Degree of Regulation: Under Chapter 403-E of New Hampshire Revised Statutes Annotated, charitable gift annuities are exempt from insurance regulation. To qualify for exemption, a charity must been in continuous operation for at least 3 years and have at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, not counting the annuity gift.

New Hampshire requires a charity to retain 100 percent of the contributions received for gift annuities, increased by earnings and decreased by annuity payments and properly allocated expenses. Such gifts must be invested in accordance with the general standards of prudent investment (RSA 564-A:3-b).

Annuity rates offered by any charity cannot exceed the rates suggested by the American Council on Gift Annuities at the time the annuity is issued.

Notification/Contact with State Regulators: A charity that issues qualified charitable gift annuities must send a notice to the Registrar of Charitable Trusts, New Hampshire Attorney General's Office. The notice must be signed by an officer or director of the charity and must identify the organization, certify that the organization is a charitable organization, and state that annuities issued shall be qualified charitable gift annuities as defined in RSA 403-E:1,V. The charity must recertify these facts annually.

Disclosure Language Required: A disclosure statement must appear on page one of the gift annuity agreement, in a separate paragraph, using print no smaller than that generally used in rest of agreement. The charity must also disclose the following in the agreement: the value of property being transferred; the amount of annuity being paid; the manner in which and the intervals at which payments are to be made; and the date payments are to begin.

Language for State Disclosure Wording: “A charitable gift annuity is not insurance under the laws of New Hampshire and is not subject to regulation by the insurance department or protected by an insurance guaranty association.”

Further Details: Failure to qualify and comply with Chapter 403-E of New Hampshire Statutes, permits the New Hampshire Attorney General's Office to fine the charity up to $1,000 per agreement until it does comply.

Links to websites addressing New Hampshire Gift Annuity Regulation:

1. Registering as Non-profit to fund raise in New Hampshire...
http://doj.nh.gov/charitable/index.html

2. New Hampshire Charitable Registration Forms
http://doj.nh.gov/publications/charitable_forms.html

3. Form to file for issuing Charitable Gift Annuities in NH
http://doj.nh.gov/publications/pdf/125130-1.pdf

Contact:

Audrey Blodgett
New Hampshire Department of Justice
Charitable Trusts Unit
33 Capitol Street
Concord, NH 03301
(603) 271-3591