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Gift Annuity Rates Remain Attractive
Beginning last July, the gift annuity rates recommended by the American Council on Gift Annuities and followed by most charities increased. They increased again effective January 1, 2023. As a result of these rate adjustments, payments received in exchange for a contribution for a gift annuity are significantly larger than they had been. Furthermore, the rate in effect when you establish a gift annuity never changes. You can count on payments that are predictable and payable for life.
Following is a comparison, at selective ages, of the old and new rates for an immediate annuity, where payments begin the first pay period following the contribution.
| ONE LIFE |
| Age |
Old Rate Before 7/1/22 |
New Rate Beginning 1/1/23 |
| 65 |
4.8% |
5.4% |
| 75 |
6.0% |
6.6% |
| 85 |
8.1% |
8.7% |
| TWO LIVES |
| Ages |
Old Rate |
New Rate |
| 65/65 |
4.3% |
4.7% |
| 75/75 |
5.2% |
5.8% |
| 85/85 |
6.9% |
7.7% |
In the case of a two-life annuity, payments are made, either concurrently or successively, as long as either of two persons is living.
Tax benefits: (1) A charitable deduction for a portion of the contribution. (2) A portion of the payment is generally tax-free.
Contact us for a financial illustration showing your payments and tax benefits. |
