Charitable gift annuity rates increased on January 1, 2023 to the highest level in a decade. The American Council on Gift Annuities, which sets recommended rates, has issued new rates that will increase the payout by approximately 0.6% for single-life and two-life gift annuity contracts.
As interest rates increase, charitable gift annuity rates often follow suit. This is the second rate increase in the past six months. Below is a sample of new rates for both a one-life and two-life annuity.
One-Life Charitable Gift Annuity Rates
| Age | Rate |
|---|---|
| 75 | 6.6% |
| 80 | 7.6% |
| 85 | 8.7% |
| 90+ | 9.7% |
Two-Life Charitable Gift Annuity Rates
| Age | Rate |
|---|---|
| 75-75 | 5.8% |
| 80-80 | 6.5% |
| 90-90 | 9.4% |
| 90-91+ | 9.5% |
The Benefits of a Charitable Gift Annuity
A charitable gift annuity is a way to make a gift to Southwestern Medical Foundation and receive an income for life. You make a gift of cash or property, and in return, you and/or a loved one will receive payments for life. The portion of your gift that remains at the time of the annuitant’s passing will be retained by the Foundation and will support the causes chosen by you as part of your annuity agreement.
Along with new charitable gift annuity rates, there are several other benefits to a charitable gift annuity. The payments are fixed as of the date of your gift. The amount of each payment will depend on the size of your gift and the age of the annuitant(s) who receive the payments (reflected in the chart above). However, the amount of the payments will never change, even if interest rates or the stock market changes.
Depending upon your age and the type of asset given, you may receive the added benefit of mostly tax-free payments. You may also receive a charitable deduction in the year that you set up the gift annuity.
Start the Conversation
Increased gift annuity rates provide an opportunity for you to secure retirement income, save taxes and support UT Southwestern at a level you may not have previously thought possible. For a personalized illustration of the benefits of a gift annuity for you, please contact us. We will be happy to send you additional information.
To contact Randy Daugherty, please call (214) 648-3069 or email him at randal.daugherty@utsouthwestern.edu.
This information is not tax, legal or financial advice. Consult your tax advisor for information specific to your situation.
About the Author
Since 2000, Randy Daugherty has served as Director of Planned Giving for Southwestern Medical Foundation and UT Southwestern Medical Center. He works with donors to suggest bequest language to share with attorneys, establish charitable gift annuities and charitable remainder trusts, utilize beneficiary designations for retirement plan accounts and explore gifts of other non-cash assets like real estate and life insurance. After receiving a Master of Divinity degree from Vanderbilt University, Randy began a career in development, working in higher education, the arts and in academic medicine. He received the Chartered Advisor in Philanthropy designation (CAP) through the American College of Financial Services.
