Planned Giving Insights and Information

Gift Planning and the Inflation Reduction Act of 2022

Bernie Sanders has been the butt of some memes, but the picture above may summarize the exhaustion around the Inflation Reduction Act of 2022. Senator Sanders was taking a break from the Vote-a-Rama during passage of the bill in the Senate. The measure passed the Senate and House and is headed to President Biden who is expected to sign the legislation the week of August 15, 2022. The legislation represents a major shift in healthcare, climate, and taxation policy. What, if anything, does the bill mean for gift planners? Directly, it doesn’t mean much. Indirectly, the law may affect some donor behavior, which is something gift planners should consider.

Good News About New York Maximum Annuity Rates for Q3 2022

There is good news for charities that issue annuities in New York! The maximum annuity rates allowed by New York for gift annuities issued to a New York donor in the third quarter of 2022 increased significantly from their second quarter levels. They increased enough, in fact, that New York’s maximum single-life annuity rates for Q3 2022 are higher than the corresponding ACGA rates for all male and female ages, even though the ACGA suggested maximum rates increased as of July 1. This means charities can offer the ACGA rates to New York donors of single-life annuities funded from July 1, 2022 to September 30, 2022, regardless of the annuitant’s age and gender.

Understanding FASB Valuations and Their Role in Your Financials

The poet Oscar Wilde noted that “consistency is the last refuge of the unimaginative.” He would appreciate the imagination required when valuing charitable contributions. Previously, we’ve discussed the range of approaches to contribution valuation: Deduction – The value of the charitable contribution income tax deduction. Counting – The value for the purposes of donor recognition and fundraising reporting. Economic – The value of the charitable work that will be accomplished by the contribution when it becomes fully available to the organization. In this post we’re focusing on the value reported on the formal financial statements of your organization, commonly referred to as the “FASB valuation.” Most of us wrestle with FASB requirements once a year when the business office calls during the annual financial audit. Nevertheless, it is helpful to understand the FASB valuation and the variables that affect it.