Planned Giving Insights | Jeffrey Frye (5)

Investment Assumptions (Yet Again!)

Published by Jeffrey Frye on March 15, 2018

When we at PG Calc run long-term projections for charitable remainder trusts using our Planned Giving Manager (PGM) and PGM Anywhere software, we make certain assumptions about the investment performance of the trust assets. There is a fairly basic dynamic implicit in our modeling, which is that the remainder of the gift plan will be the result of the original funding amount, the amount paid out to one or more beneficiaries, and the amount earned by the trust assets. The default assumptions in PGM and PGM Anywhere are that of an 8% total investment rate of return, broken down into 5% principal appreciation and 3% income.

investment assumptions

3 minute read

Wait! Wait! Your Wife Is How Old?

Published by Jeffrey Frye on August 3, 2017

How do you respond to a request by one of your organization’s strongest supporters for a two-life charitable gift annuity for him and his wife when you know that his wife is at least a couple decades younger than him? Let’s suppose that the donor is 71 and his wife is 47, for example. Would you be willing to entertain a discussion about a gift annuity written for the joint lives of these two individuals?

actuarial age

2 minute read

The Revocation Clause

Published by Jeffrey Frye on May 16, 2016

The life income gift arrangements that make up a significant portion of planned giving – charitable gift annuities, charitable remainder trusts, and pooled income funds – are all irrevocable. In order to qualify for a charitable deduction and special tax treatment, these vehicles cannot allow any changes, and the donors cannot “take them back” in any way. There is, however, a provision that may be included in these legal arrangements which allows the donor to revoke the income interest of another person at some point in the future.

1 minute read

10 Dirty Little Secrets of Gift Administration

Published by Jeffrey Frye on December 23, 2014

OK, so they’re not exactly “dirty” little secrets. But who among us hasn’t had a moment administering a particularly complex gift and thought – what have I gotten myself into? PG Calc has been providing gift administration services since 2001, and we know that the work we do behind the scenes is critical to the ongoing success of our clients’ planned giving programs. We also know that there are plenty of unexpected headaches that can accompany administering a planned gift.

gift administration

3 minute read