The Pentera Blog
Gift Annuity Rates Set to Increase with the New Year
The maximum gift annuity rates suggested by the American Council on Gift Annuities (ACGA) will increase effective January 1, 2024.
The actuaries retained by the ACGA are in the process of determining the suggested rate for each age or combination of ages, and when they have completed that task, the ACGA will publish the new schedule of suggested rates. The actual publication date will be determined by the ACGA, but it will be in advance of the effective date.
The ACGA regularly reviews its suggested rates. Current assumptions regarding mortality, investment return on reserves, and administrative expenses determine whether to increase, decrease, or maintain existing rates. The forthcoming increase results from the recent rise in interest rates, which, in turn, has caused the assumed investment return on gift annuity reserves to rise.
Gift annuities based on the new ACGA rates may become more appealing to donors because their payments will be higher. However, the charitable deduction will be lower. The latter will not be a factor if the donor does not itemize deductions.
As previously, Pentera will incorporate the new rates in its marketing materials, and it will be able to start doing this once it has access to the new schedule of rates. The ACGA expects to make the new rates available to members on December 18 and to the general public on December 26.
