PG Calc Blog

The latest on planned giving from PG Calc.
Read our posts for comments on the latest topics and issues in planned giving. We hope you find our posts timely and interesting, and we hope you'll share your perspective with us!

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The Most Important Marketing Trend for 2020: Your Donor

The Most Important Marketing Trend for 2020: Your Donor

As we approach the end of the year, it’s a great time to look ahead and anticipate the next big marketing trend for 2020. Technology continues to advance at a rapid pace, so of course, you might think next year’s big marketing trend would focus on new technology. You’d be wrong. While the use of technology in data-driven marketing will certainly continue to be important in 2020, your overarching focus should be on people. Specifically, spending time improving your donors’ digital experiences.

New Rates? What Should I do?

On November 22, 2019, the American Council on Gift Annuities (ACGA) announced new suggested maximum gift annuity rates to replace the rates that became effective on July 1, 2018. The new rates will apply to gift annuities established on or after January 1, 2020, although you may use the new rates immediately. These new rates are moderately lower than the ones they replace; you can read our complete analysis of the new rates here.

It's the Capital Gains, Stupid!

It's the Capital Gains, Stupid!

We hope that you’ll pardon the title of this article, which is a modification of the infamous James Carville campaign mantra in 1992 – “it’s the economy, stupid!” As was the case with the original phrase, this expression is meant to be tongue-in-cheek and self-directed. The tax legislation passed by Congress and signed by the President last December seems to have rendered the itemizing of personal deductions much less beneficial for large numbers of Americans. There has been considerable discussion among fundraising professionals that the result will be a dramatic decrease in charitable contributions. Whether or not you agree with that assertion, this article is about something else - the realization that the possible benefits of reducing taxes on realized capital gains by contributing appreciated securities for split-interest gift arrangements remain as powerful as ever.

Analysis of the New ACGA Annuity Rates

On May 15, 2018, the American Council on Gift Annuities (ACGA) announced new suggested maximum gift annuity rates to replace the rates that became effective on January 1, 2012. The new rates will apply to gift annuities established on or after July 1, 2018. The new suggested maximum rates are moderately higher than the ones they replace. The new rates were set with the goal of 50% of the funding amount remaining for the charity on average. The rates also ensure a 20% present value and a contribution value of at least 10% of the funding amount at all ages down to an IRS discount rate of 2.8% (as compared to 1.4% under the January 1, 2012 rates). These additional criteria cause the maximum rates suggested for very young ages (under 20) to be lower than they otherwise would be.

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