1.0 Dechomai Foundation, Inc. and Dechomai Asset Trust
Dechomai Foundation, Inc. and Dechomai Asset Trust (Dechomai) are federally-recognized 501(c)3 nonprofit organizations established to assist individuals and companies in making charitable donations of assets that have traditionally been difficult for many charities to accept – hereafter referred to as non-cash assets (defined in 4.4 & 4.5, below). Dechomai is recognized as a tax- exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code (IRC) of 1986, as amended. Dechomai’s operations are subject to the terms and conditions of Dechomai’s Articles of Incorporation and Declaration of Trust and these Policies & Procedures. Dechomai reserves the right to modify the terms of its governing documents or these Policies & Procedures at any time, Dechomai’s Board of Directors or Trustees will notify impacted parties of any material changes within 30 days.
2.0 Account Establishment and Administration
2.1 All new donors making donations must complete and submit the signed agreements titled “Memo of Understanding for Donations of Illiquid Assets” and Donor Advised Fund Agreement,”either by fax or mail, at the time of their initial donation.
2.2 The minimum initial irrevocable donation is $100,000 unless this requirement is waived by the Board of Directors or Trustees.
2.3 Dechomai is the record-keeper for all donations, investments and grants made.
2.4 The mailing address for donations is Dechomai Foundation, Inc.; 3713 Pine Street; Jacksonville, FL
3.0 Eligible Donors
3.1. Dechomai will accept donations from individuals, charities, private foundations, corporations, partnerships, LLCs, trusts, and estates.
4.0 Donations and Balances
4.1 Donations are irrevocable and unconditional. Once Dechomai accepts a donation, it is not refundable and becomes the legal property of Dechomai. Dechomai, through its Board of Directors / Trustees, has the ultimate authority and control of each account in its entirety. A donor may not impose any material restriction or condition that prevents Dechomai from freely and effectively employing the accounts and any donated assets for solely charitable purposes.
4.2 In the event there is no account activity or donor contact for a period of two years after liquidation; these funds will be added to the Dechomai Director’s Account that makes donations to charities selected by Dechomai’s Board of Directors.
4.3 Dechomai may accept donations of cash or publicly-traded securities (including stocks, mutual fund shares, and bonds). Cash donations must be denominated in U.S. dollars and delivered by check, electronic funds transfer, or wire.
4.4 Dechomai will accept restricted stock, subject to the marketability of the securities and the approval of the issuer concerning the sale of such securities. If approval is denied, or in the event the securities are not saleable within a reasonable time period (as Dechomai determines), the donation will not be accepted and the securities will be returned to the donor.
4.5 Dechomai will accept other non-cash assets, including but not limited to real estate, limited partnership interests, restricted securities, closely-held or privately-held companies, cryptocurrency, art and collectibles, and any other asset that Dechomai deems acceptable.
4.6 Dechomai will review all donations prior to acceptance. Once Dechomai accepts and receives the donation, a written receipt will be sent to the donor stating the date and description of the gift, including amount (if cash), number of shares (if a security), or other relevant identifying details. Dechomai will endeavor to provide the donor all necessary documentation should the donation come in the form of non-cash assets (as defined in 4.4 & 4.5, above). It is ultimately, however, the responsibility of the donor and his/her representatives to determine the value of the gift for charitable deduction The donor accepts the risk of any adverse or unplanned tax, legal, or financial consequence as a result of the donation.
4.7 Dechomai will liquidate all donated assets as soon as prudent, with a goal of achieving the highest price Dechomai will keep the donor informed throughout the liquidation process.
4.8 All donations are the property of Dechomai, which will invest said donations or proceeds thereof as the Board deems appropriate. All investment income between the sale and grant date (typically 30 days after sale) accrues to the benefit of Dechomai. Funds are invested in a FDIC insured money market account.
5.0 Timing of Donations
5.1 A charitable donation is usually considered complete for tax purposes when the donated property is beyond the donor’s control and when it is under the absolute control of the charitable grantee (Dechomai).
5.2 Donations made by check are considered effective when there is an unconditional delivery of the check. When donations are made via U.S. Mail, the donation will be effective on the postmarked date. Dechomai recommends that the donor use a form of certified delivery/return receipt which records both the date the donation is sent and proves that Dechomai received the donation.
5.3 Donations made by electronic funds transfer or wire transfer are effective on the date the donation is credited to Dechomai’s account.
5.4 The effective date of donations of marketable securities depends on whether such securities are held in certificate or “street name” form (see 5.4.1 and 5.4.2 below).
5.4.1 For securities held in certificate form, the donation is effective on the date the certificate is re-registered to Dechomai, or when the donor makes unconditional delivery of certificates that have been properly endorsed complete with medallion guaranteed stock power forms.
5.4.2 Donations of securities held in “street name” form are effective on the date the transfer is irrevocably credited to Dechomai’s account. A donor’s instructions to a broker to make a transfer of securities do not make that donation effective for tax purposes.
5.5 Any illiquid asset donations are generally considered complete when the property has been assigned/deeded to the charity, and the appropriate forms have been executed properly to validate the transfer.
6.0 Investing Donations
6.1 Dechomai will invest donations in investments that Dechomai’s Board of Directors select. Dechomai has sole responsibility and authority for investing Dechomai’s assets and may change the composition of the investments at any time.
6.2 Changes in market values may cause the value of illiquid investments to be worth more or less than the value of the original donation to Dechomai.
7.1 Donors, as fund advisors, or their successor advisors have the authority to recommend grants to charitable organizations.
7.2 In general, individual donors can claim an itemized tax deduction for charitable cash donations in an amount up to 60% of adjusted gross income (AGI) in the tax year when the donations are made. Deductions for donations of securities, mutual fund shares, real estate and many other illiquid assets held for more than one year by the donor are generally deductible at full, fair market value, but the deduction is limited to 30% of AGI per year. Any excess donation may be carried forward and deducted in the five-year period following the year of the donation. For donations of securities or mutual fund shares held for one year or less, the deduction is generally limited to the security’s basis up to 50% of AGI. A donor’s ability to deduct itemized deductions may be subject to further limitations depending upon the donor’s specific tax situation. Special deduction limitations may apply to donations of tangible personal property. Neither Dechomai, its employees, nor agents has offered or will ever offer tax, financial, or legal advice to donors. In every situation, including evaluating these policies, donors are encouraged to seek their own independent Donors may be required to obtain a qualified appraisal from a third-party appraiser or valuation firm to substantiate their donation’s value for tax purposes.
7.3 Income and interest that accrues to an account, following liquidation, is included in that account’s value and belongs to Dechomai. This income does not constitute income to the donor(s), and does not qualify for an additional charitable deduction by the donor(s). Any income such as dividends or rents received prior to liquidation inure to the donor’s fund with no additional fee.
7.4 Donations to Dechomai are not part of a donor’s taxable estate and are not subject to estate taxes or probate. Similarly, balances in an account may not be bequeathed to any person or organization. Donors may, however, appoint a successor advisor to their specific donor advised fund.
8.1 Donors can recommend grants to charitable organizations by completing a Grant Recommendation Form. If Dechomai approves the recommendation, it will distribute the grant to the donor’s suggested charitable Dechomai may, in its sole judgment and discretion, withhold all or some portion of the amount available to grant if there is an outstanding and undetermined tax, legal, or financial liability.
8.2 Grants will be made only to S. charitable organizations that are tax-exempt public charities, or to U.S. state or local government organizations qualified to receive tax-deductible charitable donations, including colleges or universities.
8.3 Dechomai will not approve recommendations that are directed to: foreign charitable organizations; organizations that support lobbying, political campaigns, or other political activities; fulfill a donor’s legally-binding pledge; provide private benefit to the donor or any other related individual; to any charities on the terror watch list; a private foundation (except in limited circumstances); or for any purpose not entirely charitable. Grants may not be used for: school tuition; to support fund-raising dinners; to buy tickets to charitable events, concerts, auctions, or other benefit function where the donor would receive any value for the gift (i.e.: meal, service, product, etc.).
8.4 Dechomai will notify the donor in writing when grants are distributed from the This written notification will be for informational purposes only, and should not be construed as representing a charitable deduction for the donor. The donor’s charitable deduction is due to the original donation to Dechomai.
8.5 Dechomai will take corrective action or appropriate legal action if it discovers that grants have been made for improper purposes. This includes notifying the appropriate governmental authorities, as the Dechomai Board deems appropriate.
8.6 Dechomai makes grants via wire, electronic transfer of funds, or check, and will follow the transfer with a letter or email to the charity that recognizes the donor, unless the donor wishes to remain anonymous. Donors may not act as intermediaries in the delivery of grants unless the Board of Directors specifically approves.
All tax, substantiation, and compliance correspondence will be sent to the donor, unless Dechomai is instructed otherwise.
9.1 Dechomai will send a receipt as described in 4.6 above to the donor-provided account address (or electronic address) within 10 business days. The IRS requires that the donor, not the charity, substantiate the gift’s value for tax purposes. Donors should always consult their tax advisor before claiming any value for a donation. No information contained in this document or any document provided by Dechomai should be relied upon as tax advice.
9.2 Confidential or sensitive information received by Dechomai, its agents, or employees from a donor or donor’s agent while conducting official business shall be maintained with the degree of confidentiality and/or sensitivity imposed by the providing party. All employees of Dechomai recognize the sensitive nature of data maintained by Dechomai and will hold that data in the strictest confidence. Any purposeful release of that data by an employee will be considered a violation of Dechomai’s policy and may result in a termination of his/her employment and/or legal action.
9.3 Protection of donor information and responsible use of said information is a foundation of Dechomai’s relationship with its donors. Dechomai, its agents, or employees may receive personal information about donors and/or donor’s fund advisors, spouses and any successor advisors, including but not limited to the following:
- Social Security Number
- Phone number
- Email address
- Tax records
- Financial records
10.0 Fees and Expenses
Administrative Fees – Non-cash Assets. Dechomai incurs administrative expenses in operating as a charitable organization, and levies a fee/donation based on the assets in each account.
Dechomai’s Board of Directors reviews and approves administrative fees annually. These one-time administrative first-year expenses are applied as a percentage of non-cash assets (defined in 4.4 and 4.5, above), and are as follows:
- For amounts up to $1,000,000 – 3%
- For the next $4,000,000 – 2%
- For amounts over $5,000,000 – 1%
- The minimum fee is $10,000
For a holding period longer than one year, a flat fee of 1% will apply prorata. All fees are assessed on the greater of the appraised value or sales price and are deducted from liquid funds or at the time at settlement.
These fees may be reduced or increased based on the complexity and holding period of the particular asset. The Memo of Understanding will outline the final fee, and will supersede the fee schedule above. This final fee / donation includes all operations and functions of the Dechomai Foundation such as gift design, tax support, personal property inspection, lease review, environmental appraisals, legal counsel, asset transfer, marketing expenses, asset management expenses (liability insurance, property insurance, taxes, etc.), settlement costs, accounting costs, grantee due diligence, and grant processing. The Dechomai Foundation does not expect to receive any other operating support beyond these fees. Since inception in 2003, these fees have averaged less than 1.7% of total contributions each year with approximately half being used for unrestricted purposes. Total operating fees have been less than 1% annually.
Fund Structure and Service Agreements. The Dechomai Foundation and Dechomai Asset Trust are tax-exempt public charities as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code of 1986, as amended. Members of Dechomai’s Board of Directors and Trustees are independent of any vendor or service provider that may from time to time provide services to Dechomai. This Board and the Trustees have full discretion over any and all of Dechomai’s activities. Should the Board or the Trustees determine that it is necessary to dissolve Dechomai, the Board or the Trustees reserves the right to reassign investments held in all accounts to the Dechomai Director’s Account and distribute its net assets to qualified charitable organizations. Dechomai will indemnify the Board of Directors and the Trustees against any liability to the fullest extent allowed by law and will purchase insurance policies on behalf of Dechomai and its Directors or Trustees as is deemed prudent. Dechomai has entered into administrative service agreement with Charitable Solutions, LLC, to perform administrative, record keeping, management, marketing and other services. The services performed under this agreement are performed for hourly consideration that is at fair market value as determined by the Directors or Trustees. Either party may terminate the agreement with a 90-day written notice with or without cause. Dechomai will also indemnify and hold harmless Charitable Solutions, LLC, from any claims, losses, liabilities, or expenses, except as they may arise from negligence or willful misconduct in the performance of their duties on behalf of Dechomai.