| eRate Newsletter |
July 20, 2014 |
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IRS Discount Rate: August 2.2%
The valuation rate for gifts to new pooled income funds
in 2014 is 1.4%. |
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FEATURED ARTICLE |
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Terms of Endearment for CRTs
 You are running calculations for a Charitable Remainder Annuity Trust (CRAT) for one of your loyal donors. It turns out the trust fails the 10% minimum charitable remainder test. What now? Consider using a term of years for the CRAT, instead of the lifetime of the annuitant(s). In fact, using a term of years in a CRT can greatly expand the possibilities of how the trust will work and how it will benefit all interested parties. Let’s examine how this might work.
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IN THIS ISSUE |
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QUICK TIP: Calculating FASB Liability with PG Calc
 Every charity must include in its annual financial statement its liability for each life income gift that it has in force. The FASB liability* is the amount needed to finance the future payment obligations of a planned gift, such as a gift annuity or a charitable remainder trust.
You can use our Planned Giving Manager (PGM) or Gift Annuity Manager (GAM) software to compute the FASB liability for one planned gift at a time. If you own GiftWrap (GW), PG Calc's gift administration software, you can create a FASB liabilities report for all your planned gifts at once.
To access instructions in PGM or GAM on how to calculate FASB liability for any planned gift, type “FASB” in PGM Help’s index tab and double-click on the “computing liabilities in PGM” topic.
Again, if you own GiftWrap you can calculate multiple liabilities by producing a FASB liabilities report. (For more in-depth information on the topic, please see this related blog post)
* The FASB liability is computed according to standards described in FASB Statement 116 issued by the Financial Accounting Standards Board. It is based on the remaining term of the gift, its payout rate, and an agreed upon interest rate by which to discount future payments.
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Frank Minton to Present Problem Solving with Planned Gifts on July 31
While many donors are well-served by keeping things simple, certain situations call for a more creative approach. Join nationally renowned gift planning expert Frank Minton on July 31 at 1pm EST when he presents a PG Calc Webinar on “Problem Solving with Planned Gifts.”
 Frank will use a series of case studies to explore commonly-encountered donor situations that involve such things as family dynamics, business transitions, retirement security, complex property, and transmission of values. In each case, he will suggest one or more gift plans that can address all of the donor’s concerns and objectives.
Spend 90 minutes (including 30 minutes of Q&A) with one of the most experienced and knowledgeable gift planners around and get your creative gift planning juices flowing!
Level: Advanced This Webinar assumes that participants have a thorough understanding of standard gift plans.
Learn more or register
Also, there's still time to register for Craig Wruck's essential Fundamentals of Planned Giving series, too. Enjoy the three remaining Webinars live and access to a replay of the first. Register today!
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Optimize Your Fall Gift Annuity Mailing with BatchCalcs
 Will you be sending a mailing to your gift annuity donors and prospects this fall? Create a more persuasive (direct or electronic) mailing to them with PG Calc’s BatchCalcs personalization. BatchCalcs provides a fast, easy, and affordable way to make your direct mail more effective by including personalized calculations for each recipient. Clients who have incorporated BatchCalcs into their mailings have seen the results and keep coming back. Contact Dave Wolfe at dave@pgcalc.com or 888-497-4970.
LEARN MORE >>
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Seats Still Available for August Trainings in Boston
There's still time to register for our "Gift Planning with Planned Giving Manager" and "Gift Administration with GiftWrap" group training sessions in Boston and Cambridge, respectively, in August. These sessions provide a solid foundation for individuals who are new to planned giving and gift administration. These classes may also serve to reinforce the skills and knowledge of experienced gift planners and administrators.
August 4-5
Gift Planning with Planned Giving Manager
Introductory & Advanced
Boston Common Hotel & Conference Center, Boston, MA
August 6-7
Gift Administration with GiftWrap
Basics & Reporting and Analysis
PG Calc’s Cambridge Office, Cambridge, MA
For more information or to register
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Charitable IRA Rollover Gathers No Moss
On July 17, the House of Representatives approved HR 4719, The America Gives More Act. The Act includes five provisions designed to encourage charitable giving, including one retroactive to the beginning of 2014 that would make permanent the IRA Charitable Rollover. But don’t jump up and down just yet. Nothing will happen until later this year when the Senate considers its own package of temporary tax "extenders" that would include only a 2-year extension of the IRA Charitable Rollover for 2014 and 2015, much like what has been enacted several times in the past. The future of the IRA Charitable Rollover remains a question mark. Additional information on this issue is available from the Partnership for Philanthropic Planning and the Chronicle of Philanthropy. |
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