American Council on Gift Annuities

ACGA and the Partnership for Philanthropic Planning (PPP) comment on Proposed Regulations on the Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions.

CGA and NCPG have asked for guidance regarding IRS Regulation 140029-07, Notice of Proposed Rulemaking Substantiation and Reporting Requirements for Cash and Noncash Charitable Contribution Deductions (http://www.irs.gov/irb/2008-40_IRB/ar13.html).

ACGA and PPP comment on the proposed charitable lead trust regulation that requires the payments to the charity beneficiary consist of different classes of income determined on a pro rata basis.

Treasury and the IRS have proposed a regulation that disregards "income-ordering" provisions in charitable lead trusts and imposes a deemed pro rata share of each type of trust income requirement. An income-ordering provision will be respected by the Service only if it has an economic effect independent of income tax consequences.

Note: The following Charitable Gift Annuities Exemption Model Act was approved by the National Association of Insurance Commissioners (NAIC) at its Winter Meeting on 12-07-98 in Orlando, Florida. In early 1999, it was forwarded to the Insurance Commissioners of all 50 states (and the District of Columbia) with its Meeting Minutes, for forwarding to the state legislatures, suggesting that each state legislature choose either it or the Charitable Gift Annuities Model Act and make it a part of the Insurance Law of that state.

(To be adopted by State Legislatures)

ANNUITY DISCLOSURE MODEL REGULATION
Draft: 10/18/10

Revisions to Model 245, as adopted by the Annuity Disclosure (A) Working Group, Oct. 18, 2010
Underlining and overstrikes show the changes from the existing model. Comments are being requested on this draft.
Comments should be submitted by email only by Nov. 19, 2010, to Jolie Matthews at This email address is being protected from spambots. You need JavaScript enabled to view it. .

Click here to view a current copy of the draft on the NAIC website.

APPENDIX A
Draft: 3/17/98
Adopted by the Life Insurance (A) Committee.

Note: The Philanthropy Protection Act of 1995 prohibits the payment of commissions or remuneration to anyone based on the value of a charitable gift annuity given to a public charity, and also requires the charity to provide a Disclosure Statement to the donor prior to the receipt of the donor's first annuity gift given to that charity. See text of the Law below and the Statement by the National Committee on Planned Giving (NCPG) and the American Council on Gift Annuities (ACGA) on the payment of commissions by a charity in return for a gift annuity - found at http://www.ncpg.org/.

FULL TEXT OF H.R.2519 - 104th U.S. Congress