One of the most significant differences between a charitable gift annuity and a charitable remainder trust is the obligation to make gift annuity payments is a general obligation of the issuing charity whereas the obligation to make payments from a CRT is limited to the trust itself. For this reason, organizations issuing charitable gift annuities set aside, either voluntarily or subject to state law, a portion of the amount transferred in exchange for the gift annuity in a reserve fund for the purpose of satisfying the annuity payments. The problem is that in recent years, the low interest rate environment has caused some reserves to decline to worrisome levels. In this paper, nationally recognized planned giving authority Frank Minton analyzes the various kinds of risks associated with gift annuities, shows how charities can minimize risk and maximize the benefits of their gift annuity programs, and shares some less traditional ideas for attracting more dollars for gift annuities.  MORE »

In response to the Senate Finance Committee's staff draft report and hearing last week regarding charity abuse, Washington, D.C. attorneys Mark B. Weinberg and Barnaby Zall have responded point-by-point with their opinions regarding proposals that would affect nonprofits of all categories and further urge organizations to contact their counsel so "reason prevails."  MORE »

If you have worked in the for-profit and nonprofit sectors, you know they are quite different; each having its own culture, vernacular, and business practices. Many well-meaning advisors approach nonprofit and charitable organizations seeking to partner with them in their fundraising efforts. Some are successful while others are not. In this article, Colorado-based planned giving consultant and former NCPG President Betsy Mangone discusses the challenges advisors face in working with charities, and how they can begin and maintain effective working relationships.  MORE »

The IRS has released two new publications to help donors and charities avoid the pitfalls and properly comply with the rules regarding vehicle donations. Publication 4302, "A Charity's Guide to Car Donations," and Publication 4303, "A Donor's Guide to Car Donations" contain information on the tax responsibilities of individuals and charities involved in the car donation process.  MORE »

Responding to issues raised in a release from the National Committee for Responsive Philanthropy, Senate Finance Committee Chair Charles E. Grassley, R-Iowa, said that "If certain board members got a corporation into hot water, they shouldn't be trusted to run charities and foundations."  MORE »

The Service has announced three appointments of key leaders in the Tax Exempt and Government Entities Division (TE/GE): Sarah Hall Ingram will be the new deputy commissioner of TE/GE. She will report to Steven T. Miller, who recently was named TE/GE commissioner. Martha Sullivan will be the new director of the Exempt Organizations group. And Preston Butcher will be the new director of the Government Entities group.  MORE »

One of the advantages of PGDC membership is the ability to share your thoughts, wisdom, and reactions by posting comments following news stories and articles, and by participating in discussion forums. If you have read member comments or discussions, you will notice the member's name accompanies his or her posting. When you click on a member's name, a box appears that contains the personal profile information that member has elected to make public. When the new PGDC was launched, in order to protect everyone's privacy, every member's personal profile information was set to the default setting of name only. However, you can elect to also display your email address, occupation information, other contact information, and even your personal biography in your public profile. This presents you with a great opportunity to let other members know more about you, and lets you contact and network with other PGDC members who have made their profiles public.  MORE »

The Senate Finance Committee will conduct a hearing today on best practices in the area of tax-exempt organizations. In preparation, SFC staff has released a work-in-progress discussion draft that is based on staff investigations and research as well as proposals from practitioners, officers and directors of charities, academia and other interested parties, that will guide the committee with possible legislation.  MORE »

The Service has ruled privately that a public charity's formation of a for-profit subsidiary through which the charity will market the software it uses to keep track of the services it provides to the elderly will not have an adverse impact on the charity's tax-exempt status.  MORE »

The House Ways and Means Committee late June 16 released the committee report to accompany H.R. 4520, the American Jobs Creation Act of 2004, that would revise tax laws to make U.S. manufacturing businesses more competitive. With respect to charitable giving, the bill extends the enhanced charitable deduction for gifts of computer technology and equipment; modifies the rules for donations of patents and other intellectual property; requires increased reporting for noncash gifts; requires qualified appraisals for vehicle donations; and includes a charitable deduction for certain expenses in support of native Alaskan subsistence whaling.  MORE »