New Blog Posts:

Here are the PG Calc Blog posts since the last eRate newsletter.

IRS Updates Rules for Computing Planned Gift Deductions

On June 1, 2023, the IRS made public Treasury Decision 9974 (TD 9974). TD 9974 contains final regulations relating to the use of actuarial tables in valuing annuities, interests for life or a term of years in property, and remainder or reversionary interests in property.

A change of immediate importance to gift planners, TD 9974 requires use of the 2010CM mortality table when computing the deduction for a gift annuity, charitable remainder trust, or other split-interest gift made on or after June 2, 2023.

Read the blog post . . .

BDQ #3: The Assignment Revocation Rigmarole: A Gift Annuity Pushmi-Pullyu

The provisions of the “IRA Legacy Act” provide a limited opportunity for donors to make a qualified distribution in exchange for a charitable gift annuity. This new option comes with several constraints, including a requirement that the gift annuity contract cannot be “assignable.” This restriction has triggered some discussion about assignment and revocation of life income gifts.

Read the blog post . . .

Surely No One Dies on Schedule: Split-Interest Gifts and Mortality Tables

Much of our work in planned giving – in particular, with split-interest gift arrangements – involves the use of mortality tables and the related estimates of life expectancy. But what are the different mortality tables, and when do we choose to use a specific one?

Read the blog post . . .

PGM Anywhere Updated Twice in June

We expected to update PGM Anywhere just once in June, but the IRS threw us a curveball. Here are the particulars.

First Update: Enhanced QCD Presentations for QCD-funded CGAs
On June 1, we updated PGM Anywhere to improve the user experience and presentation content when illustrating a charitable gift annuity funded with a qualified charitable distribution (QCD). Inapplicable text that was appearing in some presentations has been either removed or revised, as appropriate.

Second Update: Revisions to Apply Final Rules on Use of 2010CM Mortality Table
We are working on updating PGM Anywhere in response to IRS final regulations contained in Treasury Decision 9974 (TD 9974). Its provisions govern the use of Table 2010CM in computing deductions for split interest gifts, such as gift annuities and charitable remainder trusts. TD 9974 was first made public on June 1 and made final for legal purposes when it appeared in the Federal Register on June 7. See IRS Updates Rules for Computing Planned Gift Deductions in this eRate for the key provisions in TD 9974.

NY Finally Passes Changes to Calculation of Its Maximum Annuity Rates

On June 8, the last day of its 2023 session, the New York Legislature finally passed S2683A. First introduced early in the 2022 session, this bill modifies New York’s formula for computing maximum annuity rates. The expected result of applying the new formula is that New York’s maximum annuity rates will then be universally higher than the suggested maximum annuity rates published by the American Council of Gift Annuities. At this writing, the bill is awaiting Governor Hochul’s signature. Assuming that happens, the bill will become effective 90 days later. This sequence of events puts New York on track to apply the new formula starting with its maximum annuity rates for Q1 2024 and apply its current formula until then.

For now, 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.

The Not-So-Lazy Days of Summer: It’s FASB Time Again!

Some things come around once a year – school’s out, summer vacations, “the holiday season,” and so on. But not everything that happens once every 12 months is quite so pleasant. For non-profit organizations, the two months that follow the end of their fiscal year — July and August for many of our clients — typically require a good amount of work to tally up the numbers and polish off the financial reports. For charities that sponsor life income gift arrangements, the year-end accounting process includes calculations of the estimated liabilities representing payments to be made in future years.

The process is not rocket science, as they say, but it can be arduous, especially to those unfamiliar with actuarial calculations. PG Calc has a couple of different ways to help. Our GiftWrap software allows organizations and their financial agents to calculate the estimated liabilities for all life income gifts at the click of a button. Alternatively, our Client Services team can perform the calculations for you, at a surprisingly modest price.

Please contact us at support@pgcalc.com or 888-474-2252 if you have questions about either of these alternatives. Fiscal year end and FASB season do not have to be completely joyless.

* Also, there is a one-time training session on running FASB calculations in GiftWrap on June 22. The recorded session will also be available for purchase after the training.

ACGA Rates Will Not Be Changing

The American Council on Gift Annuities (ACGA) announced in an email to members on June 7 that it will not be changing its suggested maximum annuity rates at this time. The ACGA noted that its decision was driven largely by the yield on 10-year Treasury Bonds, which has stayed within a narrow range since the ACGA raised its rates in January. 

Enjoy Summer in Boston! Gift Planning Training August 9 and 10

Sign up for one or both of our training sessions, and during your free time, take in a Red Sox game, go on a whale watch, or eat some lobster! There are so many fun things to do in Boston in the summer.

PGM Anywhere training sessions are a great opportunity to develop your planned giving knowledge and 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! These classes will be taught primarily using web-based PGM Anywhere, with some additional use of PGM desktop.

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.

New York Public Library Appreciates PG Calc’s Planned Giving Advice

“I am very pleased to say that each time I reach out to PG Calc colleagues for advice all of you deliver promptly and efficiently, and for that I am most grateful."

--Nora Benoliel
Director, Planned Giving
New York Public Library

Learn more about the New York Public Library.