Overview

SPG Network supports non-profit organizations by helping them to build and maintain charitable endowments. These endowments are funded through the development and administration of coordinated gifting programs, known as Partners in Philanthropy programs.

Because of the costs and administrative burden of certain gifting programs, some non-profit organizations can not offer Planned Giving.

Partners in Philanthropy programs coordinate the complete planned giving services of a qualifying non-profit organization with a philanthropic partner that may not offer these services by itself. This allows donors full access to gifting programs that support the Partner in Philanthropy's charitable missions.

Program Development

Members of the Simplified Planned Giving Network, LLC (SPGN) provide financial services training, coordination, etc. to prospective donors, financial services professionals, and development officers. SPGN provides all administrative and management support to qualifying non-profit organizations and to the participating Philanthropic Partner as it relates to these programs.

This training, often in the form of workshops, is designed to educate program participants on the tax and income benefits available from participating in the program. As donors determine to take advantage of the benefits of Simplified Planned Giving, a qualifying public charity underwrites the programs, written by and for the benefit of the sponsoring Philanthropic Partner.

SPGN consults with the Philanthropic Partner with the development of each case and provides a final accounting of every completed gift.

Funding

Insured Living Benefit
In order to create the highest level of investment security for all
concerned, SPGN works with non-profit organizations that have a
policy to utilize an Insured Benefit strategy in providing the income
benefit, whenever possible. This strategy involves the purchase of a
commercial immediate annuity contract by the charity from a legal
reserve life insurance company. In so doing, the charity passes
mortality, investment, and market risk to the underwriting insurance company.

While this is more expensive than merely meeting the traditional FASB reserve requirement, it provides significant additional security to all parties.

Remainder (Endowment) Benefit
The basic endowment benefit is usually equal to the value of the tax deduction granted the donor for completing the gift. This benefit is available to the Partner in Philanthropy after the death of the donor/annuitant. In order to guarantee this value, wherever possible, the issuing charity will also insure the Remainder Benefit by purchasing an insurance policy on the life of the donor/annuitant with a death benefit equal to the value of the deduction. The issuing charity owns the policy, and the endowment for the benefit of (FBO) the Philanthropic Partner is the irrevocable beneficiary. When it is not possible to insure the annuitant(s), the issuing charity sets aside the present value of the Remainder Benefit in the Philanthropy Partner’s endowment account.

Balance
Once all of the costs identified above have been resolved, the issuing charity splits the balance with the Partner in Philanthropy as an immediate gift to their endowment. Final values in each case are impacted by several factors including the IRS Discount Rate (modified monthly), ACGA published rates, donor mortality and insurability etc.

Summary of Benefits

Participant/Donor
The program participant benefits from a significant income tax deduction, possible capital gains tax and estate tax reduction or elimination, guaranteed lifetime income, and a significant legacy gift left to either their Donor Advised Fund or Philanthropic Partner of choice.

Philanthropic Partner
The program provides for an insured endowment benefit payable to the Philanthropic Partner’s endowment at the death of the donors. There is also an opportunity for a present value gift at the time of program placement. And there are no administrative responsibilities for the Philanthropic Partner.

Issuing Non-Profit Organization
The issuing non-profit organziation benefits through mission accomplishment (endowment created and funded for Philanthropic Partner), support for its general charitable mission(s), and by helping to meet and exceed the objectives of the donor(s).

General Endowment Management

Funds placed in endowments at qualifying non-profit organizations for Philanthropic Partners are managed by institutional asset class money managers selected by the organization's board of directors.

Representatives of the Philanthropic Partner serve as the advisory board to the endowment. Actual costs for administering the endowment are paid from endowment funds. Funds are distributed from the endowment with the advice of the endowment’s advisory board.