Planned-giving software: Part 5

By Todd Cohen

PG Calc offers two types of software, one to provide calculations and show illustrations for different types of planned gifts, the other to manage data on planned-giving prospects and donors.

Planned Giving Manager, the calculation and illustration software, “does some fairly complicated actuarial calculations and applies those in English,” says Gary M. Pforzheimer, president.

Keying in information such as a donor’s age, the date of the gift, the type of gift, the payout rate and the frequency of the payout, he says, the software can produce dozens of documents, including a short letter to the donor showing the charitable deduction, tax-free income, and how much of the gift would be left to the charity.

The software also produces color graphs and charts to illustrate the gift, along with an actual agreement for the donor, and compares calculations for a broad range of planned gifts, including gift annuities, deferred gift annuities, flexible gift annuities, charitable remainder unitrusts, charitable remainder annuity trusts, charitable lead unitrusts, charitable lead annuity trusts, retained life estates, pooled income funds and bargain sales.

Nonprofits that do not use the software can phone the company, which for a fee of $50 or $100 will provide any of the documents found in the software.

Two smaller versions of the calculation software also are available, for nonprofits just starting a planned giving program.

“There really is no longer a realistic alternative of doing this by hand,” says Pforzheimer, who in forming his company licensed software developed by the planned giving office at Harvard that he had enhanced while working there as a student.

PG Calc, which in 1997 purchased Paragon planned-giving calculation software from fundraising software firm Blackbaud in Charleston, S.C., also markets GiftWrap, its planned-giving database software.

Nonprofits can use GiftWrap to produce financial reports showing the value of planned gifts, expected cash-flows from those gifts, and compliance with reserve rules set by individual states.

The software also can produce lists of donors keyed to fields such as their date of birth, and print checks for donors, 1099-R tax forms for gift annuities or K-1 tax forms for pooled income funds.

The market for GiftWrap includes nonprofits that want to keep track of their donors and administer their gifts, or financial institutions that administer planned gifts for nonprofits, Pforzheimer says.

When a nonprofit that uses both software products signs an agreement with a donor on a gift, it can automatically be added to GiftWrap.

Based on its work with GiftWrap, the company also offers services administering planned gifts for nonprofits that already have selected mangers to the invest the gift funds.

The company also markets a Web-based product known as GiftCalcs that nonprofits can add to their own websites to let donors perform calculations for the types of gifts the nonprofit wants to offer.

Next: Smaller vendors market calculators.

Other stories in the series:

Part 1: Firms gear calculation software for gift planning. 
Part 2: Consulting, tools available for nonprofits mulling planned giving. 
Part 3: Several firms dominate market for software calculators.
Part 4: Crescendo Interactive offers desktop and online products. 
Part 6: Smaller vendors market calculators.

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