On November 23, 2022, The American Council on Gift Annuities (ACGA) announced that it would be increasing its suggested maximum annuity rates as a result of the sharp rise in interest rates since July 2022.
The new rates became effective on January 1, 2023 and for most gift annuities, the rates are 0.6-0.7% higher than previous rates. These increase even more if you defer the start of payments for a year or more.
The new deductions are about the same as they were in July 2022, despite the higher ACGA rates, and reduces the tax-free portion of annuity payments. Even so, the higher annuity rates and substantial deductions continue to make charitable gift annuities a great option for donors seeking to make a gift while receiving fixed payments for life.
Learn more about charitable gift annuities here.