Matt BROOKS | Drafted: Aug 5, 2025 | Adopted: Aug 24, 2025
Purpose:
Esperanto‑USA (“the Organization”) solicits and accepts charitable gifts that support and further its mission to advance education in and awareness of Esperanto in the United States. This policy guides donors, volunteers, staff, and board members in evaluating, accepting, or declining gifts and ensures that acceptance decisions protect the Organization’s integrity, financial health, and reputation.
Policy:
1. Scope
This policy applies to all forms of gifts—including cash, securities, tangible and intangible property, and planned‑giving instruments—offered to Esperanto‑USA for any purpose, program, or service.
2. Definition of Major Gift
A major gift triggers formal review and is defined as (a) any cash or marketable security valued at $10,000 or greater, or (b) any proposed non‑monetary asset of any value (e.g., real estate, tangible personal property, intellectual property). Gifts described in (b) are not ordinarily accepted and will be processed in accordance with §3 and §7.
3. Gifts Generally Accepted Without Review
- Cash & Cash Equivalents – including checks, ACH, credit/debit cards.
- Marketable Securities (Publicly Traded) – transferred to the Organization’s designated brokerage account and generally liquidated upon receipt.
- Bequests & Beneficiary Designations – via wills, revocable trusts, life‑insurance policies, commercial annuities, and retirement plans.
- Charitable Remainder & Lead Trusts – where Esperanto‑USA is a named beneficiary only.
4. Gifts Not Accepted
Esperanto‑USA will decline any proposed gift that:
- Consists of restricted, closely held, or otherwise illiquid securities (no exceptions) (example: privately held securities. Donor must convert to cash prior to donating);
- Names Esperanto‑USA as a trustee or fiduciary —except where the Organization is already a named beneficiary or administrator of a pre‑established trust (e.g., the Harmon Reed Trust)—;
- Cryptocurrency or other digital tokens;
- Non‑marketable, speculative, or heavily encumbered assets;
- Obliges the Organization to assume financial, environmental, or other liabilities;
- Mineral Rights
- Presents a potential conflict of interest;
- Involves real property or other assets subject to environmental or regulatory concerns (no exceptions);
- Violates the Organization’s Articles of Incorporation or jeopardizes its 501(c)(3) status;
- Is incompatible with its mission, values, or strategic priorities;
- Creates an undue financial, administrative, legal, or reputational burden;
- Imposes restrictions that prevent prudent management or use;
- Gifts conditioned on extremist, discriminatory, or otherwise unethical purposes; or
- Is otherwise unlawful or unethical.
5. Gifts Requiring Finance Committee Review
| Asset Type | Key Review Considerations |
|---|---|
| Tangible Personal Property (books, equipment, artwork, vehicles) | Mission relevance, marketability, carrying costs, clear title/provenance |
| Life‑Insurance Policies (where Organization is owner/beneficiary) | Premium obligations, policy type, surrender value |
| Planned/Estate Gifts naming Esperanto‑USA as trustee | Administrative burden, legal compliance, investment oversight |
| Intellectual Property and Royalties | Legal complexity, valuation, ongoing management |
| Endowment or Restricted Gifts ≥ $10,000 | Alignment with §8 time limits, investment management, reporting requirements |
6. Gift Acceptance Process
- Initial Screening – Treasurer or designated staff logs the offer and determines whether it falls under §4 or §5.
- Due Diligence – For §5 gifts, staff gathers required documentation (appraisals, insurance or policy documents, trust or legal agreements, intellectual‑property assignments) and submits a summary to the FC.
- Committee Recommendation – The FC records its analysis and recommendation (accept, modify, or decline).
- Board Action – When required, the Board votes on the gift at the next regular or special meeting, or may conduct an expedited virtual vote in accordance with Board operating rules when timing is critical.
- Gift Agreement – For major or restricted gifts, Esperanto‑USA and the donor must memorialize—via a mutually agreed‑upon email or a signed document—an agreement outlining purpose, restrictions, liquidation intent, reporting schedule, and the five‑year sunset clause. The finalized email or document will reside in the Organization’s official electronic storage system until all conditions of the gift have lapsed.
7. Review & Approval Authority
- Treasurer/Executive Director – may immediately accept gifts listed in §3.
- Finance Committee (FC) – reviews gifts listed in §5 and recommends acceptance, modification, or declination to the Board.
- Board of Directors – retains final authority for gifts exceeding $250,000, gifts that significantly impact strategy, or any gift the FC refers for further consideration.
8. Default Time‑Limited Endowment & Restricted Funds Clause
Unless the Board explicitly approves an alternative, all endowment‑style and other restricted gifts will convert to unrestricted status after five (5) years from the date of gift acceptance. Donors may request a longer or perpetual restriction, but such requests require Finance Committee review and Board approval.
When a restriction sunsets—or if a donor‑imposed condition later proves impracticable—the Board will make a good‑faith effort to honor the donor’s original intent by moving the funds to the closest mission‑aligned category‑level purpose (e.g., an Education/Scholarship endowment may be redesignated to Education/General Support). If no substantially similar purpose exists, the Board reserves the right to repurpose the funds to meet the Organization’s most pressing needs while remaining consistent with its charitable mission.
9. Donor Responsibilities
- Donors bear responsibility for obtaining independent tax or legal advice and for all required appraisals.
- Required appraisals include obtaining the fair market value of the gifts if requiring a gift receipt for tax reporting
- Esperanto‑USA does not provide tax, legal, or investment advice.
10. Valuation & Acknowledgment
- Gifts are recorded at fair market value on the date of transfer.
- Donors are responsible for providing and defending the fair market value at time of transfer.
- The Organization issues written acknowledgments compliant with IRS regulations (e.g., for gifts ≥ $250) within 30 days of acceptance.
11. Policy Review & Transparency
This policy will be reviewed at least every three (3) years by the Finance Committee and updated as needed. The current version will be posted on the Organization’s website for transparency.
Questions about this policy may be directed to the Treasurer at kasisto@esperanto-usa.org