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Suggested Maximum Gift Annuity Rates, Quality Training Opportunities, and Consumer Protection Advocacy

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  • Comments on Proposed Regulations on the Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions

    ACGA and the Partnership for Philanthropic Planning (PPP) comment on Proposed Regulations on the Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions.

    CGA and NCPG have asked for guidance regarding IRS Regulation 140029-07, Notice of Proposed Rulemaking Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions (http://www.irs.gov/irb/2008-40_IRB/ar13.html).

  • ACGA Response to Media Reports of Charitable Gift Annuities as "Investment Scams"

    In August the North American Securities Administrators Association (NASAA) released a list of the "Top 10" scams that they are fighting. Unfortunately, charitable gift annuities were included on the list. Their inclusion was apparently prompted by the recent default on gift annuities by the Mid-America Foundation and the Baptist Foundation of Arizona.

  • Comment on the Proposed Charitable Lead Trust Regulation

    ACGA and PPP comment on the proposed charitable lead trust regulation that requires the payments to the charity beneficiary consist of different classes of income determined on a pro rata basis.

    Treasury and the IRS have proposed a regulation that disregards "income-ordering" provisions in charitable lead trusts and imposes a deemed pro rata share of each type of trust income requirement. An income-ordering provision will be respected by the Service only if it has an economic effect independent of income tax consequences.

  • Revenue Procedure 2005-24

    Letter to Treasury Department officials regarding Revenue Procedure 2005-24 ACGA Chair Frank Minton and Conrad Teitell sent this letter to various officials at the Department of the Treasury and the IRS on behalf of ACGA.

  • H.R. 4853 Sec. 725 IRA/Charitable Rollover

    ACGA’s Response Letter to H.R. 4853 Sec. 725 IRA/Charitable Rollover.

    Honorable Congressional Leaders and Exhausted Staff:

    As volunteer legal counsel to the American Council on Gift Annuities (ACGA), I write this letter requesting an addition to Sec. 725 of H.R. 4853 of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

    Since 1987, ACGA — with over 1200 sponsoring charitable organizations — has been dedicated to both protecting donors and assuring that charities at the end of the day will have gifts to further their missions.

  • State Agents Needed

    StateAgentThe ACGA State Regulations Committee benefits the charitable gift planning community in two important ways.  First, we keep the charitable community informed on state regulatory and legislative developments affecting charitable gift annuities.  Second, we provide input to regulators and legislative bodies on proposed changes in regulations or statutes, often at the request of the regulatory agency or legislative staff.

    The State Regulations Committee gets its information on important developments from several sources, but our most important source is you.  There is simply no better source for developments concerning state regulation of gift annuities than someone who is working in a gift annuity program in that state.  You can also help us improve things in your state that could work better than they currently do.  ACGA has developed its credibility and good will with state regulators and legislative staffs by advocating responsible philanthropy and consumer protection for donors and annuitants. You can be an important part of the process by becoming an ACGA state agent.

    By signing up here, you will become our “go-to” person in your state.  If you have already signed up in the past as a state agent, please do so again to insure we have current contact information. All we ask from you are two things.  First, when you become aware of pending legislative or regulatory changes affecting charitable gift annuities, let us know so that we can have the opportunity to provide our input.  Second, if you are aware of some statutory requirement or regulatory process affecting gift annuities in your state which could work better than it currently does, we’d like to know about that, too.  As a state agent, you will periodically receive updates on the activities of the ACGA State Regulations Committee in other states!

    We would also like for you to know about our new state regulations email hotline.  Any news regarding developments in your state, or tidbits you have run across from other states, can be sent to us directly at:  This email address is being protected from spambots. You need JavaScript enabled to view it.

  • Annuity Disclosure Model Regulation Draft

    (To be adopted by State Legislatures)

    ANNUITY DISCLOSURE MODEL REGULATION
    Draft: 10/18/10

    Revisions to Model 245, as adopted by the Annuity Disclosure (A) Working Group, Oct. 18, 2010
    Underlining and overstrikes show the changes from the existing model. Comments are being requested on this draft.
    Comments should be submitted by email only by Nov. 19, 2010, to Jolie Matthews at This email address is being protected from spambots. You need JavaScript enabled to view it..

    Click here to view a current copy of the draft on the NAIC website.

  • Letter to IRS - Corrective Action on Notice 2010-19

    Letter to IRS regarding Corrective Action on Notice 2010-19

    Dear Ms. Daly:

    This letter is written by me as counsel to the American Council on Gift Annuities. ACGA, formed in 1927, is an IRC §501(c)(3) organization described in IRC §170(b)(1) (A)(vi). ACGA's board of directors and its legal counsel are all unpaid volunteers. ACGA is sponsored by over 1200 social welfare charities, health organizations, environmental organizations, colleges, universities, religious organizations and other charities.

  • Recent Court Case Involves Marketing of Gift Annuities

    David Wheeler Newman

    A recent ruling involving charitable gift annuities by the US Court of Appeals illustrates the old lawyers’ adage that bad facts make bad law.  The case is further fallout from the melt-down of Mid-America Foundation, whose gift annuity program the Ninth Circuit characterized as a Ponzi scheme.

    The Foundation paid commissions to investment advisors who arranged for the Foundation to issue over 400 annuities in exchange for about $55 million.  The Foundation promoted the program aggressively with marketing materials stressing investment returns to annuitants, with language like “current average net-yield”, and comparing those returns to dividend yields on stocks and other investment alternatives.

  • ACGA Statement Regarding Treasury Notice 2008-99

    ACGA Statement Regarding Treasury Notice 2008-99: Potential for Avoidance of Tax Through Sale of Charitable Remainder Trust Interests

    People of the Treasury and the Internal Revenue Service:
    Comments submitted by the American Council on Gift Annuities (ACGA) (formerly the Committee on Gift Annuities). ACGA, formed in 1927, is an IRC §501(c)(3) organization described in IRC §170(b)(1)(A)(vi). ACGA’s board of directors and its legal counsel are all unpaid volunteers. ACGA is sponsored by over 1200 social welfare charities, health organizations, environmental organizations, colleges, universities, religious organizations and other charities. The Mission of ACGA is to “actively promote responsible philanthropy through actuarially sound charitable gift annuity rate recommendations, quality training opportunities and the advocacy of appropriate consumer protection.”

  • ACGA Legislative Alert - IRA/Charitable Rollover Endangered

    To: ACGA Sponsors

    From: American Council on Gift Annuities

    Several weeks ago, the Executive Committee of the American Council on Gift Annuities approved the preparation of a letter to the Senate Leadership regarding the need for making permanent the direct rollover to outright gifts and life income agreements from IRAs. This action would provide American taxpayers the opportunity to participate in the recovery of our country through the funding of reliable charities by direct rollover of IRA assets either as outright gifts or to life income agreements.

    The note below, from Conrad Teitell to you, our sponsors, provides the specifics of the action needed. Please note that emails and letters are becoming counterproductive. The suggestion is that personal contacts from the officers and board members of your institution to members of the Senate and House listed on the attached letter will be the most help.

    We are also looking for someone who can help us get the message to President-elect Obama. Should you or your organization have such a contact we would appreciate hearing from you. Please be assured that any contact would be coordinated through your leadership and would in no way compromise the relationship of your organization with the President-elect and his advisors.

  • UPDATE: ACGA Issues Additional Statement Regarding Operating a Gift Annuity Program in the Current Economy

    Many charities are concerned about the impact of the current economy on their gift annuity programs, and they are asking what steps they might take to control risk and ensure the continued profitability of their programs. In response to these concerns and questions, the ACGA offers the following suggestions for consideration.
  • Charitable Gift Annuities in Difficult Economic Times

    During trying economic times, with wide swings in the stock market, many charities look to review the risks associated with their charitable gift annuity programs. The American Council on Gift Annuities endorses regular reviews of gift annuity programs, while emphasizing the long-term nature of charitable gift annuities.