Historical Opportunity for Charitable Gift Annuities

Higher interest rates to help tame inflation have created a historically good time to donate to the Missionary Oblates of Mary Immaculate through a charitable gift annuity.

With a charitable gift annuity, donors give a certain amount of cash or publicly traded securities (minimum $5,000) to the Oblate Annuity Trust and receive an annual return for the rest of their lives.

Kevin Miller, Director of Charitable and Planned Giving for the Missionary Oblates, said the rate of return is as high as it has been in the past 15 years. For example, in June 2022 the rate for someone aged 75 was 5.4 percent. It is now 7 percent.

That means a donor giving $100,000 to the Oblate Annuity Trust through a charitable gift annuity could receive an annual return of $7,000, compared to $5,400 just two years ago.

Restrictions do apply. Donors must be older than 59 ½ to participate. Charitable gift annuities are not available in some states and all of Canada. Options are available for a charitable gift annuity that ends with the death of the donor or one that continues with the donor’s spouse.

There are many variables that affect an individual’s rate of return, most notably the donor’s age. But once the contract is signed, the rate will never go down.

That makes now an even more attractive time to set up a charitable gift annuity, Miller said. The Federal Reserve is expected to lower interest rates by more than 1 percent by the end of 2024. That will lead to lower rates on charitable gift annuities, he added.

See Your Numbers

Receive a free, no-obligation proposal on your rate of return.

Call (800) 233-6264 oremail charitablegifts@oblateusa.org.

Charitable gift annuities are not available in some states and are not available in Canada.