| eRate Newsletter |
April 17, 2015 |
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IRS Discount Rate: May 1.8%
The valuation rate for gifts to new pooled income funds
in 2015 is 1.2%. |
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FEATURED ARTICLE: Gifts of Virtual Currency Such as Bitcoin - Some Considerations
“Virtual currencies” have been around for some time but have increasingly been in the news over the past several years. This can be at least partially attributed to the growing popularity of the virtual currency “Bitcoin,” which has experienced enormous growth in value since its launch in 2009.
With the continued growth of Bitcoin, offers of gifts of bitcoins have inevitably followed. While still not common, charities are beginning to consider these gifts. Learn more about gifts of virtual currency in this month's featured article.
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IN THIS ISSUE |
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Quick Tip: Modeling Gifts Funded with a Mix of Stock and Cash
Donors sometimes choose to fund a planned gift with a combination of assets, for example stock and cash, though it could be any number of other asset combinations. A common reason for doing so is to reach a target gift amount.
Another example arises when a donor contributes both long term gain and short term gain property. In this case, the donor’s deduction will be based on the fair market value of the long term gain property plus the cost basis of the short term gain property.
Happily, Planned Giving Manager (PGM) offers a simple way to model gifts funded with multiple property types in a single illustration.
1. Start in Program 1, 2 or 3.
2. Open the Principal Value – Cost Basis window.
3. Under Property Type, select Multiple property types (long term, short term, and/or cash).
4. New fields will appear where you can enter values for long term and short term gain property and for cash. Enter amounts in these fields, as appropriate.
5. PGM will compute the deduction and taxation of payments accordingly.
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New Organization Formed to Promote Charitable IRA Rollover Legislation
On March 31, 2015, a group of national leaders in gift planning and philanthropy announced the formation of the Charitable IRA Initiative. The mission of this new 501(c)(4) organization is to encourage members of Congress and the President to enact legislation that makes the Charitable IRA Rollover permanent and applicable to life income gifts, as well as outright gifts. The focus of this group is on top of many ongoing efforts by the charitable community to protect the charitable deduction.
The organization’s leaders include Lindsay Lapole, Chair of the American Council on Gift Annuities, as president; Michael Kenyon, President and CEO of the Partnership for Philanthropic Planning, as vice president; John Pierce, Senior Gift Planner, Concordia College, as secretary; and Sister Georgette Lehmuth, President and CEO of the National Catholic Development Conference, as treasurer. Our President, Gary Pforzheimer, is a member of the board.
We encourage our clients to support the Charitable IRA Initiative any way they can. To learn more, click here.
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ACGA Rates to Remain the Same
The American Council on Gift Annuities (ACGA) announced on April 17, 2015 that it has re-adopted its current schedule of suggested maximum annuity rates. Ordinarily, this means that the current rates will remain in effect through at least June 30, 2016. They originally went into effect January 1, 2012.
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Marketing Corner: Improve Your Fundraising Results with One Word, "REFRAME"
| There is one little word that can have a profound impact on your fundraising and it might not be the word you had in mind. "Reframe." The formal definition is, “a way of viewing and experiencing events, ideas, concepts and emotions to find more positive alternatives.” Read more on the blog >> |
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Webinar: Using Data Analytics to Improve Planned Gift Prospecting
We are excited to be hosting on April 30 our first Webinar of the year given by a guest presenter. Chuck McClenon, Fundraising Scientist at the University of Texas, has spent over 10 years using “Big Data” and data analytics techniques to help UT fundraisers focus on the best prospects.
He will draw on his experience to offer insights on how data analytics can help you work more efficiently and effectively. He’ll share what sort of data he looks for, how UT fundraisers have benefited from his work, and some interesting correlations between donor characteristics and bequest giving that he’s observed over the years. He’ll also show you how to get started using data analytics at your organization.
We look forward to having you join us! Register >>
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Upcoming Advanced Planned Giving Training
Be prepared for the toughest donor questions after one of PG Calc’s advanced gift planning training courses.
Lead Trust School - June 22: Dive into the different types of lead trusts, their investment considerations, funding asset choices, and charitable payment options. You’ll walk away from this session being able to convey the benefits of lead trust gift arrangements to prospective donors with confidence. Register >>
Planned Giving by the Numbers - June 23: Learn the ins and outs of how the numbers you work with every day are computed, and why. Topics will include present value, life expectancy, the charitable deduction, FASB liability and gift annuity reserve calculations, the IRS discount rate’s effect on different gift plans, and the taxation of charitable remainder trust payments. Register >>
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Temple Israel of Boston Engages Marketing Services to Educate Prospects about Planned Giving
Melissa Norman, Development Manager at Temple Israel, is one of our newest Marketing Services clients. To help increase planned gifts to Temple Israel, she partnered with PG Calc.
In this 15-second video, Melissa describes how a planned giving website and brochure helped educate congregation members about planned giving.
Learn more about Temple Israel >>
Learn more about Marketing Services >>
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