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Gift Annuity Rates

The ACGA Board and Rates Committee have a methodology in place to provide for the ongoing review of the factors that impact the suggested rate charts published by ACGA. As part of its ongoing review process, the Rates Committee of the ACGA monitors on a weekly basis certain interest rates that underlie the investment return assumptions used to create the rate schedules.  Annuitant mortality and other assumptions are evaluated and updated as necessary on an annual basis.  That methodology provides for the routine announcement of any modifications to the suggested rates following its spring Board meeting with an effective date of the following July 1st.

For more detailed information about our suggested gift annuity rates, please visit the gift annuity rates section of our website to obtain a copy of our latest Rates Paper.


 

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.

Brochures
Click here to download electronic or order current rates brochures.

Suggested Maximum Rate Schedules Effective January 1, 2012 Unchanged as of April 8, 2014

New Suggested Maximum Rate Schedules Effective January 1, 2012 Unchanged as of April 8, 2014
Approved by the American Council on Gift Annuities on November 7, 2011
(reconfirmed on November 6, 2012 & April 15, 2013 & November 4, 2013 & April 8, 2014)

At its meeting in Baltimore in April 2014, the American Council on Gift Annuities (ACGA) Board of Directors voted to leave its schedule of suggested maximum charitable gift annuity (CGA) rates unchanged.  The rate schedule was originally published as of January 1, 2012 and will continue in effect until further notice.

Previously, the ACGA Board of Directors, at its semi-annual meeting on November 7, 2011, April 15, 2013 & November 4, 2013, as part of a continual monitoring process, 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 became 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%.

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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 sponsors 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 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

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

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.

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