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In this issue:
Featured Topic: A Gift Plan for the Donor Who Wants Payments to Grow, Risk-Free
The laddered deferred gift annuity can be an effective giving program for meeting the goals of younger donors. When you meet a prospect who is looking to supplement retirement income, or simply to augment income later in life while minimizing risk and building in inflation protection, think of the laddered deferred gift annuity. It may be just the solution they're looking for.
 Learn more...
Past topics
Now or Later?
No doubt you’ve noticed the downward trend of the IRS discount rate; August 6.2%, September 5.8%, October 5.2%, and November at 5.2%. What does this mean for planned gifts, especially for gifts with an annuity interest? Simply said, the lower the IRS discount rate, the lower the charitable deduction for your donors.
For example, if Mrs. Donor, age 78, makes a contribution to fund a gift annuity in October, the charitable deduction can be based on the August 6.2% rate. If she makes the same gift in November, the charitable deduction can be based on the September 5.8% rate. If she waits until December to make her gift, unless the IRS rate trend changes, it’s possible that the optimum IRS rate available will be 5.2%.
78 Year Old Donor
7.6% Annuity Rate
$25,000 Gift Annuity
Made in October, AFR 6.2% (Aug), Charitable Deduction $12,588.00.
Made in November, AFR 5.8% (Sep), Charitable Deduction $12,330.75.
Made in December, AFR 5.2% (Nov), Charitable Deduction $11,925.50.
The marketing message to your donors might suggest that they not wait until December to make a gift if the charitable deduction is important to them. This makes the answer to the question “Now or Later” easy. Make the gift now!
Quick Tip: Saving Historical Investment Returns in PGM
It's easy to set up a PGM input file that contains your organization's historical investment returns. Once set up, you can use them in a projection whenever you want with just a few clicks.
- Open Life Income Projections, then choose Investment Assumptions – Vary assumptions or sell in any year.
- Click each year in the Investment Assumptions grid and enter your historical annual investment returns in order.
- Choose File – Save to save your inputs. Use a file name such as "Historic investment returns."
- To use these assumptions, open your input file with File – Open. Then, enter the other facts for your projection.
HelpClip: PGM and The Raiser's Edge® Integrate in Many Ways
Planned Giving Manager (PGM) and Blackbaud's The Raiser's Edge® (RE) integrate in several ways that streamline the gift planning process. From the initial proposal to the completed gift, these integration features save time and reduce errors by letting you:
- Store PGM presentations and documents in RE
- Launch PGM for a specific case using a PGM input file stored in RE
- Export gift information from PGM to RE (must have RE:PGTracker module)
- Export RE Fund IDs for use in PGM
Learn all the details about using these features in PGM's Online Help
See how...
Next Webinar on November 28 - Operating An Effective Planned Giving Program
Frank Minton, President of PG Calc's Planned Giving Services Division, will present our next PG Calc Webinar, "Operating an Effective Planned Giving Program." Frank will draw on his thirty years as a gift planner, gift planning consultant, and leader in the gift planning community, to discuss why programs fail to realize their potential and offer guidance on determining the menu of gifts to offer, positioning them to your constituencies, developing practical policies and procedures, and applying the best marketing practices. This interactive multimedia presentation is designed specifically for gift planners or anyone with responsibility for a gift planning program. We hope you will join us!
Learn more...
Recording of First PG Calc Webinar Now Available
Jeff Lydenberg, PG Calc Vice President, presented our first PG Calc Webinar on September 25th. Jeff's presentation on "Basic and Creative Uses of Life Income Gifts" was very well attended and drew high praise in our post-Webinar survey of attendees. If you didn't have a chance to attend Jeff's engaging live session, you can share in the experience by ordering a recording of Jeff's presentation. See the same slides, hear the same commentary, and print the same handouts. The session recording is available online or on CD.
Learn more...
Training - Gift Planning with Planned Giving Manager
Register now for a training session at one of these locations:
Gift Planning with Planned Giving Manager
- November 15, 16, Atlanta, GA
- December 6, 7, Washington, DC
Course Calendar, Details and Registration
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