| eRate Newsletter |
December 20, 2013 |
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IRS Discount Rate: January 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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Undeserved Neglect: The Installment Bargain Sale
A donor approaches your organization to gauge its interest in purchasing a building he owns next door. Your organization is interested, but cannot afford to pay market price for it. The donor wants to receive some immediate financial benefits in exchange for parting with his property. What should you suggest?
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IN THIS ISSUE |
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Quick Tip: Correct ACGA Rate Table Automatically Selected When Recreating Old Gift Annuities
Back in the old days, (prior to PGM 7.0 release on 12/09/13), if you wanted to recreate a gift annuity calculation, you had to select manually the American Council on Gift Annuities (ACGA) rate table in effect as of the date of the gift. Now with PGM 7.0, the correct ACGA rate table is automatically selected based on the date of gift. Why should you care?
Some of the reasons why you might want to run calculations for an old gift annuity include:
- Updating missing records or recreating calculations for old gifts for audit or other purposes
- Computing the donor’s deduction for severing an income interest
- Confirming gift details prior to termination
- Creating gift information files to populate records in GiftWrap
If you have been using the current ACGA rate table (ACGA 2012), updating to PGM 7.0 changed your selection under Customize – Gift Annuity Rate Tables from “ACGA Rates Effective 1/1/2012” to “ACGA Rates Effective on Date of Gift.” If you have been using any other ACGA rate table or a custom rate table, however, updating to PGM 7.0 has not changed your selection under Customize – Gift Annuity Rate Tables, which means that you will still need to select the applicable rate table to compute correct values for older gift annuities. If you make any changes under Customize that you want to keep for future sessions, remember to save your changes by choosing File - Save Configuration.
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Preparing for Year-end Operations and Tax Reporting
Year-end and tax season can be a stressful time for GiftWrap clients, but never fear, you are not alone! Every year, we send GiftWrap clients a detailed year-end planning document covering:
- Year-end Order of Operations
- Instructions for Ordering 2013 Tax Forms
- Instructions for Annuitants
Clients should pay close attention to instructions on how to mask Social Security Numbers on 1099-R forms for annuitants and to unmask Social Security Numbers on 1099-R forms submitted to the IRS. Failure to unmask Social Security Numbers on the IRS copy could trigger stiff penalties. Note that Social Security Numbers are never masked in the electronic 1099-R file produced by GiftWrap.
All GiftWrap clients should have received the Year-end information via email; if you have not, please contact support@pgcalc.com and we’ll send another copy.
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Planned Giving Manager Version 7.0 Released
PG Calc released PGM 7.0 on December 9. The new update offers great enhancements, including:
- Ability to add custom images, such as logos, to presentation headings and diagrams in an easy 3-step process
- Automatic selection of the correct ACGA rate table based on date of gift (see this issue’s QuickTip)
- Capacity to export donor and beneficiary information to GiftWrap
- New gift plan illustration for a retained life estate combined with a gift annuity
- New gift plan illustration for an installment bargain sale
We sent an announcement email with download links for the update and documentation to all Planned Giving Manager, Mini Manager, or Gift Annuity Manager clients with a current service contract on December 9. If you have not received this message or have questions about the update, please contact Client Services toll-free at 888-474-2252 or support@pgcalc.com. We believe the features listed above and the many other improvements found in PGM 7.0 will make your planned gift presentations even more effective!
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Gift Annuity Expertise at Your Fingertips
On December 11, PG Calc released an updated electronic version of Charitable Gift Annuities: The Complete Resource Manual. This update was sent via email to all current electronic subscribers. The update boasts not only new content but also enhanced navigation features. To learn more about this practical, authoritative reference work and place your order, call 888-497-4970.
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Jeff Lydenberg Ends Tenure as PPP Board Chair
Jeff Lydenberg, the head of PG Calc’s consulting practice, recently ended his tenure as Board Chair of the Philanthropic Planning Partnership (PPP). His Board service was only the latest example of Jeff’s service to the planned giving community over the past two decades. Jeff’s calm leadership was especially important this year, with a new CEO at PPP and a need for advocacy on several fronts. Jeff spoke at more than 25 industry events around the country and represented the gift planning community’s interests vigorously on two trips to Washington, DC. We appreciate Jeff’s hard work for the Partnership, and we’re especially grateful to have him to ourselves again, working on behalf of all our clients!
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PG Calc Returns to the Big Apple!
We will be offering our “Gift Planning with Planned Giving Manager” group training on February 6 & 7 at the Residence Inn Manhattan/Times Square in New York City. These classes provide a solid foundation for individuals who are new to planned giving and/or our software. They also serve as a great refresher to reinforce the skills and knowledge of experienced gift planners.
February 6 & 7
Gift Planning with Planned Giving Manager
Introductory and Advanced Sessions
New York City, NY
For more information, to register, or to view our entire 2014 group training schedule, click here.
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