Planned Giving Insights and Information

New York Max Annuity Rates Legislation Signed into Law!

It has been a long time coming, but New York legislation that should greatly reduce the likelihood that any of its maximum annuity rates will be lower than the corresponding maximum rate suggested by the American Council on Gift Annuities (ACGA) has finally become law. Governor Hochul signed New York Bill A4599a on October 25. The new law will go into effect 90 days from that date, so the New York maximum rates computed using the old method will continue to apply until January 23, 2024. We know that all 1-life New York maximum rates for the current quarter (Q4 2023) are higher than their ACGA rate counterparts, and hence not a problem for charities that follow the ACGA rates, but we can’t be as sure about 2-life gift annuities or 1-life and 2-life deferred gift annuities. For these annuities, the safe thing to do while the old method is still in play is to determine the New York maximum rate and then offer that rate or the ACGA rate, whichever is lower.

BDQ #7: Why Would an Organization Want to Have a Planned Giving Program?

If you’re reading this, chances are you’ve already come up with your own reasons why your organization ought to have a planned giving program. But what do you say to your boss? Your board of directors? Your fundraising colleagues? Let’s consider the case for planned giving. A vigorous planned giving program provides many benefits – both tangible and intangible. Of course, the key advantage is financial revenue for your organization.

BDQ #6: Why Would Someone Make a Planned Gift?

Isn’t it obvious? There are as many reasons why someone would make a planned gift as there are donors. What is more – spoiler alert – if you want to know why someone makes a planned gift, just ask them!The myriad reasons a donor might make a planned gift can be arranged into categories:

BDQ #5: What Is Planned Giving?

Sometimes there are really obvious and very simple answers. Everyone knows what planned giving is, right? Not so fast. A quick web search reveals a slippery slope into a morass of ambiguity. “Planned giving involves providing a future gift to charity through your financial and estate plans,” declares one charity’s website. A financial services company broadens the definition, but only a bit: “planned giving refers to any arrangement that will result in a future contribution to charity.” Strictly speaking, a pledge for an outright gift fits both of these definitions, but such a pledge is not a planned gift.