IRS Applicable Federal Midterm Rate for November 2011 is 1.4%.

The Valuation Rate for New Pooled Income Funds in 2011 is 2.8%. See an expanded explanation of how this rate is calculated.

Spread the news! Feel free to forward this email to anyone who might find it useful. Sign up for this free monthly newsletter.

In this issue:

• Featured Article: Gift Planning in a Nervous Market
• Help Clip: Importing Market Values into GiftWrap
• Quick Tip: Entering the New IRS Discount Rate into PGM before the 1st of the Month
• Marketing Corner with Ann McPherson
• WELS Foundation’s Gift Annuity Program Has “Increased Significantly” with BatchCalcs
• Updated CGA Manual Reflects the Latest in Gift Annuity Expertise
• 2011 State Reserve Rates Updated
• Upcoming Webinar: Real Estate Vehicles - Retained Life Estates, Bargain Sales, and Installment Bargain Sales, October 27
• Upcoming Webinar: Counting and Crediting Planned Gifts, November 22
• Upcoming Group Training: PGM Classes in St. Paul, MN, November 3-4

Gift Planning in a Nervous Market
In 2009, the financial crisis was in its infancy, the stock market was plunging, and no one was sure where it would all end. Two and one-half years later, most donors no longer fear that we may be entering an economic depression, but the financial markets remain volatile and many donors remain nervous about their financial futures. We offer some thoughts to help gift planners work with donors who are nervous about the economy, their own finances, or both.

Learn more...

Past topics...

Help Clip: Importing Market Values into GiftWrap
Many GiftWrap clients like to update some of the values they store in GiftWrap by importing new values from a file. One of the most popular of these import features is called Import Market Values. This function allows clients to update the current market value stored in GiftWrap for each gift record included in an import file. For example, this capability allows clients who maintain records on charitable remainder trusts to update their market values all at once rather than manually, one at a time. GiftWrap Help explains how to use this handy feature.

Learn more...

Quick Tip: Entering the New IRS Discount Rate into PGM before the 1st of the Month
The IRS discount rate is published on approximately the 20th of the month that precedes the month to which the rate will apply. This rate is used to determine the charitable deduction for split-interest gifts such as gift annuities.

PG Calc updates the IRS discount rate on the home page of our website and in our Web Tools (GiftCalcs, GiftStory, and GiftGuide) as soon as the new rate is available. We also notify our Planned Giving Manager (PGM) and Gift Annuity Manager (GAM) clients through our monthly eRate newsletter and a colorful postcard; both prominently display the new rate.

If you use PGM or GAM, we encourage you to update your software with the new IRS discount rate as soon as you receive it. If you don’t, that’s okay. Our software will prompt you to update the rate the first time you run the software in the new month.

How to add an IRS discount rate in PGM or GAM:

• Select  Customize – IRS Discount Rate Table in the Menu Bar
• Click Add
• Click Yes, then enter the new IRS discount rate
• Click Done
• Click Done again

Marketing Corner with Ann McPherson
"One of the reasons why so few of us ever act, instead of react, is because we are continually stifling our deepest impulses."
--Henry Miller

While researching a project recently, I was surprised to observe the number of organizations that have begun to be proactive in their approach to marketing. One of the driving forces behind this change right now is the difficult economic times. Organizations are finding that what worked in the past isn’t working as well now. Changes in strategy will help, but not as much as strong leadership. The leadership I’m talking about goes beyond “getting” planned giving and providing the resources you need. Leaders who truly embrace planned giving see to it that it is woven into the fabric of their organization’s everyday development activities. It’s this constant attention that will inspire real action.

WELS Foundation’s Gift Annuity Program Has “Increased Significantly” with BatchCalcs
Jim Holm, Executive Director for the Wisconsin Evangelical Lutheran Synod (WELS) Foundation, reports “For the third consecutive year, the WELS Foundation is sponsoring a mailing to households of individuals age 60 and older. Included in each letter is an individualized calculation prepared by PG Calc’s BatchCalcs service. The letter, personalized for WELS, provides an easy to understand summary of how members can support their favorite ministry with a gift annuity.

“BatchCalcs is a great way to introduce donors to the many benefits of a life income gift. Best of all, the Lord has blessed these efforts as gift annuity receipts have increased significantly over past years!”

PG Calc’s BatchCalcs service gives charitable organizations an automated way to make their planned giving mailings more effective by including personalized calculations in each prospect letter or email. Whether you want to mail to a few hundred prospects or several thousand, our BatchCalcs service gives you a fast, easy, and affordable way to add impact to each message.

Learn more about BatchCalcs

Learn more about the WELS Foundation

Updated CGA Manual Reflects the Latest in Gift Annuity Expertise
A team of PG Calc consultants led by Frank Minton has just finished updating the highly regarded reference work Charitable Gift Annuities: The Complete Resource Manual. The revised print version was mailed to current subscribers on October 11, and the revised electronic version will be released shortly.

Replete with practical, authoritative information and sample materials, the gift annuity manual has been a go-to resource for gift planners and advisors for over a decade. To learn more and place your order, call 888-497-4970.

2011 State Reserve Rates Updated
Florida, Hawaii, Maryland, New Jersey, New York, Washington, and Wisconsin have updated their maximum reserve valuation interest rates for charitable gift annuities (CGAs) funded in 2011. PG Calc clients using GiftWrap have received information about the new rates, which are used to compute charitable gift annuity reserves.

The 2011 maximum rates for FL, HI, MD, NJ, NY, WA, and WI are:

Immediate annuities: 5.00%
Deferred Gift Annuities (DGAs) deferred up to 5 yrs: 5.00%
DGAs deferred more than 5 and up to 10 yrs: 4.75%
DGAs deferred more than 10 and up to 20 yrs: 4.50%
DGAs deferred more than 20 yrs: 4.00%

California and Oregon made no changes to their rates.

Additional information is available in our online Knowledge Base

Upcoming Webinar: Real Estate Vehicles - Retained Life Estates, Bargain Sales, and Installment Bargain Sales, October 27
Real estate holdings represent an estimated 32 percent of all private wealth in the United States. Is your organization turning this capacity into charitable gifts the way it could? This Webinar will focus on three gift planning vehicles that can facilitate gifts of real estate and the typical situations where they can be attractive. This presentation is intended for gift planners and other fundraisers who may be called upon to discuss a gift of real estate with a donor.

Date: Thursday, October 27, 2011
Time: 1:00 – 2:30 pm ET
Presenter: Jeff Lydenberg

Register

Upcoming Webinar: Counting and Crediting Planned Gifts, November 22
As long as there have been planned gifts, there has been disagreement and confusion over how to count them in fundraising totals and how much gift credit to give their donors. This session will explore the most popular methods for counting and crediting planned gifts and make recommendations for a rational approach to each task.

Date: Tuesday, November 22, 2011
Time: 1:00 – 2:30 pm ET
Presenter: Frank Minton

Register

Upcoming Group Training: PGM Classes in St. Paul, MN, November 3-4
We will be offering our Gift Planning with Planned Giving Manager (PGM) group training sessions in St. Paul, MN on November 3-4 following the Minnesota Planned Giving Conference. These sessions provide a solid foundation for individuals who are new to planned giving. They may also serve to reinforce the skills and knowledge of experienced gift planners. We hope you’ll join us!

November 3-4
Gift Planning with Planned Giving Manager
Introductory & Advanced
Crowne Plaza St. Paul Riverfront, St. Paul, MN

For more information or to register

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

UNSUBSCRIBE (Manage Your Preferences)

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.