FundSvcs Community

I've read several posts on this subject on this forum, so I understand that the investment income on a CRUT is not countable for fundraising purposes.  However, the discussions appear to be in accordance with CASE.

My organization is not subject to CASE and the fundraising arm believes that upon the termination of a CRUT, any amount over the initially recorded irrevocable value should be counted, whether the CRUT is internally or externally managed.

I am interested in any regulations outside CASE that provide guidance on this practice, This is an ongoing discussion that will be documented in our procedures guide.

Thanks to all the experts out there for your advice and direction.

Dale

I am not aware of any "regulations" that might help you. However, AHP issued their last standards in 2020 and state pretty much what CASE said. Here are two snips that are relevant:

I guess the question is, what are you trying to count? If counting "charitable donations," this clearly does not qualify. The donor hasn't done anything new to make you receive this revenue, and they haven't made an additional gift. No tax deduction is permitted.

It's not much different from investment earnings (or losses) on endowment or gifts of securities. Or even endowment payouts. All of these represent market conditions and investment realities. Nothing that a donor has subsequently done or a fundraiser has subsequently raised.

On the other hand, if you are trying to show 100% of the revenue your office has generated, I suppose this could be considered. However, you theoretically could not count the original corpus (or at least it would have to be reported as a placeholder) of any of these gifts as they didn't generate revenue until they were "cashed in."

I think it's all a matter of how you frame the conversation and explain to leadership what's in the numbers you are providing.

John

John H. Taylor, Principal

John H. Taylor Consulting, LLC

2604 Sevier Street

Durham, NC     27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

I've read several posts on this subject on this forum, so I understand that the investment income on a CRUT is not countable for fundraising purposes.  However, the discussions appear to be in accordance with CASE.

My organization is not subject to CASE and the fundraising arm believes that upon the termination of a CRUT, any amount over the initially recorded irrevocable value should be counted, whether the CRUT is internally or externally managed.

I am interested in any regulations outside CASE that provide guidance on this practice, This is an ongoing discussion that will be documented in our procedures guide.

Thanks to all the experts out there for your advice and direction.

Dale

Thanks John.

I'm wondering if you could attach the snips as files, if possible? These did not come through.  We will be reviewing the AHP manual to see what the guidance is within that document for us?  This is a typical situation of gift officers desiring a different approach then operations.  Our goal is to amicably determine and document our go forward on these kinds of distributions/growth.

I marvel at your ability to maintain all of your roles and still by a principal force on this listserv.  And I know we all appreciate it so much. 

Best, Dale

I am not aware of any "regulations" that might help you. However, AHP issued their last standards in 2020 and state pretty much what CASE said. Here are two snips that are relevant:

I guess the question is, what are you trying to count? If counting "charitable donations," this clearly does not qualify. The donor hasn't done anything new to make you receive this revenue, and they haven't made an additional gift. No tax deduction is permitted.

It's not much different from investment earnings (or losses) on endowment or gifts of securities. Or even endowment payouts. All of these represent market conditions and investment realities. Nothing that a donor has subsequently done or a fundraiser has subsequently raised.

On the other hand, if you are trying to show 100% of the revenue your office has generated, I suppose this could be considered. However, you theoretically could not count the original corpus (or at least it would have to be reported as a placeholder) of any of these gifts as they didn't generate revenue until they were "cashed in."

I think it's all a matter of how you frame the conversation and explain to leadership what's in the numbers you are providing.

John

John H. Taylor, Principal

John H. Taylor Consulting, LLC

2604 Sevier Street

Durham, NC     27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

I've read several posts on this subject on this forum, so I understand that the investment income on a CRUT is not countable for fundraising purposes.  However, the discussions appear to be in accordance with CASE.

My organization is not subject to CASE and the fundraising arm believes that upon the termination of a CRUT, any amount over the initially recorded irrevocable value should be counted, whether the CRUT is internally or externally managed.

I am interested in any regulations outside CASE that provide guidance on this practice, This is an ongoing discussion that will be documented in our procedures guide.

Thanks to all the experts out there for your advice and direction.

Dale