Helping Hands Ministries, Inc. doing business as “Helping Hands”, a Georgia non profit corporation and tax exempt organization encourages individuals and entities to make gifts to Helping Hands Ministries (hereinafter referred to as Helping Hands) as a means of furthering and fulfilling its mission.  The following policies and guidelines govern acceptance of gifts made to Helping Hands, whether such gifts are outright, deferred and/or testamentary gifts to be used for further benefit to the ministries and organizations which it supports.

Mission and Purpose 

Helping Hands Ministries, Inc., has been organized exclusively for religious, charitable, educational, literary, and scientific purposes within the meaning of Section 501 (C) (3) of the Internal Revenue Code (or the corresponding provision of any future United States internal revenue law), including the making of distributions to or for, but not limited to: individuals, churches, schools, colleges, universities and seminars, and those spreading the Gospel according to Jesus Christ.

Purpose of Policies and Guidelines

Helping Hands receives current and deferred gifts from individuals, ministries and corporations to further the mission of Helping Hands.  These policies and guidelines govern the acceptance of gifts by Helping Hands (and its related entities) and provide guidance to prospective donors and their advisors when making gifts to Helping Hands.  The provisions of these policies shall apply to all gifts received by Helping Hands for any of its programs and services; and shall also:  assist the Ministry in discharging fiduciary responsibility; protect the Ministry from third party liability and IRS sanctions; as well as from unanticipated costs thus limiting the scope of the Ministry liability.

Use of Legal Counsel

The Ministry will seek the advice of legal counsel when appropriate.  The purpose of legal counsel is to enhance legitimation of gift arrangements and to manage any risk to the Ministry.  Legal counsel will assist in: 

1. The review of documentation respecting the receipt of complex gifts, such as closely held stock, real estate, partnership interests, etc.
2. The review of other transactions attended by contracts or legal documents
3. Other circumstances in which the committee or board members believe that use of counsel is appropriate.

The use of legal counsel is not to be considered as legal counsel on behalf of the donor.  Counsel is in place to assist the Board and thereby the Gift Committee, in fulfilling its fiduciary role of protecting the assets of the Ministry and providing guidance for the management of the Ministry.  Internal legal counsel may be used to draft the necessary documents to complete a transfer of title of a gifted asset, acting only in behalf of Helping Hands. 

Conditions of Acceptance

The Ministry will accept unrestricted gifts, and gifts for specific programs and purposes, provided that such gifts are not inconsistent with the Ministry’s stated mission and purpose.  Gifts that present a degree of risk that is unacceptable, or require management or resources that are beyond the scope of the Ministry, or gifts that are deemed anti-thetical to the Christian faith may be rejected.

All complex gifts must be reviewed and approved by the Gift Committee prior to their acceptance by the Ministry.  Complex gifts are defined as all gifts other than cash and non-restricted marketable securities.

The Internal Revenue Code, the revenue codes of various states, do not recognize as deductible charitable contributions, irrevocable gifts in which donors are allowed to dictate or restrict investment decisions with regard the maintenance of such irrevocable gifts.  All charitable contributions to Helping Hands of any type of property shall be governed in accordance with the Internal Revenue Code of 1986 as amended, and Treasury Department Regulations promulgated there under and the substantive laws of the state of Georgia. 

Confidentiality

The Ministry will maintain strict confidentiality throughout the entire planned giving process.  Information will be shared only to the extent that is necessary with professional counsel and Ministry staff and officers.

The Gift Committee

The Gift Committee shall consist of the Executive Director, Chief Financial Officer, Director of Operations, and Account Executive.  This committee is charged with the responsibility for accepting, declining, or negotiating the structure of a complex gift in accordance with the Ministry’s gift acceptance policies.  Gifts will be reviewed for factors such as:

1. Reviewing the acceptability of any conditions applicable to receipt of the gift with respect to its use, disposition, and distribution.
2. Determining the risks associated with ownership of each asset and the extent to which such risks may expose the other assets of the Ministry to any unacceptable liabilities.
3. Evaluating the marketability of the asset; with a view to converting each asset to cash as quickly as possible with minimum adverse impact upon the value of each asset.  This supports the mission of the Ministry of placing funds into Kingdom work.
4. Determining the amount and level of management, as well as cost, that may be required to own and maintain each asset.
5. Ensuring that no donor, or any other person, receives an impermissible private benefit through the Ministry’s acceptance, ownership or disposition of the gifted asset and those transactions will not result in the imposition of any “Intermediate Sanctions” the IRS.
6. Determining fair market value of the asset and determining that any related transaction is based upon fair market value.
7. Demonstrating how the receipt of the gifted asset will further the mission of the Ministry. 

Types of Gifts 

The following acceptable gifts include:

Cash. Checks should be made payable to Helping Hands Ministries, Inc. and shall be delivered to the office located at 135 Main Street, PO Box 337, Tallulah Falls, GA 30573. 

Tangible Personal Property.  The Ministry is able to accept some collectibles and other tangible personal property if they do not involve high storage costs or excessive insurance costs, and are easily liquidated.  A tax deduction for the market value of the gift is allowed when the Ministry will use the gift (related use) to further its exempt purpose.

Marketable Securities.  Helping Hands will receive securities in certificate form with the appropriate assignment or endorsement to the Ministry.  Helping Hands will receive securities via direct transfer from brokerage accounts utilizing a letter of authorization from the donor of the shares.  Helping Hands is also able to receive securities from direct purchase stock plans and may utilize the transfer agent to receive the shares and then liquidate the shares.  Helping Hands prefers to utilize one central asset transfer account, however at times Helping Hands will open and/or maintain an account with the other securities firms so that donors can make an intra-firm account transfer without having to transfer the gift from firm to firm.

Marketable securities are sold upon receipt.  Any exception to this policy must first be reviewed by the Ministry and is subject to the Ministry’s Investment Policy.  The gift date will be established according to IRS guidelines as noted in Publication 561; the date that the asset was placed irrevocably beyond the donor’s control which could be interpreted as the date of mailing or the date the stock is transferred on the books of the corporation.  Valuation of the gift for tax deduction purposes is the responsibility of the donor.

Closely held securities.  Closely held securities are generally defined as securities that are not broadly or publicly traded and include not only debt and equity issues of Subchapter C and Subchapter S corporations, but also limited liability companies (LLCs) and limited partnerships (LPs).  The definition of “publicly” traded relates to the ability to establish a proven market in which a “willing buyer and a willing seller” set a price or value for the security.

It is the policy of the Ministry to request the following documents relative to the security in order to complete the necessary due diligence.  These documents will assist the Ministry and it’s legal counsel in determining the risks associated with receiving and liquidating the asset; gauging the fait market valuation and marketability of the asset; reviewing the restrictions associated with the asset and how to resolve any such restrictions prior to acceptance; and understanding the scope of the obligations, tax liabilities and/or responsibilities associated with owning the asset.

1. A copy of the certificate or document evidencing ownership of the security (front and back).
2. The organizational documents – articles of incorporation and by laws and any shareholder agreements, if the entity is a corporation; certificate of limited partnership and limited partnership agreement, if the entity is a limited partnership; and articles of organization and operating agreement, if the entity is a limited liability company.
3. A listing if the current owners of all units/shares and the proposed gifted ownership interest to the Ministry.
4. A recent appraisal or other evidence of valuation of the interests to be gifted.
5. Recent financial statements of the entity (audited financial statements with management letter comments are preferable, if available), balance sheets and K-1s if applicable.

Additional considerations:

1. In the event the corporate entity issuing the shares to be gifted has made an election to be taxed as a partnership pursuant to the Subchapter S of the Code, any income of such corporation attributable to the gifted shares, and any distributions made to Helping Hands, may be treated as unrelated business taxable income (UBTI).  The presence of UBTI requires that an estimate of the potential UBTI.  One of the requirements for receiving Sub Chapter S shares is that the distribution of earnings from the shares must be sufficient to cover UBTI generated during the time period that the Ministry owns the shares.  In the event the entity issuing the shares made an S Election after having operated as a C Corporation, to the extent that the corporation had accumulated profits while a C Corporation, the distributions of such profits may be taxed as ordinary income; any subsequent sale of all or any part of the assets of the corporation may result in “built in gain” and an obligation on the part of Helping Hands to pay Built In Gains Tax attributable to these shares must be estimated. 
2. The Ministry will evaluate a gift for the proposed ownership position.  In the event that the Ministry owns the majority interest, updated appraisals and audits may be necessary on an annual basis due to reporting requirements and obligations.
3. An asset with associated debt will be reviewed closely for acceptance, as it may cause negative tax consequences to the donor as well as liability to the Ministry.
4. The Ministry is generally unable to accept a gifted interest where the ongoing financial responsibilities and obligations are open ended as in the case of general partnership interests.
5. Business interests that are not organized as C corporations will be examined for the existence of Unrelated Business Income.

Closely held interests may be gifted to the Ministry by a gift of shares in certificate form or may be gifted by assignment of interest.  The Ministry’s general counsel may assist in completing   the appropriate assignment document which may include representations and warranties and indemnities by the donor.

Real estate.  The Ministry accepts gifts of residential and commercial, developed and undeveloped real estate provided that the steps necessary for receipt are accomplished.  A thorough review of the criteria for acceptance set forth below us conducted prior to acceptance.  It is the policy of the Ministry to request the following documents relative to the property in order to complete the necessary due diligence.

1. Limitations and Encumbrances – Any agreements associated with the property (easements, leases, etc.) must be disclosed and reviewed by legal counsel.  Any mortgages, debt, encumbrances, or liens should be disclosed.  If debt accompanies the gift of property, a provision must be made to service the debt or to discharge the debt, as a condition to the gift being accepted.  There must not be any current contracts in place obligating the Ministry to sell the property.  The donor will complete the Real Estate questionnaire, providing the owner the opportunity to disclose this information.  See Exhibit C.

1. Title Information – A copy of any title information in possession of the donor such as the most recent survey of the property, a title insurance policy and/or an attorney’s title opinion must be furnished.  The Ministry may require title insurance on the gifted property.

1. Carrying Costs – The existence and amount of any carrying costs which may include association dues, transfer charges, insurance, property taxes, utilities and maintenance costs must be disclosed.  Generally, these costs will be the responsibility of the donor, unless liquidation of the property is eminent.  Helping Hands may assess the donor for such expenses.  
2. If the property is received by the Ministry, the Ministry will acquire property insurance to cover casualty losses to improvements on the real estate and if such improvements are located in a HUD designated flood area, will obtain flood insurance, if available.

Real estate may be transferred by a “deed of gift” must include the following items:

1. By Warranty deed of gift to “Helping Hands Support, Inc. a Georgia non-profit corporation and tax exempt organization classified as a public charity pursuant to the internal revenue code of 1986.”
2. Proper donative language utilized as:  “in consideration of donative intent, the grantor hereby gives, grants and coveys………..” – This is standard language and may vary slightly from state to state.
3. Include the full legal description and includes any title exceptions.

In coordination with the donor and their legal counsel, the Ministry’s general counsel may assist in drafting the deed of gift or may contract, with legal counsel in the state of the gifted property to transfer title and record title.

Appraisals

It is the full responsibility of the donor to obtain and cover the expense of a qualified independent appraisal of the gifted property in accordance with IRS publication 561; within the window of 60 days prior to the date of the gift and the date of the tax return filing.  For additional details on the appraisal, see Exhibit F, Summary of Appraisal Requirements.

There may be circumstances when the Ministry requires a follow up appraisal to be completed when the asset has been held for over 2 years and the value of the asset represents a substantial portion of the total assets of the Ministry.  The Ministry will seek assistance of the donor to cover the cost of a subsequent appraisal.

Legal Fees and Professional Fees

Donors are encouraged to seek independent legal and tax counsel before completion of the gift.  Any related costs are the responsibility of the donor.

External legal fees incurred by the Ministry related to the receipt, management, of or liquidation of a gift will be charged to the gift proceeds.

Valuation of Gifts

As governed by the Financial Accounting Standards Board (FASB) rules, the Ministry records the gift on the books of the appropriate entity at the Fair Market Value (FMV) appraisal on the date of the gift.

Marketable Securities are recorded at the mean value (average of high and low trading price on the date of the gift).

Complex assets are recorded at FMV, which may be substantiated by the appraisal submitted by the donor or the competed form 8283.  At times, the gift may be recorded initially at an estimate of value until the fair market appraisal is received.  As a gift is received, the Ministry requests a copy of the appraisal or the completed form 8283 from the donor.

Filing of IRS Forms

Insert Information

Approval and Acceptance Process

All complex gifts must be reviewed and approved by the Gift Committee prior to their acceptance by Helping Hands.  A written summary regarding the proposed gift will be presented to the Gift Committee.  This summary will include: a description of the property, donor information, appraised value and marketability of the property, any environmental risks, summary of potential carrying costs, and planned use of the asset.  The Gift Committee will review the material presented and make a determination to accept, reject, or postpone a decision pending receipt of additional information.  The donor is notified of the decision by the Ministry representative handling the gift process.

The gift will be completed by the execution and delivery of a deed of gift or other appropriate conveyance and the delivery of the property, as applicable.

Acknowledgement of gifts

Cash and Marketable Securities will be acknowledged by Helping Hands with a receipt no later than January 31 of the following calendar year.

Gifts of complex assets shall be receipted with an official receipt stating the date, donor’s name and description of the gift, and form 8283, within two weeks from the receipt of the instrument evidencing transfer of title.

All receipts must include the following language:

This statement shall serve as receipt of charitable contribution(s) by you to Helping Hands Ministries, Inc.

In accordance with IRS Code 170(f) (8) (A), we acknowledge the following information with regard to your gift.