Policies

KO`OLAULOA EDUCATIONAL ALLIANCE COROPRATION

BOARD POLICIES

These Policies set forth the policies adopted by the Board of Directors of the Ko`olauloa Educational Alliance Corporation (the “KEAC”) relating to certain aspects of the governance of the KEAC and its subsidiaries. References to the KEAC in this Policy include subsidiary organizations that further the KEAC’s mission, and references to the KEAC’s Board of Directors and committees include the governing bodies and committees of such subsidiary organizations.

These Policies are not comprehensive, and may be supplemented or changed from time to time. On matters not addressed by the Policies, members of the Board should act in the manner they believe to be in the best interests of the KEAC, should disclose conflicts of interest, and should avoid self-interested dealings with the KEAC unless proper approval is obtained.

  1. CONFLICTS OF INTEREST
  • Purpose.

The purpose of this Conflict of Interest Policy is to protect the interests of the KEAC in connection with any transaction or arrangement that might benefit the private interests of any Covered Person, as defined below. This Policy provides (i) a systematic mechanism for disclosing and evaluating potential and actual conflicts; and (ii) procedures for the Board of Directors in considering any transaction or arrangement where a conflict may exist.

  • Persons Covered by the Policy.

This policy applies to “Covered Persons,” defined as any director, officer, or member of any committee of the KEAC’s Board of Directors that has authority to act on behalf of the Board of Directors. “Covered Persons” also include persons who serve in similar capacities in subsidiaries of the KEAC, and references to the KEAC include references to such subsidiaries. Every Covered Person shall complete an annual Conflict of Interest Questionnaire in the form attached as Attachment A.

  • Duties of Covered Persons.
  1. Duty of Care. Every Covered Person shall perform his or her duties for the KEAC in good faith and with the degree of care that an ordinarily prudent person would exercise under similar circumstances, and in a manner the director reasonably believes to be in the best interests of the KEAC.
  2. Duty of Loyalty. Every Covered Person must act with loyalty to the KEAC, meaning that no Covered Person may use his or her position with the KEAC to make personal profit or gain other personal advantage. No Covered Person may personally take advantage of a business opportunity that is offered to the KEAC unless the Board of Directors determines (after full disclosure and a disinterested and informed evaluation) not to pursue that opportunity.
  • Conflicts of Interest.
  1. Avoidance of Conflicts. No Covered Person may engage in any transaction or arrangement or undertake positions with other organizations that involve a conflict of interest, except in compliance with this Policy. Covered Persons should avoid both actual conflicts and the appearance of conflicts of interest. Every Covered Person shall:
  1. Disclose all actual and potential conflicts as set out below; and
  2. Recuse himself/herself from voting on any transaction or arrangement in which he/she has a potential or actual conflict of interest, and shall not be present when any such vote is taken.
  1. Conflicts. A Covered Person may have a conflict of interest with respect to a transaction or arrangement whenever he or she, or any of his or her family members:
  1. Receives compensation or other funding directly or indirectly from the KEAC and the transaction or arrangement involves such compensation or funding;
  2. Has or anticipates having a compensation arrangement, direct or indirect, with any entity or individual that either: (a) sells goods or services to, or purchases services from the KEAC; (b) has any other transaction or arrangement with the KEAC; or (c) competes with the KEAC;
  3. Has or anticipates having any direct or indirect ownership interest or investment interest in, or serves or anticipates serving as a director or officer of, any entity that either: (a) sells goods or services to, or purchases services from the KEAC; (b) has any other transaction or arrangement with the KEAC; or (c) competes with the KEAC; or
  4. Has accepted any gift, entertainment, or other favor where such acceptance might create the appearance of influence on the Covered Person (other than gifts of nominal value, which are clearly tokens of respect and friendship unrelated to any particular transaction).

“Family member” for these purposes means spouse or domestic partner, parents, grandparents, children, grandchildren, great grandchildren, siblings, and the spouses of any of the above.

  1. Indirect Conflicts. Indirect conflicts are conflicts for purposes of this Policy. For purposes of this section, a director of the corporation has an indirect interest in a transaction if:
  1. Another entity in which the director has a material interest or in which the director is a general partner is a party to the transaction; or
  2. Another entity of which the director is a director, officer, or Trustee is a party to the transaction.
  1. No Conflict. A Covered Person does not have a conflict of interest if the Covered Person owns stock, propriety or debt interests with a value of less than $20,000, or representing an ownership interest of less than 1% in any company that is publicly held and listed on the New York Stock Exchange, American Stock Exchange or NASDAQ.

 

 

  • Disclosure and Evaluation of Conflicts
  1. Disclosure. Each Covered Person shall promptly and fully disclose all material facts of every actual or potential conflict of interest:
  1. Existing at the time when he/she becomes a Covered Person;
  2. That arises while he/she is a Covered Person, at the time such actual or potential conflict arises; and
  3. Annually through the annual Conflict of Interest Questionnaire.

All disclosures involving a transaction or arrangement being considered at a meeting of the board or a committee shall be made to all members present at such meeting. All other disclosures shall be made to the President (who shall disclose his or her conflicts to the Board of Directors).

  1. Evaluation. The President shall disclose to the Board of Directors all conflicts of interest reported to him or her under this Policy. The Board of Directors will evaluate the disclosures to determine whether they involve actual conflicts of interest and may attempt to develop alternatives to remove the conflict from the situation.
  • Procedures
  1. Formal Approval. The KEAC may enter into a transaction or arrangement in which a Covered Person has a conflict of interest if:
  1. The Covered Person has disclosed the conflict of interest in accordance with this Policy;
  2. A majority of directors who have no interest in the transaction or arrangement approve the transaction or arrangement at a board or committee meeting after determining, in good faith and after reasonable investigation, that the transaction or arrangement is fair and reasonable to the KEAC and is in the KEAC’s best interest; provided that the approval must be given by more than one director;
  3. Any Covered Person who has an actual or potential conflict with respect to the transaction or arrangement does not participate in and is not present for the vote regarding any such transaction or arrangement (provided, however, that any such Covered Person may appear at a meeting to answer questions concerning the transaction or arrangement); and 
  1. The Board of Directors relies upon appropriate comparability data, such as an independent appraisal or an independent compensation study, in reaching its determination as to the fairness and reasonableness of the transaction or arrangement to the KEAC. 
  1. Transaction Fair to the KEAC. It shall not be a violation of this Policy if all the requirements for formal approval, outlined above, are not satisfied, so long as the transaction or arrangement is in fact fair to the KEAC at the time it is entered into, furthers its tax-exempt purposes, and does not result in inurement, impermissible private benefit, or an excess benefit transaction under laws applicable to organizations exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.
  2. Approval by Attorney General. The KEAC may engage in any transaction which is approved by the Hawaii Attorney General.
  • Records of Proceedings
  1. Content of Minutes. The minutes of the Board of Directors or any committee of the board for any meetings described above shall contain:
  1. The names of the persons who disclosed an actual or potential conflict of interest or otherwise were found to have a conflict of interest, and the nature of the conflict of interest; and
  1. 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 considered and the appropriate comparability data relied upon, and a record of any votes taken.
  1. Timing. The minutes of any meeting described above shall be prepared by the later of the next succeeding meeting of the Board of Directors or committee, or 60 days after the final action on the matter is taken by the Board of Directors or committee.
  • Enforcement

Each Covered Person shall sign a statement acknowledging that he or she has received a copy of this Policy, has read and understands it, and agrees to comply with it. If the Board of Directors has reasonable cause to believe that a Covered Person has failed to comply with this Policy, the board may counsel the Covered Person regarding such failure and, if the issue is not resolved to the board’s satisfaction, may consider additional corrective action as appropriate.

  1. TRAVEL AND OTHER EXPENSE REIMBURSEMENT
  • Purpose.

The Board of Directors of KEAC recognizes that board members of the KEAC may be required to travel or incur other expenses from time to time to attend meetings of the Board of Directors of the KEAC, or to conduct other business of the KEAC in furtherance of the KEAC’s mission. The purpose of this Policy is to ensure that (a) adequate cost controls are in place, (b) travel and other expenditures are appropriate, and (c) a uniform and consistent approach is provided for the timely reimbursement of authorized expenses incurred by board members. It is the policy of the KEAC to reimburse only reasonable and necessary expenses actually incurred by board members.

When incurring business expenses, the KEAC expects board members to:

  • Exercise discretion and good business judgment with respect to those expenses.
  • Be cost conscious and spend the KEAC’s money as carefully and judiciously as the individual would spend his or her own funds.
  • Report expenses, supported by required documentation.

 

 

  • Expense Report.

Expenses will not be reimbursed unless the individual requesting reimbursement submits a written Expense Report. The Expense Report, which shall be submitted at least monthly or within two weeks of the completion of travel if travel expense reimbursement is requested, must include:

  • The individual’s name.
  • If reimbursement for travel is requested, the date, origin, destination and purpose of the trip, including a description of each business-related activity during the trip.
  • The name and affiliation of all people for whom expenses are claimed (i.e., people on whom money is spent in order to conduct the KEAC’s business).
  • An itemized list of all expenses for which reimbursement is requested.
  • Receipts.

No expense in excess of $25.00 will be reimbursed to board members unless the individual requesting reimbursement submits with the Expense Report written receipts from each vendor (not a credit card receipt or statement) showing the vendor’s name, a description of the services provided (if not otherwise obvious), the date, and the total expenses, including tips (if applicable).

  • General Travel Requirements.  
  1. Advance Approval.

 All trips involving air travel or at least two overnight stays must be approved in advance by the Administrator or his or her designee.

  1. Necessity of Travel.

In determining the reasonableness and necessity of travel expenses, board members and the person authorizing the travel shall consider the ways in which the KEAC will benefit from the travel and weigh those benefits against the anticipated costs of the travel. The same considerations shall be taken into account in deciding whether a particular individual’s presence on a trip is necessary. In determining whether the benefits to the KEAC outweigh the costs, less expensive alternatives, such as participation by telephone or video conferencing, or the availability of local programs or training opportunities, shall be considered.

  1. Personal and Spousal Travel Expenses.

Individuals traveling on behalf of the KEAC may incorporate personal travel or business with their business-related trips; provided that board members shall not arrange travel for the KEAC at a time that is less advantageous to the KEAC or involving greater expense to the KEAC in order to accommodate personal travel plans. Any additional expenses incurred as a result of personal travel, including but not limited to extra hotel nights, additional stopovers, meals or transportation, are the sole responsibility of the individual and will not be reimbursed by the KEAC. Expenses associated with travel of an individual’s spouse, family or friends will not be reimbursed by the KEAC.

 

  • Air Travel.
  1. General.

 Air travel reservations should be made as far in advance as possible in order to take advantage of reduced fares. The KEAC will reimburse or pay only the cost of the lowest coach class fare actually available for direct, non-stop flights from the airport nearest the individual’s home or office to the airport nearest the destination.

  1. Saturday Stays.

 Board members traveling on behalf of the KEAC are not required to stay over Saturday nights in order to reduce the price of an airline ticket. An individual who chooses to stay over a Saturday night shall be reimbursed for reasonable lodging and meal expenses incurred over the weekend to the extent the expenses incurred do not exceed the difference between the price of the Saturday night stay ticket and the price of the lowest price available ticket that would not include a Saturday night stay. To receive reimbursement for such lodging and meal expenses, the individual must supply, along with the Expense Report, documentation of the amount of the difference between the price of the Saturday stay and non-Saturday stay airline tickets.

  1. Frequent Flyer Miles and Compensation for Denied Boarding.

 Board members traveling on behalf of the KEAC may accept and retain frequent flyer miles and compensation for denied boarding for their personal use. Individuals may not deliberately patronize a single airline to accumulate frequent flyer miles if less expensive comparable tickets are available on another airline.

  • Lodging.

Board members traveling on behalf of the KEAC may be reimbursed at the single room rate for the reasonable cost of hotel accommodations. Convenience, the cost of staying in the city in which the hotel is located, and proximity to other venues on the individual’s itinerary shall be considered in determining reasonableness. Board members shall make use of available corporate and discount rates for hotels. “Deluxe” or “luxury” hotel rates will not be reimbursed.

  • Out-Of-Town Meals.

Board members traveling on behalf of the KEAC are reimbursed for the reasonable and actual cost of meals (including tips), subject to a maximum per diem meal allowance equal to the regular U.S. federal government per diem rates published by the General Services Administration for meals and incidental expenses per day.

  • Ground Transportation.

Employees are expected to use the most economical ground transportation appropriate under the circumstances and should generally use the following, in this order of desirability:

Courtesy Cars

Many hotels have courtesy cars that will provide transportation to and from the airport at no charge. Board members should take advantage of this free service whenever possible.

 Airport Shuttle or Bus

Airport shuttles or buses generally travel to and from all major hotels for a small fee. At major airports, such services generally are as fast as a taxi and considerably less expensive.

Taxis

When courtesy cars and airport shuttles are not available, a taxi is often the next most economical and convenient form of transportation when the trip is for a limited time and minimal mileage is involved. A taxi may also be the most economical mode of transportation between an individual’s home and the airport.

Rental Cars

Car rentals are expensive so other forms of transportation should be considered when practical. Employees will be allowed to rent a car while out of town provided that advance approval has been given by the Administrator or his or her designee and the cost is less than alternative methods of transportation.

  • Personal Cars.

Board members are compensated for use of their personal cars when used for business of the KEAC. When individuals use their personal car for such travel, including travel to and from the airport, reimbursement for mileage is allowed at the Internal Revenue Service rate per mile then in effect.

In the case of individuals using their personal cars to take a trip that would normally be made by air, mileage will be allowed at the current Internal Revenue Service rate; provided, however, that the total mileage reimbursement cannot exceed the sum of the lowest available round-trip coach airfare.

  • Parking/Tolls.

Parking and toll expenses, including charges for hotel parking, incurred by board members traveling on business of the KEAC will be reimbursed. The costs of parking tickets, fines, car washes, valet service, etc., are the responsibility of the employee and will not be reimbursed.

On-airport parking is permitted for short business trips. For extended trips, board members should use off-airport facilities.

  • Entertainment and Business Meetings.

Reasonable expenses incurred for business meetings or other types of business-related entertainment will be reimbursed only if the expenditures are approved in advance by the Administrator or his or her designee and qualify as tax-deductible expenses. Detailed documentation for any such expense must be provided, including:

  • date and place of entertainment
  • nature of expense
  • names, titles and corporate affiliation of those entertained
  • a complete description of the business purpose for the activity including the specific business matter discussed
  • vendor receipts (not credit card receipts or statements) showing the vendor’s name, a description of the services provided, the date, and the total expenses, including tips (if applicable)
  • Other Expenses.

Reasonable business-related telephone and fax charges are reimbursable. In addition, reasonable and necessary gratuities that are not covered under meals may be reimbursed. Emergency secretarial work and/or postal charges incurred are reimbursable for the purpose of work on behalf of the KEAC.

  • Non-Reimbursable Expenditures.

The KEAC maintains a strict policy that expenses in any category that could be perceived as lavish or excessive will not be reimbursed, as such expenses are inappropriate for reimbursement by a nonprofit, charitable organization. Expenses that are not reimbursable include, but are not limited to:

  • Travel insurance
  • First class tickets or upgrades
  • When lodging accommodations have been arranged by the KEAC and the individual elects to stay elsewhere, reimbursement is made at the amount no higher than the rate negotiated by the KEAC. Reimbursement shall not be made for transportation between the alternate lodging and the meeting site
  • Limousine travel
  • Movies, liquor or bar costs
  • Membership dues at any country club, private club, athletic club, golf club, tennis club or similar recreational organization
  • Participation in or attendance at golf, tennis or sporting events, without the advance approval of the chairman of the board or his designee
  • Purchase of golf clubs or any other sporting equipment
  • Spa or exercise charges
  • Clothing purchases

 

  • Business conferences and entertainment that are not approved by the Administrator or his or her designee
  • Valet service
  • Car washes
  • Toiletry articles
  • Expenses for spouses, friends or relatives. If a spouse, friend or relative accompanies a board member on a trip, it is the responsibility of the board members to determine any added cost for double occupancy and related expenses and to make the appropriate adjustment in the reimbursement request.
  1. GIFT ACCEPTANCE POLICIES AND GUIDELINES
  • Background.

The KEAC’s ability to fulfill and further enhance its mission is dependent on the generosity of donors. Gifts may be solicited and accepted from individuals, corporations, foundations, and federal, state, and local governments. Gift may be accepted only for programs, services and purposes consistent with the mission of the KEAC.

The following policies and guidelines govern acceptance of gifts made to the the KEAC or for the benefit of any of its programs.

  • Gift Acceptance Committee.

The KEAC’s Gift Acceptance Committee shall consist of at least two Board members appointed by the Board. The Gift Acceptance Committee is responsibile for reviewing all gifts made to the KEAC, properly screening and accepting those gifts, making recommendations to the Board of Directors on gift acceptance issues, as necessary and appropriate, and ensuring that all tax acknowledgement and reporting obligations are fulfilled.

  • Types of Gifts.

The KEAC may accept the following types of gifts:

  • Cash
  • Securities
  • Tangible Personal Property
  • Bargain Sales
  • Life Insurance
  • Charitable Remainder KEACs
  • Charitable Lead KEACs
  • Retirement Plan Beneficiary Designations
  • Bequests
  • Life Insurance Beneficiary Designations
  • Real Property
  • Remainder Interests in Real Property
  • Charitable Gift Annuities
  • Oil, Gas and Mineral Interests
  • Acceptance Criteria.

The following criteria govern the acceptance of each gift form:

  1. Cash. Cash is acceptable in any form. Checks shall be made payable to the KEAC and shall be delivered to the President, Administrator or Administrator. Gifts made by credit card may be charged on MasterCard or Visa.
  1. Securities. The KEAC may accept both publicly traded securities, defined as securities traded on a recognized national exchange in the United States (e.g., NYSE, NASDAQ, etc.) and closely held securities.
  1. Publicly Traded Securities. Publicly traded securities may be transferred to an account maintained 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 KEAC’s Board of Directors or its Investment Committee. In some cases marketable securities may be restricted by securities laws. In such cases the Gift Acceptance Committee shall determine whether to accept the restricted securities.
  2. Closely Held Securities. Closely held securities include not only debt and equity positions in non-publicly traded companies but also interests in limited partnerships and limited liability companies, or other ownership forms. Gifts of closely held securities can be accepted subject to the approval of the Gift Acceptance Committee. Such gifts must be reviewed prior to acceptance to determine:
  • What restrictions there may be on the security that could prevent the KEAC from ultimately converting these assets to cash;
  • Whether the security is generally marketable or may become marketable in the foreseeable future;
  • Whether the security will require any financial obligations to be assumed by the KEAC; and
  • Whether the security will generate any undesirable tax consequences for the KEAC.

 If potential problems arise on initial review of the security, the Gift Acceptance Committee may seek further review and recommendation by an outside professional, such as legal counsel, before making a final decision on acceptance of the gift. The Gift Acceptance Committee, subject to the advice of legal counsel as appropriate, shall make the final determination on the acceptance of closely held securities. Every effort will be made to sell closely held securities as quickly as possible.

The cost of reviewing closely held securities prior to acceptance by the KEAC shall generally be at the expense of the KEAC.

  1. Tangible Personal Property. The KEAC may accept gifts of tangible personal property (gifts-in-kind), to the extent that they can be utilized by the KEAC in fulfilling its charitable mission or are readily marketable. Gifts of tangible personal property shall be evaluated under the following criteria:
  • Does the property fulfill the mission of the KEAC?
  • Is the property marketable?
  • Are there any undue restrictions on the use, display, or sale of the property?
  • Are there any carrying costs for the property?

Gifts-in-kind shall be made pursuant to a “Deed of Gift” with a complete description of the item(s) being donated; an estimate of value; a statement that the donor(s) makes an unconditional gift of the item(s) and transfers not only legal and beneficial title, but also all other rights associated with the item(s); the donor(s) signature; date; and the signature of the KEAC representative accepting the gift. In case of a donation of an undivided fractional interest in art or other tangible property, the Deed of Gift must be notarized.

  1. Bargain Sales. The KEAC may enter into a bargain sale arrangement in instances in which the bargain sale furthers the mission and purposes of the KEAC. A bargain sale is a transaction in which a seller transfers property to the KEAC for a price that is less than the property’s fair market value, as determined by an independent appraisal, with the intention to donate the amount represented by the excess of the fair market value over the purchase price as a contribution to the KEAC. All bargain sales must be reviewed and approved by the Gift Acceptance Committee. Bargain sale transaction shall be subject to the following conditions: 
  • The KEAC must obtain an independent appraisal (in addition to any appraisal that the donor may be required to obtain for tax purposes) substantiating the value of the property.
  • If the KEAC assumes debt with the property, or takes the property subject to debt, the total amount of the debt must be less than 60 percent of the appraised market value of the property.
  • The KEAC must determine either that it will use the property, or that there is a market for sale of the property, allowing sale within 12 months of receipt.
  • The KEAC must calculate the costs to safeguard, insure, operate and carry the property (including property tax, if applicable) during the anticipated holding period.
  1. Life Insurance. Donors and supporters of the KEAC will be encouraged to name the KEAC as beneficiary or contingent beneficiary of their life insurance policies. The KEAC may accept only whole life insurance policies; term life policies may not be accepted. The donor may make additional gifts of cash to cover premium payments on the life insurance policy. If the donor does not do so, or ceases to do so, the KEAC may:
  • continue to pay the premiums;
  • convert the policy to paid up insurance; or
  • surrender the policy for its current cash value.
  1. Charitable Remainder KEACs. the KEAC may accept designation as remainder beneficiary of a charitable remainder KEAC with the approval of the Gift Acceptance Committee. the KEAC will not accept an appointment as Trustee of a charitable remainder KEAC.
  2. Charitable Lead KEACs. the KEAC may accept a designation as income beneficiary of a charitable lead KEAC with the approval of the Gift Acceptance Committee. the KEAC will not accept an appointment as Trustee of a charitable lead KEAC.
  3. Retirement Plan Beneficiary Designations. Donors and supporters of the KEAC will be encouraged to name the KEAC as beneficiary of their retirement plans.
  4. Bequests. Donors and supporters of the KEAC will be encouraged to make bequests to the KEAC under their wills and KEACs. The provisions of these policies and guidelines shall apply to all bequests received by the KEAC for any of its programs or services.
  5. Real Property. Gifts of real property may include developed property, undeveloped property, or gifts subject to a prior life interest. Prior to acceptance of real property, the the KEAC shall require an initial environmental review of the property to ensure that the property has no environmental damage. In the event that the initial inspection reveals a potential problem, the the KEAC shall retain a qualified inspection firm to conduct an environmental audit. The cost of the environmental audit shall generally be an expense of the donor.

When appropriate, the KEAC will obtain a title binder prior to accepting the real property gift. The cost of the title binder shall generally be an expense of the donor.

Gifts of real property shall be transferred by means of a Statutory Warranty Deed, Special Warranty Deed, or Bargain and Sale Deed. The KEAC generally does not accept transfers by Quit Claim Deed.

Gifts of real property must be approved by the Gift Acceptance Committee in consultation with the the KEAC’s legal counsel. Criteria for acceptance of real property shall include:

  • Is the property useful for the purposes of the the KEAC?
  • Is the property marketable?
  • Are there any restrictions, reservations, easements, or other limitations associated with the property?
  • Are there carrying costs, which may include insurance, property taxes, mortgages, or notes, etc., associated with the property?
  • Does the environmental audit reflect that the property is not damaged?
  • What is the degree of the costs and risks associated with any mitigation or clean up identified in the environmental audit are appropriate for the KEAC to assume given the value of the property and/or other commitments made by the donor?
  • Is the property the subject of litigation or other dispute?
  1. Remainder Interests in Real Property. The KEAC may accept a remainder interest in a personal residence, farm, or vacation property subject to the provisions of paragraph 10 above. The donor or other occupants may continue to occupy the real property for the duration of the stated life. At the death of the donor, the the KEAC may use the property or reduce it to cash. Where the the KEAC receives a gift of a remainder interest, expenses for maintenance, real estate taxes, and any property indebtedness are to be paid by the donor or primary beneficiary.
  2. Oil, Gas, and Mineral Interests. The KEAC may accept oil and gas property interests, when appropriate. Prior to acceptance of an oil and gas interest the gift shall be approved by the Gift Acceptance Committee in consultation with the the KEAC’s legal counsel. Criteria for acceptance of the property shall include:
  • Gifts of surface rights should have a value of $20,000 or greater.
  • Gifts of oil, gas, and mineral interests should generate at least $3,000 per year in royalties or other income (as determined by the average of the three years prior to the gift).
  • The property should not have extended liabilities or other considerations that make receipt of the gift inappropriate.
  • The KEAC generally will not accept working interests. A working interest may be accepted only where when there is a plan to minimize potential liability and tax consequences.
  • The property should undergo an environmental review to ensure that the KEAC has no current or potential exposure to environmental liability.
  • Use of Legal Counsel.

The KEAC shall seek the advice of legal counsel in matters relating to acceptance of gifts, when appropriate. Review by counsel is recommended for:

  • Closely held stock transfers that are subject to restrictions or buy-sell agreements.
  • Gifts of S corporation stock.
  • Documents naming the KEAC as a Trustee.
  • Gifts involving contracts, such as bargain sales or other documents requiring the KEAC to assume an obligation.
  • Transactions with potential conflict of interest, e.g., a gift of encumbered property by a director, Trustee or officer.
  • Gifts of real property, particularly those which reveal any potential environmental liabilities.
  • Other instances in which use of counsel is deemed appropriate by the Gift Acceptance Committee
  • Independent Advice for Donors.

The KEAC urges all prospective donors to seek the assistance of personal legal and financial advisors in matters relating to their gifts and the resulting tax and estate planning consequences. The KEAC may not act as a personal consultant or tax advisor to any donor. It is the responsibility of the donor to obtain, and bear the costs of, independent legal counsel. The KEAC will comply with the Model Standards of Practice for the Charitable Gift Planner promulgated by the National Committee on Planned Giving (NCPG), attached as Attachment B.

  • Restrictions on Gifts.

The KEAC will accept unrestricted gifts, gifts for specific programs and purposes, and gifts for endowment provided that such gifts are deemed to be consistent with its stated mission, purposes and priorities. The KEAC will not accept gifts that are overly restrictive in purpose. Gifts that are overly restrictive are those that violate the terms of the corporate charter, gifts that are too difficult to administer, or gifts that are for purposes outside the mission of the KEAC. All final decisions on the restrictive nature of a gift, and its acceptance or refusal, shall be made by the Gift Acceptance Committee.

  • Tax Law Compliance
  1. Gift Acknowledgments.
  1. The CEO or his or her designee shall be responsible for acknowledging all gifts made to the KEAC.
  2. The KEAC shall provide written acknowledgements to all donors, regardless of amount. Such acknowledgements shall (a) state the amount of cash received or, in the case of gifts of property, describe (but not value) the property; and, for gifts other than “quid pro quo” gifts, shall state: “You received no goods or services in connection with your gift.”
  3. In the case of “quid pro quo” gifts, i.e., gifts in which the donor receives something of value in exchange for the gift, the KEAC shall provide written acknowledgement for all gifts of more than $75. Such acknowledgements shall (a) state the amount of cash received or, in the case of gifts of property, describe (but not value) the property; (b) describe the goods and/or services provided to the donor, along with a good faith estimate of their value; and (c) state that only the excess over such value is deductible by the donor as a charitable contribution. E.g.: “Thank you for your gift of $200. You received a dinner with a value of $50. $150 of your gift may be deducted as a charitable contribution, subject to applicable limits.”
  1. Appraisals. For a gift of property for which a donor claims a charitable contribution deduction of more than $5000, the donor must obtain a qualified appraisal, as defined in Treasury Regulations. The cost of any such appraisal shall be borne by the donor. The appraisal must be obtained no earlier than 60 days before the date of contribution of the appraised property and no later than the due date, including extensions, of the tax return on which the donor first claims the deduction.
  1. IRS Tax Form 8283: Donor Reporting. A donor who claims a deduction for non-cash property of more than $500 must file a Form 8283 with the tax return on which the donor claims the deduction for the property. While it is the donor’s responsibility to file the form, the form requires a signature on behalf of the KEAC to acknowledge receipt of the property. The form does not require the KEAC to include a certification as to the value of the property. This form must be signed by the KEAC’s President.
  2. IRS Tax Form 8282: Reporting Sales of Gift Assets. The Administrator is responsible for filing IRS Form 8282 upon the sale or disposition of any asset sold within three years of receipt by the KEAC when the value of the item claimed on Form 8283 exceeds $5,000. The KEAC must file this form within 125 days of the date of sale or disposition of the asset.
  1. RECORD RETENTION POLICIES
  • Purpose. 

These guidelines are intended ensure that the KEAC retains its records in accordance with the requirements of all applicable laws and for as long as they are required in the conduct of the KEAC’s business. They recommend the length of time official records should be retained under ordinary circumstances, as well as the steps that the KEAC should take in the event of any pending or imminent government (federal, state, or local) investigation, audit or proceeding, civil or criminal lawsuit involving the KEAC.

  • Supervision of Record Retention Effort.

The KEAC will appoint a Record Retention Supervisor. The Record Retention Supervisor will oversee compliance with these guidelines and respond to all questions and concerns related to record retention and destruction. In general, the KEAC expects staff to follow these guidelines, unless they have consulted with the Record Retention Supervisor and he/ she has approved or instructed deviations from these guidelines.

  • General Procedures.

In general, records relating the specific categories listed on the Recommended Record Retention and Destruction Schedule attached as Attachment C (the “Schedule”) should be: (1) retained for the length of time provided on the schedule and (2) destroyed at the end of such period; unless the Principal Records Supervisor approves or instructs staff to use alternative procedures for a particular type or category of record.

  • Variance from Guidelines and Schedules.

The Record Retention Supervisor may approve or instruct staff to use alternate procedures with respect to any category or form of record on the basis of special circumstances or conditions. Where variances are substantial, the Record Retention Supervisor shall provide written notice of the alternative procedures and the reason for them to the KEAC’s President.

  • Forms of Records to Which These Guidelines Apply.

The categories of records listed on the Schedule encompass records created and stored in any form or media, including but not limited to:

  • handwritten, typed, or printed paper documents;
  • electronic documents (e.g. email, web sites, zip files, CD rom or diskettes)
  • video or digital images;
  • recorded audio material;
  • graphic representations; and
  • information contained on network servers and/or document management systems.
  • Record Storage Procedures. 
  1. Organization of Records. In order to facilitate easy administration of these guidelines, records should generally be organized and stored according to the general records categories set forth in the attached Schedule.
  2. Dating of Records. Categories of records that the KEAC need not retain on a permanent basis (according to the Schedule) should be conspicuously dated. This will enable such documents to be easily identified for destruction at the end of the record retention period recommended in the Schedule.
  3. Confidentiality of Records. Records containing confidential information should be properly labeled and should identify those KEAC staff members with the authorization to view such records.
  4. Special Notice on Confidentiality of Email Records. The KEAC staff should be informed that any the KEAC email, regardless of the nature of the content, may be subject to disclosure in the course of a government investigation or litigation involving the KEAC. Further, the KEAC management may review any the KEAC email at any time.
  5. Organization of Records not Covered by the Schedule. Categories of records not specifically addressed in the Schedule may be stored in a manner that best facilitates the efficient administration of the KEAC activities.
  6. Conversion of Paper Documents to Electronic Record Form. The conversion of any paper document to electronic form is acceptable, unless the existence of a particular copy has official significance, such as the original copy of a signed, executed agreement or the original copy of a document filed or recorded with a governmental entity.
  7. Identifying Official Copies of Records. Once a record is in final form, generally, an “official copy” should be identified, dated, labeled and properly stored in the KEAC’s official files or other appropriate record management system. Other copies may be retained in the personal desk files of the KEAC staff, if retaining such copies facilitates the effective administration of the KEAC business.
  • Document Destruction Procedures.
  1. Record Destruction Procedures. Once records have been retained for the applicable period set forth in the Schedule, they should be prepared for destruction in the manner prescribed by the Records Retention Supervisor, unless the Supervisor has suspended the destruction of a class of records for any reason, in accordance with Section 4 or Section 6(c).
  2. Destruction of Personal Copies. Where the KEAC staff members retain personal copies of records in their desk files in accordance with Section 5(g), such copies should be destroyed at the same time as the official copy of the record absent special permission from the Records Retention Supervisor.
  3. Suspension of Record Destruction. In the event that any member of the KEAC staff becomes aware of imminent or pending government (federal, state or local) investigations, audits, proceedings or any lawsuits involving the KEAC, he or she should immediately report such information to the Principal Records Supervisor. The KEAC staff should not make any independent determinations concerning the suspension of record destruction procedures. The Principal Record Supervisor, in consultation with the KEAC’s President and legal counsel, shall make a determination as to whether it is necessary to suspend destruction for any class of records for any reason and shall provide prompt notice to the KEAC staff of any deviations from the Schedule.

Destruction of Other Records. Those categories of records that are not listed in the Schedule may be destroyed at such time and in a manner that best facilitates the efficient administration of the KEAC activities, as instructed by the Records Retention Supervisor.

  1. E. FRAUDULENT OR DISHONEST CONDUCT AND COMPLAINT REPORTING PROCEDURE
  • Policy.

The KEAC will investigate complaints of fraudulent or dishonest use or misuse of the KEAC’s resources or property by management, staff, volunteers, trustees, officers or members. Management and staff found to have engaged in fraudulent or dishonest conduct are subject to corrective action by the KEAC. Anyone, whether an employee or non-employee, may face civil actions or referrals to criminal prosecution if their conduct warrants such action.

All members of the KEAC community are encouraged to report possible fraudulent or dishonest conduct (i.e., a complainant). An employee should report such concerns to the employee’s supervisor. If for any reason an employee finds it difficult to report his or her concern to his or her supervisor, the employee must report it directly to the President or the Administrator. Non-employees must report their concerns directly to the President or the Administrator. Should a complaint implicate the person to whom this policy requires it to be reported, the complaint must be reported to an officer or director of the KEAC who is not implicated.

  • Definitions.
  1. Baseless Allegations: allegations made in bad faith or with reckless disregard for their truth or falsity. Employees making such allegations may be subject to corrective action, and anyone, whether an employee or non-employee, who makes baseless allegations may be subject to legal claims by individuals recklessly accused of such conduct.
  2. Fraudulent or Dishonest Conduct: a deliberate act or failure to act with the intention of obtaining an unauthorized benefit (collectively referred to as “misconduct”). Examples of such misconduct include, but are not limited to:
  • Forgery or alteration of documents
  • Unauthorized alteration or manipulation of computer files
  • Fraudulent financial reporting
  • Pursuit of a benefit or advantage in violation of the KEAC’s conflict of interest policy
  • Misappropriation or misuse of the KEAC resources, such as funds, supplies, or other assets
  • Authorizing or receiving compensation for goods not received or services not performed
  • Authorizing or receiving compensation for hours not worked, or failing to account for unworked (but paid) hours as vacation, sick leave or other paid time off.
  1. Complainant: an employee or non-employee who informs his or her supervisor or an officer or director about conduct which that person in good faith believes to be fraudulent or dishonest.
  • Rights and Responsibilities.
  1. Employees. Complainants are responsible for being candid, setting forth all known information regarding suspected misconduct to the investigator who is designated by the Administrator or the Board. Investigations may not proceed if the complainant refuses to be interviewed by the investigator or refuses to provide information regarding the complaint. Complainants should not conduct investigation activities themselves, nor do they have the right to participate in investigation activities, unless requested by the investigator. Complainants must refrain from obtaining evidence relating to a complaint for which they do not have a right of access. Such improper access may itself be misconduct and may result in corrective action. Complainants should also refrain from discussing the investigation or their testimony with those not connected to the investigation. Employees who are not complainants, but who are interviewed as part of an investigation, are expected to not discuss the nature of the evidence or any testimony given in the investigation except with the investigator, or unless otherwise authorized by the investigator.

 Managers and supervisors are responsible for maintaining systems of management control which detect and deter fraudulent or dishonest conduct. Failure by a manager or supervisor to establish and monitor such controls, or failure to report misconduct within the scope of this policy may result in corrective action against the manager or supervisor, up to and including dismissal. The Administrator is available to assist other management team members in establishing systems and recognizing misconduct. The KEAC shall maintain files of investigations undertaken under this policy. If complaints of misconduct under this policy are oral, the person receiving the report shall memorialize the substance of the complaint in writing and include that summary in the investigation file. Access to the investigation file should be limited to the investigation team and the KEAC’s attorneys.

 Reasonable care should be taken in dealing with suspected misconduct to avoid:

  • Baseless allegations
  • Premature notice to persons suspected of misconduct and/or disclosure of suspected misconduct to others not involved in the investigation
  • Violations of a person’s rights under law

 

An employee who is concerned about suspected misconduct: 

  • Should not contact the person suspected to further investigate the matter or demand restitution
  • Should not discuss the suspected misconduct with anyone other than the employee’s supervisor, officers of the KEAC having responsibility for the investigation, directors of the KEAC, the KEAC’s attorneys, or a duly authorized law enforcement officer
  • Should direct all inquiries from an attorney retained by the suspected individual to the KEAC’s attorneys
  • Should direct all inquiries from the media to the KEAC’s President, or in the event the President cannot be located, to the Board Chair or the KEAC’s attorneys.
  • No Retaliation.

The KEAC will protect complainants who in good faith report suspect fraudulent and dishonest contact as follows

  • The KEAC will use best efforts to protect complainants against retaliation. It cannot guarantee confidentiality, however, and there is no such thing as an “unofficial” or “off the record” report. The KEAC will keep the complainant’s identity confidential to the extent practical. Confidentiality may not be maintained where: (1) the person agrees to be identified or otherwise self-discloses his or her identity; (2) identification is necessary to allow the KEAC or law enforcement officials to investigate or respond effectively to the complaint; (3) identification is required by law; or (4) the person accused of violating this policy is entitled to the information as a matter of legal right in disciplinary proceedings.
  • The KEAC employees may not retaliate against a complainant with the intent or effect of taking an adverse personnel action. Adverse personnel actions may include, but are not limited to, workplace discipline, termination, demotions, or reductions in compensation. Complainants who believe that they have been retaliated against must complain to either the President or the Board Chair. A proven complaint of retaliation shall result in a proper remedy for the person harmed and disciplinary action against the retaliating person. This protection from retaliation is not intended to prohibit management from taking action, including disciplinary action, in the usual course of their duties based on valid performance-related factors.
  • Complainants must be cautious to avoid baseless allegations (as defined above). Intentionally filing baseless allegations is improper and may result in corrective action.
  • Complainants’ right to protection from retaliation does not extend to immunity from any complicity in the matters that are the subject of the complaint or ensuing investigation.

Attachment A

CONFLICTS OF INTEREST REPORTING FORM

Instructions: As required by the The Kahuku Foundation Board of Directors Conflicts of Interest Policy, each Board member (as well as persons who serve in similar capacities in subsidiaries of KEAC) is required to disclose any potential or real conflict of interest. As part of that process, please complete the following Conflicts of Interest Reporting Form to the best of your knowledge.

 

Purpose of this Questionnaire

The Conflicts of Interest Policy adopted by the Board of Directors of The Kahuku Foundation (“KEAC”) requires disclosure of certain interests. It is not uncommon to have these interests, but it is very important to make them known to KEAC.

 

Use this questionnaire to disclose where you or your Family Members have certain affiliations, interests or relationships, and/or have taken part in transactions that, in light of your relationship with KEAC, might possibly give rise to an actual, apparent or potential conflict of interest.

 

Instructions for completing this Questionnaire

 

  1. Please read the Conflicts of Interest Policy and know the definitions for terms in this Questionnaire.
  2. Answer all questions. Please do not leave any questions blank if the correct response is “no.”
  3. Where this Questionnaire refers to “you,” it is also referring separately to each of your Family Members. For purposes of this Questionnaire, the definition of “Family Member” is extremely inclusive. “Family Member” includes: a spouse, significant other or domestic partner, father, hanai father, stepfather, father-in-law, mother, hanai mother, step-mother, mother-in-law, brother, step-brother, brother-in-law, sister, step-sister, sister-in-law, son, step-son, son-in-law, daughter, step-daughter, daughter-in-law, child related by adoption or guardianship, hanai child, grandmother, grandfather or grandchild.
  4. Your response should indicate whether you are disclosing your interest or that of a Family Member (and, in the case of a Family Member, the nature of your relationship with that Family Member).
  5. Disclose all possible interests that currently exist, even if you previously reported them. A potential Conflicts of Interest can arise from many circumstances, not just those described in this Questionnaire. You must report to the Board any relationship that creates an interest that occurs between now and the completion of the next annual Questionnaire. Any potential conflicts of interest that arise after the questionnaire has been completed should be immediately reported to the Secretary of the Board (for in the case of conflicts pertaining to the Board Secretary, to the Board Chair).
  6. Complete the questionnaire, date it and sign the affirmation at the end of the document.

 

CONFLICTS OF INTEREST QUESTIONNAIRE AND ACKNOWLEDGEMENT

NAME: _________________________________________________________

In accordance with the purposes and intent of the Conflicts of Interest Policy adopted by the Board of Directors of The Kahuku Foundation (“KEAC”), a copy of which has been furnished to me, I hereby disclose that I or my Family Members have the following affiliations, interests or relationships, and/or have taken part in the following transactions:

  • BACKGROUND
  1. I hold the following position(s) and/or have the following relationship with KEAC:

 

________________________________________________________________

  • OUTSIDE INTERESTS
  1. Do you or any Family Member (see instructions, #3) hold, directly or indirectly:
  1. An ownership or investment interest in a company that does business or may do business with, or that competes with KEAC?

_____ No

_____Yes – Explain below

  1. A compensation arrangement with any Company that does or may do business with, or that competes with KEAC?

Examples: direct or indirect remuneration as well as gifts or favors that are substantial in nature, the forgiveness of any debt, in-kind transactions, and any other remuneration, benefit, or compensation that provides a thing of value to the recipient.

_____No

_____Yes – Explain below

  1. A director, trustee, officer or board committee position with any other company or organization that does or may do business with, or competes with KEAC (including competition for grants or donations)?

_____No

_____Yes – Explain below

  1. Any personal loans, advances or other indebtedness to or from anyone who also does or may do business with KEAC?

(Note: You may exclude charge cards and personal or mortgage loans at market rates from financial institutions)

 _____No

 _____Yes – Explain below

  1. Do you or any Family Member compete, directly or indirectly, with KEAC in the purchase or sale of property rights, interests or services?

_____No

_____Yes – Explain below

 

Do you or any Family Member provide managerial, consultative or other services to or on behalf of any other Company that does or may do business with, or that competes with the services of KEAC?

_____No

_____Yes – Explain below

  1. Do you or any Family Member employ or otherwise retain any KEAC personnel for work on non-KEAC business done outside of KEAC?

 _____No

_____Yes – Explain below

  1. Have you or any Family Member used KEAC property to conduct business that is not KEAC business, without prior approval of an executive of KEAC?

_____No

_____Yes – Explain below

 

  1. Are you or any Family Member an employee, a member or in any way affiliated with any labor union that has a collective bargaining agreement, or will be seeking a collective bargaining agreement with KEAC?

_____No

_____Yes – Explain below

  1. Do you or any Family Member know of any recent or pending actions, suits or proceeding in which you have an interest adverse to the interests of, or are a party adverse to KEAC?

 _____No

 _____Yes – Explain Below

 

  • GIFTS, GRATUITIES AND ENTERTAINMENT

Have you or any Family Member accepted gifts, or other favors from any person or company under circumstances (other than gifts or other favors of nominal value which are clearly tokens of respect and friendship unrelated to any particular transaction) from which someone might think that such action was intended to influence you in the performance of your duties on behalf of KEAC?

_____No

_____Yes – Explain below

 

  • OTHER

In the space below, please disclose any other interest, activities, investments or involvement that you think might be relevant for full disclosure of all actual, apparent or possible conflicts of interest. If none, indicate “none.”

AFFIRMATION

I hereby state that:

  1. I have received a copy of the KEAC Conflicts of Interest Policy,
  2. I have read and understand the Policy,
  3. I agree to comply with the Policy,
  4. I agree to report to the appropriate person (1) any change in the responses to each of the foregoing questions that may result from changes in circumstances or (2) any further financial interest, situation, activity, interest or conduct that develop before completion of my next annual Questionnaire, and
  5. The information contained in this Questionnaire is true and accurate to the best of my knowledge and belief as of the date below.

Signed: _________________________________________________

Print Name: _____________________________________________

Date: ________________________________________________

Attachment B

THE KAHUKU FOUNDATION

MODEL STANDARDS OF PRACTICE FOR THE CHARITABLE GIFT PLANNER

Preamble

The purpose of this statement is to encourage responsible gift planning by urging the adoption of the following Standards of Practice by all individuals who work in the charitable gift planning process, gift planning officers, fund raising consultants, attorneys, accountants, financial planners, life insurance agents and other financial services professionals (collectively referred to hereafter as “Gift Planners”), and by the institutions that these persons represent.

This statement recognizes that the solicitation, planning and administration of a charitable gift is a complex process involving philanthropic, personal, financial, and tax considerations, and often involves professionals from various disciplines whose goals should include working together to structure a gift that achieves a fair and proper balance between the interests of the donor and the purposes of the charitable institution.

  • Primacy of Philanthropic Motivation

The principal basis for making a charitable gift should be a desire on the part of the donor to support the work of charitable institutions.

  • Explanation of Tax Implications

Congress has provided tax incentives for charitable giving, and the emphasis in this statement on philanthropic motivation in no way minimizes the necessity and appropriateness of a full and accurate explanation by the Gift Planner of those incentives and their implications.

  • Full Disclosure

It is essential to the gift planning process that the role and relationships of all parties involved, including how and by whom each is compensated, be fully disclosed to the donor. A Gift Planner shall not act or purport to act as a representative of any charity without the express knowledge and approval of the charity, and shall not, while employed by the charity, act or purport to act as a representative of the donor, without the express consent of both the charity and the donor.

  • Compensation

Compensation paid to Gift Planners shall be reasonable and proportionate to the services provided. Payment of finder’s fees, commissions or other fees by a donee organization to an independent Gift Planner as a condition for the delivery of a gift is never appropriate. Such payments lead to abusive practices and may violate certain state and federal regulations. Likewise, commission-based compensation for Gift Planners who are employed by a charitable institution is never appropriate.

  • Competence and Professionalism

The Gift Planner should strive to achieve and maintain a high degree of competence in his or her chosen area, and shall advise donors only in areas in which he or she is professionally qualified. It is a hallmark of professionalism for Gift Planners that they realize when they have reached the limits of their knowledge and expertise, and as a result, should include other professionals in the process. Such relationships should be characterized by courtesy, tact and mutual respect.

  • Consultation with Independent Advisers

Gift Planner acting on behalf of a charity shall in all cases strongly encourage the donor to discuss the proposed gift with competent independent legal and tax advisers of the donor’s choice.

  • Consultation with Charities

Although Gift Planners frequently and properly counsel donors concerning specific charitable gifts without the prior knowledge or approval of the donee organization, the Gift Planner, in order to insure that the gift will accomplish the donor’s objectives, should encourage the donor early in the gift planning process, to discuss the proposed gift with the charity to whom the gift is to be made. In cases where the donor desires anonymity, the Gift Planner shall endeavor, on behalf of the undisclosed donor, to obtain the charity’s input in the gift planning process.

  • Description and Representation of Gift

The Gift Planner shall make every effort to assure that the donor receives a full description and an accurate representation of all aspects of any proposed charitable gift plan. The consequences for the charity, the donor and, where applicable, the donor’s family, should be apparent, and the assumptions underlying any financial illustrations should be realistic.

  • Full Compliance

A Gift Planner shall fully comply with and shall encourage other parties in the gift planning process to fully comply with both the letter and spirit of all applicable federal and state laws and regulations.

  • Public KEAC

Gift Planners shall, in all dealings with donors, institutions and other professionals, act with fairness, honesty, integrity and openness. Except for compensation received for services, the terms of which have been disclosed to the donor, they shall have no vested interest that could result in personal gain.

Adopted and subscribed to by the National Committee on Planned Giving and the American Council on Gift Annuities, May 7, 1991. Revised April 1999. Reprinted with permission.

Attachment C

THE KAHUKU FOUNDATION

RECORD RETENTION & DESTRUCTION SCHEDULE

Principal Record Retention Supervisor:

 

_________________________________________

  • Program & Administration Records
    Record Manager:
Grant applications or proposals accepted by the KEAC 7 years
Denied grant applications or proposals 3 months
Grant award letters or grant agreements and addendums 7 years
Final financial and narrative reports submitted by grantees
Internal investigations regarding grants
Documents related to returned grant funds
Inventories of products, materials, supplies
Other correspondence with grantees (program files) 3 months after grant is closed
Educational materials, public relations and solicitation materials created by the KEAC 7 years
Donor gift agreements Permanently
Donor Receipts 7 years
Other Correspondence with Donors 3 years
  • Accounting and Finance Records
    Record Manager:
Ledgers and schedules 7 years
Accounts receivables ledgers and schedules 7 years
Audit reports Permanently
Bank reconciliations 3 years
Bank statements 7 years
Capital stocks and bonds records Permanently
Cash books Permanently
Charts of accounts Permanently
Checks 7 years
Canceled checks for important payments, i.e., taxes, purchases of property, etc. Permanently
Vouchers for payments to vendors, employees (i.e. allowances, reimbursements, travel and entertainment expenses) 7 years

 

 

  • Tax Records
    Record Manager:
Tax recordsEmployee Tax Records (Forms 941, W-3, W-2’s, W-2P)

Independent Contractors & Transactions (Forms 1099, 1096)

Donors (Form 8283)

7 years
Form 990 and Supporting Documents Permanently
IRS Correspondence Permanently
  • Human Resources Records
    Record Manager:
Personnel Records Tenure of employee, plus 7 years
Retirement and Retention Plans Tenure of employeeplus 7 years
Payroll Tenure of employee, plus 7 years
Training Manuals (along with the dates that they were in effect) Permanently
Employee Benefits Records Tenure of employee plus 7 years
Immigration Records Tenure of employeeplus 7 years
Time Sheets Tenure of employee plus 7 years
Employee Health & Safety Records Tenure of employee plus 7 years
  • Property Records
    Record Manager:
Trademark Registrations & Copyrights Permanently
Equipment Records Ownership of Property plus 7 years
Facilities & Real Estate (Deeds)(Leases) PermanentlyLife of lease plus 7 years
  • Legal Records
    Record Manager
Correspondence with State Regulators Permanently
State Charitable Solicitation Reports Permanently
Litigation related documents Permanently
Opinion letters from counsel or compensation consultants Permanently
Articles of Incorporation and Amendments Permanently
Certificates of Authority Permanently
Bylaws & Amendments Permanently
Board Minutes & Unanimous Consents Permanently

 

 

  • Insurance Records
    Record Manager:
Insurance Policies:D& O Insurance

Employee Health & Life Insurance Plans

Property & Casualty Insurance

Life of policy plus 7 years
Insurance records (i.e., accident reports, claims) Permanently
  • Contract Records
    Record Manager:
Expired: contracts, mortgages, notes and leases 7 years
Still in Effect: contracts, mortgages, notes and leases Permanently

 

 

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