Stelter’s Senior Gift Planning Consultant, Lynn Gaumer, J.D., is in today to give you an update on charitable gift annuity rates.
Some surprising news yesterday by the American Council on Gift Annuities (ACGA): Starting January 1, 2024, payout rates will increase, on average, by approximately 0.4% depending on the age of the annuitant.
This is a change from the ACGA’s previous announcement that rates would stay the same for the first half of 2024.
You’ll have to wait a bit to learn the specifics. The ACGA will release new rate charts to members on December 18 and to non-members on December 26.
Time to Reconnect With Current Gift Annuity Donors
According to the ACGA 2021 Survey on Gift Annuities, about half of new gift annuities are from previous gift annuity donors. So take time to reconnect. This may lead to conversations about funding an additional gift annuity with traditional assets such as cash or appreciated stock or using IRA assets to make a one-time election of up to $50,000 ($53,000 in 2024) to fund a gift annuity with a qualified charitable distribution.
There is no better time for you to reconnect with these supporters. Here are five tips:
1. Express Gratitude. Thank your current gift annuity donors for their support and let them know about the rate increase. This demonstrates your commitment to keeping them informed.
2. Show Impact. Share stories and updates about how donor support has made a difference in your organization. Remind donors that their gift annuities play a critical role in your mission’s success.
3. Communicate and Educate. Educate your donors about the new rates and how the change may benefit them. Transparency is key to maintaining trust and encouraging donor engagement.
4. Discuss Other Opportunities. Use this news to explore other ways donors can support your organization, whether through additional gift annuities, gifts in a will or trust, or other planned giving options.
5. Engage in Personal Conversations. Consider having one-on-one conversations with major donors about the rate increase and its potential impact on their giving strategy.
If your organization offers gift annuities, now is the time to discuss their many benefits. If your organization doesn’t offer gift annuities, now’s the perfect time to either create a CGA program or work with a third party like the National Gift Annuity Foundation to offer them. And the best part about working with a third party is that there is no risk to your organization.
Next Steps
We recommend you begin communicating with your donors who may be interested in making a gift in early 2024 to take advantage of the recent rate increase.