New Gift Annuity Rates as of July 1, 2008
ACGA Recommends New Rates for Annuities as of July 1, 2008
The American Council on Gift Annuities (ACGA) has recommended gift annuity rate schedules since 1927. When a gift annuity is funded, the age-appropriate rate from the schedule determines an annual payment amount that never changes and is guaranteed by Clarkson for the life of the annuitant(s). Most charities, including Clarkson, voluntarily adopt ACGA rate schedules to eliminate competition and ensure that gift annuities remain charitable gifts that offer an income tax deduction.
While the ACGA prefers not to adjust the rate schedule frequently, recent economic conditions have forced annual reviews. The ACGA announced last April that the recommended rates are lower for gift annuities created on or after July 1, 2008. In general, rates are reduced between 0.2% and 0.9%, depending on age. For example, a gift annuity at age 60 decreases from 5.7% to 5.5%, and a gift annuity at age 89 decreases from 11.0% to 10.1. Even though the payout rates are slightly lower, you may wish to consider other factors as well. For example, your income tax deduction may be larger, and the taxation of your income payments may shift in your favor. The lower rate may also allow a larger remainder to Clarkson.
The rate changes impact only gift annuities created on or after July 1, 2008. Payment amounts to income beneficiaries for all existing annuities will never be reduced.
For help with questions, contact Sal Cania, Director of Gift Planning, or call toll-free 877-928-4438.
Click gift annuity rate schedule to review the complete rate schedule for 1-life and 2-life immediate payment gift annuities.
You may create your own gift annuity projection with our gift calculator or request a projection from Clarkson.
To learn more about charitable gift annuities, request our workbook, Will a Gift-with-income Plan Work for Me?
The American Council on Gift Annuities (ACGA) has recommended gift annuity rate schedules since 1927. When a gift annuity is funded, the age-appropriate rate from the schedule determines an annual payment amount that never changes and is guaranteed by Clarkson for the life of the annuitant(s). Most charities, including Clarkson, voluntarily adopt ACGA rate schedules to eliminate competition and ensure that gift annuities remain charitable gifts that offer an income tax deduction.
While the ACGA prefers not to adjust the rate schedule frequently, recent economic conditions have forced annual reviews. The ACGA announced last April that the recommended rates are lower for gift annuities created on or after July 1, 2008. In general, rates are reduced between 0.2% and 0.9%, depending on age. For example, a gift annuity at age 60 decreases from 5.7% to 5.5%, and a gift annuity at age 89 decreases from 11.0% to 10.1. Even though the payout rates are slightly lower, you may wish to consider other factors as well. For example, your income tax deduction may be larger, and the taxation of your income payments may shift in your favor. The lower rate may also allow a larger remainder to Clarkson.
The rate changes impact only gift annuities created on or after July 1, 2008. Payment amounts to income beneficiaries for all existing annuities will never be reduced.
For help with questions, contact Sal Cania, Director of Gift Planning, or call toll-free 877-928-4438.
Click gift annuity rate schedule to review the complete rate schedule for 1-life and 2-life immediate payment gift annuities.
You may create your own gift annuity projection with our gift calculator or request a projection from Clarkson.
To learn more about charitable gift annuities, request our workbook, Will a Gift-with-income Plan Work for Me?
This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisers and Clarkson University before making or planning your gift.