PG Calc Planned Giving Blog

Why myRA Won't Be the Next Big Thing in Gifts of Retirement Plan Assets

Posted by Bill Zook

Mar 28, 2014 11:02:46 AM


Bill_Zook_emailIn his State of the Union address in January, President Obama announced his intention to make a new type of Individual Retirement Account (IRA), called a “myRA,” available to certain taxpayers.What does this mean to you in working with planned gift prospects and their advisors?

MyRAs would have of the following basic characteristics:myRA-300x225

  • MyRAs would be created by the Treasury Department, pursuant to a presidential memorandum dated the day of the address but not actually signed until two days later, whereas existing IRAs are established under the Internal Revenue Code.
  • At least initially, myRAs would be available only to those who work for entities that agree to offer the accounts to their employees. Employers will have some incentive to do this because they would not have to make myRA contributions,
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Topics: planned giving, Retirement Accounts, IRA, gift planning, myRA

What's the Big Deal about the Donor's Cost Basis?

Posted by Jeffrey Frye

Mar 20, 2014 6:16:00 PM


Jeffrey_FryeThe question of why charities need the donor’s cost basis for long-term appreciated stocks funding charitable gift annuities (CGAs) comes up frequently in our client support calls. If the donor doesn’t provide the information up front, do they really need to pursue it? What if the donor says he doesn’t have the cost basis information? Can the charity simply assume zero for the cost basis and call it a day? What difference does it make anyway?

Why it matters

PG Calc’s Planned Giving Manager prompts the user to supply the dollar amount the donor paid for the stock when it was originally acquired – or, in the case of inherited stocks, the official value of the stock on the date of death of the previous owner (AKA the “stepped-up” cost basis).* This information is relevant and necessary because charitable gift annuities are split-interest gift arrangements. In each CGA, there is a benefit for the charity (the remainder or residuum), and a benefit for the annuitant (the value of the stream of annuity payments over time).

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Topics: gift annuities, cost basis, tax incentives on charitable giving

How You Build a Planned Giving Website

Posted by Andrew Palmer

Feb 28, 2014 12:59:00 PM


Andrew PalmerPG Calc’s Marketing Services is more than just a pretty website, but it’s at least that. When we set out to build the best planned giving website in the business, we followed a few simple rules and then brought in the best to augment our own skills.
 
Rule 1:  Know what you don’t know
 
User Experience (UX) is the art of giving website visitors a positive experience during a site visit. Making it easy for visitors to find the information they seek, or the answers to their questions. Good user experience has visitors leaving your site thinking they’ve been successful or they’ve enjoyed themselves. Conversely, a bad UX has them thinking they don’t want to come back again due to problems, confusion, and/or bugs. This end-user perception is the key to a good website and so we didn’t spare anything to get it right.

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Topics: planned giving marketing, planned giving

PG Calc's Gary Pforzheimer "Ignites" Crowd at NCPP

Posted by Gary Pforzheimer

Nov 15, 2013 3:32:00 PM


Lights! Camera! Action!Gary Pforzheimer, PG Calc


I got to have more fun than usual at this year's National Conference for Philanthropic Planning (NCPP). The organizers offered something a little different for attendees on Thursday morning. It was a session that provided content, but in a style that broke from the standard speeches, breakout sessions and networking. I was one of the brave volunteers who presented? performed? in what is called the "Ignite" format (similar to Ted talks).

Each talk was five minutes long, accompanied by exactly 20 slides displayed for exactly 15 seconds each. The format is designed to generate enthusiasm in presenter and audience alike, and the session drew a banner crowd. I chose to cover the entire 30-odd year history of modern planned giving in five minutes. No biggie, right? I'm happy to report I made it through without getting too far ahead of or behind on my slide count. The other presentations were great, too. I look forward to seeing the Ignite session next year!

 

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Topics: history of planned giving, planned giving technology, storytelling

Bankruptcy and Gift Annuities: “Keep Calm and Carry On”

Posted by Edie Matulka

Oct 4, 2013 4:23:00 PM


Effect on Gift Annuity Donors of New York City Opera BankruptcyOn October 2nd, 2013, the Chronicle of Philanthropy reported The New York City Opera was entering Chapter 11 bankruptcy protection and would “wind down” its operations after 70 years. The news prompted anxious calls from charities and gift annuitants to us here at PG Calc. They all had the same concern: what happens to gift annuitants when a charity goes into bankruptcy?

The good news is that such circumstances have been incredibly rare. Based on the few occasions where it has occurred, it seems likely that those with annuities issued by the bankrupt organization will be protected. Here are two key factors to understand in addressing questions that may come from your boss or your annuitants and other constituents.


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Topics: charitable gift annuities, gift annuitant, segregated reserve fund, charity bankruptcy, gift administration, gift annuity payments

Worth A Thousand Words: Backing Up Your Planned Giving Manager Configuration File

Posted by Tina Yelle

Oct 1, 2013 11:00:00 AM


In the September eRate newsletter, we included a helpful QuickTip about saving your customizations to Planned Giving Manager before switching to a new computer. We know that some of you computer wizards didn’t need the advice, but for others, even the written description of what to do might not be enough. So we created this little slideshow to show you the steps involved!

We know this isn’t the kind of blog post you are used to seeing. Please share in the comments if you like it!
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Topics: planned giving manager

Giving It the Old College (Annuity) Try Doesn’t Always Succeed

Posted by Bill Zook

Sep 24, 2013 12:00:00 PM


College annuity example

I learned recently of a donor who left money to charity in a manner that made it seem like she wanted to establish a so-called “college annuity” for her seven-year-old granddaughter. The applicable bequest language indicated that the annuity would begin “on or about July 30 of the year the beneficiary attains the age 19 years, and the payment shall continue for a term of 5 years.”

If perhaps you’re not familiar with the college annuity, it’s a deferred charitable gift annuity established for the life of a young child, with the deferral period ending – and payments beginning – when the child is age 18 or 19. Shortly after the annuity is established, the child’s guardian (usually a parent) exercises a right explicitly reserved in the gift annuity agreement to commute the lifetime payments into a stream of payments made over the course of only four or five years. Because the present value of the lifetime payments must equal the present value of the commuted payments at the time the commutation provision is exercised, each commuted payment is quite a bit larger than each lifetime payment would have been.

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Topics: charitable gift annuities, gift annuities, working with advisors, college annuity, charitable gift annuity, gift annuity agreements, planned giving

Working with an Annuitant to Assign their Annuity Interest to Your Organization

Posted by Jen Wickham

Aug 27, 2013 9:54:00 AM


An annuitant who concludes that he or she no longer needs the annuity payments – and won’t need them in the future either – could choose to assign to the charity the right to all future payments. If it is irrevocable, the assignment effectively terminates the annuity. When this happens, the annuitant may receive a charitable deduction for contributing her remaining interest in the annuity.

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Topics: charitable gift annuities, charitable gift annuity, complex planned gifts

Wait, Don’t Trash Your Old PC Just Yet!

Posted by Winston Jones

Aug 20, 2013 1:12:00 PM


It’s great to get a new machine. But don’t let IT haul off your old machine just yet. If you are a Planned Giving Manager (PGM) user, there are a few things you will very much want to get copied off your old machine before it goes into the trash. This also applies when your machine is refurbished or rebuilt, such as when reformatting and reinstalling Windows or getting a new hard drive. Once your IT department wipes the hard disk from the old machine, you can be out of luck on getting your old PGM data back, especially if you don’t have good backups.

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Where Has Your PG Calc Water Bottle Been?

Posted by Allison Snow

Jul 18, 2013 5:35:00 PM


John Scibek, a PG Calc client and friend from the Fred Hutchinson Cancer Research Center in Washington, took a bicycle tour of the Olympic Peninsula.

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Topics: conference giveaways, water bottles, tee shirts

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