FEATURED ARTICLE: Flip Definitely Not a Flop - Popular Trust Turns Sweet 16

Through a regulation issued in December 1998, the Internal Revenue Service officially gave its blessing to a type of charitable remainder trust known as the “flip trust.” As anticipated, this now well-accepted planned giving vehicle has proven to be quite versatile.

• Quick Tip: Identity Theft, IRS Penalties, and Masking SSNs on 1099-Rs
• Client Services Answers Your Year-end Questions
  
• Marketing Corner: Who Wants to Talk about Death?
  
• Status of the IRA Charitable Rollover
• Salvation Army Sees Added Value from Charitable Gift Annuities: The Complete Resource Manual

Quick Tip: Identity Theft, IRS Penalties, and Masking SSNs on 1099-Rs 
At tax time, GiftWrap clients must pay special attention to the masking of social security numbers (SSNs) on 1099-R tax forms. GiftWrap provides the option either to print the full SSN on 1099-R tax forms or to mask all but the last 4 digits, but this setting must be changed MANUALLY (see instructions below).

With identity theft on the increase, best practices indicate that charities should mask SSNs on 1099-R forms that are mailed to annuitants. However, the SSN must NOT be masked on 1099-R forms submitted to the IRS, or the charity could incur penalties of $100 per return. This means that SSN masking must be set to “on” when printing annuitant copies and manually changed to “off” when printing IRS copies.

Anyone with the Administrator Role can review or change SNN masking settings in GiftWrap:

1. Choose Setup – Administrator – Roles.

2. Click the Role Name assigned to the staff members that produce tax forms.

3. Check the Mask Data box for SSN on tax reports to mask SSNs on 1099-R forms. Uncheck this box to print full SSNs on 1099-R forms.

Please note that masking only affects printed 1099-Rs. SSNs are never masked in the electronic 1099 file.

Client Services Answers Your Year-end Questions
We know this is a particularly hectic time for gift planners as you try to wrap up gifts before the new year, so don’t forget that the Client Services team is here to help! Email questions to support@pgcalc.com or call toll-free 888-474-2252. We’re available from 8 AM – 7:30 PM ET Monday through Friday. (We’ll be closed on Christmas and New Year’s Day.) 

Marketing Corner: Who Wants to Talk about Death?
Death is, rightfully, a touchy subject for most people. Nevertheless, death must by necessity figure in to any conversation about planned giving. In this Marketing Corner, marketing consultant Ann McPherson suggests an outside-the-box way to broach the subject.  Read more >>

Status of the IRA Charitable Rollover
The IRA Charitable Rollover extension has passed Congress and is awaiting the President’s signature to become law. This law provides for a one year extension of tax provisions retroactive to January 1, 2014. Read more about the legislation and what actions you should consider taking once the bill is signed.

Salvation Army Sees Added Value from Charitable Gift Annuities: The Complete Resource Manual
David Himes, Planned Giving Consultant, has referred to the CGA Manual regularly over the years in his work at the Salvation Army. Here, he expands on his experience utilizing this practical reference work:

Without a doubt, the CGA Manual has been the most comprehensive source of understandable and reliable information on all things pertaining to charitable gift annuities. The manual has been indispensable to the Salvation Army in the effective administration of our gift annuity program.

I’ve especially appreciated the availability of the editors to address specific questions and provide clarification on technical legal issues that have arisen over the years. I have found this to be an added bonus, for which I’m eternally grateful.

Learn more about the Salvation Army >>
Learn more about the CGA Manual >>