Recent postings highlighting educational opportunities, state regulation and rate changes, and relevant information for planned giving professionals and donors. If you would like to view our archived articles, click here.
ACGA Welcomes Two New Board Members
The ACGA Board elected Donna Bandalloni and Cris Lutz to serve on the Board in its recent April Board meeting.
ACGA Endowment Campaign - Securing the Future
Friends and associates of ACGA are forging ahead to assure a robust future for the use of charitable gift annuities in support of nonprofit organizations, donors, and beneficiaries alike. The building blocks of research and education undergird all ACGA activities and are the expressed purpose for two endowment funds: the ACGA General Endowment and the Terry L. Simmons Philanthropic Endowment Fund which provides scholarships for new and aspiring gift planners to ACGA’s biennial conference. We are thankful for the early donors who have helped with a successful launch of this ambitious program.
A Word From the Chair - December 2015
As this is being written, I am at my church helping to prepare meals for 140 families in our community for Thanksgiving. It is a reminder that in ACGA and each of our institutions we have a great deal for which to be thankful.
A few weeks ago I experienced a heart attack and in addition to the doctors, nurses, attendants and staff, I came away very thankful for the DONORS who had voluntarily given of their wealth to create, staff and certify a new heart wing on the hospital just two miles from my home. Without their sacrifice, I am told that I would probably not be writing this article.
Join the Webinar: Managing the Financial Liability of a Charitable Gift Annuity Program
Tuesday, June 9, 2015
1:00pm - 2:00pm, EDT
Mark your calendar and register today for the June 9 webinar: Managing the Financial Liability of a Charitable Gift Annuity Program. In this free webinar, Frank Minton and Emil Kallina will review the recently released ACGA White Paper, Managing the Financial Liability of a Charitable Gift Annuity Program. Frank and Emil will explore self-insurance, reinsurance, and "unbundling" CGAs with reference to current practice, tax implications, and regulatory requirements. They will conclude with ACGA recommendations and best practices for managing the financial liabilities inherent in a charitable gift annuity program.
A Word From the Chair - May 2015
April 6-8, 2016, is less than twelve months away. These are the dates of the 32nd Conference of the American Council on Gift Annuities. The ACGA Board has just concluded our “site visit” of the beautiful Hyatt Regency St. Louis at the Arch, and the entire Board is fully engaged with the Conference Committee, under the leadership of Cam Kelly, in the final planning for a great conference. The details are elsewhere in this newsletter, and I encourage you to visit conference information on our website at acga-web.org. I look forward to seeing you in St. Louie, Louie!
Suggested CGA Rates Remain Unchanged as of April 2015
At its semiannual meeting on April 13, 2015, the Board of Directors of the American Council on Gift Annuities (ACGA) reaffirmed the existing schedule of suggested maximum rates for charitable gift annuities which was originally published on January 1, 2012. As part of its ongoing review process, the Rates Committee of the ACGA monitors interest rates that underlie the investment return assumptions used to create the rate schedules. The Committee also recently completed a study with its consulting actuaries, The Hay Group, to update its gift annuitant mortality assumptions in terms of the recently issued 2012 Individual Annuity Reserving (2012 IAR) Mortality Table. The Committee plans to reissue its Rates Paper to reflect the updated mortality assumptions later this spring. For more detailed information about our suggested gift annuity rates, please visit the gift annuity rates section of our website.
ACGA Rates Committee
Charitable IRA Initiative Press Release
FOR IMMEDIATE RELEASE
March 31, 2015
(Washington D.C.) A group of national leaders in planned giving and philanthropy have formed the Charitable IRA Initiative, a 501(c) 4) non-profit organization with the sole purpose of encouraging members of the U. S. Congress and the President to enact permanent legislation enabling owners of IRAs to transfer their IRA assets to the American charities. IRA rollovers could be outright gifts up to $100,000 per year or life income agreements up to $500,000/year. There are no income taxes on IRA charitable rollovers.
Lindsay Lapole, Chairman of the American Council on Gift Annuities, is the president of the Charitable IRA Initiative; Michael Kenyon, President/CEO of the Partnership for Philanthropic Planning is vice president; John Pierce, Senior Gift Planner, Concordia College, Moorhead, MN, is secretary; and Sister Georgette Lehmuth, President/CEO of the National Catholic Development Conference, is treasurer. Conrad Teitell serves as the volunteer legal counsel to the Charitable IRA Initiative.
Lapole says, “IRA rollover legislation, allowing outright gifts of IRAs up to $100,000/year, enacted in 2006. It has been periodically renewed and resulted in substantial gifts to America’s charities. The temporary nature of IRA renewal bills has dampened the growth of IRA gifts to America’s non-profit organizations. These are the very organizations upon which we all rely to deliver human services, provide education, health services, support the arts, conservation and so many other services that play key roles in providing the quality of life Americans hold dear.”
“Our dual agenda items are to first make the outright gift IRA rollover provision permanent. This will allow IRA owners 70½ years and older to give $100,000 annually in outright gifts from their personal IRA accounts without having to wait until late December to receive word from Congress and the White House. Further, the expansion of the legislation will also allow IRA owners 59 ½ and older to create life income agreements with portions of their IRA assets up to a limit of $500,000 annually. These agreements will pay income to those IRA owners and their spouses for life, often with a larger payout (5% minimum in the case of charitable trusts) than their IRA required minimum distribution (RMD). At the same time these donors will be taking the opportunity of having a phenomenally positive impact on America’s needy. Because these IRA rollover gifts are not deductible, we believe that permanent and life-income IRA rollovers will be revenue neutral or even positive to the Treasury.”
Click here to download a copy of the press release.
Call to Action: ACGA and NCDC Statement to the Senate Finance Committee on the Charitable IRA Initiative
The American Council on Gift Annuities, along with the National Catholic Development Conference, with the support of Conrad Teitell as volunteer legal counsel, submitted a statement to the Senate Finance Committee on the Charitable IRA Initiative. Click here to read a copy of the statement that was submitted.
The ACGA encourages each of you, our sponsors, to reach out and submit your own statement to the SFC by April 15th. Click here for an article written by Conrad Teitell in the April issue of Taxwise which includes information on how to submit your own statement.
Please contact us immediately if you have a relationship with a "working group" Senator in any of the following states. This will give the Charitable IRA Initiative the opportunity to follow up. The group’s co-chairs are Senators Grassley (R-IA), Enzi (R-WY) and Stabenow (D-MI). The other members are Senators Crapo (R-ID), Cornyn (R-TX), Toomey (R-PA), Schumer (D-NY), Nelson (D-FL), Menendez (D-NJ) and Bennet (D-CO).
Your participation in this effort can help make a difference.
ACGA Adds New Resources for Organizations
ACGA Sponsors are Making A Difference!
Your Sponsorship provides important benefits to our sponsor organizations and their donors including:
ACGA Maximum Suggested Rates Remain the Same as of 11/3/14
At its semi-annual meeting on November 3, 2014, the Board of Directors of the American Council on Gift Annuities (ACGA) voted to reaffirm the existing schedule (originally published on January 1, 2012) of suggested maximum rates for charitable gift annuities.
Philanthropy Protection Act of 1995 - Time for a Review
State Regulations – Busy Early, Quiet for Now
At present things are quiet with respect to state regulation of gift annuities, though earlier this year ACGA and its State Regulations Committee were involved in a couple of legislative efforts.
ACGA Welcomes New Board Members
The ACGA Board elected the following to membership on the board at its November 2, 2014 meeting:
ACGA Board of Directors Approves Endowment Campaign
The ACGA Board of Directors has approved the "Value Proposition Endowment Campaign" in an effort to create greater financial vitality and program expansion in the years ahead. In announcing the action, Board Chair Lindsay Lapole said,
ACGA 2014 Terry Simmons Scholarship Winners
The American Council on Gift Annuities has established an endowment fund to assist promising gift planners with their professional development. The Terry L. Simmons Philanthropic Endowment Fund provides scholarships to worthy individuals who would otherwise be unable to attend the Conference on Gift Annuities.
Important Change to Wisconsin Law
Important change to Wisconsin law regarding issuance of gift annuities, effective April 18, 2014, including removal of registration and on-going reporting requirements and addition of specific disclosure and notice requirements. Click here for more info.
A Word from the Chair - December 2014
Wikipedia defines value proposition as a promise of value to be delivered.
A Word from the Chair - June 2014
What a Conference we had! Over 600 attendees from across the U.S. and several foreign countries gathered at the beautiful Baltimore Marriott Waterfront for the 31st Conference of the American Council on Gift Annuities. Over sixty-five presenters, speakers, sponsors and exhibitors joined together for three days to celebrate and present the best and most creative ideas available to promote responsible philanthropy. We hope that everyone went home with a meaningful course charted for your planned giving program and the donors you serve.
Call to Action: NY Legislation on Gift Annuities
We need your help in contacting NY legislators relating to pending legislation in New York. ACGA has been working for some time to modify NY's gift annuity law relating to reinsurance of gift annuities. Currently if a charity wishes to reinsure a gift annuity, and reduce the liability in its gift annuity reserve fund, it must use a reinsurance treaty, something that is available only from a few insurers and can be costly. The pending legislation would allow a charity to purchase a commercial annuity and count it as reinsurance in offsetting the reserve obligation.
Click here to view a copy of the Assembly bill (A3783). The corresponding bill in the Senate (S3066) has already passed. What we need now is to urge the Assembly to take action on the bill. There is just one month left in the legislative session, so the time to act is now. We are asking you to call or email your Assemblymen in support of this legislation. Democratic Assemblymen are particularly key, since that party controls the Assembly. Contacting the Speaker of the Assembly's office is also critical, since ultimately the Speaker controls the movement of legislation. Speaker Sheldon Silver's office numbers are 212-312-1420 (NYC) and 518-455-3791 (Albany).
This legislation would provide all charities registered in New York with a much easier, cost-effective way to reinsure gift annuities. As a result, an organization would have an additional option for managing risk with, for example, a particularly large gift annuity, or a large concentration from one gift annuity donor within its gift annuity reserve fund.
Thank you for your assistance in moving this effort forward!
Chair, ACGA State Regulations Committee