Financial Information

Financial Information

Foodbank of Southeastern Virginia and the Eastern Shore — an independent, nonprofit 501(c)3 organization — meets the Better Business Bureau’s charity standards and is a proud member of Feeding America. See our most informative and commonly requested financial reports, documents, and information below.

Financial information

Our Commitment to Donor Privacy

We will not sell, share, or trade our donors’ names or personal information with any other entity, nor send mailings to our donors on behalf of other organizations.

This policy applies to all information received by the Foodbank of Southeastern Virginia, both online and offline, on any platform, as well as any electronic, written, or oral communications. To the extent any donations are processed through a third-party service provider, our donors’ information will only be used for purposes necessary to process the donation.

Online information collection and use

  • Because this site accepts online donations, certain personally identifiable information is collected. The types of information we collect include names, addresses, e-mail addresses, telephone numbers and credit card information.
  • We may also collect other non-personally identifiable information about your computer such as the type of browser you are using or the domain name of your Internet Service Provider. The Foodbank is the sole owner of the information collected on this site. We will not sell, share, or rent this information or any donor information to others in ways different from what is disclosed in this statement.

How we use the information we collect

  • The personally identifiable information collected by the Foodbank site is used to fulfill online donations. We may also use this information to send users further details about the Foodbank and its upcoming events, programs, and projects.
  • Non-personally identifiable information may be used in aggregate form to analyze the usage of our site and improve site design and interface. This information that we collect will not be disclosed to third parties unless in response to a legal claim or law enforcement agency’s request.

Cookies

  • Cookies are small text files stored by your browser on your computer’s hard drive. Cookies do not contain personally identifiable information. They enable us to provide a more seamless experience for our users. For example, by setting a cookie for our site, the user would not have to log in with a password more than once, thereby saving time while navigating our site. If a user rejects the cookie, there may be areas of our site that are restricted. Cookies can also enable us to track and target the interests of our users to enhance the experience of our site.

Links

  • This website contains links to other sites. The Foodbank is not responsible for the privacy practices of other sites. When we link to a new site, we will launch a new browser window.

E-mail and postal mail from the Foodbank

  • Registered users are automatically subscribed to our e-mail and U.S. Postal mail newsletters that contain promotional information unless they opt-out during the registration process. Users can also unsubscribe or cancel reception of promotional information by contacting us in one of the following ways:

Security

  • This website has made commercially reasonable efforts to protect our users’ information with appropriate physical and electronic procedures to prevent unauthorized access both online and offline. Only employees who need the information to perform a specific job (such as volunteer coordinator) are granted access to personally identifiable information.

Feedback

  • Users may provide feedback to the Foodbank by sending an e-mail to donorservices@foodbankonline.org. Any contact information entered when providing feedback will only be used to acknowledge or respond to that feedback.

Correcting or accessing personal information

  • If a user’s personally identifiable information changes (such as e-mail address or ZIP code), or if a user no longer desires our service, we will endeavor to provide a way to correct, update or remove that user’s personal data provided to us. Personal information may be updated by contacting us in one of the following ways:

Notification of changes

  • If we decide to change our privacy policy, we will make those changes on this page and post a notification for a suitable period of time on our home page. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an e-mail. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information is collected.

Updated 2021

Gift Acceptance Policy

1. PURPOSE

The Foodbank of Southeastern Virginia (“Foodbank”) is a nonprofit, 501(c)(3) charitable organization under the Internal Revenue Code (“IRC”). The mission of the Foodbank is: leading the effort to eliminate hunger in our community. The Foodbank works with donors on both current and deferred gifts to achieve their philanthropic goals.

The purpose of this Gift Acceptance Policy (“Policy”) is to:

1.1. Protect the interests of donors of charitable gifts to the Foodbank.

1.2. Protect the interests of the Foodbank for which it receives or administers gifts.

1.3. Delineate the administrative and management responsibilities of the Foodbank with respect to such charitable gifts.

1.4. Determine if the gift meets criteria as an acceptable gift and reserve the right to decline any gift that is incompatible with the Foodbank’s mission or the nature of the gift is beyond the capacities of the organization to manage.

2. THE PHILANTHROPY COMMITTEE

The Philanthropy Committee (“Committee”) develops and administers written and specific guidelines and policies for the approval and acceptance of non-monetary gifts to the Foodbank, and makes recommendations regarding such policies to the Board of Directors (“Board”). This is a standing Committee that makes recommendations on the acceptance of specific gifts.

The Committee is also available to assist with the acceptance of all donor restricted gifts, as described in this Policy.

3. FOODBANK RESPONSIBILITIES & ROLE OF THE BOARD OF DIRECTORS

Foodbank staff will disclose to all prospective donors certain important benefits and obligations that reasonably could be expected to influence the donor’s decision to make a gift to the Foodbank. In particular, donors will be made aware of:

  • the irrevocability of a gift,
  • prohibitions on certain donor restrictions, and items subject to external conditions not controlled by the Foodbank (fair market value (FMV), investment return and income yield, for example).

3.1. Conflict of Interest:

The Foodbank cannot provide specific tax, financial or legal advice to a prospective donor. Donors will be encouraged to seek the assistance of their own legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. While staff cannot provide specific tax, financial or legal advice, they are able to guide and assist donors and their advisors in answering questions about how to fulfill the donor’s philanthropic wishes.

3.2. Confidentiality:

All communications with donors and information concerning donors and prospective donors or their gifts shall be held in strict confidence by the Foodbank, subject to: (i) legally authorized and enforceable requests for information by government agencies and courts and (ii) unless otherwise specifically directed by the donor, disclosure to the Board. All other requests for or releases of information concerning a donor or a prospective donor will be honored or allowed only if permission is obtained from the donor prior to the release of such information.

The Foodbank will comply with the Model Standards of Practice for the Charitable Gift Planner promulgated by the Partnership for Philanthropic Planning as well as the Association of Fundraising Professionals Code of Ethical Principles and Standards (see Appendices).

3.3 Policy Making and Oversight

The Board is responsible for policy-making and oversight of the Foodbank’s operations. All gift and fund policies referenced in this Policy have been adopted by a majority vote of the Board. The Board may amend or supplement these policies and guidelines at any time, with or without recommendation from the Foodbank’s Philanthropy Committee.

4. TYPES OF GIFTS

As a reference, Publication 526 of the Internal Revenue Service (“IRS”), Charitable Contributions, provides guidelines to those items that can be contributed and limitations on charitable income tax deductions.

4.1. Gifts that are acceptable include, but are not limited to, the following (with criteria):

4.1.1. Cash: Cash is acceptable in any form: currency, check or credit card. Checks shall be made payable to the Foodbank of Southeastern Virginia or Foodbank of Southeastern Virginia and the Eastern Shore and should be delivered to the Foodbank’s administrative offices located at 800 Tidewater Drive, Norfolk, VA 23504 or to its Branch location 24530 Coastal Boulevard, Tasley, VA 23441 (mailing address: O. Box 518, Onley, VA 23418).There is no minimum gift amount for credit cards. Visa, MasterCard, Discover and American Express are accepted. All cash gifts are recorded the date received.

4.1.2. Bequests: The Foodbank gratefully accepts many bequests to the Foodbank donors choose to make through their wills and trusts and encourages donors to contact the Foodbank during their lifetime to discuss and clarify charitable The Foodbank can provide sample bequest language, however, it advises that donors directly consult with their professional advisors for additional assistance, as Foodbank staff are not qualified to provide official legal or tax advice.

4.1.3. Tangible Personal Property: All other gifts of tangible personal property (any property, other than land or buildings that can be seen or touched) shall be examined in light of the following criteria:

4.1.3.1. Does the property fulfill/can it be used as related to the mission of the Foodbank?

i. Related Use Rule:

  • If the tangible personal property is related to the tax-exempt purposes of the Foodbank, the donor should consult his or her financial and/or tax advisor on deductibility.

ii. Future Use Rule:

  • “Future interest” generally includes reversions, remainders and other interests or estates, whether vested or contingent, and whether or not supported by a particular interest or estate, which are limited to commence in use, possession or enjoyment at some future date or time.
  • A charitable contribution that consists of a future interest in tangible personal property is made only when all intervening interests in, and rights to the actual possession or enjoyment of, the property have expired or are held by persons other than the taxpayer or those standing in a relationship with the taxpayer (IRC §§267(b) or 707(b)).

4.1.3.2. Is the property marketable for sale?

4.1.3.3. Are there any undue restrictions or obligations on the use, display, safeguarding or sale of the property?

4.1.3.4. Are there any carrying costs for the property?

4.1.3.5. Does the Foodbank have the capacity and technical skills to adequately manage, safeguard and dispose of the property as required either internally or via qualified agents?

4.1.3.6. Special Considerations are given to some types of gifts which may be donated to the Foodbank for unrelated use (deductibility is the lesser value of FMV or cost basis) . These include but are not limited to: artwork, coins, jewelry, cars, boats or crops. A qualified appraisal is required by the IRS from a qualified appraiser.

4.1.3.7. An qualified appraisal by a qualified appraiser is required for all gifts of tangible property (see section 6.).

4.1.3.8. Tangible personal property donated in exchange for charitable remainder and lead trusts present an additional set of rules and will be reviewed by the Committee and the criteria used and issues decided by the Committee should be documented.

4.1.4. Intangible Personal Property: Property that has no physical form but has evidence of value based on rights/ownership.

4.1.5. Securities: The Foodbank can accept both publicly traded securities and closely held securities.

4.1.5.1. Publicly traded (marketable) securities may be transferred to an account maintained by the Foodbank at one or more brokerage firms or delivered physically with the transferor’s signature or stock power attached. As a general rule, all marketable securities shall be sold upon receipt unless otherwise directed by the Audit and Finance Committee. In some cases marketable securities may be restricted by applicable securities laws; in such instance the final determination on the acceptance of the restricted securities shall be made by the Gift Acceptance Committee.4.1.5.2. Closely held securities, which include not only debt and equity positions in non-publicly traded companies but also interests in LLPs and LLCs or other ownership forms, can be accepted subject to the approval of the Board by recommendation of the Committee. However, gifts must be reviewed prior to acceptance to determine that:

  1. There are no restrictions on the security that would prevent the Foodbank from ultimately converting those assets to cash.
  2. The security is marketable, and the security will not generate any undesirable tax consequences for the Foodbank or otherwise create a liability to the
  3. A qualified appraisal by a qualified appraiser is required for all gifts of closely held securities (see section 6.)

Generally, the Foodbank would be more likely to accept minority or limited partnership interests rather than any general or managing partnership interest and there should be a clear exit strategy determinable by the Committee that would limit the term of the Foodbank’s ownership.

If potential problems arise on initial review of the security, further review and recommendation by an outside professional may be sought before making a final decision on acceptance of the gift. Every effort will be made to sell non-marketable securities as quickly as possible.

4.1.6. Real Estate: Gifts of real estate may include developed property and undeveloped property.

4.1.6.1. Environmental review: Prior to acceptance of real estate, the Foodbank shall inquire as to the environmental status of the property to understand current and prior uses. In the event that the initial inquiry reveals a potential problem or a current land use with inherent potential for existing contamination and/or future liability, the Foodbank shall require that the donor retain a qualified inspection firm to conduct a Phase I environmental site assessment. The cost of any environmental survey or assessments shall be borne by the donor(s). Optionally, based on findings from its initial review, the Foodbank may permit acceptance of a Letter of Indemnity from the donor(s) known to the Foodbank in lieu of a formal environmental review.4.1.6.2. A qualified appraisal is required for all gifts of real estate (see section 6).

4.1.6.3. When appropriate, a title binder or, preferably, a title policy for longer expected holding periods, shall be obtained by the Foodbank prior to the acceptance of the real property gift. The cost of this title binder or title policy shall be borne by the donor(s) or netted from the proceeds of the subsequent sale.

4.1.6.4. Prior to acceptance of the real property, the gift shall be recommended by the Committee and approved by the Board. Criteria for the acceptance of the property shall include:

  1. Is the property useful for the purposes of the Foodbank?
  2. Is the property marketable for sale? And if so, over what time period?
  3. Is the property income-producing to the extent of satisfying all anticipated costs and other expenditure, and are there UBTI concerns?
  4. Are there any restrictions, reservations, easements or other limitations associated with the property?
  5. Are there carrying costs, which may include insurance, property taxes, mortgages or notes, etc., associated with the property, or other operating expenses?
  6. Is there any existing debt related to the property? May the property be conveyed subject to the existing debt? If so, can the debt be assumed without forcing acceleration of amounts due? Or, is the donor willing and able to satisfy the debt as it relates to the property to be donated?
  7. Are there potential buyers (no pending offers)? [Buyer in-the wings]
  8. Does the environmental review and/or assessment reflect that the property is compromised or at undue risk? If so, is there a reasonable means to remediate the damage or mitigate the risk at the donor’s expense and/or to insure for the contingency of exposure?

To assist with the collection of all potentially relevant information and documentation of a proposed gift of real estate, the Foodbank Gift Acceptance Checklist (located in Appendices) is available for use by staff. All real estate will be titled to the Foodbank of Southeastern Virginia, where it will be held until it can be sold.

4.1.7. Remainder Interests in Property: The Foodbank will accept a remainder interest in a personal residence, farm or vacation property subject to the provisions of section 4.1.5. above. The donor(s) or other approved occupants may continue to occupy the real property for the duration of the stated life or an approved term of years. At the death of the donor(s) or other designated person(s), or at the end of the specified term of years, the Foodbank may use the property or reduce it to cash. Where the Foodbank receives a gift of a remainder interest, expenses for maintenance fees, real estate taxes, condo or homeowner association assessment fees and any property indebtedness are to be paid by the donor(s) or primary beneficiary of the lifetime interest.

A specific maintenance, insurance and taxes (“MIT”) agreement will be executed by the Donor/Beneficiary and the Foodbank that seeks to preserve the unencumbered remainder value of the property. Under the MIT, the Foodbank may approve lease of the property to other parties with provision for market rents to be paid to the Foodbank at the end of the stated term for the remainder of the lease period. All remainder interest in property will be transferred to the Foodbank of Southeastern Virginia, where it will be held until liquidation of such interests.

4.1.8. Bargain Sales: A bargain sale occurs when a donor transfers an asset to a charity and receives less than the FMV in return (i.e. part gift, part sale). The Foodbank will enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of the Foodbank. All bargain sales must be reviewed and recommended by the Committee. Factors used in determining the appropriateness of the transaction include:

  1. The Donor must obtain a qualified, independent appraisal substantiating the value of the property, a copy of which is to be submitted to the Foodbank.
  2. The Foodbank will not accept property subject to A clear title and confirmation of prior taxes paid is required.
  3. The Foodbank must determine that it will use the property, or that there is a market for sale of the property within 12 months of receipt.
  4. The Foodbank must calculate and consider the costs to safeguard, insure and pay expenses for the property (including property tax, if applicable) during the holding period.
  5. Most of the considerations listed in Section 4.1.6.

Many bargain sale arrangements include a trust (charitable remainder trust or charitable lead trust), resulting in a split-interest agreement with the donor(s). The agreement clearly outlines what the donor(s) will receive in return for the sale. Real estate acquired through a bargain sale will be titled to the Foodbank of Southeastern Virginia, or to another LLC as so determined.

4.1.9. Life Insurance: The Foodbank shall be named as both beneficiary and irrevocable owner of an insurance policy. (In some instances the Foodbank will be named only as beneficiary or partial beneficiary on a life insurance policy, though a transfer of ownership may be pursued. No completed gift is made unless ownership is transferred.)

The gift of existing life insurance is valued at the lower of its interpolated terminal reserve value, or cash surrender value, upon receipt as verified by a qualified, independent appraiser (see section 6).

Premium payment amounts made by the donor will be recorded as a gift in the year the payments are made to the Foodbank by the donor. The Foodbank will make the premium payment to the life insurance company directly. Reimbursement to the Foodbank may also be secured from a DAF over which the donor has advisory privileges.

If the donor does not elect to continue to make gifts to cover premium payments on the life insurance policy, the Foodbank may do one of the following:

  1. Continue to pay the premiums;
  2. Convert the policy to paid-up insurance; or
  3. Surrender the policy for its current cash value.

In determining which course of action to take, the Foodbank may seek advice of qualified insurance experts.

The Foodbank may also accept gifts of life insurance through an incentive/matching program as may be approved by the Foodbank’s Board.

4.1.10. Charitable Remainder Trusts: The Foodbank may accept designation as both a trustee and remainder beneficiary of a charitable remainder trust with the approval of the Committee. The Foodbank may expect to be compensated for serving as a trustee by charging its customary administrative fee to the assets of the trust. The Foodbank may also be named as beneficiary only, with no associated compensation.

4.1.11. Charitable Lead Trusts: The Foodbank may accept a designation as both a trustee and income beneficiary of a charitable lead The Foodbank may expect to be compensated for serving as a trustee by charging its customary administrative fee to the assets of the trust. The Foodbank may also be named as beneficiary only, with no associated compensation.

4.1.12. Retirement Plan Beneficiary Designation: The Foodbank may accept gifts of retirement plan beneficiary designation.

4.1.13. Gifts of Cryptocurrencies: The Foodbank may accept cryptocurrencies as gifts, subject to a number of conditions. Should the conditions be met, then cryptocurrency gifts may be accepted to fund any and all charitable activities,

  1. The donor shall acknowledge and confirm that the gifted cryptocurrency comes from the donor’s personal wallet and not from a third party.
  2. The donor agrees that to the best of his or her knowledge, the cryptocurrency being gifted is not derived from unlawful sources of activities.
  3. A charitable gift of cryptocurrency to the Foodbank is only complete once the cryptocurrency has been successfully delivered to the Foodbank’s cryptocurrency wallet and the Foodbank has accepted the cryptocurrency. Upon acceptance, the Foodbank will provide the Donor with a Gift Acceptance Letter or receipt which substantiates the charitable gift.
  4. The Foodbank is not under any legal obligation to sell the cryptocurrency.
  5. Once the donor transfers the cryptocurrency, the Foodbank acquires the entire economic interest of the cryptocurrency and is exclusively owned and controlled by the Foodbank.
  6. The donor may not gift the cryptocurrency until the Foodbank has determined it can accept the donation.
  7. The donor acknowledges that the cryptocurrency and the exchanges on which the cryptocurrency trades may be volatile, and proceeds received by the Foodbank may be different (higher or lower) from the appraised value, the fair market value or other measure of value of the cryptocurrency at the time of the gift.
  8. Unless otherwise predetermined, the value of the gift of the cryptocurrency shall be used following the same methodology as that for marketable securities.

5. OTHER KINDS OF GIFTS

Any other type of gift(s) shall be reviewed by the Committee, which shall determine the acceptability of such gift(s).

6. MISCELLANEOUS PROVISIONS

6.1. Securing qualified appraisals and legal fees for gifts to the Foodbank: It will be the responsibility of the donor(s) to secure and pay for a qualified, independent appraisal or independent legal counsel (where required) for gifts made to the Foodbank. Appraisals (along with an IRS Form 8283 signed by the appraiser) are required for gifts other than cash or marketable securities if the value is $5,000 or It will further be the responsibility of the donor(s) to secure and pay for any formal environmental assessment (see Section 4.1.5.1)

6.2. Valuation of gifts for development purposes: The Foodbank will record a gift at its independent appraised valuation for gift purposes on the date of the gift for those gifts requiring a formal approval. As a reference, IRS Publication 561, Determining the Value of Donated Property, provides guidelines regarding FMV and the valuations of various types of property.

6.3. Responsibility for IRS Filings upon sale of gift items: The Foodbank is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within three (3) years of receipt by the Foodbank when the charitable deduction value of the item is $5,000 or greater. The Foodbank must file this form within 125 days of the date of sale or disposition of the asset.

Acknowledgement of all gifts made to the Foodbank and compliance with the current IRS requirements in acknowledgement of such gifts shall be the responsibility of the Foodbank.

6.4 Controversial Gifts

From time to time, the Foodbank may be the beneficiary of gifts that can be considered controversial. The committee decision to deem a controversial will be guided by the following considerations:

  • The donor’s (individual or organization) behavior
  • The manner in which the donated assets were obtained or made
  • The audience that could potentially be offended by the acceptance of the gift
  • Whether or not the behavior and/or gift is defensible

Additionally, recognizing that there is the potential to generate controversy if certain gifts are accepted, the following factors will also be taken into account by the committee when determining whether to accept potentially controversial gifts on a case by case basis:

  • Values – does the acceptance of the gift conflict with or compromise any of the Foodbank’s core values
  • Compatibility – is there compatibility between the donor’s intent and the Foodbank’s intended use of the gift
  • Public Relationships – whether acceptance of a specific gift damages the reputation of the Foodbank
  • Form of Gift – is the gift offered in a form that can be used without the Foodbank incurring substantial expense or difficulty
  • Effects on Future Giving – will this gift encourage or discourage future gifts All decisions to solicit and/or accept potentially controversial gifts will be made by the President and CEO, the board and the Philanthropy Committee. The primary consideration will be the impact of the gift on the Foodbank and furtherance of its mission.

7. RESTRICTIONS ON GIFTS

The Foodbank will accept unrestricted gifts and gifts restricted for specific programs and purposes, provided that such gifts are not inconsistent with its stated mission, purposes and priorities. The Foodbank will not accept gifts that are too restrictive in purpose or too restrictive as to investment specifications or use of income vs. principal. Gifts that are too restrictive are those that violate the terms of the Foodbank’s Bylaws and Articles of Incorporation, gifts that are too difficult to administer or gifts that are for purposes outside of the mission of the Foodbank. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Foodbank’s Board upon recommendation of the Committee.

8. APPENDICES

8.1. Model Standards of Practice for the Charitable Gift Planner

8.2. Association of Fundraising Professionals Code of Ethical Principles and Standards

8.3. Association of Fundraising Professionals Donor Bill of Rights

8.4. Life Insurance Policy Guidelines

8.5. Foodbank of Southeastern Virginia Gift Acceptance Checklist

9. POLICY IMPLEMENTATION – STATUS

The Policy is in final format as of September 7, 2021, reviewed and approved by the Philanthropy Committee.