Gift Annuity Reserve Factor Calculator

Effective January 1, 2005 the minimum reserve basis for life annuities issued on or after this date by Grants and Annuities Societies shall be the Annuity 2000 Mortality Table at 4½% interest. Single Life and Joint & Last Survivor reserves for both immediate and deferred annuities on the new basis can be calculated by clicking on the link below.

Single Annuity
Joint Annuity

A Gift Annuity (also referred to as a "charitable Gift Annuity" or "CGA") is a contract (not a "trust"), under which a charity, in return for a transfer of cash, marketable securities or other assets, agrees to pay a fixed amount of money (payment) to one or two individuals, for their lifetime.

A person who receives payments is called an "annuitant" or "beneficiary". The fixed payments (called the "annuity") are fixed and unchanged for the term of the contract. The annuity payments are NOT called "income", for a portion of the payments are considered to be a partial tax-free return of the donor's gift, which are spread "ratably" (in equal payments) over the life expectancy of the annuitant(s).

The contributed property (the gift), given irrevocably, becomes a part of the charity's assets, and the payments are a general obligation of the charity. The annuity is backed by the charity's entire assets, not just by the property contributed. Unlike a trust, annuity payments continue for the life/lives of the annuitant(s), and not ONLY as long as assets remain in the Gift Annuity Fund.