

The Foundation may accept gifts of tangible personal property, including works of art, jewelry, antiques, coin, stamp and other collections, automobiles, manuscripts, and books. Such gifts may be accepted only after a thorough review indicates the property is readily marketable or may be used by the Foundation in a manner consistent with one of the purposes for which it was granted status. An essential issue for donors to consider before contributing a gift of tangible personal property is whether they would like the Foundation to use or display the property. Prospective donors should be advised that the Foundation reserves the right to sell or otherwise dispose of the personal property in question, if such action is financially advisable or necessary.

For works of art, historical treasures, and similar items which are Alpha Phi related (i.e., antique badges, photographs of founders, etc.), such items will be treated as follows (per the requirements of FAS 116):

  1. Held for public exhibition, education, or research in furtherance of public service
  2. Protected, kept unencumbered, cared for, and preserved
  3. If sold, any proceeds will be used to acquire other items for the collection

Whenever donors estimate their gifts of tangible personal property at $5,000 or more, they must obtain a written appraisal by a qualified independent appraiser. The Foundation cannot appraise or assign valuation to gifts of tangible property. Such gifts must be accepted by the Executive Director in consultation with legal counsel.