Planned Giving Insights and Information

Share this post!
    

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

Posted by Edie Matulka on October 4, 2013

On 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.


Read More

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

Top Categories

see all

Subscribe to Blog

Blog Authors

Gary Pforzheimer    Jeff Lydenberg  Dyke Tilt 
Bill Laskin    Ann McPherson    Andrew Palmer 
Edie Matulka    Winston Jones    Jen Wickham 
Tina Yelle   Jeffrey Frye   Mike Valoris