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Simmons Endowment Fund

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The Terry L. Simmons Philanthropic Endowment Fund will provide scholarships to worthy individuals who would otherwise be unable to attend the Conference on Gift Annuities.

 

Surveys, Reports, Papers and Brochures

Download ACGA rates brochures, conference papers, rates reports, and surveys in PDF format.

Suggested Maximum Rates Reports

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.

Please login or register with the website to view and download a free electronic copy of the rates reports in PDF format.  While we provide free copies of the rates reports to registered users for download, we encourage you to help support ACGA through a membership if you have not already done so.

If you prefer to receive a printed copy of the rates reports, please choose one of the options below.

Hardcopy Reports Members Non-Members
Suggested Maximum CGA Rates Effective 01/01/12
$15.00, click here $25.00, click here
Suggested Maximum CGA Rates Effective 07/01/11 $15.00, click here $25.00, click here
Suggested Maximum CGA Rates Effective 07/01/10 $15.00, click here $25.00, click here
Suggested Maximum CGA Rates Effective 02/01/09 $15.00, click here $25.00, click here

 

ACGA Rates Brochures

The electronic copy of the rates brochure is available to ACGA members only.  Members of the American Council on Gift Annuities are able to download our rate brochures and print them as they are needed. The brochure is a tri-fold document that can be printed on 8 ½ x 14 (legal size) paper.  Please login or sign up as a memberr to view and download a free electronic copy of the rates brochures in PDF format.

If you prefer to have copies printed and mailed to you, click here to order 25 copies of the most recent suggested gift annuity rates for $20.00.

Managing the Financial Liability of a Charitable Gift Annuity Program

In furtherance of its mission to promote responsible philanthropy through actuarially sound charitable gift annuity rate recommendations, quality training opportunities, and consumer protection, the American Council on Gift Annuities presents the white paper, Managing the Financial Liability of a Charitable Gift Annuity Program.  Authored at the request of the ACGA by Frank Minton, the paper is intended to serve as a resource for development and finance staff, as well as board members, and provide a basis for the discussion of best practices in managing the financial liability of charitable gift annuity programs. 

The ACGA will hosted a free webinar led by Frank Minton with more in-depth information about the topics covered in the white paper on Tuesday, June 9, 2015, at 1:00 pm EDT. 

Any questions regarding the white paper should be directed to responsiblecga @ acga-web.org.

Cynthia Halverson
ACGA Communications Committee


Electronic files for download:
Download this file (ACGA-ManagingFinancialLiabilityofCGAWhitePaper-Final_042015.pdf)Managing the Financial Liability of a Charitable Gift Annuity Program (Paper)[Login to download]610 kB
Download this file (ACGA-WebinarPresentation-Final_060915.pdf)Webinar Presentation[Login to download]14362 kB


 

FRANK & EMIL'S RESPONSES TO ACGA WEBINAR QUESTIONS

Question 1

Do you see the trend of state registrations becoming more regulated or less? 
More like California or New York or like Wisconsin, less regulated now? 


Answer:

In recent years, there have been more instances of reducing regulations than increasing regulations.  However, this doesn’t necessarily indicate a trend.

In the mid-1990s, the National Association of Insurance Commissioners (NAIC) was prepared to circulate among its state members a model act that would have imposed significant regulations on the issuance of gift annuities.  Representatives of the ACGA met with them and succeeded in having them circulate not only this model act but also one that exempted gift annuities charities from regulation except for some basic requirements.  Through the efforts of the charitable community, some version of this model “light” regulatory act was adopted by many states, and what could have been a movement towards greater regulation was halted. The ACGA continues to monitor the situation and to advocate for a reasonable level of regulation that protects donors without making the operation of a gift annuity program onerous for charities.

Question 2

If assets from one CGA are exhausted, and it's not appropriate to invade the funds of a different annuity account, how does having a larger pool of annuitants reduce risk?  Keep in mind, we are a Foundation in which the remainder values are designated/restricted for various programs.  Thus, the unrestricted operating fund of the organization receives no benefit from larger remainder values (the restricted programs do), yet the unrestricted operating fund of the organization is liable for payments even if an annuity's assets were exhausted.

Answer:

If all of your annuities are for a restricted purpose, your Foundation might have to cover the payments of an exhausted annuity with its general funds, even if the program as a whole is quite profitable.  Therefore, you should take steps to generate a fund from which these payments can be made without having to tap your general assets.  You might do this by charging the reserves for each annuity a modest annual fee (50 basis points, for instance) and/or requiring that a certain percentage of the residuum be for the unrestricted purposes of the foundation.  When talking to donors about the purposes of their gifts, you would say that whatever portion of the annuity contribution remains, after deducting certain modest expenses for the expenses of the foundation, will be used for the designated purpose.

Question 3

With a charity with a small CGA pool or interested in starting one, would you recommend a firm like Bryan Clontz which charges fees for administration but returns 100% of the remaining annuity to the charity.   An advantage to the charity is that the company is registered in most states so that we, the charity, do not have that problem.  Is this worth our consideration? 


Answer:

If a charity anticipates that it will have a relatively small number of gift annuities, it might be a good idea to have them issued by a national organization like the Dechomai Foundation created by Bryan Clontz.  There may be other such organizations as well, so you may want to compare their services and fees.  A community foundation is probably not an option for you because it is unlikely to be registered in the various states where your alumni reside.   Keep two things in mind:  First, you will have to explain to donors why, if they want to support Morningside College, they must make their gift to “x” foundation.  Second, if you already have issued gift annuities, you must continue to make payments on them and do the necessary reporting, unless you are able to transfer the liability to the national organization you select.

 Question 4

Our organization self-insures all of our gift annuities.  We hold on to the entire balance for investments and payouts and track each CGA separately.  We are a foundation so we run the program with other charities as the beneficiaries.  We instituted a reserve fund that we only tap into if the balance of the CGA goes below $0 on an individual CGA.  We originally set this up because we were paying out all positive CGAs to other beneficiaries and having to cover with operations all CGAs that were negative.  All the down side and none of the upside.    Currently this reserve is at 23% on the total balance of our gift annuities market value and 51% of our Annuity Payment Liability.  Do have a recommendation on how large this pool should be?  We currently add .5% of the CGA market value to this reserve annually through a fee charged to the CGAs. 


 Answer:

You are already doing what we would recommend for foundation that issues gift annuities for the benefit of other charities.  You have created a separate fund from which you can make payments on gift annuities that have negative reserve balances, and any amounts not needed for that purpose can compensate the foundation for the time it invests and the risk it assumes.  Adding .5% to this fund with an annual fee seems reasonable.  Without analyzing your book of annuities, it would seem that the balance of your special reserve fund is more than adequate.

Question 5

Emil mentioned that the “law of the land” is that “where the person resides” is the key for determining which state’s laws/regulations apply.  When referring to “the person,” does this mean the donor or the annuitant?

Answer:

With one known exception, the residence of the donor determines whether the charity must comply with the laws of the state.  If the donor lives in Indiana, but the annuitant lives in the State of Washington, the charity would not have to be registered in Washington.  The exception is the State of California, which takes the position that if either the donor or the annuitant resides in that state, then registration in California is necessary.

2013 Survey of Charitable Gift Annuities

This significant report is the fifth in a series of national surveys conducted by ACGA over the last 19 years.  The ACGA Gift Annuity Surveys are the best source of information about charitable gift annuity policies, practices, and trends. Unlike other planned gifts such as charitable remainder trusts and pooled income funds, gift annuity data is not collected by the Internal Revenue Service.

Sponsored By:

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Please login or register with the website to view and download a free electronic copy of the survey in PDF format.  While we provide free copies of the survey to registered users for download, we encourage you to help support ACGA through a membership if you have not already done so.

Survey Members Non-Members
Electronic files for download:
Download this file (ACGA-2013CGASurveyReport_Rev062514.pdf)2013 Survey of Charitable Gift Annuities[ ]798 kB
FREE (login) FREE (login)
2013 Survey of Charitable Gift Annuities (Hardcopy) $15.00, click here $25.00, click here

2009 Survey of Charitable Gift Annuities

(Updated 5/6/2010)
This significant report is the fourth in a series of national surveys conducted by ACGA over the last 16 years.  The ACGA Gift Annuity Surveys are the best source of information about charitable gift annuity policies, practices, and trends. Unlike other planned gifts such as charitable remainder trusts and pooled income funds, gift annuity data is not collected by the Internal Revenue Service.

Please login or register with the website to view and download a free electronic copy of the survey in PDF format.  While we provide free copies of the survey to registered users for download, we encourage you to help support ACGA through a membership if you have not already done so.

 If you prefer to receive a printed copy of the survey, please choose one of the options below.

Hardcopy Survey Members Non-Members
2009 Survey of Charitable Gift Annuities $15.00, click here $25.00, click here
Electronic files for download:
Download this file (2009_ACGA-CGA_Survey.pdf)2009 Survey of Charitable Gift Annuities[ ]520 kB

2008 Survey of Gift Planning

ACGA is pleased to present the results of a comprehensive national survey on charitable gift planning among U.S. charities. This report contains a detailed statistical analysis of responses from representatives of charitable organizations to a survey administered by ACGA in late 2007 and early 2008.

Please login or register with the website to view and download a free electronic copy of the survey in PDF format.  While we provide free copies of the survey to registered users for download, we encourage you to help support ACGA through a membership if you have not already done so.

 If you prefer to receive a printed copy of the survey, please choose one of the options below.

Hardcopy Survey Members Non-Members
2008 Survey of Gift Planning $15.00, click here $25.00, click here
Electronic files for download:
Download this file (2008_GiftPlanning_Survey.pdf)2008 Survey of Gift Planning[ ]255 kB

2004 Survey of Charitable Gift Annuities

More than 800 organizations took part in this national survey in 2004. ACGA's survey reports help charities evaluate their gift annuity programs and establish policies with regard to their programs. The reports also provide supporting evidence to some charities as they explore the possibility of starting new programs.

Please login or register with the website to view and download a free electronic copy of the survey in PDF format.  While we provide free copies of the survey to registered users for download, we encourage you to help support ACGA through a membership if you have not already done so.

 If you prefer to receive a printed copy of the survey, please choose one of the options below.

Hardcopy Survey Members Non-Members
2004 Survey of Charitable Gift Annuities $15.00, click here $25.00, click here
Electronic files for download:
Download this file (2004_ACGA-CGA_Survey.pdf)2004 Survey of Charitable Gift Annuities[ ]255 kB

1999 Survey of Charitable Gift Annuities

ACGA's survey reports help charities evaluate their gift annuity programs and establish policies with regard to their programs. The reports also provide supporting evidence to some charities as they explore the possibility of starting new programs.

Please login or register with the website to view and download a free electronic copy of the survey in PDF format.  While we provide free copies of the survey to registered users for download, we encourage you to help support ACGA through a membership if you have not already done so.

Electronic files for download:
Download this file (1999_ACGA-CGA_Survey.pdf)1999 Survey of Charitable Gift Annuities[ ]476 kB

1994 Survey of Charitable Gift Annuities

ACGA's survey reports help charities evaluate their gift annuity programs and establish policies with regard to their programs. The reports also provide supporting evidence to some charities as they explore the possibility of starting new programs.

Please login or register with the website to view and download a free electronic copy of the survey in PDF format.  While we provide free copies of the survey to registered users for download, we encourage you to help support ACGA through a membership if you have not already done so.

Electronic files for download:
Download this file (1994_ACGA-CGA_Survey.pdf)1994 Survey of Charitable Gift Annuities[ ]709 kB

ACGA Conference Proceedings & Papers

ACGA is unique in that we have held professional conferences on charitable gift planning since 1927.  Thanks to a gift from a friend of ACGA, all 28 of the ACGA Conference proceedings through 2010 have been digitized and are now available at no charge in PDF format.

While we provide free copies of the proceedings for download, we encourage you to help support ACGA through a membership if you have not already done so.

Electronic files for download:
Download this file (ACGA_2014ConferenceProceedings-Electronic.pdf)2014 Conference Proceedings - 31st Conference[00]156442 kB
Download this file (2012.pdf)2012 Conference Proceedings - 30th Conference[01]73423 kB
Download this file (2010.pdf)2010 Conference Proceedings - 29th Conference[02]52574 kB
Download this file (2008.pdf)2008 Conference Proceedings - 28th Conference[03]35547 kB
Download this file (2006.pdf)2006 Conference Proceedings - 27th Conference[04]68610 kB
Download this file (2004.pdf)2004 Conference Proceedings - 26th Conference[05]69304 kB
Download this file (2002.pdf)2002 Conference Proceedings - 25th Conference[06]61653 kB
Download this file (2000.pdf)2000 Conference Proceedings - 24th Conference[07]61059 kB
Download this file (1998.pdf)1998 Conference Proceedings - 23rd Conference[08]55794 kB
Download this file (1995.pdf)1995 Conference Proceedings - 22nd Conference[09]53227 kB
Download this file (1992.pdf)1992 Conference Proceedings - 21st Conference[10]35934 kB
Download this file (1989.pdf)1989 Conference Proceedings - 20th Conference[11]37938 kB
Download this file (1986.pdf)1986 Conference Proceedings - 19th Conference[12]24156 kB
Download this file (1983.pdf)1983 Conference Proceedings - 18th Conference [13]33104 kB
Download this file (1980.pdf)1980 Conference Proceedings - 17th Conference [14]25088 kB
Download this file (1977.pdf)1977 Conference Proceedings - 16th Conference [15]18983 kB
Download this file (1974.pdf)1974 Conference Proceedings - 15th Conference [16]15423 kB
Download this file (1971.pdf)1971 Conference Proceedings - 14th Conference [17]14657 kB
Download this file (1968.pdf)1968 Conference Proceedings - 13th Conference [18]13632 kB
Download this file (1965.pdf)1965 Conference Proceedings - 12th Conference [19]13345 kB
Download this file (1962.pdf)1962 Conference Proceedings - 11th Conference [20]10734 kB
Download this file (1959.pdf)1959 Conference Proceedings - 10th Conference [21]11595 kB
Download this file (1955.pdf)1955 Conference Proceedings - 9th Conference [22]8895 kB
Download this file (1946.pdf)1946 Conference Proceedings - 8th Conference [23]4576 kB
Download this file (1941.pdf)1941 Conference Proceedings - 7th Conference [24]3546 kB
Download this file (1939.pdf)1939 Conference Proceedings - 6th Conference [25]7178 kB
Download this file (1934.pdf)1934 Conference Proceedings - 5th Conference [26]5793 kB
Download this file (1931_2.pdf)1931 Conference Proceedings - 4th Conference [27a]3818 kB
Download this file (1931_1.pdf)1931 Conference Proceedings - 3rd Conference [27b]13156 kB
Download this file (1929.pdf)1929 Conference Proceedings - 2nd Conference [28]5657 kB
Download this file (1927.pdf)1927 Conference Proceedings - 1st Conference[29]6246 kB

Charitable Gift Annuity Funded with Appreciated Assets

SUMMARY
Gifting an appreciated asset to charity in exchange for a Charitable Gift Annuity (“CGA”) allows a donor to benefit charity, receive an income tax deduction, defer taxation on the appreciation, and enjoy a steady, lifetime stream of income.

STUDY
Jada Bennett recently retired at age 65 and is looking forward to volunteering with her local hospital. She wants to make a significant gift to the hospital but needs to increase her annual income. She is considering selling an investment portfolio she bought 15 years ago, for $50,000, which has now appreciated to $200,000. The portfolio only pays dividends of two percent most years; sometimes it is as much as two and one-half percent, but not often. Jada could sell the portfolio, use some of the proceeds to purchase a fixed income investment, and donate the rest to the hospital. However, she knows she will pay capital gains tax of $22,500, which will deplete the amount remaining for investing and giving.

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