Planned Giving Insights and Information

Predicting Planned Giving Performance

What are the rhythm and metrics of planned giving? You’re focused on your organization’s planned giving program and under pressure to justify your budget, in terms of return on the dollar. And – just a hypothetical, of course – perhaps your organization has new leadership that seems especially fond of that old bromide, “what gets measured gets managed.” The answer always seems so simple to others in the organization: just count the dollars as they are received and compare to expenditures. Of course, we know that planned giving is more subtle than that. Measuring planned giving revenue is more complicated, and we know it’s nearly impossible to correlate current fundraising activity to dollars received today. Most often, the money isn’t received until the end of one or two lifetimes. Donors don’t always inform you of their generosity in advance. Estate distributions can come as a pleasant surprise, but it’s common to discover the catalyst for the gift was an action taken by a planned...

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 was signed into law by President Biden on August 16, 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.