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eRate Newsletter | July 17, 2023

IRS DISCOUNT RATE: AUGUST 5.0%

Giving USA Report on Philanthropy: 
Is It the End of the World
as We Know It?

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“Drop in Giving Among Steepest Ever,” screamed the Chronicle of Philanthropy headline. Other media piled on. The anodyne Associated Press led with, “Charitable Giving Drops, Only the Fourth Time in 40 Years.”

Is this all just hyperbole? Or does it leave you wondering if it might be time to hang it up and consider a different career path? Don’t despair. At least not yet. The release last month of the 68th Giving USA Annual Report on Philanthropy (Giving USA Report), which reported a drop of 10.5% in giving last year, triggered the hoopla. The Report is an initiative of the Giving USA Foundation in collaboration with the Indiana University Lilly Family School of Philanthropy.

It’s too bad the Report has been reduced to a headline because, well beyond a simple scoreboard of giving, it also provides a wealth of useful information and interesting insights about the history and trends in charitable giving in the United States.

                     READ THE FULL ARTICLE           PRINT THE FULL ARTICLE

PG Calc WEBINAR July 27

Fundraising Metrics are the Worst! (And How to Fix Them)

Managers often look to metrics for solutions to fundraising growth. But research shows metrics are just as likely to hurt fundraising results as they are to help. So, what’s the problem? And what’s the solution? Tackling this problem starts by understanding the real-world decision-making processes for major gifts – especially the largest ones. This journey to the major gift from assets is very different from small gift decision-making. It should not be surprising that metrics that work in one place can be disastrous in another. In this session, Professor Russell James will take you on a deep dive into what actually works, and what doesn’t, in the world of metrics.

Presented by
Russell James, J.D., Ph.D., CFP®

Thursday,
July 27, 2023
1:00 - 2:00 pm ET


REGISTER

UPCOMING TRAINING

PGM Anywhere and Gift Annuities

July 25-26, Online (4 hours over 2 days)

PGM to PGM Anywhere – FREE

August 3, Online (90 Minutes)

PGM Anywhere Introductory & Advanced

August 9 and 10, In Person, Boston, MA

PGM to PGM Anywhere – FREE

September 7, Online (90 Minutes)
VIEW

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Quick Tip: Selecting a Mortality Table in PGM Anywhere

Rules spelled out in IRS final regulations published on June 7 (Treasury Decision 9974), allow a donor to choose Table 2010CM or Table 2000CM when computing the deduction for a gift made from May 1, 2019 through June 1, 2023. A donor must use Table 2010CM for gifts made after June 1, 2023. These rules are expressed in PGM Anywhere as follows.

  1. When you enter a gift date between May 1, 2019 and June 1, 2023 (and select an IRS discount rate on or after May 2019), the question below appears at the bottom of the window:

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    The question lets you select either Table 2000CM or Table 2010CM for performing your calculations. Click “Help” in the question label to read advice on which table to choose in a range of common donor situations.

  2. When you enter a gift date after June 1, 2023, you are not asked to choose a mortality table. PGM Anywhere knows to use Table 2010CM automatically.

  3. When you enter a gift date prior to May 1, 2019 and/or select an IRS discount rate for April 2019 or earlier, you are not asked to choose a mortality table. PGM Anywhere knows to use the mortality table that was required on the gift date.

If you have any questions, please contact Client Services at support@pgcalc.com or call 888-474-2252.

PG Calc ZombieFrom the PG Calc Blog: BDQ #4 – Why Is There a Charitable Deduction and How Does It Work?

The income tax charitable deduction has been around since 1917, just four years after the 16th Amendment created the modern Federal Income Tax. But why are charitable contributions deductible? And, can a donor actually save money by making a charitable contribution? First, let’s review the history of the income tax, then we’ll explore how the charitable deduction works in practice.

Read the blog post . . .
 READ THE BLOG POST 

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PGM Anywhere and PGM Updates Reflect Final Table 2010CM Rules

On June 22, we updated PGM Anywhere to accommodate requirements contained in IRS final regulations published on June 7 (Treasury Decision 9974). The final regulations establish new dates for the start and end of the transition period during which a donor may use the Table 2000CM or Table 2010CM mortality table when computing their charitable deduction for a split-interest gift. See this month’s Quick Tip for how the new rules have been implemented in PGM Anywhere.

On June 27, we sent an email to all current Planned Giving Manager clients announcing the release of Planned Giving Manager 7.7 (PGM 7.7). PGM 7.7 incorporates the same changes described above for PGM Anywhere. PGM clients must download and install PGM 7.7 to take advantage of these changes.

If you have any questions about what’s new in PGM Anywhere or PGM 7.7, please contact Client Services at 888-474-2252 or support@pgcalc.com.

NY Max Annuity Rates Still Mostly Higher Than ACGA Rates for Q3 2023

As we reported in last month’s eRate, New York has passed legislation that should greatly reduce the likelihood that any of its maximum annuity rates will be lower than the corresponding maximum rate suggested by the American Council on Gift Annuities (ACGA). As of this writing, the legislation awaits Governor Hochul’s signature, so the old rules for computing New York maximum annuity rates still apply for now.

New York’s maximum annuity rates for gift annuities completed in Q3 2023 are similar to the rates applicable to annuities completed in Q2 2023. Once again, all one-life New York maximum rates are higher than their corresponding immediate annuity rates from the ACGA. The New York maximum rate is also higher than the ACGA rate for all two-life immediate annuity rates we have tested, although there could be cases we haven’t tested where the New York rate is the lower rate.

It is a different story for deferred gift annuities. We have found one-life female, two-life female/female, and two-life male/female cases where New York’s maximum rate for a deferred gift annuity is lower than the corresponding ACGA rate. In these cases, the maximum rate you can offer a New York donor is limited by the New York maximum rate.

If you are working with a New York donor who wishes to fund a two-life immediate gift annuity, or a one-life or two-life deferred gift annuity, contact us. We will determine the maximum annuity rate New York will allow you to offer your donor. Go here to learn more about our New York Rate Calculations Service or to submit a calculation request form.

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PG Calc software training classGift Planning with PGM Anywhere Training in Boston August 9 and 10

PG Calc will be conducting in-person gift planning training classes using PGM Anywhere on August 9 and 10. These classroom-style courses always encourage a lively exchange of ideas and questions among the planned giving professionals in attendance and are a great opportunity to develop your planned giving knowledge and PGM Anywhere software skills. After a day or two of hands-on training with our experienced instructors, you'll be on your way to closing more gifts!

Introductory Session
Wednesday, August 9

Learn how to use PGM Anywhere to create persuasive gift proposals. This session will use case studies to introduce planned giving concepts and will cover immediate and deferred gift annuities, remainder trust basics, and more.

Register for Introductory

Advanced Session
Thursday, August 10

Discover advanced gift vehicles, including flip trusts, retained life estates, charitable lead trusts, and gifts of retirement plans using the flexible functionality of PGM Anywhere and Planned Giving Manager.

Register for Advanced

Enhance Your Fall Gift Annuity Mailing with BatchCalcs

Every year, our BatchCalcs service helps charities engage with thousands of gift annuity donors and prospects in a more personal way. Fall is our busiest time of year for BatchCalcs. Summer is the perfect time to plan a fall gift annuity mailing enhanced with BatchCalcs.

What is BatchCalcs? BatchCalcs is PG Calc’s service that lets you include personalized gift annuity calculations in each email message or printed letter you send in a mailing. Some clients include just the annuity rate the prospect would get, given their age. Others enclose a Summary of Benefits chart that shows the charitable deduction, annuity amount, and taxation of the annuity if the prospect were to give a specified amount.

All we need from you is an Excel file with a birthdate or age and an ID for each prospect. You can specify the gift amount for each prospect, too, if you wish. You get back your Excel file with calculated values added and, if you wish, a file of letters or Summary of Benefits charts with values merged into them.

If you want to use BatchCalcs to personalize your gift annuity mailing, or just want to learn more about it, go here or contact Dave or Emi at info@pgcalc.com or call 888-497-4970.

 Apr2023 MS BatchCalcs Letter

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PG Calc Summer Hours

Over the years, we’ve noticed many of our clients seem to be closing up early on Fridays during the summer. As a thank you to our team and in recognition of the lower demand for our assistance on Friday afternoons, PG Calc’s offices will be closed 3:00 pm (ET) on Fridays for the remainder of the summer until Labor Day. We stand ready to help you and all our clients the rest of the week.

Grinnell College Appreciates Jen Wickham's Expertise

“What I appreciate from Jen [PG Calc Senior Client Services Advisor Jen Wickham] is her knowledge for financial details, her understanding of laws by state, and her quick response to questions. With the uptick in QCDs from donors and their requests for a CGA, Jen takes the time to thoroughly answer any ‘how to’ question I might have. I enjoy working with PGM Anywhere in part due to the customer satisfaction Jen has provided me.”

--Susan Kriegel
Development Assistant
Grinnell College

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Sales: info@pgcalc.com 888-497-4970
Support: support@pgcalc.com 888-474-2252