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Historic Suggested Maximum Rate Schedules

Suggested Maximum Rate Schedules Effective July 1, 2011

Approved by the American Council on Gift Annuities on April 4, 2011
Information last updated October 12, 2010

In April, the Board of Directors of the American Council on Gift Annuities (ACGA) approved a new schedule of suggested maximum gift annuity rates for gifts established on or after July 1, 2011. The new schedule reflects (1) the Council’s long-standing residuum target of 50%, with an additional requirement that the present value of the residuum be at least 20% of the gift amount; (2) the results of a recent study on charitable gift annuitant mortality conducted by the ACGA’s actuarial consultants, the Hay Group, and (3) a more conservative investment return assumption.

Generally speaking, the new rate schedule contains slightly lower rates for single-life annuities for ages 69 and younger, and slightly higher rates for single-life annuities at ages 75 and older.  Similar changes apply to 2-life gift annuity rates.


 The ACGA Rates Committee has prepared this report to explain the reasoning used in establishing suggested charitable gift annuity rates. Detail in this report goes beyond the assumptions used in arriving at the rates. The report provides historical background, statistical information, rationale behind the assumptions and more.  This report is available electronically to our members at no charge.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective July 1, 2010

Approved by the American Council on Gift Annuities on April 28, 2010
Information last updated October 12, 2010

The new schedule of maximum suggested rates reflects slightly higher rates up through age 81 for single-life annuities, as well as slightly higher rates for two-life annuities at many ages, with all rates qualifying at a CFMR of 3.2% or higher.

With the AFR dipping below 3.2%, the rate at which the current schedules of gift annuity rates will pass the 10% test, annuities for younger donors, and many deferred payment gift annuities will no longer pass this test using the current schedule of rates. Charities will need to lower their gift annuity rates in these circumstances in order to pass the 10% test.


The ACGA Rates Committee has prepared this report to explain the reasoning used in establishing suggested charitable gift annuity rates. Detail in this report goes beyond the assumptions used in arriving at the rates. The report provides historical background, statistical information, rationale behind the assumptions and more.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective February 1, 2009

Approved by the American Council on Gift Annuities on December 29, 2008
Information last updated January 8, 2009

IMMEDIATE AND DEFERRED GIFT ANNUITY RATES ARE LOWERED

The Board of Directors of the American Council on Gift Annuities (ACGA), at a called meeting on December 29, 2008, approved a recommendation from the Rates Committee to reduce the expected return assumption from 5.75% to 5.25%. A new rate schedule has been developed reflecting this change.

Recommended rates have been lowered by .4% to .7% at each age with a maximum rate of 9.5% at ages 90 and above. The new rates will qualify for all immediate gift annuities at all ages for a CFMR of 2.4% or above. In the case of deferred gift annuities, there may be a few instances in which rates based on the ACGA's suggested schedule and methodology do not qualify when the CFMR is quite low. In those instances, the deferred rates would have to be reduced to qualify.


 The ACGA Rates Committee has prepared this report to explain the reasoning used in establishing suggested charitable gift annuity rates. Detail in this report goes beyond the assumptions used in arriving at the rates. The report provides historical background, statistical information, rationale behind the assumptions and more.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective July 1, 2008

Approved by the American Council on Gift Annuities on April 2, 2008
Information last updated January 7, 2009

IMMEDIATE AND DEFERRED GIFT ANNUITY RATES ARE LOWERED

Having conducted its annual review, the ACGA Rates Committee recommended a new, lower schedule of gift annuity rates for immediate gift annuities, effective on July 1, 2008. In addition, the deferred gift annuity rates which became effective on July 1, 2006 will also be lower. At its April 2, 2008, meeting the ACGA board approved these recommendations.


The ACGA Rates Committee has prepared this report to explain the reasoning used in establishing suggested charitable gift annuity rates. Detail in this report goes beyond the assumptions used in arriving at the rates. The report provides historical background, statistical information, rationale behind the assumptions and more.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective July 1, 2007

Approved by the American Council on Gift Annuities on April 2, 2007
Information last updated April 16, 2008

IMMEDIATE AND DEFERRED GIFT ANNUITY RATES WILL REMAIN THE SAME

Having conducted its annual review, the ACGA Rates Committee recommended that current gift annuity rates for immediate gift annuities, which became effective on July 1, 2003, remain in effect for another year. In addition, the deferred gift annuity rates which became effective on July 1, 2006 will also remain the same for another year. At its April 2, 2007, meeting the ACGA board approved these recommendations.


 The ACGA Rates Committee has prepared this report to explain the reasoning used in establishing suggested charitable gift annuity rates. Detail in this report goes beyond the assumptions used in arriving at the rates. The report provides historical background, statistical information, rationale behind the assumptions and more.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective July 1, 2006

Approved by the American Council on Gift Annuities on April 5, 2006
Information last updated October 23, 2006

IMMEDIATE GIFT ANNUITY RATES WILL NOT CHANGE

Immediate gift annuity rates remain the same, but the compounding rate for deferred gift annuities will change.

Having conducted its annual review, the ACGA Rates Committee recommended that current gift annuity rates for immediate gift annuities, which became effective on July 1, 2003, remain in effect for another year. With reference to deferred gift annuities, the Committee recommended that the compound interest rate during the deferral period be increased from 5.0 percent to 5.25 percent. At its recent meeting, the ACGA board approved these recommendations.

Note: July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006 & July 1, 2007 - Immediate gift annuity rates are the same.  Please check the Assumptions & Comments page for further information about deferred payment gift annuities.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective July 1, 2005

Approved by the American Council on Gift Annuities on April 18, 2005
Information last updated November 17, 2005

ACGA Votes No Change in Recommended Schedule of Rates

The board of the American Council on Gift Annuities met on April 18, 2005 for a semi-annual meeting. At that meeting the board voted unanimously to make no changes to its recommended schedule of gift annuity rates. The current schedule will remain in effect from July 1, 2005 through June 30, 2006 unless economic events warrant an interim review of the schedule.

The underlying assumptions in calculating the schedule of rates remain as follows:

  • 50% residuum
  • 1% annual expense load
  • Annuity 2000 mortality tables assuming female with a 1 ½ year setback
  • 6% expected return

For deferred payment gift annuities, the compounding rate remains at 5% for all deferral periods.

Note: July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006 & July 1, 2007 - Immediate gift annuity rates are the same.  Please check the Assumptions & Comments page for further information about deferred payment gift annuities.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective July 1, 2004

Approved by the American Council on Gift Annuities on May 5, 2004

Note: July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006 & July 1, 2007 - Immediate gift annuity rates are the same.  Please check the Assumptions & Comments page for further information about deferred payment gift annuities.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective July 1, 2003

Approved by the American Council on Gift Annuities on May 12, 2003

Note: July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006 & July 1, 2007 - Immediate gift annuity rates are the same.  Please check the Assumptions & Comments page for further information about deferred payment gift annuities.

Click here to download a copy of the rates report.

Suggested Maximum Rate Schedules Effective January 1, 2003

Approved by the American Council on Gift Annuities October 16, 2002

Click here to download a copy of the rates report.

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