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eRate Newsletter | November 15, 2021

IRS DISCOUNT RATE: December 1.6%

Now is the Time! Year-End Messaging to Close More Gifts

Many charities have already sent their year-end appeals. Others are making final adjustments to these important annual communications. Regardless of the timing, there are messages that can increase the size of gifts during the giving season. Be sure donors are aware of these three essential giving opportunities at the end of 2021.

  1. Gifts of Appreciated Securities
  2. Qualified Charitable Distributions
  3. 2021 Incentive for Cash Gifts



WEBINAR November 21

Notice: To accommodate clients currently not able to view PG Calc webinars in a group, all registrants will receive a link to a recording of the webinar that they can share with colleagues at their organization. Ordinarily, the recording is available within 1-2 weeks of the live session. Alternatively, additional participants at the same organization who wish to attend the live session may do so for just $25 each.

Effectively Promoting Your Planned Giving Program

Presented by
Andrew Palmer

Jonathan Steele

November 18, 2021
1:00 - 2:30 pm ET



GiftWrap Fundamentals

November 16-17, Online (6 hours over 2 days)

PGM to PGM Anywhere FREE

December 2, Online (90 minutes)


Quick Tip: A Rising IRS Discount Rate Could Be an Incentive for Many CGA Donors

The IRS discount rate leaped from 1.0% in October to 1.6% in December and further increases appear likely in the coming months. October’s rate will be available through December, but after that the IRS discount rate may not be as low as 1.0% again for a long time.

For donors who don't itemize their deductions, this situation provides a tax incentive to fund a gift annuity before the end of the year. Why? Because the lower the IRS discount rate, the smaller the deduction for a gift annuity, but also the greater the tax-free portion of each annuity payment. Donors who do not itemize get no benefit from the charitable deduction, so for them it is best to maximize the tax-free portion of their payments. And that means choosing the lowest IRS discount rate possible. Let your gift annuity prospects know this now, and some of them may decide to fund a gift annuity before the year is over and the IRS discount rate goes up.



infrastructure investment and jobs act social card

From PG Calc’s Blog: The Infrastructure Bill ... Nothing to See Here for Charities

Late on Friday, November 5, with bipartisan support, the House of Representatives passed the “Infrastructure Investment and Jobs Act” (HR 3684).

What is the impact on charitable gift planning and year end giving? Not much. While there is much good for the country expected from it, the bill includes almost no tax changes, only one of which is even tangentially related to charitable giving: a provision requiring additional reporting for cryptocurrency transactions beginning in 2024.


Webinar Schedule Set for 2022

We have finalized our schedule of monthly webinars for 2022. In addition to topics that will be presented by PG Calc experts, we are excited that attorney Aimee Griffin, Professor Russell James, and gift planners Sam Samuels, Carmen Tordiglione, and Matt Borden will be joining us next year to share their expertise. Descriptions of each session and registration will be available soon. In the meantime, you can view our 2022 schedule.


CGA Manual

CGA Manual Updated for 2021

We have completed our 2021 update of Charitable Gift Annuities: The Complete Resource Manual. The CGA Manual is our go-to resource for answering all your questions about operating a gift annuity program and handling the details of specific gift situations. This year’s update includes a new Best Practices chapter, a discussion of gifts of cryptocurrency, a new guide to the CGA Manual’s 75 figures, and hundreds of other timely revisions.

The manual is available in electronic and hardcopy formats. Recognizing that many of our CGA Manual subscribers are still working from home, on October 27 we sent the electronic version to all our subscribers to make sure they all have access to their updated manual. In early November, we mailed updated hardcopies to all print subscribers except those who asked us not to send it this year.

You can learn more about the CGA Manual or order your own copy on our website. For questions about your CGA Manual subscription, contact Client Services at or 888-474-2252.

IRS Announces Indexed Tax Items for 2022

The IRS has announced the values for 2022 of various tax items that are indexed annually for inflation. In general, values have been adjusted upward about 3.0%. Of particular interest to gift planners, the unified gift and estate tax exemption amount will be $12,060,000 ($24,120,000 per couple) in 2022, an increase from $11,700,000 ($23,400,000 per couple). For the first time since 2018, the annual gift tax exclusion will also increase, from $15,000 per person this year to $16,000 per person next year. Also of interest, the standard deduction in 2022 will increase to $25,900 for married couples filing jointly and to $12,950 for single filers, an increase of $800 and $400, respectively. Taxpayers who are 65 or older will qualify for an additional $1,400 in standard deduction on top of that (an additional $1,750 if single and not a surviving spouse). See Revenue Procedure 2021-45 for complete details, including all federal income tax schedules for 2022.



Valuation Rate for New PIFs Will Be 1.6% in 2022

Pooled income fund deductions are computed using a valuation rate rather than the IRS discount rate. The applicable valuation rate depends on the age and investment history of the fund.

The mandated valuation rate for gifts to funds less than three years old is 2.2% in 2021. It will decrease to 1.6% for gifts made to them in 2022. Given how this rate is determined, there is a reasonable likelihood this valuation rate will decrease even further in 2023. The lower the valuation rate, the higher the deduction for a gift to a pooled income fund, so there may be an opportunity here.

The valuation rate for gifts to funds more than three years old is the fund’s highest annual rate of return in the prior three years. This rate of return must be computed as described in Treas. Regs. 1.642-6(c)(2) and 1.642-6(c)(3).

PG Calc Back in the Office

Starting November 1, the Cambridge-based PG Calc team began the return to its home at 129 Mount Auburn Street after seamlessly making the transition to working remotely during the pandemic. All our staff is setup to work in the office and remotely without missing a beat thanks to the efforts of our amazing IT staff, and we are now enjoying greater flexibility working in person and remotely.



Vanderbilt University Medical Center Gains Insight Into Donors With PG Calc

“Vanderbilt University Medical Center hired PG Calc consultants on retainer in 2019. They work with planned giving staff, marketing, operations, and leadership to strengthen the planned giving effort at VUMC.

“PG Calc developed and delivered a donor/patient survey that allowed us to learn more about our planned giving partners, as they shared their stories, passions, and interests in engaging more with VUMC development. Their survey responses provided invaluable information and significantly increased our Legacy Circle membership.”

Christopher J. Collins
Vice President for Development
Vanderbilt University Medical Center

Learn more about Vanderbilt University Medical Center.

Learn more about PG Calc’s Consulting Services.