- Current IRS Discount Rates for June 2013
- Rates Effective January 1, 2012 To Remain the Same as of 4/15/13
- ACGA's Statement Regarding the House’s Tax Reform Bill
- American Council on Gift Annuities and the Partnership for Philanthropic Planning Respond to Recent Securities and Exchange Commission Fraud Case Involving CGAs
- Conrad Teitell Speaks to the Committee on Ways and Means on Behalf of ACGA
Articles
Gift Annuity Rates
Click here for historic suggested maximum rate schedules going back to July 1, 1999.
If you are interested in information on rates prior to July 1, 1999, please contact us.
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Suggested Maximum Rate Schedules Effective January 1, 2012
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New Suggested Maximum Rate Schedules Effective January 1, 2012
Approved by the American Council on Gift Annuities on November 7, 2011
(reconfirmed on April 15, 2013 & November 6, 2012)
The American Council on Gift Annuities (ACGA) board of directors held its semi-annual meeting on November 7, 2011. As part of a continual monitoring process, the board reviewed the current assumptions that underlie the rates schedules. Given the significant changes in the economic environment, the board approved a new schedule of suggested maximum gift annuity rates which will become effective January 1, 2012. At ages older than 60, when the majority of gift annuities are issued, one-life rates will decline by 0.5% to 0.8%.
Suggested Maximum Rate Schedules Effective July 1, 2011
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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 sponsors at no charge.
Click here to download a copy of the rates report.
Suggested Maximum Rate Schedules Effective July 1, 2010
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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 CMFR 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
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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 CMFR 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 CMFR 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
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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.
