From the Blog: Research on Donor Advised Funds Presented at 2022 CGP National Conference

Dr. Danielle Vance-McMullen of DePaul University and Dr. H. Daniel Heist of Brigham Young University presented their preliminary analysis of data from 13,000 donor advised funds at the 2022 National Conference of Charitable Gift Planners last month.

While some of their findings confirm what we already know about DAFs, others challenge our common assumptions. The study, which examined data from 2017 to 2020, identified four key themes.

Read the blog post . . .

Also from the Blog: New IRS 2010CM Mortality Table Throws a Curveball

We have learned something unexpected about the new 2010CM mortality table. Published in proposed regulations released by the IRS in May, 2010CM can in some situations produce a higher deduction than the 2000CM mortality table we’ve been using since 2009. This is an important realization, because the proposed regulations allow donors to compute their deductions using 2010CM or 2000CM. Naturally, donors will want to use the table that gives them the greatest benefit.

Read the blog post . . .

Valuation Rate for New PIFs Will be 2.2% in 2023

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 taxable years old is based on the highest annual average monthly IRS discount rate over the prior three years. The highest of these averages is then rounded to the nearest 0.2% and reduced by 1.0% to determine the valuation rate for the year. This rate has been 1.6% in 2022. It will be 2.2% 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, since the valuation rate for young funds is likely to be much higher in 2024.

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).

IRS Announces Indexed Tax Items for 2023

The IRS has announced the values for 2023 of various tax items that are indexed annually for inflation. In general, values have been adjusted upward about 7.0%. Of particular interest to gift planners, the federal unified gift and estate tax exemption amount will be $12,920,000 ($25,840,000 per couple) in 2023, an increase from $12,060,000 ($24,120,000 per couple). In addition, the federal annual gift tax exclusion will increase from $16,000 per person ($32,000 per couple) this year to $17,000 per person ($34,000 per couple) next year, and the federal standard deduction will increase next year to $27,700 for married couples filing jointly and to $13,850 for single filers, an increase of $1,800 and $900, respectively.

See our blog for more details.

See Revenue Procedure 2022-38 for the details on all indexed federal tax items in 2023, including all federal income tax schedules.

CGA Manual Is Your Guide to an Exceptional Gift Annuity Program

As promised in last month’s eRate, we have now released our 2022 update of Charitable Gift Annuities: The Complete Resource Manual (CGA Manual) to all our electronic and print subscribers.

Originally published in 1999, Frank Minton and PG Calc consultants have collaborated annually on updating this indispensable resource since 2006. Whatever your gift annuity question, be it about a specific gift annuity situation you are working on, state regulations, structuring or marketing your program, or anything else, the answer is in the CGA Manual. Terry Simmons put it succinctly in his foreword to the very first edition: “With this manual in hand, a charity can have an exceptional gift annuity program.” (Terry was a giant in gift planning circles for 30 years. Among many honors, he was the original inductee into the CGP Hall of Fame.)

For just $150 plus $75/year, you can have the electronic CGA Manual at your fingertips and be on your way to an exceptional gift annuity program. That’s a bargain!

You can learn more about the CGA Manual or order your own copy on our website.

PG Calc Webinar Schedule and Pricing for 2023 is Set

We have finalized the topics and presenters for all twelve monthly PG Calc webinars and expect to finalize the date of each webinar soon. In addition to presentations from PG Calc experts, we will be offering webinars by: Russell James, Professor in the School of Personal Financial Planning at Texas Tech University; Karen Johnson, Senior Director, Complex Gifts at Harvard University; Anne Melvin, Senior Learning Consultant at Harvard University; and Beth Ridout, Director of Estate Administration at The Nature Conservancy.

As mentioned in the last eRate, we will be making some significant changes to our monthly webinars for 2023:

1. Reduced Length: 60 minutes versus the current 90 minutes.
2. New Format: Eight standard webinars and four Q&A webinars.
3. Reduced Cost: Standard webinars will be just $45 each, and Q&A webinars will be FREE. You can purchase the whole series for $270, a 25% savings.

See the 2023 webinar topics here. Registration for individual sessions will open on December 15. You can register for the 2023 series anytime be clicking here and choosing one of the series registration options: either Live Sessions Only or Live Sessions + Online Recordings.

We hope you will join us for all our 2023 webinars!

Back in Person at the CGP National Conference in Reno

PG Calc was thrilled to show up in force at the CGP National Conference in Reno October 26-28, with thirteen of us in attendance. We were delighted to see so many clients in person after far too long, and the joy of being back in person at the conference was palpable.

We enjoyed hearing about your successes with PGM Anywhere, GiftWrap, and Bequest Manager, and we appreciated the kudos you offered to our Gift Administration, Marketing Services, Consulting, and Client Services teams.

As always, the conference included many timely and thought-provoking sessions and events. Our team attended many, including:

• The pre-conference session Gift Planning Fundamentals, taught by planned giving guru and PG Calc Senior Advisor Craig Wruck.
• The opening keynote and celebration – such a pleasure to see old friends and to make new friends!
• Sessions about reaching diversity, equity, and inclusion goals and donor engagement strategies.
• The role of gifts of cryptocurrency and complex gift structures.
• The report from the Joint Commission on Taxation – keep an eye out for a blog post from us soon that will highlight aspects relevant to planned giving.
• Research on donor advised funds – read the blog post with our analysis.

In our shared conversations, we were reminded that the information attendees need and want isn’t always directly related to their years of experience, and the breadth of topics provides something for everyone. As always, there were offerings of fundamental sessions for those new to the field and technical sessions for those looking for that. But there were also great opportunities for experienced gift planners looking for a refresher on something because of where their organization finds itself, such as updating policies and procedures.

We loved reconnecting with our planned giving colleagues from across the country. We look forward to seeing more of you in person in the coming year!

PG Calc’s Customer Service Goes “Above and Beyond”

“As always, y’all at PG Calc should get the ‘above and beyond’ award for such excellent customer and industry service. Your knowledge and expertise set a high industry standard, only surpassed by your helpful customer service. I’m never disappointed!”

—Kevin Kurtz
Planned Giving Officer
Dallas Seminary Foundation

Learn more about Dallas Seminary Foundation.

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