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GIFT ACCEPTANCE & ENTERTAINMENT POLICY

Adopted by the Board of Directors/Trustees on the ____ day of ______, [].

______

[], Chairman

Date:

Reviewed and amended as necessary:

Date / Confirmed by (initials)

Gift & Entertainment Policy

1.The Objective

The [ORGANISATION] has a responsibility to be an effective steward of its assets. The Objective of this Policy is to further the [ORGANISATION]’s Mission by ensuring that:

  • those who incur business gift or entertainment expenses on behalf of the [ORGANISATION] act responsibly;
  • representatives of the [ORGANISATION] responsibly in accepting gifts, honouraria and entertainment;
  • the [ORGANISATION] complies with all applicable laws and regulations governing gift and entertainment expenses and the receipt of gifts, honoraria and entertainment, to the extent that Bermuda law and regulation covers these areas.

For the purposes of this policy

2. Persons Covered

This policy covers any individual who incurs business gift or entertainment expenses on behalf of the [ORGANISATION], regardless of whether that person is a member of the Board of Directors/Trustees, an officer, an employee, a volunteer, a consultant, independent contractor or other party (collectively referred to as “[ORGANISATION] Representatives”). It also covers [ORGANISATION] Representatives who may be offered gifts, honoraria or entertainment in their capacity as such.

3. Approval of Expenditure for Business Gifts or Entertainment

(a)Process

(i) Prior Approval: all business gift or entertainment expenses must be approved in advance in the case of a Director/Trustee by the Chairman of the Board of Directors/Trustees and in all other cases by the Executive Director. It is the responsibility of the individual incurring the expenses to obtain any necessary approval;

(ii)Documentation: expenses will not be reimbursed unless the individual requestingreimbursements submits a written expense report in a form approved by the Executive Director. The Expense Report must include sufficient detail to identify the business purpose of the expense, the items acquired or services provided and each recipient of the gift or entertainment and must be submitted within thirty (30) after incurring the expense. An itemized written receipt must be submitted for each expense. If an original receipt is no available, the individual may submit alternative written proof of the expense such as a bill, cancelled cheque of, if nothing else is available a written statement detailing the expense and the reason the receipt is not available;

(b) Expense Report Approval: the [ORGANISATION] will reimburse business gift or entertainment expenses only if it complies with this policy and the Executive Director has approved the expense. It is theresponsibility of the person seeking reimbursement to submit the claim to the Executive Director;

(c) Use of [ORGANISATION] Credit Card: the [ORGANISATION] will provide a limited number of employees with a corporate credit card to facilitate reimbursement of business expenses. The corporate credit card may be used for approved business gift or entertainment expenses but not for personal expenses or cash withdrawals. The individual incurring the expense must document expenses paid for using the corporate credit card in the same manner as any other expense;

(d) Expense Advancements:when it is not reasonably practical to use the corporate credit card, the [ORGANISATION] will advance its Representative the reasonably anticipated amount of the gift or entertainment expenses, provided that the Representative submits an advance request approved by the Executive Director, a reasonable time prior to the date for purchasing the gift or incurring the expense. This request shall take the same form as the expense report requesting reimbursement. If the amount of the gift or entertainment expense incurred exceeds the amount approved for reimbursement the Representative must reimburse the [ORGANISATION] with an amount equal to such excess at the time the expense report is submitted.

4. Types of Gift and Entertainment Expenses which may be reimbursed

(a) Entertainment: for the purposes of this policy, entertainment includes the arrangement of activities, events, meals, refreshments or similar items for individuals or entities that have a business relationship or potential business relationship with the [ORGANISATION] (collectively referred to as “Guests”). This policy does not cover expenses for meetings hosted by the [ORGANISATION] or events for [ORGANISATION] Representatives, such as employee morale building events. Participants at entertainment functions shall not include a [ORGANISATION] Representative’s spouse, partner, child or any other companion unless the companion is also conducting business on behalf of the [ORGANISATION] and the companion’s participation is approved in advance by the Executive Director. Entertainment expenses incurred whilst travelling must follow the same guidelines as non-travel related entertainment expenses;

(b)Gifts:in limited circumstances it may be appropriate to provide business gifts in recognition of such occasions as outstanding achievements, to offer thanks, as get well wishes, or to acknowledge bereavement. The [ORGANISATION] will reimburse the actual cost of business gift expenses to the extent such expenses are reasonable and appropriate for the situation and are consistent with the [ORGANISATION]’s values. Any business gift shall always be presented on behalf of the [ORGANISATION] not an individual.

5. Acceptance of Honouraria, Gifts or Entertainment

A [ORGANISATION] Representative may accept on behalf of the [ORGANISATION] an honourarium or gift from any party where the circumstances of the honourarium or gift are related to the recipient’s official duties, provided that any payment is made directly to the [ORGANISATION]. A [ORGANISATION] Representative may accept if his or her individual capacity, a nominal gift that is clearly less than $100 in value, even if the circumstances of the gift are related to the [ORGANISATION] Representative’s official duties. Notwithstanding the foregoing, a [ORGANISATION] Representative may not accept an honourarium or gift either on behalf of the [ORGANISATION] in his or her individual capacity, if such acceptance would constitute or create the appearance of a conflict of interest. Nothing contained in this policy shall prohibit a [ORGANISATION] Representative from accepting a gift based on an obvious family or personal relationship when the circumstances make it clear that the motivating factor for the gift is the family or personal relationship and not a [ORGANISATION] business relationship.

A [ORGANISATION] Representative may not accept business meals or entertainment offered by a vendor of goods and services, prospective vendor or other third party, unless such meal or entertainment provides a means for facilitating [ORGANISATION] business objectives and the value per person does not exceed $100. Notwithstanding the foregoing, a [ORGANISATION] Representative may not accept such a business meal or entertainment if such acceptance would constitute or create the appearance of a conflict of interest.\

Appendix 20: Gift and Entertainment Policy_BNG_2010

Derived from the Bermuda National Gallery’s Policy, itself derived from the US Independent Sector’s Policy on Gift and Entertainment