Approved by the AREMA Educational Foundation Board – September 22, 2019
The AREMA Educational Foundation solicits and accepts gifts for purposes that will help the organization further and fulfill its purpose. The AREMA Educational Foundation has responsibility for the AREMA Scholarship Program, the Watford Fellowship Program, support for the Railway Engineering Education Symposium (REES) and other future projects that the AREMA Educational Foundation Board deems important to fulfill its purpose. The Foundation has its own Board of Directors and operates separately from AREMA, although AREMA staff support is donated to the Foundation.
The AREMA Educational Foundation urges all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts, including the resulting tax and estate planning consequences. This policy governs acceptance of gifts made to the AREMA Educational Foundation for the benefit of any of its operations, programs or services.
This policy clearly defines for donors how the Scholarship Program functions and how donors can best provide support in furtherance of the AREMA Educational Foundation’s purpose.
Use of Legal Counsel — The AREMA Educational Foundation will seek the advice of legal counsel in matters relating to acceptance of gifts when appropriate. Review by counsel is recommended for:
- Gifts of securities that are subject to restrictions or buy-sell agreements.
- Documents naming the AREMA Educational Foundation as trustee or requiring the AREMA Educational Foundation to act in any fiduciary capacity.
- Gifts requiring the AREMA Educational Foundation to assume financial or other obligations.
- Transactions with potential conflicts of interest.
- Gifts of property which may be subject to environmental or other regulatory restrictions.
Restrictions on Gifts — The AREMA Educational Foundation will not accept gifts that (a) would result in the AREMA Educational Foundation violating its corporate charter, (b) could possibly jeopardize the Foundation’s 501 (c) not profit tax exempt status, (c) are too difficult or too expensive to administer in relation to their value, (d) would result in any adverse legal, or political consequences or create a real or apparent conflict of interest for the AREMA Educational Foundation, or (e) are for purposes outside of the AREMA Educational Foundation’s mission or tax exempt purpose. Decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the AREMA Educational Foundation Board, in consultation with the Executive Director.
Gifts Generally Accepted Without Review —
- Cash. Cash gifts are acceptable in any form, including by check, money order, credit card, wire transfer, or online.
- Marketable Securities. Marketable securities may be transferred electronically to an account maintained at the Association’s brokerage firm or delivered physically with the transferor’s endorsement attached. All marketable securities will be sold promptly upon receipt unless otherwise directed by the AREMA Educational Foundation’s Board in consultation with the Executive Director. In some cases, marketable securities may be restricted, for example, by applicable securities laws or the terms of the proposed gift; in such instances the decision whether to accept the restricted securities shall be made by the AREMA Educational Foundation’s Board in consultation with the Executive Director.
Gifts Accepted Subject to Prior Review — Certain forms of gifts or donated properties may be subject to review prior to acceptance. Examples of gifts subject to prior review include but are not limited to:
- Charitable Remainder Trusts. The AREMA Educational Foundation will accept designation as a remainder beneficiary of charitable remainder trusts.
- Charitable Lead Trusts. The AREMA Educational Foundation will accept designation as an income beneficiary of charitable lead trusts.
- Bequests and Beneficiary Designations under Revocable Trusts, Commercial Annuities and Retirement Plans. Donors are encouraged to make bequests to the AREMA Educational Foundation under their wills, and to name AREMA Educational Foundation as the beneficiary under trusts, commercial annuities and retirement plans.
- Tangible Personal Property. The AREMA Educational Foundation Board, in consultation with the Executive Director, shall review and determine whether to accept any gifts of tangible personal property, including works of art, in light of the following considerations: does the property further the organization’s mission? Is the property marketable? Are there any unacceptable restrictions imposed on the property? Are there any carrying costs for the property for which the organization may be responsible? Is the title/provenance of the property clear?
- Life Insurance. The AREMA Educational Foundation will accept gifts of life insurance policies where the AREMA Educational Foundation is named as both beneficiary and irrevocable owner of the insurance policy. The donor must agree to pay, before due, any future premium payments owing on the policy.