Notice of Change
to Nebraska Charitable Endowment Tax Credit
When Using Charitable Gift Annuities and Deferred Charitable Gift Annuities

The Department of Revenue has determined that the reference to 26 U.S.C. §1011(b) in Neb. Rev. Stat. § 77-27,228(f) and (g) requires that a qualifying charitable gift annuity or deferred charitable gift annuity can be made only by way of a “bargain sale” to a qualifying charitable organization’s endowment fund.  This would disqualify any charitable gift annuitites (when made by way of a cash contribution) when not made by way of a bargain sale.

A bargain sale, as established by the Internal Revenue Code, is a sale or exchange of property by the donor to a charity for less than fair market value where the donor intends the “bargain” element of the sale as a contribution to the charity. The rules regarding all other planned gift techniques remain the same.

If you have any questions regarding the Nebraska Charitable Endowment Tax Credit, contact Jennifer Johnson at (402) 471–6003 or e–mail her at jennifer.johnson@nebraska.gov.