PG Calc Featured Articles

How High Is the Sky?

Manager – calls PG Calc Support and asks if there is something wrong with the calculations for deferred charitable gift annuities. “How can the payout rates possibly be as high as 15 or 20% - surely that’s a mistake! Is there something wrong with the software? If not, then, does anybody really write these annuities?”

It turns out there is nothing wrong with the software – the payout rates, as they are expressed, are correct. And yes, charities really do issue these annuities. The problem is in the way the payout rates are quoted. There is an enormous difference between the nominal payout rate of a deferred gift annuity and the effective payout rate of a deferred gift annuity. Let’s take a closer look at how these payout rates work and try to make some sense of it.

Meeting the Challenge of Raising More Planned Gifts

The challenge grant has been a cornerstone of fundraising for major and annual gifts for many years.  Typically challenge grants are structured so that a foundation (or other grant maker) makes a gift to charity upon the charity raising an agreed upon amount of money. Challenge grants have helped nonprofits raise money for capital campaigns and meet other fundraising goals. 

The Lure of Gifts of Real Estate - Navigating a Route to Safe Passage

As the real estate market continues to recover in many areas of the country, charities are reporting increased interest in gifts of real estate. Like the beautiful but dangerous Sirens in Greek Mythology that lured sailors to their doom, gifts of real estate lure planned giving officers with the promise of six and seven figure gifts. Just as Odysseus successfully navigated his crew past the seductive Sirens, the charity’s objective with gifts of real estate is to identify the risks, determine if there is a safe route of passage, and then conclude if the risk is worth the reward.

Planned Giving In a Volatile Market

The year ending December 31, 2015 was historic and monumental - the earth shifted violently beneath our feet, rivers changed courses, truisms were shattered, and fear was pervasive. Desperate times drove desperate actions, and good men and women scrambled in panic to find stable ground. It suddenly seemed that nothing was safe anymore. No, we’re not talking about the presidential race – we’re talking about the U.S. stock market. For the first time in seven years, the stock market didn’t end the year ahead of where it started. Of the three major U.S. stock indices, two of them ended the year below their price levels on January 1. Flashbacks to 2008 and the Great Recession ensue.

Your Best Donors Are Hiding In Plain Sight

The most successful development programs identify donors who want to give more – and then show them how to do it! All of our organizations have such donors. Finding these donors is often done through qualifying visits and years of cultivation. The process is time consuming, costly, and somewhat inefficient – but often necessary. Many organizations fail to recognize and act on the opportunities for major and planned gifts from donors who can – and want to - give more. Yet, these donors are hiding in plain sight. Why, then, do so many development programs pay so little attention to these donors?

Gift Annuity Risk - Keeping On Your Toes

During the downturn in the stock market in late 2008, many charities monitored their gift annuity reserve fund balances on a weekly or even daily basis, concerned that there were sufficient reserves to meet the requirements of states with a calendar year reporting period. But the uncertainty brought by the financial turmoil of the “great recession” had at least one positive effect, prompting charities to take a more detailed look at their gift annuity programs, either through an internal review or by hiring an outside consultant. For some, this was the first time a thorough review of the program had been done.

What You Need To Know About IRAs and The “Charitable Rollover”

There is a lot of talk now in the planned giving community about charitable gifts being made from IRAs (“Individual Retirement Accounts”). In 2006, Congress passed legislation allowing tax-free rollovers from a donor’s IRA to qualified charities. The charitable IRA rollover is one of a number of temporary tax provisions that require annual renewal. These temporary tax provisions are typically extended late in the year and made retroactive to the beginning of that year.

Gift Annuity Programs: To Start, Re-Start, or Not to Start... These Are the Questions

The decision to start a gift annuity program should not be taken lightly. With gift annuities, you are entering into a life-long relationship with your donor, and there are significant legal and financial obligations that accompany it. It is not unusual for charities that have recently launched a gift annuity program to find that the results have not met expectations due to insufficient planning or resources.

Year End Giving Messaging

Labor Day signals the end of summer, but it also signals the approach of the season of giving.  The last quarter of the year is a busy time in fundraising.  Most charities see a significant uptick in giving as December 31 approaches.  So how does year-end giving affect planned giving, and how do you make the case that the end of the year is a good time to make all sorts of gifts?