If you have ever considered establishing a charitable gift annuity, there is no time like the present. Payment rates continue to be high, but with the Federal Reserve lowering the Federal Funds Interest Rate last week, rates will likely decrease soon. Act now to lock in a high rate for life!

What are charitable gift annuities?

Charitable gift annuities (CGAs) are a great way to support the ASPCA and generate payments for yourself or someone you care about. A charitable gift annuity is a contract in which, in exchange for a minimum gift of $10,000, the ASPCA will make payments to you, another person or two people (if both are age 60+) for life. Annuities are popular with donors looking to increase their retirement income or as an alternative to a charitable remainder trust.

CGAs are also a great way to support our lifesaving work across the country. When an annuitant passes away, any remaining funds are a charitable gift to the ASPCA. In addition to receiving payments for life, you could also receive a number of tax benefits, including a charitable deduction for the year your gift was made; tax-free income on a portion of your annuity payments for life; and the partial elimination of capital gains tax if you use appreciated assets to fund the annuity. Plus, donors over 70-and-a-half years old  are now able to make an IRA Qualified Charitable Distribution (QCD) in exchange for a CGA. If you are over the age of 73, this could potentially satisfy all or part of your Required Minimum Distribution (RMD).

What are the current rates? 

Current annuity rates for sample ages are listed below: 

Why will rates change?

The ASPCA follows annuity rates set by the American Council on Gift Annuities (ACGA). The ACGA’s formula for determining recommended rates is impacted by the Federal Funds rate, which means we are likely to see a decrease in annuity rates soon. Now is the time to secure your payment rate and support the ASPCA’s lifesaving work. 

To see how you can take advantage of the higher annuity rates and to receive a personalized CGA proposal, please contact the ASPCA Planned Giving team at [email protected] or (212) 876-7700 ext. 4505.

*Disclaimer: Based on current rates. Deductions and calculations will vary depending on your personal circumstances. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss the application of these topics to your individual situation. Please note the ASPCA is unable to offer charitable gift annuities in Alabama, Hawaii, Maine, South Dakota, and Tennessee.