VERMONT
Regulation of Charitable Gift Annuities
Last Revised on October 2, 2009.
Degree of Regulation:
Issuance of charitable gift annuities is regulated under Vermont Statutes Title 9, Chapter 68, Sections 2517 to 2518.
In order to issue gift annuities in the state, a charity must meet the following regulatory requirements:
- have been in continuous operation for three years (or be the successor or affiliate of an organization in operation for that period of time)
- have at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, in addition to the assets necessary to fund the charity's outstanding annuity obligations on the date it enters into a gift annuity agreement
Actions Required for Exemption:
No filing with a state agency is required.
Disclosure and Agreement Content Requirements:
Specific disclosure language is required in each gift annuity agreement.
Suggested Language for State Disclosure: “Notice to Donor: A charitable gift annuity is not insurance under the laws of the State of Vermont, and is not subject to regulation by the department of banking, insurance, securities, and health care administration or protected by an insurance guaranty association.”
Reserve Requirements:
None
Annual Reporting:
None
Compliance/Enforcement:
Enforcement may be made by demand letter. Failure to comply with the disclosure provisions permits fines of up to $1,000 per annuity agreement until an organization complies. In addition, an extensive enforcement section further authorizes the Attorney General to bring actions for noncompliance, in which injunctive relief, the dissolution of an in-state charity or the revocation of status as a qualified foreign corporation, or fines of up to $10,000 per violation can be sought.
Links to State Regulations Pages:
