The new rates, a comparison to existing rates, and the difference for persons age 60 and older are shown in the chart below and take effect July 1, 2008. The new rates result in part from lowering the assumed total annual return on gift annuity reserves from 6.25% to 5.75%. (See full rate schedules for both single-life and two-life annuities at www.acga-web.org.)
The compounding rate for deferred gift annuities will also decrease, resulting in somewhat lower deferred gift annuity rates as well.
What this may mean for you
Many may find that now is a good time to implement special marketing efforts that give donors one more opportunity to fund gift annuities before the new, lower rates go into effect in July.
Many Sharpe gift annuity publications have been deliberately written with examples and copy that are not rate specific. On Sharpe brochures and booklets, a gift annuity rate chart may be added to the back cover if desired. You may want to purchase some materials imprinted with the current rates for use until July, and also order some with new rates to have on hand when the lowered rates take effect. You can be assured that all Sharpe publications have been reviewed and updated where necessary.
For more information
The ACGA offers a detailed report entitled “2008 Presentation on Gift Annuity Rates” at their web site: www.acga-web.org/orderform.pdf.
For additional information on gift annuities and recommended rates, contact:
American Council on Gift Annuities
233 McCrea Street, Suite 400
Indianapolis, IN 46225
Fax: (317) 269-6276