Charitable Gift Annuity

Pam Gealy

We recently received a charitable gift annuity.  We are very new to RE and I don't know much about these types of gifts at all.   I'm not even sure how to explain it, but here goes (using hypothetical numbers):  The 'gift' is for $60K and the charitable or annuity portion is $20K.  We'll receive a certain amount every quarter for the remainder of the donor's lives.  So, 'I think' we need to enter the $60K as a  Planned Gift using the vehicle code of "gift annuity".  Then go in and enter the $20K as 'realized revenue' against that planned gift ?


I think that is what we need to do....however...the donor wants credit for the gift ($60K) for this fiscal year in our yearend honor roll of giving.  Should/can I use the planned gift as a way to pick that $60K?...or is there a way to pick up a soft credit of some sort....  ?  Any suggestions?

 

Faith Murray

I will be interested on other peoples' answer to this. We do not have the Prospect Module, but we have always entered the full amount of the annuity (in Pam's example, the $60K) as the gift amount in their record.

Ryan Hyde

Yes, your suggested way of doing it is how we do it. The originating planned gift should be the total delcared amount of the gift, and then every payment afterward is linked to the original planned gift as realized revenue. 


Somtimes you're not going ot know the actual amount of the planned gift. For isntance, someone tells you you're in their Will, but you don't ask what the details are and are not provided with them until suddenly you get a check. In those cases we add a planned gift with a value of $0 just so we know that a planned gift has been left, and then we change the amount when we learn more in the future.

Michael Langley

We enter the full amount ($60,000 as the example) on the donor's record.  We have tools to determine what the donors benefit is, including their tax deductable portion and the amount that they receive annualy.  We do not receive the payments, the donor does.  When the donor passes away then we get the remainder, providing there is a remainder.  For some of the older annuities the donor has received all of the cash benefit.  What ever the remainder is gets deposited, but only recorded in the memo of the original gift.  Otherwise it would be double counting.