[NOTE: The following is based on a true story.] Some of the numbers just didn’t make sense. It was that most wonderful time of the year for a non-profit organization – the closing of the June 30 fiscal year! Almost like Christmas in July, everyone was busy reviewing tally sheets and running various reports in an effort to provide comprehensive information about the gifts received over the previous 12 months. With outright gifts, of course, the process was fairly straightforward – whatever was received, for the most part, was counted with a few exceptions. With life income gifts, however, the process was a little more complicated, since the organization needs to report the total funding amount, the estimated liability, and the estimate of the charitable remainder.
I found a recipe for Cherry Surprise Cookies. The surprise is a nugget of chocolate inside the cookies. Like these delicious-sounding cookies, deferred gift annuities can come with a surprise. The surprise can be pleasant like chocolate or dreadful, as in losing lots of money.
A special needs trust is a type of irrevocable legal arrangement established for the benefit of an individual with physical or mental disabilities while at the same time allowing the beneficiary to receive essential needs-based governmental assistance. A parent, grandparent, guardian or a court typically creates a special needs trust, also known as a Third Party trust. Some special needs trusts are set up with assets that the person with disabilities already owns, such as an inheritance or a legal settlement, and are called self-settled trusts, or First Party trusts.
On October 2nd, 2013, the Chronicle of Philanthropy reported The New York City Opera was entering Chapter 11 bankruptcy protection and would “wind down” its operations after 70 years. The news prompted anxious calls from charities and gift annuitants to us here at PG Calc. They all had the same concern: what happens to gift annuitants when a charity goes into bankruptcy? The good news is that such circumstances have been incredibly rare. Based on the few occasions where it has occurred, it seems likely that those with annuities issued by the bankrupt organization will be protected. Here are two key factors to understand in addressing questions that may come from your boss or your annuitants and other constituents.
UPDATED DECEMBER 7, 2012: