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eRate Newsletter | May 18, 2020


Taking Advantage of the 100% Limit on Deductions for Gifts of Cash in 2020

The Coronavirus Aid, Relief, and Economic Security Act, better known as the CARES Act, became law in late March. The Act includes several provisions of interest to gift planners. Arguably the most significant of these is the ability to waive the usual 60%-of-adjusted-gross-income limit on deductions for gifts of cash made to public charities in 2020. This change creates several gift opportunities that will appeal to some donors.

In this month's featured article, Bill Laskin, PG Calc VP Product Management, explores various gift opportunities resulting from the change to the 60%-of-AGI limit on deductions in the CARES Act.



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.

New Results from 100 Years of National Data: The 10 Most Painful and Pleasant Statistical Realities in Bequest Fundraising

Presented by
Professor Russell James

May 26
1:00 - 2:30 pm ET



PGM Anywhere and Gift Annuities

June 17-18, ONLINE

July 14-15, ONLINE




Quick Tip: New GiftWrap Flexible DGA Assistant

A new update of GiftWrap will be released later this week. The following is a preview of an exciting new feature included in this update called the Flexible DGA Assistant. This new enhancement adds flexibility to and facilitates scheduling of first payment date, payout percentage, payment records, and tax tiers for flexible deferred CGAs when a payment date is selected. Users will see a new, large button on the Gift Information Screen reading Flexible DGA. The button will be enabled for CGA gifts of subtype “F” and status of “Current.”

Clicking the Flexible DGA button allows you to manage your flexible CGA.

If a payment start date has been previously selected for the gift in question, a message box will appear confirming that the gift is a flexible annuity and specifying the first payment date and payout percentage.

If no payment start date has been selected for the gift in question, you will be prompted to choose a payment date based on the information entered into the "Flex GA Detail" tab on the Gift Information screen. Once you select a payment start date, payments and tax tiers will be populated for the active beneficiary.

Please contact Client Support at 888-474-2252 or if you would like to learn more about GiftWrap.


Recent PG Calc Blog Post

Less Is Often More - Tax Issues with CGAs

optionsLess is often more. With a charitable gift annuity, a donor accepting a lesser charitable deduction may mean more for the donor in tax savings. That might seem counterintuitive, but a combination of an historically low discount rate and an increased standard deduction can have tax implications for a donor considering a gift annuity for your charity.





ACGA Rates Will Go Down Effective July 1

In response to the recent plunge in interest rates, the American Council on Gift Annuities (ACGA) announced on May 8 that it will be reducing its suggested maximum gift annuity rates. The lower rates will go into effect on July 1, 2020. The new rates will be based on a net investment return assumption of 2.75%, a 0.5% decrease from the 3.25% assumption that underlies the current ACGA rates. The new rates are not available yet, but David Ely, Chair of the ACGA Rates and Regulations Committee, expects them to be 0.3% - 0.5% lower than the current rates at most ages. The ACGA expects to publish the new rates in late May or early June. PG Calc will make the new ACGA rates available in PGM Anywhere, Planned Giving Manager, and GiftCalcs within a few days of the ACGA publishing its new rates.



PGM and PGM Anywhere Updated to Incorporate Deduction Limit Waiver Available in 2020

On May 5, we updated four narratives in Planned Giving Manager (PGM) and PGM Anywhere. The updated narratives give clients the option of including language related to the new 100%-of-adjusted-gross-income limit made available by the CARES Act. The limit is available to donors who make cash gifts to public charities during 2020. The four affected narratives are the Proposal Letter, Description and/or Example, Long Description and/or Example, and Comparative Description. We updated web-based PGM Anywhere on behalf of all clients. PGM clients received download instructions in an email on May 5. Please contact Client Services at 888-474-2252 or if you have any questions about the update.

Note: The PGM update is optional. Clients who do not use the affected narratives or who are not interested in including the new optional language in them, may prefer to wait for the PGM update we expect to release shortly. That update will include both the updated narratives and the new ACGA suggested maximum annuity rates that will go into effect on July 1, 2020.



Whole Months from Annual Valuation Date to First Payment Date

PG Calc’s Planned Giving Manager and PGM Anywhere include a question that sometimes causes confusion for the gift planning professional. When running the calculations for a charitable remainder unitrust, the following question appears in the Gift Options section: “Whole Months from Annual Valuation Date to First Payment Date.” We have received a number of calls over the years about that question, and we thought this was a good chance to cover it.




PG Calc Expands Online Software Training

After weeks at home in response to the coronavirus pandemic, offices and public buildings are starting to reopen in many locations. Even so, many of us will not feel inclined to travel anytime soon, so PG Calc is happy to make online training available. Our first online training session, PGM Anywhere and Gift Annuities, was a big success, so we are pleased to offer additional sessions in June, July, and August. We also expect to add PGM Anywhere and Charitable Remainder Trusts and Lead Trust School classes to our online schedule shortly. Though we will miss the camaraderie of in-person training, as well as the afternoon cookie breaks, we look forward to welcoming you to one or more online classes.




Planned Giving Conferences Go Virtual

This spring, PG Calc was preparing to join many of you at conferences across the country. Due to the pandemic, all of the conferences we typically look forward to attending have wisely been cancelled. However, a few have managed to make the switch to online, and we were happy to sponsor and/or virtually attend AFP Icon and the 34th ACGA Gift Planning Conference. We are looking forward to being able to virtually attend the Chicago Council on Planned Giving’s Annual Symposium later this month (May 28th), where we will be introducing the keynote speaker. That brings an end to the spring conference season and we hope to see you in person in the fall!



Covenant House Relies on PG Calc for Planned Giving Expertise

Since 1972, Covenant House has helped transform and save the lives of more than 1.5 million young people fighting to overcome homelessness. A powerful human rights movement for vulnerable youth in 31 cities across six countries, Covenant House offers housing and support services to young people in need – currently reaching 74,000 youth every year.

The Covenant House Planned Giving Department is decades old and includes both planned giving officers and major gift officers, both of whom solicit planned gifts. The department administers bequest, trust, and gift annuity programs and works closely with the Direct Marketing team to promote the program.

Alison McKenna, Vice President of Planned Giving, is currently in charge of the Planned Giving department. However, before taking the role, she did not have a deep knowledge of planned giving, and has relied on PG Calc’s Consulting Services time and again to ensure accuracy in the technical aspects of planned giving, and for advice on how to effectively talk with donors about planned giving. Alison has worked with PG Calc on designing planned giving brochures, in-person trainings with gift officers and members of their leadership team, preparing proposals for donors interested in more complex planned gifts, and reviewing communications to ensure they are up to date in accordance with the ever-changing rules and policies governing planned giving vehicles.

Alison had this to say about PG Calc:

“We rely on PG Calc to provide planned giving technical expertise. PG Calc’s Consulting Services provides reassurance in the accuracy of our planned giving messaging as well as sophisticated and battle-tested message guidance. They are our sounding board for planned giving donor cultivation strategies."

Learn more about the Covenant House.

Learn more about PG Calc's Consulting Services.