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  • 1.  CGA held at Outside entity

    Posted 08-10-2022 04:03 PM
    We received a payout today from an outside entity that held a charitable gift annuity for a donor who is now deceased.

    We had recorded this CGA as a planned gift with a present/future/face value back when the donor alerted us to this future gift.  Now that the check has come in, we'll actualize this gift in our database.  The letter from the outside entity states that "the donor's estate has already received a charitable deduction acknowledgment, and it is not necessary to issue a tax receipt for this gift".  

    We think we should give hard credit to the outside entity who issued the check; is that correct?

    ------------------------------
    Gwen Donev
    Director of Advancement Services
    Gustavus Adolphus College
    gwendonev@GUSTAVUS.EDU
    ------------------------------


  • 2.  RE: CGA held at Outside entity

    Posted 08-10-2022 04:14 PM

    No, this is not a gift event. The gift event occurred in the past. This is an accounting entry to change the CGA on your balance sheet into cash.

     

     

    Aaron Forrest CPA

    Senior Director Gift and Donor Services

    University of Rochester Office of Advancement

    585.275.2799 | aaron.forrest@rochester.edu

     




    Original Message


  • 3.  RE: CGA held at Outside entity

    Posted 08-10-2022 04:26 PM
    Agreed.  When it comes to a CGA the "gift event" occurs when the CGA is created.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987





    Original Message


  • 4.  RE: CGA held at Outside entity

    Posted 08-11-2022 09:55 AM
    Is that true even when the CGA was held completely outside of our institution and this is the first dollars that we've received from this gift?  The donor alerted us to this irrevocable gift and we recorded it as a future gift; however now at the donor's death is the first financial transaction we've been a part of.




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  • 5.  RE: CGA held at Outside entity

    Posted 08-11-2022 09:58 AM
    A CGA is only a CGA when it is established.  Only then does the donor claim a deduction.

    You can ask the third party for the original documentation.  You may have not been notified when it was established or maybe we're and it was recorded somewhere else.

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



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  • 6.  RE: CGA held at Outside entity

    Posted 08-11-2022 10:04 AM
    Edited by Alan Hejnal 08-11-2022 01:38 PM

    If you can get the original documentation, you can also determine whether you were named the irrevocable beneficiary when the CGA was established.  The CGA itself had to be irrevocable  when it was established, for the donor to receive the tax benefits, but the irrevocable beneficiary designation when the CGA was established is very likely but a separate matter. 

     

    If you were not the irrevocably-designated beneficiary prior to the maturity of the gift, then that designation would have become irrevocable when the CGA matured, and that would be the point when you could count the gift.

     

    My US$0.02 worth; the usual disclaimers apply.

     

    Alan

     

    Alan S. Hejnal (he/him/his)

    Data Quality Manager

     

     

    Office of Advancement

    600 Maryland Ave SW Ste 600E

    PO Box 37012, MRC 527

    Washington, DC 20013-7012

    (: 202-633-8754 | *: HejnalA@si.edu

     

     




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  • 7.  RE: CGA held at Outside entity

    Posted 08-11-2022 10:06 AM
    Alan says things so much more eloquently ��.

    Agreed on all counts.

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard



    Original Message


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