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Repeat Customers

Why do so many people with a charitable gift annuity obtain another one … and another? There are at least three reasons why these donors become repeat customers.

Satisfaction

Most donors ease into their first gift annuity with a degree of concern. After all, this is a new arrangement for them and they wonder how well it will work. Will the payment amount be as promised? Will the checks arrive on time?

It doesn’t take long for any uneasiness to vanish. Donors discover that charitable gift annuities can be a win-win situation. The satisfaction from their first positive experience draws them back for another annuity.

Connection

Having a life-income agreement differs from the usual annual giving experience. For one thing, the person is not only giving financial support, but also receiving it. This enhanced sense of partnership with a favored charity encourages the feeling that “we are in this together.” Additional annuities deepen this connection even further.

Better Rates

Gift annuity rates are determined by the annuitant’s age. The older you are the better rates you receive. For example, the current rate for a single-life gift annuity involving a 70-year-old person is 5.1%. The rate increases to 5.8% for a 75-year-old. At age 80 it is 6.8% and at 85 it is 7.8%. A 90-year-old (and older) will receive 9%. So for many annuitants, it makes sense to obtain additional annuities as they grow older.

Gift annuities offer other advantages besides those mentioned above. To obtain further information, contact me at 614-338-2365 o or jjacobs@tcjf.org. I will be happy to provide an illustration to show how a gift annuity can benefit you.

Article appears as originally published in the Ohio Jewish Chronicle Thursday, February 23, 2017.

Jackie Jacobs is the Chief Executive Officer of the Columbus Jewish Foundation, the Central Ohio Jewish community’s planned giving and endowment headquarters.

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