Good Times for Gift Annuities | Sharpe Group
Posted January 15th, 2024

Good Times for Gift Annuities

When it comes to charitable gift annuity programs, the past several decades have been difficult ones. Like a perfect storm, lower interest rates combined with a smaller group of Silent Generation donors who had aged into the 75+ age range, causing the long-popular split-interest gift plan to lose some of its appeal.

But now things are changing that bode well for the appeal of the annuity in charitable gift planning.

  1. Gift annuity rates recommended by the American Council on Gift Annuities have increased multiple times in recent years.
  2. The smaller Silent Generation is being augmented by the oldest members of the Baby Boomers (10,000 are joining the 75+ age group every day!), who may find the charitable gift annuity style of regular fixed payments attractive during their retirement years.

As a result of recent changes, charities that have gift annuity programs in place need to consider how best to offer them to qualified donors through targeted marketing and one-on-one conversations. Gift annuities, after all, are not a “one-size-fits-all” gift plan. For charities that don’t already have a program, they may want to consider establishing one or using a community or denominational foundation or other third-party solution.

Our experienced Sharpe consultants can assist with evaluating your current (or potential) program and developing a marketing strategy to include both print and digital solutions. We have several brochures and booklets that can be personalized for your organization, or we can create a customized piece to suit your needs. And, if you need help identifying this select group of donors who are likely to find gift annuities appealing, we can help with that too!

Barlow T. Mann is general counsel for Sharpe Group.

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