Serving the Philanthropic Community Since 1927

Suggested Maximum Gift Annuity Rates, Quality Training Opportunities, and Consumer Protection Advocacy

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Join the ACGA for the 34th Gift Planning Conference
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How to Join or Support the ACGA

The ACGA relies on the support of the charitable community and indivuals to carry out our mission of promoting responsibile philanthropy.  The ACGA actively promotes responsible philanthropy through actuarially sound, suggested maximum charitable gift annuity rates, quality training opportunities and the advocacy of appropriate consumer protection. 

Ways you can support ACGA:

Current IRS Discount Rates

Month Rate
August 2018 3.4%
July 2018 3.4%
June 2018 3.4%

The IRS has released the Applicable Federal Rate for the current month. Each month the Service surveys hundreds of interest rates for various financial instruments and publishes the rate that is applicable for charitable deduction calculations. Click here to view historic AFRs.

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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