GUIDELINES FOR REPORTING AND COUNTING CHARITABLE GIFTS

GUIDELINES FOR REPORTING AND COUNTING CHARITABLE GIFTS

Revised and Updated 2021

?National Association of Charitable Gift Planners 2021. All rights reserved.

Guidelines for Reporting and Counting Charitable Gifts

This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other professional assistance is required, the services of a competent professional person should be sought.

From a Declaration of Principles jointly adopted by a committee of the American Bar Association and a committee of publishers and associations

Published in the United States of America by the National Association of Charitable Gift Planners 200 S. Meridian Street, Suite 510 ? Indianapolis, IN 46225

Phone: 317-269-6274 ? Fax: 317-269-6272 ? E-mail: info@ Web Site:

? National Association of Charitable Gift Planners, 2021--All rights reserved.

CGP Guidelines for Reporting and Counting Charitable Gifts

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CONTENTS

Executive Summary ........................................................................................................... 3 Key Principles ............................................................................................................ 3

Introduction to the 2021 Revision..................................................................................... 4 Historical Context .......................................................................................................... 5 A Note About Transparency .......................................................................................... 6

Definitions and Distinctions .............................................................................................. 7 Counting and Reporting ................................................................................................ 7 Accounting .................................................................................................................... 8 Valuation ....................................................................................................................... 8 Crediting........................................................................................................................ 8 Campaign ...................................................................................................................... 8 Distinction Among Counting, Valuing and Crediting...................................................... 9

Recommendations .......................................................................................................... 10 Practical Considerations .............................................................................................. 11 Completeness.......................................................................................................... 11 Clarity ...................................................................................................................... 12 Comparability .......................................................................................................... 12 Donor Perspective ................................................................................................... 13 Setting Goals; Offering Options ............................................................................... 13 Valuation and Crediting vs. Counting ...................................................................... 13 Familiar Foundations ............................................................................................... 14 Count Each Gift Once .............................................................................................. 14

Specific Counting and Reporting Guidelines.................................................................... 15 Fundamental Principles of Campaign Counting........................................................... 15 Basic Principles ........................................................................................................ 15 Campaign Period ..................................................................................................... 16 Pledge Payment Period ........................................................................................... 17 When to Report Gifts .............................................................................................. 17 Annual Reporting within a Multi-Year Campaign .................................................... 17

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Reporting maturations of previous commitments .................................................. 17 Exclusions ................................................................................................................ 18 What to Report ............................................................................................................... 19 Category A: Outright Gifts ........................................................................................... 20 Definition and Examples.......................................................................................... 20 Guidelines for reporting specific types of assets in Category A ............................... 21 Category B: Irrevocable Deferred Gifts........................................................................ 24 Definition and Examples.......................................................................................... 24 Category C: Revocable Deferred Gifts ......................................................................... 24 Definition and Examples.......................................................................................... 24 Uncertainty ............................................................................................................. 25 Age Minimums ........................................................................................................ 25 Counting Estate Provisions ...................................................................................... 26 Counting Retirement Plan Assets ............................................................................ 27 Gifts That May Be Counted in More Than One Category, Depending on the Circumstances ............................................................................................................. 28 Life Insurance .......................................................................................................... 28 Wholly Charitable Trusts Administered by Others .................................................. 29 Gifts That Change Character During a Campaign Period ............................................. 30 Examples ................................................................................................................. 30 Gifts from Previous Campaigns ............................................................................... 31 Exceptions ....................................................................................................................... 31 Conclusion....................................................................................................................... 31 Further Reading .............................................................................................................. 31 Sample Reporting Form................................................................................................... 32 Category A: Spendable Gifts (Outright or to Endowment) .......................................... 33 Category B: Irrevocable Deferred Gifts........................................................................ 35 Category C: Revocable Gifts ........................................................................................ 36 ALL CATEGORIES.......................................................................................................... 37 APPENDIX ........................................................................................................................ 38 Acknowledgements ..................................................................................................... 38

CGP Guidelines for Reporting and Counting Charitable Gifts

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2021 Review Panel ...................................................................................................... 38 2005 National Committee on Planned Giving Task Force on Counting Gifts ............... 38

EXECUTIVE SUMMARY

The Guidelines for Reporting and Counting Charitable Gifts recommend that fundraising campaigns of whatever duration as well as periodic reporting for all time periods, would be better structured, clearer in their expectations, more transparent in their reporting and more truly comparable if they were to set three separate and complementary goals and report fundraising results in these three dimensions:

1. An outright goal for gifts that are usable or will become usable for institutional purposes during the campaign period (whether one or more years).

2. Irrevocable deferred gift goals, for gifts committed during the campaign period but usable by the organization at some point after the end of the campaign period.

3. Revocable gift goals for gifts solicited and committed or pledged during the campaign period but in which the donor retains the right to change the commitment and/or beneficiary.

Throughout these guidelines, the term "campaign" refers to the period of time for which activity is tracked and reports are generated, including annual and multi-year periods.

These guidelines also recommend that charities report their progress toward each of these goals separately, using face value numbers.

Key Principles The guidelines are based upon several key principles. Among the most important of these are that the guidelines should:

? Be clear, transparent and easily understandable by development professionals as well as the wider audience of staff, volunteers, regulators and benefactors.

? Provide a mechanism for comparison among charitable organizations based on criteria that can be applied comparatively across the broad charitable community.

? Take into account the considerations, perceptions and expectations of the donor.

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