by James Brandt, Planned Giving Specialist, Integrated Marketing Department
On April 28, 2010, the board of directors of the American Council on Gift Annuities approved a new schedule of gift annuity rates that will take effect on July 1, 2010. Both one-life and two-life rates for individuals between the ages of 55 and 85 will be generally 0.1 – 0.2 percent higher.
Immediate-payment gift annuities using the new rates will qualify for a charitable deduction when the federal discount rate is 3.2 percent or higher.
Although the new rates are only slightly higher, it is the first rate increase since 1997. This is a great opportunity to send out a planned giving postcard to individuals who are currently considering a gift annuity, as well as those who may have created an annuity in the past thirteen years, to illustrate the opportunities provided by the new higher rates.