IRS Applicable Federal Midterm Rate for March 2010 is 3.2%.

The valuation rate for new pooled income funds in 2010 is 4.6%. See an expanded explanation of how this rate is calculated.

In this issue:

• Featured Topic: The “Shark Fin” Lead Trust
• Quick Tip: Changing Colors in PGM Diagrams
• Help Clip: Creating a Mail Merge File in GiftWrap
• Alabama Gift Annuity Agreement Update
• 1099-R Reporting Deadlines
• Marketing Corner
• WELS Uses PG Calc’s Webinars to Train Development Professionals
• Webinar: Evaluating Your Planned Giving Program – February 25
• Group Training Prior to ACGA Conference – April 26-27, New Orleans, LA

The “Shark Fin” Lead Trust
We have responded to many client inquiries about charitable lead trusts over the past two years. We have also noticed a flurry of articles on lead trusts during this same period. A particular lead trust variation that has received considerable attention lately is what some practitioners are calling the "Shark Fin" lead trust.

This article reviews what a Shark Fin lead trust is and then examines its potential benefits and pitfalls to help you identify the role this creative gift planning concept might play in your planned giving program.

Learn more...

Past topics...

Quick Tip: Changing Colors in PGM Diagrams
Many of our Planned Giving Manager clients find PGM's diagrams very useful in helping a donor understand how charitable gift annuities and other split interest gifts meet their financial and charitable objectives.

Did you know that you can customize the colors used in the diagrams to better represent your logo or other graphics used by your organization?

Here’s how:

1. Select Customize on the Planned Giving Manager Menu Bar, then select Setup.

2. Select Advanced Graphics Printer Colors.

3. Select the Palette you want to edit, typically Color (light background). Color (dark background) is used primarily for PowerPoint presentations.

4. The options box contains a list of the elements found in PGM graphs and diagrams. You can choose the color for any of the elements, such as Charity box color, by clicking the element and then choosing the color. The three RGB (Red, Green, Blue) values that define the color of the element are displayed to the right of each element.

The color/pattern you select for each element affects the viewed and printed color/pattern for that element. You may suppress the use of color to fill bar graphs and diagram boxes by clicking No to the appropriate question in the list.

Help Clip: Creating a Mail Merge File in GiftWrap
Now and again you will want to communicate with all of your planned gift donors, or with a selection of them. GiftWrap stores all the information necessary to send these donors a message. The Mail Merge Data feature makes it easy for you to generate a file of names and addresses that is ready to merge with the text of a letter or email. GiftWrap's Online Help shows you how.

Learn more...

Alabama Gift Annuity Agreement Update
If you are registering with the state of Alabama to issue charitable gift annuities in that state, there has been a change relating to the content of the annuity agreements. Alabama has long required the agreement to reference the annuitant’s gender, which has been done through the use of gender-specific pronouns throughout the agreement.  However, Alabama is now requiring that there be a gender reference in the same paragraph where the annuitant’s date of birth is stated.

Planned Giving Manager 6.2A, which is the most recent version of PGM, produces a prototype agreement as well as an agreement for a specific gift for a donor with legal residence in Alabama. However, you will need to edit the agreement in your word processor to add the new required gender reference language in the date-of-birth paragraph.

The agreement language for the date-of-birth paragraph currently reads:

Birth Dates of Annuitants
The birth date of [name of donor] is [month,day,year]. The birth date of [name of second annuitant] is [month,day,year].

The revised language for the date of birth paragraph should read:

Birth Dates of Annuitants
The birth date of [name of donor], a [male/female], is [month,day,year]. The birth date of [name of second annuitant], a [male/female], is [month,day,year].

The next Planned Giving Manager update, version 6.3, will include the required gender reference language for the Alabama agreements. We expect to release this update in April. Because this change is being requested by the state, charities that previously registered in Alabama (and received approval of agreements without this specific reference), should easily be able to switch to using the updated agreements, though a conservative approach would be to file a new set of prototype agreements.

1099-R Reporting Deadlines
1099-R tax forms for annuitants of charitable gift annuities should have been mailed on or before February 1, 2010.

If your organization is filing fewer than 250 1099-Rs, you may submit Copy A of the paper form, or file electronically with the IRS. If filing 250 or more, you must submit 1099-R information to the IRS electronically. Send paper copies of Form 1096 and Copy A of the 1099-Rs to the IRS by March 1, 2010.

If your organization is filing more than 250 1099-R forms or if you elect to file with the IRS electronically for a smaller quantity, the filing deadline for sending 1099-R information to the IRS electronically is March 31, 2010.

Marketing Corner
How can you improve your marketing program? One way is to treat it as a process and not a project.

A project has one or more measurable objectives, a start, and a finish. Marketers sometimes fall short by viewing their marketing programs as a series of projects, one at a time. In a given plan, there may be multiple direct mail campaigns, and frequently they are evaluated individually as successes or failures. Instead, manage your program as a process. By definition, a process is more complex than a project, but the payoff will be huge. By treating the program as a process, you are forced to look at it through a different filter. Processes show movement in direction over time, progression. 

Building relationships with your donors is a process, so why shouldn't your marketing be too? 

WELS Uses PG Calc’s Webinars to Train Development Professionals
Jim Holm, Executive Director of the WELS Foundation in Milwaukee, WI, recently purchased our entire 2010 Webinar series. He told us that, “Last year, the WELS Foundation signed up for the 2009 PG Calc Webinar series in an effort to provide timely continuing education to the development professionals within our church body. We were so pleased with the topics covered and the quality of the presentations that we’ve registered for the 2010 series.”

PG Calc’s Webinars are designed to provide engaging multimedia presentations on relevant topics in gift planning at both basic and more advanced levels, delivered by experts in the field, in the comfort of your office space. 

Learn more about PG Calc’s Webinars for 2010 and view the schedule

Learn more about the WELS Foundation

Webinar: Evaluating Your Planned Giving Program – February 25
How is your gift planning program doing? Is it as successful as it could be? What are its strengths? What are its weaknesses? How do you find out? This Webinar will discuss the many aspects of conducting a helpful assessment of your gift planning program. Session material will be based on our experience performing both formal audits and informal analyses of dozens of gift planning programs.

Date: February 25, 2010
Time: 1:00 - 2:30 pm Eastern
Presenter: Bill Zook

Register

Group Training Prior to ACGA Conference – April 26-27, New Orleans, LA
We are offering both our Planned Giving Manager and GiftWrap training sessions prior to the American Council on Gift Annuities (ACGA) conference in New Orleans in April. Our 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 or administrators. The GiftWrap classes will include a sneak peek at GiftWrap 4.0! 

April 27
Gift Planning with Planned Giving Manager
Introductory
New Orleans, LA

April 26-27
Gift Administration with GiftWrap
Basics, Reporting & Analysis
New Orleans, LA

For more information or to register

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