The 2007 and 2008 valuation rate for new pooled income funds is 4.8%. See an expanded explanation of how this rate is calculated.

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In this issue:

• Featured Article: Recognizing Planned Giving Potential in Donors
• Quick Tip: Gift Tally – A Simple and Useful Report
• HelpClip: The 10% Test Can Make or Break A Gift
• Connecticut and Tennessee Gift Annuity Legislation
• Valuing a NICRU Income Interest When the IRS Discount Rate is < 5%
• Webinar on March 27: Gift Annuity Essentials
• DePelchin Children’s Center Finds Gift Annuity Manual Convenient and Easy to Use
• PG Calc on the Road
• Upcoming Group Training Sessions

Featured Article: Recognizing Planned Giving Potential in Donors
Most planned giving prospects are philanthropically motivated, but many cannot or choose not to make major gifts.  By learning about a donor’s financial and psychological situation, you can often find a planned giving vehicle that will appeal to the donor who is not willing to make an outright gift. The options are many, ranging from a small revocable bequest commitment to a large irrevocable planned gift arrangement. 

Learn more...

Quick Tip: Gift Tally – A Simple and Useful Report
The Gift Tally report in GiftWrap provides a simple summary of your organization's gift activity during the period you choose.  This report is particularly useful for year end annual reporting, both internally and in satisfying annual state report requirements.

To run a Gift Tally report,

1. Choose Reports – Gift Summary in the Menu Bar.
2. Mark the checkbox for Gift Tally for Gift Range.
3. Enter the range of Gift Dates for which you wish to report activity, plus any other selection and sort criteria.

For the range of Gift Dates and other selection criteria you enter, the Gift Tally report displays the number of active gifts on the first date in your range, the number of gifts added and terminated during your range, and the number of active gifts on the last date in your range. 

HelpClip: The 10% Test Can Make or Break A Gift
Charitable remainder trusts and gift annuities are subject to a 10% remainder value test.  With the IRS discount rate about as low as it has ever been, the odds of one of these gifts failing the 10% test are about as high as they have ever been.  The consequences of failing the test are dire.  Fortunately, Planned Giving Manager (PGM) will warn you whenever a calculation fails this test, and PGM's Online Help gives you the detail you need for understanding why.

See how...

Connecticut and Tennessee Gift Annuity Legislation
Legislation has been introduced in both Connecticut and Tennessee that could significantly modify the existing gift annuity laws, which currently only require notification to the insurance department that a charity intends to issue gift annuities to residents.  The charitable communities in each state, as well as the American Council on Gift Annuities, have had opportunities to comment on the proposed legislation, and will continue to be involved in the process.  We will keep you informed of new developments in these matters as they occur.

Valuing a NICRU Income Interest When the IRS Discount Rate is < 5%
In the summer of 2007, the IRS issued PLRs 200725044 and 2007733014.  These rulings offered new guidance on how to compute the value of an income interest in a net income charitable remainder unitrust (NICRU): it must be valued using as the payout rate the lesser of the IRS discount rate in effect for the month of termination or the stated payout rate. Thus, for a termination in March 2008, the calculation would have to be based on a payout rate of 3.6%, March's IRS discount rate, not the stated payout rate of the trust, which must be 5% or greater.

In order to prevent the entry of an impermissible payout rate, Planned Giving Manager does not allow you to enter a charitable remainder trust payout rate less than 5.0%.  To work around this limitation when computing the value of an income interest for a NICRU, open Basic Gift Illustrations and choose a Charitable Lead Unitrust (CLU) as the Gift Option, then enter the IRS discount rate as the payout rate of the CLU.  Enter all other facts of the gift in the usual way.  The value of the deduction computed for the CLU will equal the value of the NICRU income interest.

Webinar on March 27: Gift Annuity Essentials
Join Frank Minton, President of PG Calc's Planned Giving Services Division, Chairman of the American Council on Gift Annuities, and lead author of Charitable Gift Annuities: The Compete Resource Manual, on March 27, when he will deliver “Gift Annuity Essentials.”

In this 90-minute interactive Webinar, Frank will draw on his 30+ years of gift planning experience to walk you and your colleagues through charitable gift annuities and deferred gift annuities, the characteristics of a typical gift annuity donor, and the most important elements of a gift annuity program, including tips for adapting gift annuities to donor situations, marketing and stewardship of your program, and how to manage gift annuity risk.

All you need is a web browser, a telephone, and $95. You can have as many people attend at your site as you wish. For just $195, receive a recording of the Webinar on CD, too. 

Register now...

DePelchin Children’s Center Finds Gift Annuity Manual Convenient and Easy to Use
The DePelchin Children’s Center’s development staff wears many hats. They are often asked to speak with donors and prospects about many different gift types.  When it comes to charitable gift annuities, they find that Charitable Gift Annuities: The Complete Resource Manual puts a vast store of practical information right at their fingertips (in both print and electronic versions).

Diana Seifert, Development Manager for the Center, says “I have enjoyed working with the CGA Resource Manual because of its convenience and comprehensiveness. It is very easy to use, and is a valuable tool that has allowed us to expand our resources and provide our donors with one more gift vehicle to consider when giving to the Center. The information that is provided makes it easy to educate a donor or prospect about how to establish a gift annuity. Having the manual in both CD and hardcopy versions makes it especially convenient!”

Frank Minton, Ph.D., is the principal author of the Manual and President of PG Calc's Planned Giving Services Division.  He is the nation's leading expert on gift annuities.  To learn more about the Manual and to request a free excerpt, click here:
www.pgcalc.com/product/resourcemanual.htm

To learn more about the Depelchin Children’s Center, click here: www.depelchin.org

PG Calc on the Road
See PG Calc experts on both coasts and everywhere in between as we make our way to 14 conferences and speak at 11 venues this spring.

Learn More...

Upcoming Group Training Sessions
We will be conducting our group training classes several times in the coming months.  Our group training sessions provide a solid foundation for individuals who are new to planned giving.  These classes may also serve to reinforce the skills and knowledge of experienced gift planners.

Apr. 1-2 Gift Planning with Planned Giving Manager
Introductory/Advanced
Chicago, IL – ACGA Conference

Apr. 1-2 Gift Administration with GiftWrap
Data/Reports
Chicago, IL – ACGA Conference

May 7 Gift Planning with Planned Giving Manager
Introductory
Cleveland, OH - Northern Ohio PG Council

May 12 - 13 Gift Planning with Planned Giving Manager
Introductory/Advanced
Boston, MA

May 27-28 Gift Planning with Planned Giving Manager
Introductory/Advanced
Costa Mesa, CA  - Western Regional PG Conference

You may attend one or both levels at a location.

Learn more and register...

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