Thursday, August 27, 2009
Nonprofits Review Charitable Gift Annuities
The volatility of Wall Street is providing charities with the opportunity to raise money through charitable gift annuities (CGA), contracts in which a donor receives a partial tax deduction on a donation in return for periodic payment. Investors look to the security for stability, but to charities that provided CGAs, they can be a great risk if improperly managed. The NonProfit Times reports that CGAs are usually backed by the entire assets of the charity, meaning that “in extreme cases organizations may need to use funds from sources such as operating funds” to pay the annuities if their investments falter.
Forbes Finds 14 Billion Dollar Donors
Forbes Magazine has compiled a list of philanthropists who have donated at least $1 billion over their lifetime, and topping the list is Bill Gates, whose donations to the Bill and Melinda Gates Foundation accounted for most of the $28 billion he has donated. Out of the 14 donors, three were not billionaires themselves, choosing philanthropy over joining the ranks of the world’s 793 billionaires. Forbes also notes that only one of the 14 was not self made and 10 of the 14 are American, despite the fact that less than half the world’s billionaires reside in the US.