The 2007 valuation rate for new pooled income funds is 4.8%. See an expanded explanation of how this rate is calculated.

Spread the News!
Feel free to forward this e-mail to anyone who might find it useful.
Anyone is welcome to sign up for this free monthly newsletter.

In this issue:

• Featured Topic: 2006 Tax Act Relaxes Treatment of CRTs with UBTI
• Quick Tip: Importing State Reserve Percentages Updates
• HelpClip: The Ins And Outs of Annuity Reserve Calculations in GiftWrap
• Planned Giving Manager 6.1 Released
• 1099-R Tax Form Deadlines
• PG Calc Welcomes a New Client

Featured Topic: 2006 Tax Act Relaxes Treatment of CRTs with UBTI
A provision in the Tax Relief and Health Care Act of 2006 contains good news for charitable remainder trusts (CRTs). The Act, which was signed by the President on December 20, 2006, changes the tax treatment of CRTs that have unrelated business taxable income (UBTI). Under prior law, a CRT would lose its tax-exempt status for each taxable year in which it had any UBTI. Under the new law, a 100% excise tax is imposed on the CRT's UBTI instead.
Learn more...

Past Topics

Quick Tip: Importing State Reserve Percentages Updates
We've made the process of updating the State Reserve Percentages table with the latest maximum state interest rates easier. GiftWrap can now update the State Reserve Percentages table by importing the latest rates from a file.

To update your copy of GiftWrap (version 3.5C or later) with the latest maximum state interest rates, simply click the Import State %s button that now appears in the upper right hand corner of the Gift Annuity Reserves – State Method tab or Gift Annuity Reserves – Custom Method tab.

HelpClip: The Ins And Outs of Annuity Reserve Calculations in GiftWrap
With just a few clicks, GiftWrap clients can create a report of the minimum required gift annuity reserves to satisfy any state or group of states. While GiftWrap does all the heavy lifting to generate and organize the results, you will find it helpful to understand the choices GiftWrap makes and why it makes them. See GiftWrap's Online Help to learn more about GiftWrap's reserve calculations.
Learn more...

Planned Giving Manager 6.1 Released
We have just finished version 6.1 of Planned Giving Manager (PGM). This latest version of PGM focuses on staying current with state and federal rules. Keep your eyes open for an e-mail announcing its release.

Enhancements include:

• A Comparison of Benefits chart that shows the tax breakdown of gift annuity payments
• Updated gift annuity agreements to comply with the latest state requirements
• Addition of income tax tables for 2007
• Addition of a new female/female ACGA rate table for NJ and NY

Important: One of the gift annuity agreement changes in PGM 6.1 makes the Payment Correction paragraph mandatory in New Jersey agreements. If your organization has agreements on file with New Jersey that do not include a Payment Correction paragraph, you will need to re-file your agreements with New Jersey before issuing additional annuity agreements there.

1099-R Tax Form Deadlines
Organizations with gift annuity programs are responsible for sending 1099-R tax forms to annuitants and the IRS.

The following are the timing requirements and links to the IRS for additional information:
- February:  Mail 1096 and 1099-R Copy A forms to the IRS by February 28 (mailing a 3½" diskette is no longer acceptable).
- April:  Alternatively, send 1099-R info electronically by April 2.

Instructions for preparing 1099-R forms...

Filing Information Returns Electronically information...

PG Calc Welcomes a New Client
Elderhostel is a not-for-profit organization dedicated to providing exceptional learning opportunities to older adults. As the nation’s first, and the world’s largest, education and travel organization primarily for older adults, we believe that learning is an integral part of life. Since our founding in 1975, more than 4 million adults have participated in our programs. They have explored fascinating places and stimulating ideas with leading experts and local people, and gained an insider’s perspective on the world’s myriad heritages, cultures and environments. In 2006, 160,000 people participated in high quality, affordable programs throughout the United States and in more than 90 countries around the world.
Learn more about Elderhostel...

Comments on This Newsletter
Send an e-mail message with your thoughts and/or suggestions to support@pgcalc.com.

This publication is designed to provide information in regard to the subject matter covered. It is understood that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought.