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.