PGDC - Planned Giving Design Center

IRS Announces Qualified Disaster Treatment for Chile

marc.hoffman@pgdc.com — Wed, 10 Mar 2010 02:20:12 -0600

The Internal Revenue Service today issued guidance designating the earthquake that occurred in Chile in February 2010 as a qualified disaster for federal tax purposes. The guidance allows individuals who receive qualified disaster relief payments from any person to exclude those payments from income on their tax returns. Also, the guidance allows employer-sponsored private foundations to assist employee-victims in areas affected by this earthquake without affecting their tax-exempt status.

Bill Would Accelerate and Extend Benefits for Contributions to Chile and Haiti

marc.hoffman@pgdc.com — Wed, 10 Mar 2010 02:13:57 -0600

House Ways and Means Committee acting Chair Sander M. Levin, D-Mich., and Ways and Means ranking minority member Dave Camp, R-Mich., have introduced a bill that would accelerate the income tax benefits for charitable cash contributions for the relief of victims of the earthquake in Chile, and extend the period from which such contributions for the relief of victims of the earthquake in Haiti may be accelerated.

IRS Announces Chile Earthquake is Qualified Disaster

marc.hoffman@pgdc.com — Wed, 10 Mar 2010 02:08:07 -0600

The IRS has announced the February 27 earthquake in Chile is a qualified disaster for section 139 purposes. Accordingly, employer-sponsored private foundations may provide disaster relief to employee victims of the earthquake and recipients may exclude relief payments from their income.

Simpson Gift Not Well Suited for Smithsonian

marc.hoffman@pgdc.com — Tue, 02 Mar 2010 19:26:44 -0600

The Smithsonian Institution in a two-sentence statement has declined accepting the suit worn by O.J. Simpson on the day he was acquitted of the murders of Nicole Brown Simpson and Ronald Goldman.

Attorney Urges Congress to Repeal Carryover Basis Rule

marc.hoffman@pgdc.com — Mon, 01 Mar 2010 17:34:46 -0600

In response to congressional inaction regarding the estate tax prior to the end of 2009, Conrad Teitell has written Senate Finance Committee leaders urging them to retroactively repeal another component of EGTRA, which imposes carryover basis rules on inheritances during 2010.

Aligning Charitable Giving and Life Insurance

marc.hoffman@pgdc.com — Mon, 01 Mar 2010 17:08:26 -0600

If you missed last week's live webinar presentation on gifts and uses of life insurance in planned giving and how the charitable and professional advisory communities can come together as a team to offer best practices in this area, the program has been recorded and is available.

Issuance of Units by University to CRTs Does Not Produce Unrelated Business Income

marc.hoffman@pgdc.com — Tue, 23 Feb 2010 13:34:54 -0600

The IRS has ruled privately that a university's issuance of units from charitable remainder trusts for which it serves as trustee, the making or receipt of payments with respect to the units, and the holding or redemption of the units, will not generate unrelated business taxable income to the university.

March 7520 Rate Settles to 3.2%

marc.hoffman@pgdc.com — Tue, 23 Feb 2010 12:45:53 -0600

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2010-08 indicates the applicable federal rate under section 7520 for March 2010 is 3.2%; down 0.2% from the February rate of 3.4% and up 0.2% from the January rate of 3.0%.

Heard on the Web: Retirement Savings Likely to Motivate Gifts in 2010

marc.hoffman@pgdc.com — Tue, 23 Feb 2010 12:31:20 -0600

Writing for The Chronicle on Philanthropy, Holly Hall reports, "Fund raisers who solicit large gifts need to become knowledgeable about the charitable aspects of a law that allows people to covert their regular individual retirement accounts into Roth IRAs this year, says Robert F. Sharpe, a Memphis planned-giving consultant."

Webinar: Aligning Charitable Planning & Life Insurance

melody.griffin — Thu, 18 Feb 2010 21:01:44 -0600

Charitable giving is under great stress. Donations are down; endowments are down; government grants are down; yet the social needs are greater than ever.

On Thursday, February 25, 2010 at 4:15pm ET / 1:15pm PT, Trusts & Estates and Registered Rep magazines will bring together experts from the Association for Advanced Life Underwriting (AALU), the American College, and the Partnership for Philanthropic Planning (PPP) to address the use of life insurance in charitable giving. Attendence is free.

Attorney Asks for Guidance on Notice 2010-19

marc.hoffman@pgdc.com — Thu, 18 Feb 2010 21:00:52 -0600

Writing on his own behalf and for Martin Hall of Ropes and Gray, LLP, Boston, attorney Lawrence P. Katzenstein of Thompson Coburn LLP, St. Louis, has asked the service to address the gift tax consequences of Notice 2010-19 on transfers to charitable remainder trusts.

Heard on the Web: Make Sure Your Board Complies With the New Form 990

marc.hoffman@pgdc.com — Thu, 18 Feb 2010 20:58:44 -0600

According to a Live Discussion hosted by the Chronicle on Philanthropy, "Now that charities are required to fill out a new version of the Form 990 -- the informational tax return that organizations file each year with the Internal Revenue Service -- some organizations are beginning to get a better understanding of its new requirements. Yet too many charity trustees have not grasped that the new 990 makes substantial new demands on them, experts say."

Heard on the Web: Navigating the Shifting Tax Landscape

marc.hoffman@pgdc.com — Thu, 18 Feb 2010 20:18:33 -0600

In "Navigating the Shifting Tax Landscape" from the February 17, 2010 issue of The New York Times, writer David Cay Johnston discusses charitable giving from Roth IRAs and the effect of the Obama administration's proposal to limit the tax benefit from charitable gifts and other itemized deductions.

Charitable Lids Triumph Again

marc.hoffman@pgdc.com — Tue, 09 Feb 2010 00:48:31 -0600

Writing for Trusts & Estates, attorney David Thayne Leibell of Wiggin and Dana LLP discusses two recent court cases that might shut down the Internal Revenue Service's attack on "charitable lids" and suggests that wealthy families’ facing an estate tax in 2010 should place them at the top of their to-do lists.

Guidance for Persons Making Transfers in Trust After 2009

marc.hoffman@pgdc.com — Tue, 09 Feb 2010 00:43:13 -0600

The IRS has issued Notice 2010-19 in which it states that transfers made after 2009 to a grantor trust that is not wholly owned by the donor or the donor's spouse is treated as a gift of the entire interest in the property under section 2511(c).

ACGA Asks IRS to Take Corrective Action on Notice

marc.hoffman@pgdc.com — Tue, 09 Feb 2010 00:33:06 -0600

Writing on behalf of the American Counsel on Gift Annuities, Conrad Teitell has responded to Notice 2010-19 in which he explains potential unintended and adverse gift tax consequences on transfers to charitable remainder trusts and asks the IRS to immediately issue a corrective notice.

Heard on the Web: Budget Plan Revives President’s Call for New Charitable-Deduction Limit

marc.hoffman@pgdc.com — Mon, 01 Feb 2010 23:42:47 -0600

According to a February 1 article in The Chronicle on Philanthropy, Suzanne Perry reports that President Obama's budget proposals for fiscal 2011 "would limit to 28 percent the tax break couples earning $250,000 (or individuals earning $200,000) could get for their itemized deductions, including gifts to charity." A similar proposal failed Congressional endorsement last year.

Form 990 Resources and Tools

marc.hoffman@pgdc.com — Mon, 01 Feb 2010 16:14:44 -0600

Find helpful links to 990 resources and tools tailored to meet the specialized needs of exempt organizations, tax professionals, the general public and contributors, and researchers (including the media) on IRS.gov.

IRS issues Electronic Filing Waiver Request Procedures

marc.hoffman@pgdc.com — Mon, 01 Feb 2010 15:24:37 -0600

The IRS has issued guidance explaining how exempt organizations required to file certain returns electronically may obtain a waiver of those requirements. The Notice also includes guidance on the timely filing of an electronically filed return that is rejected.

IRS Announces 2010 Tax Forums

marc.hoffman@pgdc.com — Mon, 01 Feb 2010 15:20:11 -0600

The IRS has announced the dates and locations of the 2010 Tax Forums. The Tax Forums offer three full days of seminars with the latest word from IRS leadership and experts in the fields of tax law, compliance and ethics.

The IRS Reminds Tax-Exempt Organizations of All Sizes to File the Form 990 on Time to Preserve Their Tax Exempt Status

marc.hoffman@pgdc.com — Thu, 21 Jan 2010 16:58:05 -0600

The Internal Revenue Service today reminded tax-exempt organizations to make sure they file their annual information form on time. In 2010 the tax-exempt status of any non-profit that has not filed the required form in the last three years will be revoked.

House Unanimously Approves Bill to Allow Taxpayers to Claim Charitable Deduction in 2009 for Haiti Relief

marc.hoffman@pgdc.com — Thu, 21 Jan 2010 16:53:43 -0600

The House of Representatives on January 20th unanimously passed H.R. 4462, legislation that would allow individuals who make charitable contributions to victims of the earthquake in Haiti to claim an itemized charitable deduction on their 2009 tax return instead of having to wait until next year to claim these deductions on their 2010 tax return.

February 7520 Rate Climbs to 3.4%

marc.hoffman@pgdc.com — Thu, 21 Jan 2010 16:41:33 -0600

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, Revenue Ruling 2010-06 indicates the applicable federal rate under section 7520 for February 2010 is 3.4%; up 0.4% from the January rate of 3.0% and up 0.2% from the December rate of 3.2%.

COF Asks IRS to Declare Haitian Earthquake as "Qualified Disaster"

marc.hoffman@pgdc.com — Mon, 18 Jan 2010 14:30:04 -0600

In letter to the IRS, Council on Foundations president Steve Gunderson has asked IRS Commissioner Douglas Shulman to declare the Haitian earthquake as a "qualified disaster" pursuant to section 139(c)(3) of the Internal Revenue Code thereby allowing company sponsored private foundations to make qualified disaster payments to employees affected by qualified disasters and to members of their families.

Senate and House Leaders Announce Proposal to Allow 2009 Deductions for Cash Gifts for Haitian Relief

marc.hoffman@pgdc.com — Mon, 18 Jan 2010 14:18:46 -0600

Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa), along with House Ways and Means Committee Chairman Charles Rangel (D-NY) and Ranking Member Dave Camp (R-MI), announced today their intent to introduce legislation that would help facilitate emergency aid and rebuilding efforts in Haiti following last week's devastating earthquake.