Our organization offers the suggested maximum annuity rates published by the American Council on Gift Annuities (ACGA). The ACGA announced it would be increasing its suggested maximum annuity rates, effective July 1, 2022. For most gift annuities, the new rates are 0.4% - 0.6% higher than the rates they replace.

Samples of Increased Annuity Rates

The figures in the table below show how the new rates and resulting charitable deductions for a $10,000 immediate payment gift annuity will differ from the June 2022 rates and deductions over a range of common annuitant ages.

Comparison of Old and New ACGA Rates

Age(s) June 2022
Annuity
June 2022
Deduction
New Annuity New Deduction

85

$760

$5,617

$810

$5,720

75

$540

$4,663

$600

$4,818

65

$420

$3,705

$480

$4,051

Ordinarily, you would expect a higher annuity rate to result in a lower charitable deduction. However, you can see that the new deductions available in July 2022 will be higher than they were in February 2022, despite the higher ACGA rates. This is because over these months there has been a spike in the interest rate used to compute gift annuity deductions. However, the recent spike in this interest rate does have a negative effect, too. It has reduced the total tax-free portion of annuity payments by the same amount that it has increased the deduction.

Deferred Gift Annuity Rates Will Increase More than Immediate Annuity Rates

The figures in the table below show how the ACGA suggested rate for a deferred gift annuity will change as the deferral period changes under the new schedule. The annuity amounts are based on a $10,000 gift.

Old Deferred Annuity Rates vs. New Deferred Annuity Rates

Age at Gift Years of Deferral June 2022 Annuity New Annuity Amount Increase Annuity % Increase

60

5

$480

$570

$90

0.9%

60

10

$610

$740

$120

1.3%

60

15

$810

$1,000

$190

1.9%

The combination of higher annuity rates and higher deductions make gift annuities more attractive than they have been in a long time.

Learn more about Charitable Gift Annuities