ACGA Announces New Charitable Gift Annuity Rates Effective January 1, 2012

New Suggested Rate Schedules Effective January 1, 2012

Approved by the American Council on Gift Annuities on
November 7, 2011

At its November 2011 meeting the Board of Directors of the American Council on Gift Annuities (ACGA) approved a new recommended rate schedule for charitable gift annuities. The rate decrease announcement was posted to the ACGA's Web site on November 18, 2011. The rates are effective for gifts on or after January 1, 2012.

Rates decreased for all age levels for both single-life and two-life charitable gift annuities. The decrease in rates is anywhere from 0.4% to 0.8%. The maximum recommended rate for individuals aged 90 and above decreased from 9.8% to 9.0%. The primary reason for the rate reductions is a decrease in the investment return assumption used in calculating the rates. The previous investment return assumption was 5.0% while the new assumption is 4.25%. Since the target residuum remains at 50% of the gift amount, the result is a drop in the payout rates. Visit www.acga.org for more information.


This new rate schedule creates a special marketing opportunity for charities to inform donors who had been considering a charitable gift annuity. While there is only a brief window of time to secure a CGA with the current, higher rates—now through December 31 of this year—there is still time to get the word out to prospects with Pentera's CGA QuickCardsTM and ePostcards.

To order marketing materials about the rate-change, please contact Pentera, or email us at info@pentera.com.