1. The residuum (percentage of contribution remaining for the charity at the termination of an annuity) will be 50%.
2. Life expectancies are based on the Annuity 2000 Tables, assuming all annuitants are female and are one and one-half years younger than their actual ages.
3. Projections of increased life expectancies since the publication of the Annuity 2000 Tables are factored into rate calculations.
4. Annual expenses for investment of gift annuity reserves and administration of gift annuities are assumed to be 1% of reserves.
5. The total return on gift annuity reserves is 6.25%. However, the total return for single-life and two-life annuities for annuitants under age 53, and for single-life annuities for annuitants over age 86 is lower than 6.25%. The total return, net of expenses, is 5.25% except for the ages noted where it is lower.
6. The compound interest factor for deferred gift annuities during the deferral period is 5.25% for the first 20 years and 5% thereafter.
