Ways to Give Join our Community Text + Text - A gift that pays you back—now with higher rates! Breadcrumb Mobile Menu Why Give? Create Your Legacy How You Can Give What You Can Give Legacy Society For Advisors Contact Us Talk to Us Our Office of Planned Giving »Call 929-877-1691 Our organization offers the suggested maximum annuity rates published by the American Council on Gift Annuities (ACGA). The ACGA announced it would be increasing its suggested maximum annuity rates, effective July 1, 2022. For most gift annuities, the new rates are 0.4% - 0.6% higher than the rates they replace. Samples of Increased Annuity Rates The figures in the table below show how the new rates and resulting charitable deductions for a $10,000 immediate payment gift annuity will differ from the June 2022 rates and deductions over a range of common annuitant ages. Comparison of Old and New ACGA Rates Age(s) June 2022 Annuity February 2022 Deduction New Annuity New Deduction 65 $420 $3,705 $480 $4,051 75 $540 $4,663 $600 $4,818 85 $760 $5,617 $810 $5,720 65/65 $380 $2,854 $430 $3,480 75/75 $460 $4,011 $520 $4,196 85/85 $650 $4,823 $690 $5,030 Ordinarily, you would expect a higher annuity rate to result in a lower charitable deduction. However, you can see that the new deductions available in July 2022 will be higher than they were in February 2022, despite the higher ACGA rates. This is because over these months there has been a spike in the interest rate used to compute gift annuity deductions. However, the recent spike in this interest rate does have a negative effect, too. It has reduced the total tax-free portion of annuity payments by the same amount that it has increased the deduction. Deferred Gift Annuity Rates Will Increase More than Immediate Annuity Rates The figures in the table below show how the ACGA suggested rate for a deferred gift annuity will change as the deferral period changes under the new schedule. The annuity amounts are based on a $10,000 gift. Old Deferred Annuity Rates vs. New Deferred Annuity Rates Age at Gift Years of Deferral June 2022 Annuity New Annuity Amount Increase Annuity % Increase 60 5 $480 $570 $90 0.9% 60 10 $610 $740 $120 1.3% 60 15 $810 $1,000 $190 1.9% Conclusion The ACGA suggested maximum annuity rates for immediate payment gift annuities will increase moderately at all ages, effective July 1, 2022. ACGA rates for deferred gift annuities will increase more significantly. The longer the deferral period, the greater the increase. The recent spike in the interest rate means that deductions for gift annuities paying the increased ACGA rates will still be higher than they were just a few months ago. The combination of higher annuity rates and higher deductions make gift annuities more attractive than they have been in a long time.
Our organization offers the suggested maximum annuity rates published by the American Council on Gift Annuities (ACGA). The ACGA announced it would be increasing its suggested maximum annuity rates, effective July 1, 2022. For most gift annuities, the new rates are 0.4% - 0.6% higher than the rates they replace. Samples of Increased Annuity Rates The figures in the table below show how the new rates and resulting charitable deductions for a $10,000 immediate payment gift annuity will differ from the June 2022 rates and deductions over a range of common annuitant ages. Comparison of Old and New ACGA Rates Age(s) June 2022 Annuity February 2022 Deduction New Annuity New Deduction 65 $420 $3,705 $480 $4,051 75 $540 $4,663 $600 $4,818 85 $760 $5,617 $810 $5,720 65/65 $380 $2,854 $430 $3,480 75/75 $460 $4,011 $520 $4,196 85/85 $650 $4,823 $690 $5,030 Ordinarily, you would expect a higher annuity rate to result in a lower charitable deduction. However, you can see that the new deductions available in July 2022 will be higher than they were in February 2022, despite the higher ACGA rates. This is because over these months there has been a spike in the interest rate used to compute gift annuity deductions. However, the recent spike in this interest rate does have a negative effect, too. It has reduced the total tax-free portion of annuity payments by the same amount that it has increased the deduction. Deferred Gift Annuity Rates Will Increase More than Immediate Annuity Rates The figures in the table below show how the ACGA suggested rate for a deferred gift annuity will change as the deferral period changes under the new schedule. The annuity amounts are based on a $10,000 gift. Old Deferred Annuity Rates vs. New Deferred Annuity Rates Age at Gift Years of Deferral June 2022 Annuity New Annuity Amount Increase Annuity % Increase 60 5 $480 $570 $90 0.9% 60 10 $610 $740 $120 1.3% 60 15 $810 $1,000 $190 1.9% Conclusion The ACGA suggested maximum annuity rates for immediate payment gift annuities will increase moderately at all ages, effective July 1, 2022. ACGA rates for deferred gift annuities will increase more significantly. The longer the deferral period, the greater the increase. The recent spike in the interest rate means that deductions for gift annuities paying the increased ACGA rates will still be higher than they were just a few months ago. The combination of higher annuity rates and higher deductions make gift annuities more attractive than they have been in a long time.