On November 21, 2023, the American Council on Gift Annuities (ACGA) announced that it would be increasing its suggested maximum annuity rates, effective January 1, 2024. The new rates replace the rates that became effective January 1, 2023.

For most gift annuities, the new rates are approximately 0.4 percentage points higher than the old rates. If you defer the start of payments for a year or more, the increase is even greater. The higher annuity rates will result in modestly lower charitable deductions; however, they will also make gift annuities more attractive to donors seeking to make a gift and receive fixed payments for life.

Why should you consider a charitable gift annuity in 2024?
 

• You will lock in gift annuity payments for life without concerns about market fluctuations.
• If you already have a gift annuity, they are more appealing in 2024.
• While the income tax charitable deduction for a gift annuity is lower using the 2024 rates, the potential tax-free portion of your annuity increases.
• If you don’t need income now, deferring your annuity payment increases these rates. (A 70-year-old deferring payments to age 75 is entitled to 8.7% annuity for life!)

If you would like more information or are interested in a personalized illustration, please contact us.

Envision how a charitable gift annuity could positively impact you!

Sample Annuity Rates for Gift Amount of $10,000

Sample Annuity Rates for Gift Amount of $25,000 

Example:

Mrs. Bates, who is 75 years old, establishes a $25,000 gift annuity for the benefit of Bates College. She will receive payments fixed for life at 7.0% ($1,750 per year) paid in quarterly installments, a portion of which will be tax-free. She can claim an immediate charitable deduction of about $10,906 on her federal income tax.