Gift Annuity Risk Audit
Keeping your program healthy and strong
Drawing on its years of experience with a wide variety of charitable institutions, PG Calc offers a full range of services to assist charities in establishing, enhancing, or reviewing a gift annuity program.
A gift annuity program risk analysis typically includes:
- Assessment of current annuity obligations and reserves to determine the amount by which reserves exceed the present value of annuity obligations.
- Determination of probable outcomes for all gift annuities, based on different rates of return.
- Identification of any particular gift annuities at risk of exhaustion, using both a constant net return method for all annuities, and Monte Carlo analyses for those at greatest risk.
- Evaluation of the profitability of the program, taking into consideration the amounts initially contributed, withdrawals to date (whether to make annuity payments, cover expenses, or further charitable purposes), and the projected residua of current annuities.
- Review of general policies and procedures regarding acceptance and administration of gift annuities.
- Recommendations regarding management and investment of gift annuity reserves, as well as overall operation of the gift annuity program.
A client receives a written report that consists of data and analysis pertaining to the items listed above along with suggestions regarding ways to improve the program.
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