Regulation of Charitable Gift Annuities
Degree of Regulation:
Issuance of charitable gift annuities is regulated under South Dakota Codified Laws Section 58-1-16.
In order to issue gift annuities in the state, a charity must meet the following regulatory requirements:
- have been in continuous operation for at least 10 years
- have at least $500,000 in unrestricted cash, cash equivalents or publicly traded securities, exclusive of the assets funding the annuity agreement as of the date of the annuity agreement
- be registered in the state as a foreign corporation (unless it is domiciled and with its principal place of business in South Dakota)
Actions Required for Exemption:
No filing with a state agency is required.
Disclosure and Agreement Content Requirements:
Disclosure language is required in each annuity agreement as well as in all promotional materials. The statement must appear in bold 10-point type or larger.
Suggested Language for State Disclosure: "Charitable gift annuities are not regulated by and are not under the jurisdiction of the South Dakota Division of Insurance."
None specifically stated.
Links to State Regulations Pages: