Charitable organizations with rapidly growing charitable gift annuity operations are getting more of the donations in the form of larger property gifts, and fewer in the form of smaller cash gifts.
That’s one of the insights the American Council of Charitable Gift Annuities (ACGA) has included in a new report based on the results from its 2017 charitable gift annuity market survey.
Survey managers received responses from 409 charitable gift annuity issuers.
In 2017, at the time of the donation, the average age of the issuers’ charitable gift annuity users was 79. That average age is the same as in 2013, when the council conducted its last charitable gift annuity market survey.
About 54% of the 2017 annuitants were women.
The percentage of annuitants who are using deferred annuities, and flexible deferred-payment annuities, rather than immediate annuities, appears to be growing, according to a report summary by Kristen Schultz Jaarda, the ACGA’s research committee chair.
More of the annuitants appear to be buying deferred charitable gift annuities and flexible deferred payment annuities, rather than immediate annuities, Jaarda writes.
Charitable Gift Annuities
The U.S. charitable gift annuity system gives nonprofit groups a way to make money by offering annuities to donors. The organizations receive cash from the donors, then pay income to the donors until the donors die.
The ACGA Survey
The ACGA is a trade group for the nonprofit organizations. It helps member organizations set their annuity rates. About 97% of charities use the suggested ACGA annuity rates, according to ACGA data.
The ACGA is making full results of its 2017 survey available only to ACGA members, and to people who pay for the survey report. More information about the report is available here.
— Read 4 Common Questions About End-of-Year Charitable Giving Strategies, on ThinkAdvisor.