Lower Gift Annuity Rates as of February 1, 2009

ACGA Recommends New Payout Rates for Gift Annuities as of February 1, 2009

The American Council on Gift Annuities (ACGA) has recommended gift annuity payout rate schedules since 1927. When a gift annuity is funded, the age-appropriate rate from the schedule determines the annual amount paid to the income beneficiary(ies). That fixed payment amount never changes and is guaranteed by Clarkson for the life of the annuitant(s). Over 90% of charities in the U.S., including Clarkson, voluntarily adopt ACGA rate schedules to eliminate competition and ensure that gift annuities remain charitable vehicles that offer an income tax charitable deduction.

While ACGA prefers to review the rate schedule annually, recent economic conditions forced a mid-year review. On December 29, 2008, ACGA announced that its recommended rates are lower for gift annuities created on or after February 1, 2009. In general, rates have been reduced between 0.4% and 0.7%, depending on age, with a 1.0% reduction for a maximum rate of 9.5% at ages 90 and above. For example, a gift annuity at age 70 will decrease from 6.1% to 5.7%, and a gift annuity at age 90 will decrease from 10.5% to 9.5%. ACGA has noted that the new rate schedule is effective from February 1, 2009 through June 30, 2009.

Note: The rate changes impact only gift annuities created on or after February 1, 2009. 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 here to review the annuity rate schedule

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 page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisors and Clarkson University before making or planning your gift.

(rev. 10/09)