Planned Giving Insights and Information

IRS Announces Tax Schedules and Exemptions for 2016

Many federal tax items are indexed annually for inflation, such as the income tax brackets for individuals and trusts, the standard deduction, and the gift and estate tax exemption. The IRS recently announced what the new amounts will be for all 51 of these items in 2016. Given the very low rate of inflation over the last year, the new values will increase only about 0.4% over the 2015 values they will replace. All of these changes are minor and should have little effect on the tax incentives that encourage donors to make charitable gifts.

Visiting a Donor? Don’t Forget YourTablet!

As you may be aware, PG Calc has developed a web-based app for illustrating planned gifts called PGM Anywhere. One of the driving forces behind the development of PGM Anywhere has been the desire of many of our clients to run planned gift illustrations on their tablet, such as an iPad or Samsung Galaxy.

2012 IAR: A New Kind of Mortality Table

Several states, including New York and Washington, have begun requiring the use of a new mortality table for determining the minimum reserves required for gift annuities issued on or after January 1, 2015. PG Calc recently added this new table, 2012 IAR, to Planned Giving Manager (PGM) and GiftWrap, so now is a good time to learn more about this new mortality table and how it differs from all the ones that have come before it.

Pooled Income Funds May Make a Comeback in 2015

Next year may be an opportune time to promote gifts to a pooled income fund (PIF)! That’s right. The planned giving vehicle that most charities have mothballed for the last 20 years may be poised for a comeback. Why? Read on. In 2015, the charitable deduction for a gift to a pooled income fund less than three taxable years old will be the highest it has ever been. That is because the deduction for gifts to a “young” fund is based on an assumed valuation rate provided by the IRS, rather than a rate based on the fund’s own net income earning experience. This valuation rate will be just 1.2% in 2015, the lowest it has ever been, and that means that deductions for gifts to young PIFs in 2015 will be the highest they have ever been.