From the Blog: What’s the Real Value of Planned Gifts in Your Organization’s Mission?

What is the real value of a planned gift in accomplishing the mission of your organization? With inflation at near record levels, donors wonder if their contribution will provide as much charitable good as they expect, and organizations wonder about the return on their investment in planned giving.

Calculating the real value of a charitable contribution might seem straightforward. There ought to be a single accurate value for any given charitable contribution. After all, in math class you got full credit only for the right answer, and logic tells us that two contradictory propositions cannot both be true. However, in charitable gift planning there can be at least three different values for a single contribution, each one accurate for its intended purpose.

Read the blog post...

New York Maximum Annuity Rates for Q2 2022

The maximum annuity rates allowed by New York for gift annuities issued to a New York donor in Q2 of 2022 increased significantly from their Q1 2022 levels. As a result, in Q2 2022 they are lower than the ACGA suggested maximum rates over a much narrower range of male and female ages. The range for males has decreased to just age 80 (from 51-84 in Q1 2022), and the range for female ages has decreased to ages 70-85 (from 50-87 in Q1 2022). If you have a New York donor who wants to fund a one-life annuity for someone in either of these groups, you will need to offer an annuity rate lower than the ACGA rate. New York’s maximum one-life rates for immediate gift annuities issued during Q2 of 2022 are found here. To determine the maximum allowable annuity rate for a specific annuitant age and gender, divide the maximum income shown for the age and gender in question by 10.

If you are working with a New York donor who wishes to fund a two-life immediate gift annuity, or a one-life or two-life deferred gift annuity, contact us. We will determine the maximum annuity rate you can offer your donor. Go here to learn more about our New York Rate Calculations Service or to submit a calculation request form.

House Passes SECURE Act 2.0 That Adds QCDs for CGAs and CRTs

On March 30, 2022, the U.S. House of Representatives passed overwhelmingly (414-5) H.R. 2954, the Securing a Strong Retirement Act of 2021 (aka, SECURE Act 2.0). The Act includes various incentives to increase retirement savings. It also incorporates in Section 310 a version of the Legacy IRA Act that many in the gift planning industry have advocated for several years.

As written in the House bill, the provision would allow a donor to make a one-time election for a qualified charitable distribution (QCD) to a gift annuity or charitable remainder trust. The QCD would be limited to $50,000, and the gift would have to be funded exclusively by the QCD. As a practical matter, only the gift annuity would be viable under these limitations. The bill has now been referred to the Senate, which is expected to write its own SECURE Act 2.0 over the next few months rather than mark up the House version. A coalition of charities and gift planning associations is working to keep Legacy IRA Act language in the final version of the legislation. We make no predictions of the outcome but will keep you informed of any significant developments.

IRS Update: Notice CP259F for Form 5227 Can Be Disregarded

There has been an update to the issue regarding the IRS automatic notifications for Form 5227 that we first blogged about last month.

In their March 25, 2022 Exempt Organization Update, the IRS confirmed that the CP259F – the First Taxpayer Delinquency Investigation Notice for the Form 5227 (required for PIFs and most CRTs) – can be disregarded as long as the return was submitted on time.

“Generally, there is no need to call or respond to the notices as long as the return was filed timely,” states the IRS notice. For more details, go to www.irs.gov/charities-non-profits/current-edition-of-exempt-organizations-update.

See You at the Northern California Planned Giving Conference, the ACGA Conference, and at PGGNE's All-Day Conference

We are excited to see the season of planned giving conferences gearing up for the spring and were proud to sponsor and attend the March 31st Planned Giving Day of the Philanthropic Planning Group of Greater New York (PPGGNY). 

Please stop by our virtual booth at the upcoming 35th ACGA Conference April 20-26. We'll also be attending the virtual Northern California Planned Giving Conference May 5-6, as well as the Planned Giving Group of New England's all-day conference on May 6th. Be sure to say hello!

Miami University Values PG Calc Webinars for Professional Development

“We initially purchased the monthly Webinars for our gift planning staff. But they provided such practical advice and substantive information, we extended an invitation to our entire development staff. The PG Calc programs provide a base of information for everyone, allowing the gift planning staff to then discuss how the techniques are best deployed for our constituency. It’s a wonderful combination for all of our continuing education!”

—Jayne E. Whitehead, J.D.
Assistant Vice President of Development, Gift Planning
Miami University

Learn more about Miami University.

Learn more about PG Calc’s webinars.