Summary of Federal Laws
Miscellaneous Laws Affecting Universities
The Philanthropy Protection Act (1995)
15 U.S.C. § 80a-51
The Philanthropy Protection Act of 1995 requires the charity to provide a disclsoure statement to all annuitants in a Gift Annuity Fund and also to provide the same to all prospective donors at the time of solicitation, using a letter or pamphlet format. See the sample notification letter provided by the American Council on Gift Annuities.
Requires exempt charitable organizations that commingle investment assets to provide donors with written information describing the material terms of the operation of the fund. Exempts charitable organizations, when trading for the institution's own account, from federal security laws (except anti-fraud) and from state securities laws unless new state legislation is adopted by December 7, 1998. Unclear whether disclosure is required with respect to all funds covered by the Act or only with respect to planned giving vehicles where the donor (or the donor's beneficiaries) have a financial interest in the investments of the fund or the organization operating it.
The Philanthropy Protection Act of 1995 prohibits the payment of commissions or remuneration to anyone based on the value of a charitable gift annuity given to a public charity.
Resources
Haverford College Sample Disclosure Statement
University of Michigan Gift Annuity Disclosure Statement
links updated 6/23/08 rab
updated 5/15/09 to add compliance partner
compliance box links updated 6/10/09 rab
updated 6/22/09 to add related policy
Last Revised 22-Jun-09 01:37 PM.
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