Charitable Gift Annuities and Trusts

Managing charitable gift annuities and trusts is possible using split interest functionality. A split interest fund that has a grant approver and voucher approver associated to it must exist prior to creating a new split interest agreement. 

Initial Setup

1. First, create the fund group that will be used to manage your annuities and trusts.
2. Next, create the fund for the split interest.
3. Finally, add grant approvers and voucher approvers to the fund. 

New Split Interest Agreement

Record the Initial Donation to the Fund

1. Create and post a new donation. 

Create Split Interest Agreement in the Fund

1. Navigate to the Split Interest page and Create in the left-side menu.
2. Enter the applicable Create Split Interest information, and then click Create.
   • Name, Agreement Type, Fund, Initial Payment Date, Initial Payment Amount, Payment Amount, Payment Interval, Payment Type, Distribution Account, and Beneficiaries Profile and Percent are required fields.
     
     
     
3. Click Edit Schedule in the left-side menu.
4. Enter the applicable Split Interest Payment Schedule information, and then click Save to add the Payment Schedule to the record.
   • Schedules can also be imported.
     

Create Voucher

1. Navigate to the Split Interest page.
2. Click the Open bucket to bulk create payments.
   
   
   
3. Click Create Payments in the left-side menu.
   • If no records show in the Split Interest Payment Summary, then adjust the Payments Due Before date.
4. Check the box for each payment, and then click Create Voucher.
   

The voucher is processed like other vouchers.

• The expense account is typically the split interest payable liability account. 

Additional Information

• Generally, the initial gift will be split between the liability account and a donation. The correct way to record this would be with a payment. Create a Profile Payment provides guidance regarding the creation of the initial payment.
• Create an Invoice for the split interest payable amount and an invoice for the part of the annuity that qualifies as a charitable deduction. An example is shown below.