The American Council on Gift Annuities is proud to celebrate its 100th anniversary. For decades, ACGA’s suggested gift annuity payout rates have provided charities and donors with a trusted framework for establishing charitable gift annuities.

How does ACGA determine those rates?

ACGA’s Rates and Regulations Committee regularly reviews economic, market, demographic, and other data that affect gift annuities. One important objective is to balance the payments made to annuitants with the amount ultimately expected to remain for the charity.

ACGA’s methodology assumes a target residuum of 50%. In simple terms, if a donor contributes $100,000 to establish a gift annuity, the goal is for approximately $50,000 to remain for the charity when the final annuitant passes away.

Investment returns are an important part of that calculation. ACGA’s assumptions reflect a portfolio invested in both equities and fixed income. For the fixed-income portion, the Committee considers the yield on the 10-year U.S. Treasury, using a 13-week rolling average rather than reacting to short-term market movements.

Treasury yields have risen significantly in 2026. If interest rates remain at these higher levels, the assumed return on gift annuity assets may also increase. Over time, that could provide support for higher ACGA suggested maximum payout rates.

The Committee continues to monitor these conditions closely and will communicate with ACGA members whenever a change in suggested rates is warranted.