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eRate Newsletter | November 15, 2023


PG Calc QCD Survey:
Many Charities Report Closing CGAs Funded With a QCD

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A new gift planning opportunity became available at the beginning of this year thanks to the Legacy IRA Act that passed late last December: funding a charitable gift annuity (CGA) or charitable remainder trust (CRT) with a qualified charitable distribution (QCD) from one’s IRA. Gift planners were rightfully excited to have a new gift plan to talk about with their donors. However, the new gift plan’s many requirements raised doubts about how popular it would be. Who would make these gifts? 

To investigate the popularity of this new gift option, we sent out a survey to a broad fundraising audience. We summarize our results in this article. 


WEBINAR November 16

Donor-Centric Marketing

In this presentation, Andrew Palmer, PG Calc’s Director of Marketing Services, will discuss why he loves donor stories as a marketing technique, what gives them their unique power, and how you can improve the use of donor stories in your marketing. You’ll hear tips on writing them and on how to encourage your audience to see themselves in the stories you share.

Presented by
Andrew Palmer

November 16, 2023
1:00 - 2:00 pm ET



PGM to PGM Anywhere – FREE!

December 7, Online (90 Minutes)

PGM Anywhere and Charitable Gift Annuities

January 17-18, Online (4 hours over 2 days)

When the IRS Needs Your 1099s: GiftWrap Steps to Filing Success – FREE!

January 23, Online (90 Minutes)

PGM Anywhere and Charitable Remainder Trusts

February 6-7, Online (4 hours over 2 days)


Quick Tip: Setting Investment Assumptions in PGM Anywhere

Clients who model charitable remainder unitrusts in PGM Anywhere become familiar with adjusting the Investment Assumptions for Projections to reflect the appropriate income and appreciation rates for their organization. If you find yourself frequently creating CRUT proposals and would like to fix the income and appreciation rates so that they automatically appear, you can do so by utilizing the feature Custom start up defaults in PGM Anywhere.

First, click Gift Options, delete the default Gift Annuity gift type (by clicking on the trash can icon), and select Remainder Unitrust under Add A Gift Option. Click on the + symbol to expand the Investment Assumptions for Projections fields.

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Complete the fields with your organization’s investment model, including annual management fee information. Then click Done.

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On the main toolbar, click the cloud icon to Save. Nov2023 erate QT3

From the dropdown field, choose Startup defaults and then click Save.

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Now each time you open PGM Anywhere, the Remainder Unitrust will appear as the default and will have the investment information pre-populated for you.

To return to the PG Calc default, simply go to Save again and choose:

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Contact Client Services at or 888-474-2252 if you have any questions or need help.

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From the Blog:

BDQ #7: Why Would an Organization Want to Have a Planned Giving Program?

If you’re reading this, chances are you’ve already come up with your own reasons why your organization ought to have a planned giving program. But what do you say to your boss? Your board of directors? Your fundraising colleagues? Let’s consider the case for planned giving. A vigorous planned giving program provides many benefits – both tangible and intangible. 
Read the blog post . . .

New York Max Annuity Rates Legislation Signed into Law

New York 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) has finally become law. Governor Hochul signed New York Bill A4599a on October 25. The new law will go into effect 90 days from that date, so the New York maximum rates computed using the old method will continue to apply until January 23, 2024. Read the blog post . . .


Things We Are Following:

IRS Announces Indexed Tax Items for 2024: Adjustment Is 5.4%

The IRS has announced the values for 2024 of various tax items that are indexed annually for inflation. Values have been adjusted upward about 5.4%, a decrease from the 7.1% adjustment applied in 2023. Of particular interest to gift planners, the federal unified gift and estate tax exemption amount will be $13,610,000 ($27,220,000 per couple) in 2024, an increase from $12,920,000 ($25,840,000 per couple) this year. In addition, the federal annual gift tax exclusion will increase from $17,000 per person ($34,000 per couple) this year to $18,000 per person ($36,000 per couple) next year, and the federal standard deduction will increase next year to $14,600 for single filers ($29,200 for married couples filing jointly), an increase of $750 and $1,500, respectively.

See Revenue Procedure 2023-34 for the details on all indexed federal tax items in 2024, including all federal income tax schedules for 2024.


Good News for QCD Gifts: Dollar Limits Will Increase in 2024

Among the Legacy IRA Act provisions that became law at the start of this year is indexing the dollar limits on qualified charitable distributions (QCDs) from IRAs for inflation. The IRS has announced the new limits for QCDs made in 2024. The limit on QCDs to fund outright gifts will increase $5,000 to $105,000. The limit on QCDs to fund a gift annuity or charitable remainder trust will increase $3,000 to $53,000. This is good news for charities: donors will be able to give more via QCDs if they wish.

See Notice 2023-75 for details on all the inflation adjustments related to retirement plans and deferred compensation plans.

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New Year, New Filing Requirement: IRS Lowers Bar for Mandatory E-Filing

Every January, organizations that issue charitable gift annuities must send annuitants a copy of their 1099-R by January 31st and must submit a duplicate 1099-R to the IRS by February 28 (if filing on paper), or March 31 (if filing electronically). If you’ve previously submitted the duplicate 1099-Rs on paper to the IRS, your future may be electric. The IRS has lowered the bar for mandatory e-filing to just 10 returns.

The Taxpayer First Act of 2019 authorized the Department of the Treasury and the IRS to issue regulations to reduce the threshold for e-filing. Then, on February 23, 2023, the IRS published T.D. 9972, which lowers the e-file threshold from 250 to 10, as calculated by aggregating all of an organization’s information returns. The reference to “aggregating returns” means that if your organization issues other 1099-Rs, such as to vendors, you may already be required to e-file in 2024.

To assist with the impending dramatic increase of e-filing in 2024, the IRS has launched a new online filing system called IRIS (Information Returns Intake System), which went live in January 2023.

GiftWrap users who already file electronically should continue to submit their files through the IRS’s other on-line system FIRE (Filing Information Returns Electronically). Please note that the TCC (Transmitter Control Code) for your organization’s FIRE account will not work in IRIS, and vice versa.

To get ready for the switch to e-filing, you can find more about IRIS and register to use the system by going here:

You may ask us your 1099-R questions at our free on-line training on January 23, 2024, “When the IRS Needs Your 1099s: GiftWrap Steps to Filing Success.” Join us, it will be electric. 

Valuation Rate for New PIFs Will Be 3.8% in 2024

Pooled income fund (PIF) 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 equals the highest annual average monthly IRS discount rate over the prior three years, rounded to the nearest 0.2% and reduced by 1.0%. This rate has been 2.2% in 2023. It will jump to 3.8% in 2024. The lower the valuation rate, the higher the deduction for a gift to a pooled income fund, so there may be an opportunity here for year-end gifts to young pooled income funds, since the deduction for a gift to a young fund will be much lower in 2024.

The valuation rate for gifts to funds more than three taxable 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). As with the valuation rate for young funds, the valuation rate for many older funds is likely to increase significantly for 2024, reflecting the general rise in interest rates this year. If your organization has such a fund, consider promoting gifts to it before deductions go down at the beginning of 2024.

pool green float - photo by Ben Vloon - Unsplash

Webinar Schedule for 2024 Is Set

2024 Webinars

We have finalized the dates, topics, and presenters for all twelve monthly webinars for 2024. 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; Johni Hays, Executive Vice President at Thompson & Associates; and Renee Kurdzos, Director of Gift Planning, Fundraising at The Nature Conservancy. See the dates, titles, and presenters of all our webinars for 2024.

We have been very pleased with the response to the changes we made to our webinar format this year – reduced webinar length (60 minutes) and cost ($45), and four free Q&A webinars. We will be sticking with this format in 2024.

To register for a session, go here, scroll down to the session, click it, then click “Register Now.” You can register for the whole 2024 series on the registration page for any paid session in 2024. Choose “2024 Series (12 monthly webinars) – Live Sessions Only” or “2024 Series (12 monthly webinars) – Live Sessions + Online Recordings.” We hope you will join us for all our 2024 webinars!

And, be sure not to miss our last FREE Q&A webinar of 2023, Marketing Planned Gifts, with PG Calc Director of Marketing Services Andrew Palmer on Thursday, December 14, 2023 at 1:00 pm ET.

 2024 Webinars 

PG Calc Training Options in 2024 – There’s Something for Everyone!

We’re thrilled to announce our list of software training options for the first six months of 2024. This is the most expansive list of choices we have ever offered – a combination of familiar standard sessions along with some new and highly specialized subject areas. Some of them are even FREE!

While virtual training continues to be the preferred method – by far – we continue offering a few in-person sessions as well. They serve as a great opportunity to be in the same room with your counterparts from other organizations. Please contact us at 888-474-2252 or if you have questions about any of these options.

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 2024 Training Options


We Enjoyed Seeing Many of You at CGP

Over a dozen members of the PG Calc team were in Chicago November 1-3 at the National Association of Charitable Gift Planners 2023 Conference.

From Jeffrey Frye's PGM Anywhere training classes to Craig Wruck's Fundamentals course and induction into the CGP Hall of Fame (congratulations, Craig!), there was a lot to learn, share, and celebrate with our gift planning community. We also had a chance to dive into some slices of deep dish pizza, meet some of the emerging professionals at the networking event, and take in the latest and greatest ideas in gift planning from the incredible sessions. We even got a snowy preview of winter weather!

Dominican University Benefits Through 10-Year Partnership with PG Calc

“Dominican University has been working with PG Calc for more than 10 years, and we have been uniformly pleased with our partnership. The customer service is superb with support always prompt and professional. We wholeheartedly recommend PG Calc to organizations that need the services it provides.”

-- Janet Coffey
Major and Planned Gifts Officer
Office of University Advancement
Dominican University

Learn more about Dominican University.

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