Philanthropy Protection Act of 1995 - Time for a Review
ACGA encourages member organizations to review the Philanthropy Protection Act of 1995 (PPA). The PPA grants charities broad exemptions from compliance with securities laws of the United States, as long as specific requirements are met.
One requirement of the PPA is that each charitable organization that issues CGAs provide a written Disclosure Statement to prospective donors. The Statement must contain specific information and should be reviewed and updated at least annually. Additionally, various states, in their regulation of charitable gift annuities, require that specific information be disclosed as well. Sample language for a Disclosure Statement is available on the ACGA web site and from your planned giving calculation software vendor.
The PPA also includes a provision relating to compensation. Employees who are engaged in the overall fundraising activities of an organization cannot receive commissions or special compensation based on the number or the value of donations collected.