PG Calc - Comprehensive Analysis Report

Summary

PG Calc is a long-standing company specializing in planned giving solutions for non-profit organizations and charities. Established in 1985 in Cambridge, Massachusetts, its mission is to support and enhance the missions of its clients by providing expertise, software, and services that facilitate charitable giving. The company offers a comprehensive suite of products and services designed to help organizations of all sizes succeed in planned giving, from program initiation and expansion to marketing and administration. PG Calc is recognized for its commitment to excellence and for establishing trust with thousands of charitable organizations across various sectors, including education, healthcare, religion, and the arts. In February 2024, PG Calc was acquired by Foundation Source, becoming its planned giving division and further expanding Foundation Source's charitable giving solutions.

1. Strategic Focus & Objectives

Core Objectives

PG Calc's strategic focus centers on empowering charities and non-profits to maximize their planned giving potential. The company achieves this through a multi-faceted approach encompassing software, consulting, marketing services, and gift administration. Key objectives include enabling efficient gift illustration, effective donor engagement, and robust gift stewardship and compliance.

Specialization Areas

PG Calc specializes in various planned giving instruments, including charitable gift annuities, pooled income funds, charitable trusts, and bequests. They offer administration and compliance services for life income gifts, endowment sub-accounting services, gift illustration and proposal software, and both marketing and consulting services to help planned giving programs succeed.

Target Markets

The primary markets targeted by PG Calc are diverse non-profit organizations, including colleges and universities, hospitals, religious groups, and cultural and academic institutions. They also serve financial services companies that cater to these non-profits.

2. Financial Overview

Funding History

PG Calc was founded in 1985. Historically, PG Calc has raised $350K in funding. The company generates an estimated $7.3 million in annual revenue.

Recent Funding Rounds

In February 2024, Foundation Source, a provider of cloud-based SaaS solutions and management services for private foundations, acquired PG Calc. This acquisition was intended to expand Foundation Source's suite of charitable giving solutions and extend its offerings into areas like charitable gift annuities, pooled income funds, charitable trusts, bequests, and endowment sub-accounting. Financial details of the acquisition were not disclosed.

3. Product Pipeline

Key Products/Services

PG Calc offers a full suite of planned giving products and services designed to support organizations in starting, expanding, marketing, and administering planned giving programs.

• PGM Anywhere: This is a web-based version of its signature gift illustration software, launched in 2015. It is relied upon for accurate trust and charitable gift annuity (CGA) calculations and proposals.

• GiftWrap: A state-of-the-art tool used for efficient and effective gift administration, which supports stewardship and compliance needs. GiftWrap is widely recognized as a comprehensive and well-designed planned gift administration software. It is utilized by some of the largest financial institutions to serve their non-profit clients. It supports various gift types, including outright gifts and bequests, and maintains comprehensive donor information. GiftWrap is available as a hosted application or an enterprise application for self-management.

• GiftCalcs: An online gift calculation service inaugurated in 1999.

• Bequest Manager: Brought to market in 2013, it assists with managing bequests from intention to realization, streamlining the probate process, and providing sophisticated reporting and in-depth analysis of bequest programs. It enables the creation and editing of letters, template creation, and supports stewardship through features like legacy society assignment and mail merge communications.

• Pooled Fund Organizer: The first module of what is now GiftWrap, introduced in 1987, it assists with unitizing new pooled fund gifts, distributing income to participants, and producing K-1 tax forms.

• Marketing Services: PG Calc provides marketing services, including planned giving marketing strategy formulation, website building, and the development of direct mail, emails, eNewsletters, brochures, and mailers.

• Consulting Services: Offers expert guidance to start and optimize planned giving programs, including charitable gift annuity state regulations and filings, program strategy, and continuous guidance.

4. Technology & Innovation

Technology Stack

PG Calc distinguishes itself through its proprietary software and advanced methodologies in planned giving. Key offerings are available as cloud-based solutions, which Foundation Source has highlighted as "gold-standard" in planned giving. PG Calc's platforms integrate the latest rates, tax information, and contract language. Their applications are purpose-built to support planned giving fundraisers and the business operations of finance offices for all aspects of planned giving programs.

5. Leadership & Management

Executive Team

• Gary Pforzheimer, President, Planned Giving (Foundation Source): Gary Pforzheimer co-founded PG Calc in 1985 as a spinout from Harvard's planned giving program and has led the company since its inception. He became President of the company and was elected chair of NCPG in 2009. Following the acquisition by Foundation Source, he and PG Calc's employees joined Foundation Source, where he now serves as President of Planned Giving. Gary received an A.B. in History from Harvard College in 1984 and an M.B.A. from Harvard Business School in 1991.

• Bill Laskin, Vice President, Consulting: Bill has been part of PG Calc since its inception in 1985. His responsibilities include working with retainer clients to help grow planned giving programs, as well as software product design, documentation, and market research. He hosts PG Calc's monthly webinar series and contributes regularly to company newsletters and publications.

• Winston Jones, Vice President: Winston has been with PG Calc as an employee and consultant since 1985. He managed the Software Development team and held a role on the firm's Leadership Team. He provides tax and technical expertise to software design and development and performs qualified appraisals. Prior to joining PG Calc full-time, he specialized in tax law at Ropes and Gray.

• Jeffrey Frye, Relationship Manager, Gift Administration Services: Jeffrey's primary responsibilities include telephone support, client training, and serving as a Relationship Manager in the Gift Administration Services area. He has extensive experience in the administration and investment management of planned giving programs, having previously worked at State Street Bank for 19 years, including 11 years in Charitable Asset Management.

• Lindsey Simrell, Marketing Services Senior Relationship Manager: Lindsey joined PG Calc in late 2017. Her background includes restaurant management, travel services, and a marketing and communications role at Boston University.

• Julie Goldenberg Hay, Senior Advisor, Gift Annuity Compliance: Julie joined PG Calc in 2008 and assists charities with state registration matters, providing illustrations, agreements, and analyses for consulting clients.

• Ellen Rakatansky, Senior Business Analyst: Ellen is part of the product management and development team and supports GiftWrap and Bequest Manager.

Recent Leadership Changes

PG Calc experienced a significant leadership and organizational change in February 2024 when it was acquired by Foundation Source. As part of this acquisition, President Gary Pforzheimer and PG Calc's employees became part of the Foundation Source team. PG Calc now operates as the planned giving division of Foundation Source.

6. Talent and Growth Indicators

Hiring Trends and Workforce

PG Calc has 56 employees. The acquisition by Foundation Source indicates a strategic expansion and integration into a larger entity that supports over 4,000 charitable organizations. PG Calc maintains a commitment to diversity, equity, and inclusion.

7. Social Media Presence and Engagement

Digital Footprint

PG Calc maintains a social media presence to engage with its audience and share expertise.

• LinkedIn: https://www.linkedin.com/company/pg-calc

• Facebook: https://www.facebook.com/PGCalc

Through its social media and other platforms, PG Calc engages in thought leadership by sponsoring national and regional planned giving conferences and having its staff members speak at numerous fundraising and planned giving groups. They also offer webinars on various planned giving topics. Key messaging often revolves around customized solutions, client support, and sharing valuable insights to help non-profits in their planned giving efforts.

8. Recognition and Awards

Industry Recognition

PG Calc is recognized as a trusted resource and an industry standard in planned giving. It was named one of Boston Business Journal's Best Places to Work in 2010. Client testimonials frequently highlight PG Calc as "the industry standard for gift illustrations and administration" and praise its exceptional customer service. Foundation Source's CEO referred to PG Calc as the "gold-standard in cloud-based solutions for planned giving." Gary Pforzheimer was also inducted into the National Association of Gift Planners (CGP) Hall of Fame in 2020.

9. Competitive Analysis

Major Competitors

• Kaspick & Company: Likely focuses on gift administration and investment management for planned giving programs.

• Polsinelli: A full-service law firm with a strong non-profit and tax-exempt organizations practice, offering legal counsel on charitable giving, governance, and compliance.

• Greenoakconsulting: Appears to be a consulting firm, potentially offering advisory services to non-profits, which might include aspects of fundraising and strategic planning.

PG Calc differentiates itself through its dedicated suite of planned giving software, comprehensive administrative services, and specialized marketing support, offering an integrated approach that covers the entire planned giving lifecycle.

10. Market Analysis

Market Overview

The market for planned giving solutions is driven by the ongoing need for non-profit organizations to secure long-term funding and manage complex charitable gifts effectively. The increasing complexity of tax laws and regulations, coupled with a growing focus on donor stewardship, fuels demand for specialized software and services. PG Calc operates within a market that values accuracy, reliability, and expert guidance in navigating the intricacies of planned giving.

11. Strategic Partnerships

A major strategic development for PG Calc was its acquisition by Foundation Source in February 2024. This partnership strategically integrates PG Calc's planned giving expertise and solutions with Foundation Source's larger platform for foundation management services and philanthropic expertise. This collaboration allows the combined entity to support a broader range of charitable giving solutions for donors, non-profits, professional advisors, and financial institutions. PG Calc's client base, which includes large financial services companies and top educational and healthcare institutions, complements Foundation Source's network of over 2,000 foundations and $22 billion in charitable assets.

12. Operational Insights

PG Calc strategically positions itself through its comprehensive suite of planned giving products and services, acting as a one-stop-shop for non-profits. Its distinct competitive advantages stem from decades of specialized expertise, a robust technological platform (including PGM Anywhere and GiftWrap), and a strong emphasis on client service and education. By offering consulting, marketing, software, and administration, PG Calc provides an integrated solution that streamlines planned giving efforts for its clients, addressing both the technical and strategic aspects of gift planning and management. The acquisition by Foundation Source further strengthens its market position by leveraging the resources and reach of a larger philanthropic services provider.

13. Future Outlook

Strategic Roadmap

As the planned giving division of Foundation Source, PG Calc is positioned for continued growth and expansion within the broader charitable giving ecosystem. This integration creates opportunities to enhance existing products and services and potentially develop new offerings that leverage Foundation Source's capabilities in foundation management and philanthropic advisory. The combined entity aims to become a leading provider of charitable giving technology, administration, and expertise, facilitating all stages of giving for a wider array of stakeholders, including individual donors, non-profits, financial institutions, and professional advisors. Future directions will likely involve further innovation in cloud-based solutions for planned giving and continued expansion of specialized support for complex charitable instruments.