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Lower charitable gift annuity rates

The oldest and most frequently used form of charitable giving that produces income for donors is a charitable gift annuity. Effective 1 January 2003, the annuity rates will change.

At a special meeting on 16 October 2002, the Board of the American Council on Gift Annuities approved a reduction to the current rates in effect. Since the current rates were approved last spring, the yield on the 10-year Treasury bond has decreased from 5.25 percent to approximately 3.75 percent, and many economists are predicting only single-digit returns on stocks for the next five years. Also, because the current annuity rates were approved last spring, commercial annuity rates have decreased by ...

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