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Charitable Gift Annuity Interest Rates to be Cut

If you are considering or have been advised to establish a charitable gift annuity and would like to support Hattie Larlham, you may want to do so before July 1, 2008.

Like other reputable nonprofits, Hattie Larlham follows the rates set by the American Council on Gift Annuities. On April 2, 2008, the council announced new suggested interest rates effective July 1, 2008.

This means charitable gift annuities set up before the rate reduction will earn more interest for you.

Currently, the interest rate for a single life annuitant age 65 is 6 percent. For an annuitant age 70, the rate is 6.5 percent; age 75, 7.1 percent.

After July 1, 2008, these rates, respectively, will drop to 5.7 percent, 6.1 percent and 6.7 percent. Rates for joint and survivor annuities will be reduced as well.

Charitable gift annuities are a wonderful way to provide a lifetime of income and help Hattie Larlham at the same time. They are a great option for individual donors as well as couples.

A charitable gift annuity is a simple contract in which you exchange a gift of cash or securities for a fixed income each year for the rest of your life (or two lives). Part of what you transfer is a tax-deductible charitable gift and part of your payment is a tax-free return of principal. The minimum amount for a charitable gift annuity is $10,000.

Learn more about charitable gift annuities, bequests and other ways to give that support Hattie Larlham.

To learn more about the interest rate changes or to set up your charitable gift annuity, contact Stuart J. Kleiner, J.D., associate director of planned giving, at 800.233.8611, ext. 3147, or stuart.kleiner@hattielarlham.org.