GIFTS

Covered Persons may not receive or offer any gift or anything else of significant value for the purpose of influencing the action of the Foundation or of the recipient. Gifts (except those generally valued at $100 or less) received from vendors, suppliers, consultants, and grantees as part of normal business practice must be declined or given to the Foundation or shared with the Foundation generally, and if acknowledgement is appropriate, acknowledged on behalf of the Foundation. This Policy is not intended to prohibit normal business practices, such as meetings over meals, corporate items given to participants in meetings and conferences, or token hosting gifts, as long as they are of nominal and reasonable value and promote the Foundation’s legitimate business interests.

PROCEDURES

Duty to Disclose

In connection with any actual or possible conflict of interest, a Covered Person must disclose the existence of the potential conflict of interest and be given the opportunity to disclose all material facts to the Board and members of committees with Board-delegated powers considering the proposed transaction or arrangement.

B. Determining When a Conflict Exists

After disclosure of the potential conflict of interest and all material facts, and after any discussion with the Covered Person, he or she shall leave the Board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining Board or committee members shall decide if a conflict of interest exists.

C. Procedures for Addressing Conflicts of Interest

A Covered Person may make a presentation at the Board or committee meeting, but after the presentation, he or she shall abstain from participating in the discussion of, and the vote on, the transaction or arrangement involving the possible conflict of interest.

The chairperson of the Board or committee shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement.

After exercising due diligence, the Board or committee shall determine whether the Foundation can obtain with reasonable efforts a more advantageous transaction or arrangement from a person or entity that would not give rise to a conflict of interest.

If a more advantageous transaction or arrangement is not reasonably possible under circumstances not producing a conflict of interest, the Board or committee shall determine by a majority vote of the disinterested Board of Directors whether the transaction or arrangement is in the Foundation’s best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination it shall make its decision as to whether to enter into the transaction or arrangement.

VIOLATIONS OF THE POLICY

If the Board or committee has reasonable cause to believe a Covered Person has failed to disclose actual or possible conflicts of interest, it shall inform the Covered Person of the basis for such belief and afford the Covered Person an opportunity to explain the alleged failure to disclose. If, after hearing the Covered Person’s response and after making further investigation as warranted by the circumstances, the Board or committee determines the Covered Person has failed to disclose an actual or possible conflict of interest, it shall take appropriate disciplinary and corrective action.

RECORDS OF PROCEEDINGS

The minutes of the Board and all committees with Board delegated powers shall contain:

The names of the persons who disclosed or otherwise were found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the Board’s or committee’s decision as to whether a conflict of interest in fact existed.

The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with the proceedings.

COMPENSATION

Voting Restrictions for Board Member

A voting member of the Board who receives compensation, directly or indirectly, from the Foundation for services is precluded from voting on matters pertaining to that member’s compensation.

b. Voting Restrictions for Committee Members

A voting member of any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the Foundation for services is precluded from voting on matters pertaining to that member’s compensation.

a. Information Permitted

No voting member of the Board or any committee whose jurisdiction includes compensation matters and who receives compensation, directly or indirectly, from the Foundation, either individually or collectively, is prohibited from providing information to any committee regarding compensation.

CONFIDENTIALITY

Each Covered Person shall exercise care not to disclose confidential information acquired in connection with disclosures of conflicts of interest or potential conflicts, which might be averse to the interests of the Foundation. Furthermore, Covered Persons shall not disclose or use information relating to the business of the Foundation for their personal profit or advantage or the personal profit or advantage of a related party.

PERIODIC REVIEW

To ensure the Foundation operates in a manner consistent with its charitable purposes and does not engage in activities that could jeopardize its tax-exempt status, periodic reviews shall be conducted. The periodic reviews shall, at a minimum, include the following subjects:

Whether compensation arrangements and benefits are reasonable, based on competent survey information and the result of arm’s length bargaining.

Whether partnerships, joint ventures, and arrangements with management organizations conform to the Foundation’s written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further charitable purposes and do not result in inurement, impermissible private benefit or in an excess benefit transaction.

USE OF OUTSIDE EXPERTS

When conducting the periodic reviews, the Foundation may, but need not, use outside advisors. If outside experts are used, their use shall not relieve the Board of its responsibility for ensuring periodic reviews are conducted.

RETALIATION IS PROHIBITED

No board member or staff member who, in good faith, reports a concern to the Board or government agency shall be subject to retaliation or, in the case of a staff member, adverse employment consequences by Foundation. Moreover, a board member or staff member who retaliates against someone who has reported a concern in good faith is subject to discipline up to and including termination of employment or service on the Board.

REFERRED TO COUNSEL

Questions regarding the interpretation or application of this Policy should be referred to counsel for the Foundation.

CERTAIN DEFINITIONS

“Affiliation” includes, but is not limited to, serving as a board member, employee, or consultant to a current or potential grantee, service provider, contractor or vendor, or doing business with the grantee, service provider, or vendor.

“Board member” shall mean an individual duly appointed to the Board of Directors of the Foundation.

“Family member” shall mean a Covered Person’s spouse, ancestors, brothers and sisters, children, grandchildren, great- grandchildren, and spouses of brothers, sisters, children, grandchildren, and great- grandchildren.

“Related party” shall mean (i) a Covered Person’s family members and (ii) a corporation, partnership, trust, estate or other legal entity in which the Covered Person or any family member owns an investment or beneficial interest.

GUIDELINES ON CHARITABLE GIFTS

Purpose Statement:

The purpose of this manual is to provide general guidelines for the employees of Space Coast Health Foundation when evaluating whether to accept a gift and the general documentation required to be provided by the Foundation to the donor to substantiate the gift. This manual is in no way intended to constitute legal advice for any donor as to the deductibility of any gift to the Foundation, the amount of any such deduction, whether any recapture requirements apply, or the adequacy of any documentation generated by the Space Coast Health Foundation for purposes of substantiation of the gift. The Space Coast Health Foundation strongly encourages each donor to check with his or her legal counsel and the current provisions of the Internal Revenue Code prior to making any gift to the Space Coast Health Foundation to confirm, to the donor’s satisfaction, all such requirements. The Internal Revenue Code and Treasury Regulations change, as do IRS documentation requirements, and the Space Coast Health Foundation specifically disclaims any and all responsibility for any losses incurred by any donor as a result of changing provisions of the Internal Revenue Code, Treasury Regulations, or any changed policy or form of the Internal Revenue Service imposing documentation or substantiation requirements separate from or additional to the guidelines contained in this manual.

A “Gift,” as generally defined, is something of value that is transferred from one person to another without compensation.

A charitable contribution that meets the standards for deductibility must be a true gift for which the donor anticipates no benefit in return. Thus the donating of money or other property is not always deductible for tax purposes except to the extent allowed by the Internal Revenue Code.

In order for such gifts to qualify, the contribution must be made with detached or disinterested generosity or out of affection, respect, or admiration for the organization. A gift must not be quid pro quo; that is, it cannot be motivated by any incentive of anticipated gain such as the donor expecting a bargained-for benefit. (IRC Section 170(e)(3)(c)). A quid pro quo contribution is a payment made partly as a contribution and partly for goods or services provided to the donor by the charity.

Therefore, the Foundation will not routinely promise or engage in publicity or media coverage as a condition to receiving a charitable contribution. Gifts having such conditions attached will be referred to the Board of Directors for review and final acceptance.

The Foundation will provide a written disclosure statement to donors who make a payment, described as a “quid pro quo contribution”, in excess of $75.00. This requirement is separate from the written substantiation required for deductibility for gifts by check of $250 or more referred to in Section VII (below) regarding Donor Substantiating Requirements. (See the Gifts of Cash section of this manual for detailed instructions.)

The needs and interests of the donor and the institution must be considered and both parties should avoid unrealistic terms. A prospective donor needs encouragement to give but must be counseled so that unwise conditions are not attached to a contribution. The Space Coast Health Foundation has a right to protect itself from unreasonable demands.

All gifts, regardless of value, form, or designated use, will be acknowledged by the Foundation. The acknowledgement represents to the donor the Space Coast Health Foundation’s official acceptance of the gift, its terms and conditions, as well serves as official documentation for tax purposes.

Each gift must be acknowledged as promptly as reasonably possible. The Foundation will send an official acknowledgment of all gifts over $250.

Acknowledgment of all monetary gifts should state the dollar value of the gift and date of receipt as supporting documentation for tax purposes.

Non-monetary gifts such as securities, real property, and gifts in kind will be acknowledged by describing the number and type of items involved. This documentation may not always include valuation information.

Directors, employees of the Space Coast Health Foundation shall not purchase or acquire donated gifts or property unless the Board of Directors has approved the sale of the gift and the terms of the sale.

Prior to the acceptance or solicitation of any gifts, the Space Coast Health Foundation shall register with the Florida Department of Agriculture and Consumer Services, Division of Consumer Services, and shall otherwise comply with the requirements of the Florida Solicitation of Contributions Act, Sections 496.401-496.424 of the Florida Statutes.

GUIDELINES ON SOLICITATION AND ACCEPTANCE OF CHARITABLE AND PHILANTHROPIC GIFTS

The seeking of charitable and philanthropic funds from individuals, corporations, and foundations will be accomplished with dignified, ethical, business and recognized fund development practices. Appeals to these entities that may have a current or potential commercial relationship with the Space Coast Health Foundation will be conducted in the spirit of philanthropy with no suggestion of withdrawing current or promising a future business relationship.

Foundation staff, volunteers, and persons employed or contractually retained by the Foundation shall refrain from all undue pressure when seeking gifts from potential donors. The responsibility of every Foundation representative is to create conditions of opportunity, not obligation, in assisting the donor to fulfill their philanthropic purposes.

All information relating to current and prospective donors, including the amount of gift, size of estate, beneficiaries, and next-of-kin or family relationships will be kept in strict confidence. No information will be publicly released unless written permission is obtained from the donor.

Publicity regarding Life Estates, Trusts, and Bequests will not be released without the written consent of the donor or surviving family members.

Prospective donors, particularly those wishing to make a substantial gift, shall be advised to seek the counsel of their attorney and/or financial consultant on matters relating to estate planning and tax liability. The Foundation shall also seek the counsel of its attorney before executing certain kinds of documents with donors, e.g., charitable annuities and similar instruments.

Charitable gifts will be accepted for unrestricted and restricted use. Restricted funds will be established as needed at the discretion of the Board of Directors.

The Space Coast Health Foundation should refrain from opining either as to the deductibility of gifts made to it or, in the case of non-cash gifts, the amount of any deduction associated with the gift. In all events, the Foundation should instead encourage donors to seek the counsel of their attorney and/or financial consultant/advisor for advice regarding deductibility of contributions, any recapture requirements that may apply to the gift, and any documentation requirements necessary to substantiate the amount of the deduction, particularly where the contemplated gift is non-cash in nature. Space Coast Health Foundation should endeavor to work with all donors to provide complete and accurate documentation of all gifts so that they may be deducted to the greatest extent allowed under the Internal Revenue Code.

GUIDELINES ON GIFTS OF CASH, CHECKS, AND CHARGE CARDS

All gifts of checks or cash receipts received will be deposited in a financial institution as soon as possible and no later than the second business day after their receipt.

Procedures for Handling Cash, Checks, and Credit Cards

Cash receipts are given immediately for all cash received.
1. The checks are photocopied and a deposit slip is prepared.
2. Correspondence relating to the gift will also be attached to the photocopy of the check and forwarded to the President/CEO. A second copy of the check and correspondence will be filed in the donor file folder.
3. A Foundation staff member will enter the deposit into a computerized tracking system.
4. Acknowledgement of any gift to Space Coast Health Foundation will be produced within five business days of receipt of the gift.

In instances where the specific use is unclear or inappropriate, the available details about the gift should be brought to the immediate attention of the President/CEO.

For a gift of money to qualify as a charitable contribution, the donor must be able to substantiate the amount by a cancelled check, receipt from the organization or reliable written records. The reliable record must be a bank record or a receipt from the charity specifying the amount and date of the contribution.

Gifts of $250 or more also require a “contemporaneous written acknowledgement” from the Foundation, typically a receipt in the form of a letter. This acknowledgement should include the statements described in Section VII, below.

Upon receipt of a cash (currency) gift of $10,000 or more, IRS Form 8300 (instructions found in this manual) will be completed by the President/CEO and forwarded to the Internal Revenue Service. A second copy will accompany the deposit slip for the bank.

The Foundation will provide the donor a more detailed acknowledgement letter if the contribution is a “quid pro quo contribution” in excess of $75.00. A quid pro quo contribution is payment made partly as a contribution and partly for goods or services provided to the donor by the Space Coast Health Foundation. An example of a quid pro quo contribution occurs when a donor gives the Foundation $100.00 for a concert ticket valued at $40.00. In this example, $60.00 would be deductible. Because the donor’s payment (quid pro quo contribution) exceeds $75.00, the disclosure statement must be furnished, even though the deductible amount does not exceed $75.00. In compliance

with regulations in the Pension Protection Act of 2006, the Foundation will furnish a written disclosure statement for all contributions.

Space Coast Health Foundation will acknowledge all contributions with a contemporaneous written acknowledgement of the contribution. The written disclosure statement must:

Indicate that Space Coast Health Foundation is the donee, its address, and the date of the contribution;

Include the amount of cash and a description (but not value) of any property other than cash contributed;

Indicate whether the donee provided any goods or services to the donor in consideration for the contribution, and if so, provide a description of and a good faith estimate of the fair market value of any such goods or services provided to the donor; and

For quid pro quo donations, inform the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the excess of any money (and the fair market value of any property other than money) contributed by the donor over the value of goods or services provided by the Space Coast Health Foundation.