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  • 1.  Questions: CGA funded by an IRA

    Posted 02-01-2024 10:19 AM

     

    We have received our first CGA gift in many years and the first one funded by an IRA and hope that those of you with more experience can help us navigate this gift. Can you review our entry & documentation process for both our totals and VSE reporting?  Also, do you have any sample acknowledge letters for this situation? We would love to see some examples.

    Our planned giving gift officer consulted Crescendo to generate the following numbers:

    Crescendo description

    Amount

    Banner field

    Present value of the annuity:

    $32,106.89

    Not entered

    Amount transferred (check amount)

    $53,000

    Gift amount

    Charitable gift value:

    $20,893.11

    Auxiliary - Deferred Gift Amount

    After gift entry, our CGA acknowledgement letter will include phrasing from our IRA letters, omitting references to charitable gifts. Because this is not a deductible gift, the amount referenced would be $0.00 instead of the Gift Amount.

    Thank you for any help with this! We are excited about this gift and hope that it is just the first of many.  



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    Maureen Aylward
    University of Mary Washington
    maylward@umw.edu
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  • 2.  RE: Questions: CGA funded by an IRA

    Posted 02-01-2024 10:24 AM
    Well done! Assuming the IRA payment is a QCD, you have handled this correctly. Donors may make one-time QCD payments to fund a CGA! In 2024 the maximum allowed is $53,000.

    However, if the IRA was an RMD payment this is a tax-deductible gift for the $20K amount calculated.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Questions: CGA funded by an IRA

    Posted 02-01-2024 10:32 AM

    John - thank you for the quick reply & kind words! We always value your insight and experience. 

    We are relieved that we can finally book this gift! Maureen 



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    Maureen Aylward
    University of Mary Washington
    maylward@umw.edu
    ------------------------------