If you are visiting this PGResources.com website for the first time, or this is one of your early visits, there is a great deal of free information on more than 175 pages, about the regulation and administration of Charitable Gift Annuities and Pooled Income Funds and information about assistance with many issues relating to the State Regulation of Gift Annuities, valuable information available ONLY on this site. As the Chair of the State Regulations Committee of the American Council on Gift Annuities, Jim Potter provides this information as a service to the nonprofit community.
1) Print Out This Page: To help you find the information you need to know about these subjects, there are many "must see" pages that you will want to review, print out and some you may even want to add to your "favorite places" list. You'll want to print out this page and use it to reference the pages you are sure to want to see while visiting this site. Just click on the URL's listed below (as underlined and bracketed links) to be taken to each named page.
2) Site Plan: The fastest way to get an overview of seeing how this site is designed is to go to the Site Map page by clicking on the [Site Map] button at the top of each page.
3) New Information Page: New and updated pages are listed on the "New Information" page with the date the page was added or changed, together with a link that will take you directly to the page of updated information. Click the [New Information] button to see information that has been changed since you last visited this site.
4) "Guestbook" (For notification of web page changes): If you would like to receive an e-mail notice of changes/additions to this web site, without having to visit it regularly to check the "New Information" page, just click on the [Guestbook] button and fill it out and click on "submit". You will receive an E-mail notice of changes, updates and additions to this site, mostly in the area of Gift Annuity State Regulations about every 45 to 60 days. [Privacy Policy: Your name will never be sold or traded to anyone. Period.]
5) Site Search Engine: If you do not readily see what you are looking for by clicking on the two rows of buttons (that look like file folder tabs) at the top of each page, just type some key words into the "Search This Site" window at the TOP (Right Side) of the "WELCOME" (HOME) page and most other pages, and click on the "Search" button. All referenced locations of your key word(s) on this site will be shown with a link you can use to get to each one.
6) State Regulations: Click on the [State Regulations] button and then at the TOP of that page, click on the [Summary Report] Button to access a seven-plus page Summary Report on the present status of the State Regulations of Charitable Gift Annuities in all fifty (50) states and the District of Columbia (DC). Note the constantly updated effective date of this report at the top of the first page of the Summary Report, and print out the report for your use and for your files. The information found on each of the 50-plus individual state pages is different than that which appears in the Summary Report.
7) State Contacts: The name, address and phone number for the contact person for each state that regulates charitable gift annuity funds and the issuance of gift annuity agreements to its residents is found on the [State Contacts] page for each state listed. A Summary Report of the complete list of contact persons can be viewed and printed out by clicking on the [Summary Report] button at the top of the State Contacts page.
8) Gift Annuities: The [Gift Annuities] page contains several links to at least seven (7) subjects and groups of pages, ALL of which are worth your time. Four (4) pages are unique and contain information NOT available elsewhere. One is a sample Federal Gift Annuity Disclosure Statement, available for your printing and use at the [Disclosure Statement] link. Another is information on how to contact the American Council on Gift Annuities [ACGA] to obtain information about becoming a supporter and attending their biennial Conferences. The remaining two (2) unique links are listed next (as #9 and #10 below).
9) [Gift Annuity Policies] is a suggested set of Guidelines in the form of a (16 subject) Resolution, you should take to your Board that will give your development staff the guidelines for accepting gifts and administering your Gift Annuity Fund and Program, which is needed since Gift Annuities are contracts and not trusts (as are the other three irrevocable life income plans that retain an income for the donor or others, while allowing the donor to claim a charitable deduction for a part of the value of the gift (i.e.: Charitable Remainder Unitrust, Annuity Trust and Pooled Income Fund).
10) [Gift Administration] is a 15-page compilation of at least 40 separately identified Gift Annuity Fund Administration problems and subjects that you will encounter over time, once you start your program. These issues are not discussed elsewhere in any other forum and represent a gathering of some 30 years of administrative and management experience of both large and small Gift Annuity Funds by the author.
11) NAIC Model Laws: One of the roles of the National Association of Insurance Commissioners (NAIC) is to draft model language for laws to be passed by each state legislature to make uniform many areas of the state regulatory issues related to the insurance industry. See [NAIC] page. Most states have decided that charitable gift annuities are similar enough to commercial annuities that the Insurance Department of each state is the regulatory agency that should regulate this gift vehicle, if the state decides that regulation is required. Toward that end, the NAIC has approved two drafts of legislation, one a Permit issuing approach and the other an "exclusion" from regulation, both of which were sent to every state legislature in January 1999, with an eye toward standardization of state regulation of this gifting vehicle. Two (2) links to the actual drafts of these two approaches are found on this page, and you should print them out and study their provisions.
The [Permit Draft] and [Exclusion Draft] are the two drafts worth studying to understand where the state regulation of this gift vehicle is headed in the future. Note that the states are reserving the right to fine a charity up to $1,000 per non-complying gift annuity agreement (for the life of the annuitant). It is vitally important to write the gift annuity agreement correctly, based on the state laws in force for the location of both the charity AND the annuitants on the gift date for EACH annuity gift. [Note: Read that last sentence again!] You will want to get a "second opinion" if your policy now is to comply ONLY with the rules in effect for the location of the charity.
12) Order Form: The [Order Form] on this site contains several items of FREE information on consulting services offered to nonprofits (such as assistance with filing for [State Permits] at a flat fee) as well as offers of items for purchase, including a Master Set of Six Gift Annuity Agreements that meet the state laws and regulations of all 50 states, as well as the Extra Wording required by 24 states in order to comply with the laws of those 24 states [Agreements/wording]. Failure to include this required wording in the Gift Annuity Agreement could subject the charity to fines of up to $1,000 per non-complying Gift Annuity Agreement based on the location of state of the charity AND the state of residence of the annuitant(s) and the applicable state laws on the date of the gift.
13) Notification States: Eleven (11) states require the charity to notify the State's Insurance Department that it is writing Gift Annuity Agreements with their residents (or if the charity is based in that State. A [Notification Package] of more than 100 pages including copies of the laws, forms and instructions for all eleven (11) states is available and may be ordered using the [Order Form].
14) New York State Permits: Effective 9-20-2000, New York State changed the threshold, at which any charity (NY based or "foreign" state), has to file for a Permit to continue to write gift annuity agreements ... FROM $80,000 in reserves (about $150,000 in total face value annuities in force) in annuity fund, not just NY annuities, TO a new threshold of $500,000 in Reserves (about $800,000 in total face value annuities in force.) See details at [New York Thanks] page.
15) Telephone Consultation: After reviewing the items described above, you may call Jim Potter for answers to your questions by calling (225) 774-6700. There is never a charge for your first call.
