Pitfalls to Avoid When You’re New to Your Planned Giving Office

If you’re new to your role in planned giving, either because you’re covering for someone on leave, you’ve had planned giving added to your major gift responsibilities, or you’re new to the field - welcome aboard! PG Calc is invested in your success, and we’ve gathered a list of planned giving pitfalls that could get you in hot water with donors, auditors, or the IRS that we hope to help you avoid.

Hidden CGAs: A Cautionary Tale

There are two scenarios for how the funds from a gift annuity issued by one organization might ultimately be directed to another organization. In one situation, Charity A either doesn’t issue gift annuities at all or doesn’t issue them in a particular state, but knowingly directs a donor interested in a gift annuity to another charitable organization (Charity B) that will issue a gift annuity to the donor. In this situation, Charity A has the opportunity to proactively look into Charity B, the issuing organization, and to understand how the gift will be managed and distributed.

Wisconsin Changes Gift Annuity Regulation,
Highlights Planned Giving Compliance Issues

Legislation making significant changes to Wisconsin’s gift annuity regulation was recently adopted when Wisconsin Act 271, Senate Bill 152 became effective April 18th, 2014. With its enactment, it is no longer necessary for charities to register with, or submit annual reports to, the Wisconsin Office of the Commissioner of Insurance. However, organizations must still comply with certain requirements. The changes in Wisconsin serve as a reminder of the importance of planned giving compliance for fundraisers.(4/22/2014: A small update to Planned Giving Manager and Gift Annuity Manager will be released soon to accommodate clients that issue annuities (or are considering it) in Wisconsin. Email support@pgcalc.com to learn more.) REMINDER: If you are a current PGM client and have not received a link to the update reflecting changes to WI law, please contact Client Services (888-474-2252).

Planned Giving Across State Lines

If your organization has a purely "local" donor base, your planned giving program may not be affected by the laws of any state other than your own. But what happens when a key supporter moves to another state yet still wants to benefit the organization, whether through a charitable gift annuity or simply a bequest?