Suggested Maximum Gift Annuity Rates Remain Unchanged - June 2023

With the stock market seeing a marked rebound from the downturn of this past fall, donors might be asking why charitable gift annuity rates have not increased accordingly. So why aren’t charitable gift annuity rates increasing this summer?

In November 2022, the American Council on Gift Annuities (ACGA) Board of Directors approved an increase in the suggested maximum payout rates for charitable gift annuities and raised the return assumption from 4.50% to 5.25%, with the new suggested maximum rates effective on January 1, 2023. In general, the payout rates were raised by 0.4 to 0.5 percentage points, based on the annuitant(s) age(s) (e.g., payout increase of $40 to $50 on a $10,000 donation).

As part of a continuous monitoring process, the ACGA Board held a meeting on June 1, 2023 and reviewed the current assumptions inherent in our gift annuity suggested maximum rate schedules. As interest rates have not changed materially since November, the Board decided not to change the suggested maximum payout rates. Specifically, the 10-year Treasury bond yield has maintained a range of 3.4% to 4.0% since October of last year. The Board continues to monitor market and economic conditions and will make changes as conditions warrant.

*For NY organizations: Based on the current quarterly maximum annuity rates issued by the NY Department of Financial Services, the current ACGA suggested maximum rates remain BELOW the maximum rates established by NY state. ACGA rates remain in compliance with New York regulations.

Last Updated on Tuesday, June 13, 2023 06:00 PM