Charitable Gift Annuity Rates (2026): ACGA Rates by Age vs Immediate Annuity Payouts
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
ACGA rates and SPIA payouts checked September 24, 2026 · Updated
A charitable gift annuity at 70 pays 6.3% a year under the American Council on Gift Annuities' suggested maximum rates, which have been in effect since January 1, 2024.
That is less than a commercial immediate annuity (about $8,568 a year per $100,000 for a 70-year-old man on September 9, 2026), because the charity is meant to keep roughly half the gift. You take the lower income in exchange for a charitable deduction and the gift itself.
Correction (September 24, 2026): the age-60 figure on this page was $5,300 per $100,000; the ACGA rate is 5.2% ($5,200). The old charitable-deduction column and the ~7.5% SPIA figure have been removed or replaced with sourced numbers.
You can fund a gift annuity with a one-time QCD of up to $55,000 in 2026; see the 2026 QCD rules.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge.
In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
What a charitable gift annuity is
You give cash or appreciated property to a charity. The charity pays you (or you and one other person) a fixed amount for life and keeps what is left at the end. Part of the gift is deductible as a charitable contribution in the year you make it.
ACGA rates vs immediate annuity payouts
| Age | ACGA rate | CGA income per $100K | SPIA average, man / woman (per $100K) |
|---|---|---|---|
| 60 | 5.2% | $5,200 | $6,996 / $6,780 |
| 65 | 5.7% | $5,700 | $7,668 / $7,344 |
| 70 | 6.3% | $6,300 | $8,568 / $7,944 |
| 75 | 7.0% | $7,000 | $9,972 / $9,276 |
| 80 | 8.1% | $8,100 | $12,012 / $11,064 |
| 85 | 9.1% | $9,100 | n/a |
| 90+ | 10.1% | $10,100 | n/a |
The ACGA targets a residuum for the charity of 50% of the gift. Its rates assume a 5.75% gross investment return and 1% annual expenses, and they apply to ages at the nearest birthday.
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When a gift annuity makes sense
- You were going to give to that charity anyway, and want income from the gift while you are alive.
- You are giving appreciated property and want to spread the gain rather than realize it all at once (ask the charity and your tax advisor how this applies to you).
- The charity is large and financially strong, because its assets are what back the payments.
If the goal is the most income per dollar, get immediate annuity quotes. If the goal is a fixed rate with principal intact, compare a MYGA. MYGA benchmark: insurers rated A or better topped out around 5.50% to 6.05% on 5-year compound-interest MYGAs (public carrier rate sheets, October 14, 2026); rates vary by state, premium and carrier.
Annuity payout calculator · Current MYGA rates
Sources
- American Council on Gift Annuities, suggested maximum single-life rates effective January 1, 2024, reconfirmed November 7, 2025 (checked September 24, 2026)
- ImmediateAnnuities.com payout tables, "surveyed as of September 9, 2026," $100,000 premium, before state premium tax
- IRS Instructions for Forms 1099-R and 5498 (2026), distribution code F
- public carrier rate sheets (MYGA benchmark), October 14, 2026
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with the American Council on Gift Annuities or any charity. Figures are copied from the sources named, as of the dates shown; confirm current terms and rates with the issuer before you buy. MYGA figures are market benchmarks, not quotes.
Frequently asked questions
What are current charitable gift annuity rates?
The American Council on Gift Annuities' suggested maximum single-life rates, effective January 1, 2024 and still in use, are 5.2% at 60, 5.7% at 65, 6.3% at 70, 7.0% at 75, 8.1% at 80, 9.1% at 85 and 10.1% at 90 and over. Individual charities can pay less.
Does a charitable gift annuity pay more than a SPIA?
No. At 70, the ACGA rate is 6.3% ($6,300 a year per $100,000). Single-life immediate annuities surveyed September 9, 2026 averaged $8,568 a year for a 70-year-old man and $7,944 for a woman. The gift annuity pays less because the charity is meant to keep about half of the gift.
How big is the charitable deduction?
It depends on your age, the payout rate and the IRS discount rate in the month of the gift, so there is no fixed figure. The ACGA says its rates produce a deduction above 10% for annuitants 50 or older when the charitable midterm federal rate is 3.2% or higher. Ask the charity for its calculation.
Is a charitable gift annuity protected by a state guaranty association?
No. Payments are an obligation of the charity, backed by its assets. A commercial annuity is backed by the insurer and the state life and health guaranty association.
How are gift annuity payments reported for taxes?
On Form 1099-R. The IRS's 2026 instructions assign distribution code F to charitable gift annuities.
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.