PGM Anywhere Quick Tip: Determining Which Summary of Benefits Chart to Use

PGM Anywhere has two different Summary of Benefits charts. First, the “Summary of Benefits” chart appears as the first chart under Basic Charts and is automatically selected as part of PGM Anywhere’s standard startup defaults. Second, the “Summary of Benefits Projection” chart appears as the first chart under Projection Charts.

The “Summary of Benefits” chart displays the charitable deduction and expected first year income and is best suited for modeling all types of gift annuities. The “Summary of Benefits Projection” chart displays the predicted yearly payments and the projected total benefit to both the income recipients and to charity. This chart is best suited for gift illustrations impacted by projected investment performance – charitable remainder trusts, lead trusts, and non-charitable options.

If you need guidance on which presentations to select for your gift illustration, please contact Client Services at support@pgcalc.com or 888-474-2252. We are here to help.

From the Blog: Charitable Lead Trusts – Not Just for the Super Rich

Sometimes, in the world of charitable gift planning, we focus too closely on the tax consequences of potential gift plans. With charitable remainder trusts (CRTs) and charitable gift annuities (CGAs), it is not enough to know how much the income tax deductions will be – donors also want to know how much the vehicles will pay to themselves and/or other beneficiaries over time. And not just how much the payments will be, but also, how those payments likely will be treated for income tax purposes. Occasionally a donor comes along and says that the amount of the charitable deduction, or even the amount of the payments, is not important, but that type of donor tends to be the exception to the rule.

Charitable lead trusts (CLTs) are at times described as “upside-down” or “reverse” CRTs. The charitable lead trust allows for significant payments to be made to the charity or charities of one’s choice, while also providing the opportunity for significant financial benefit to accrue to the grantors’ favorite people.

Read the blog post . . .

Also From the Blog: New York Maximum Annuity Rates No Longer Conflict with ACGA Rates

A new law that revises how New York computes its maximum annuity rates for gift annuities issued to New York residents went into effect on January 23, 2024. As expected, switching to the new method has increased New York’s maximum annuity rates significantly. All of New York’s new one-life maximum rates are now substantially higher than the corresponding ACGA rates. We have also tested a range of two-life immediate annuity rates and one-life and two-life deferred annuity rates. In every case, New York’s new maximum rate is significantly greater than the corresponding ACGA rate. So, it appears the new method for computing New York maximum annuity rates has eliminated all conflicts with the ACGA rates, at least through June 30, 2024 (under the new law, New York will be updating its maximum annuity rates every July 1 and January 1).

New York Reserve Calculations Not Affected: Please note, the new law does not change any of the rules for computing New York annuity reserves. In particular, the maximum allowable interest rates will still be determined the same way and updated quarterly, and reserve amounts will still depend on the gender of the annuitant(s).

Read the Blog Post . . .

Things We Are Following: Tax Legislation? This Year? Well, Maybe.

On the last day of January, the House passed HB7024 with a bipartisan majority of 357 to 70. It expands the child tax credit and certain business tax breaks but contains no provisions directly related to charitable gift planning. The bill now awaits consideration by the Senate, where the path forward is uncertain. Senate leadership has not indicated when it might consider the bill, although Senator Grassley (R-IA) has expressed reluctance to support tax legislation unless it includes extension of the 2017 tax cuts, which are set to expire at the end of 2025.

Of course, anything can happen in Congress, perhaps especially in a campaign year. We will continue to monitor legislation for developments that could affect gift planners or donors.

PGM Desktop Updated with New ACGA Rates and Inflation Adjustments

On January 24, we released Planned Giving Manager 7.7A. PGM 7.7A includes the new suggested maximum annuity rates from the American Council on Gift Annuities (ACGA) that became effective January 1, as well as the federal tax schedules for 2024. The tax schedules are adjusted annually for inflation and include federal gift, estate, and generation-skipping tax exemption amounts and federal income tax schedules. You can find all of the indexed tax tables for 2024 that are important to gift planning in our Knowledge Base. PGM Anywhere was updated in late December with these same changes.

If you have any questions about the PGM 7.7A update or how to install it, please contact us at support@pgcalc.com or call Client Services at 888-474-2252.

Free GiftWrap Training on PIF K-1s

For participants of pooled income funds, it is worth noting that the deadline for sending PIF Form K-1s is the filing deadline for the PIF’s completed tax returns – April 15 or the first business day thereafter.

The PIF Form K-1s are part of the overall tax returns for pooled income funds. They cannot be produced until the tax returns themselves are essentially completed. While April 15 is technically the deadline, many PIF administrators try to send out their K-1s by sometime in March, at the latest. Our GiftWrap software has an optional module to help you administer your Pooled Income Funds.

PG Calc will be offering a FREE online training session to demonstrate the production of PIF Form K-1s in GiftWrap on February 27 from 2:00-3:30 pm ET. You can sign up for the session free.

Gift Planning with PGM Anywhere In-Person Training in NYC

PG Calc returns to New York City for two days of in-person training this winter. Please join us for Gift Planning with PGM Anywhere Introductory on Wednesday, February 28 and for Gift Planning with PGM Anywhere Advanced on Thursday, February 29, both days from 9:00 am - 4:00 pm ET.

This hands-on training uses PGM Anywhere as a laboratory, and attendees will model a range of gift types and donor scenarios on their way to mastering the software. Gift Planning with PGM Anywhere Introductory will focus on the charitable gift annuity (CGA), including two types of deferred gift annuity (DGA). Gift Planning with PGM Anywhere Advanced will dive into charitable remainder trusts, charitable lead trusts, and retained life estates. Both classes will review the tax and charitable benefits of planned gifts and discuss how different asset types can be modeled in the software.

We look forward to seeing you there.

Sarah Lawrence College Appreciates PG Calc’s CGA Annual Filing Service

“Two years ago, I was new to gift planning and initially overwhelmed by the complexities of completing the annual state filing for charitable gift annuities. I reached out to PG Calc looking for a solution and was introduced to Edie Matulka and later, Audra Tango. They are consummate professionals, always organized and attentive to every detail, and make every deadline. They regularly go above and beyond to assist me with specific questions. I am grateful for my partnership with them and HIGHLY recommend them.”

-- Gary Carskaddan
Senior Director of Philanthropy and Planned Gifts
Sarah Lawrence College

Learn more about Sarah Lawrence College.

Learn more about PG Calc’s charitable gift annuity state registrations and annual filings.