Stelter’s Senior Gift Planning Consultant, Lynn M. Gaumer, J.D., is back to give you an update on the new ACGA rates.
Exciting news today from the American Council on Gift Annuities virtual conference: Charitable gift annuity rates, on average, will increase from 0.2% to 0.5% depending on the age of the annuitant. The new suggested maximum rates will go into effect July 1. The ACGA expects to release new rate charts to members in May and non-members in June.
Why It Matters To Nonprofits
According to AARP, 10,000 people per day turn 65, and the number of older adults will more than double over the next several decades to top 88 million people and represent over 20% of the population by 2050. In addition, Stelter research* shows that individuals in the mature and boomer generations are concerned about having enough income to retire.
Why It Matters To Your Donors
A charitable gift annuity is a great way to receive income and make a gift to a nonprofit organization. As an added benefit, your donors may be able to transfer low-yield or volatile securities in exchange for fixed, secure retirement income while minimizing capital gains.
Donors will want to know the exact payments they can expect. When the rates are released, we recommend you communicate how they can take advantage of the rate increase when they make a gift on or after July 1.
*2017 NMI Healthy Aging Database® study sponsored in part by The Stelter Company