NEW HAMPSHIRE

Charitable Gift Annuities are regulated by the State of New Hampshire Attorney General's Office with passage of House Bill (HB-442, Charitable Gift Annuity Exemption), creating new Chapter 403-E New Hampshire Statutes, which became effective May 28, 1999.

Charities must qualify for exemption from regulation as an insurance company by having been in continuous operation for at least 3 years and having at least $300,000 in unrestricted cash, cash equivalents or publicly traded securities, not counting the annuity gift.

Charity must invest 100% of each charitable gift annuity during lifetime of named annuitant(s), to which is added the gift's earnings and from which the annuity payments and appropriate fund expenses are subtracted until the termination of the annuity.

Charity must issue charitable gift annuity agreements at gift annuity rates NO HIGHER than those recommended by the American Council on Gift Annuities at the time of issue of each agreement.

Charities must notify state it is issuing gift annuities to New Hampshire residents or if it is based in New Hampshire by the later of August 28, 1999 or within 90 days of its issuing its first New Hampshire gift annuity after May 27, 1999.

Charity that issues qualified charitable gift annuities shall send a Notice, signed by an officer or director of the charity, to the Registrar of Charitable Trusts, New Hampshire Attorney General's Office that 1) identifies the organization, and 2) certifies that the organization is a charitable organization and 3) that annuities issued shall be qualified charitable gift annuities as defined in RSA 403-E:1,V. Charity shall recertify these same facts in writing annually.

With gift annuities written starting May 28, 1999, charity shall notify donor in writing, ON PAGE ONE of the gift annuity agreement, in a separate paragraph, using print no smaller than that generally used in rest of agreement, that the gift annuity is a qualified charitable gift annuity, is not insurance and is not subject to regulation by the Insurance Department or protected by an insurance guaranty association.

The charitable organization shall also disclose in the agreement, 1) the value of property being transferred, 2) the amount of annuity being paid, 3) the manner in which and the intervals at which, the payment is to be made; and 4) the date payments are to begin.

Failure to qualify and comply with Chapter 403-E of New Hampshire Statutes, shall permit the New Hampshire Attorney General's Office to fine the charity up to $1,000 per agreement until it does comply.

The issuance of a qualified charitable gift annuity shall not constitute a violation of Unfair or Deceptive Trade Practices (RSA 417).

Websites: Applicable to New Hampshire Gift Annuity Regulation...

1. Registering as Non-profit to fund raise in New Hampshire...
http://doj.nh.gov/charitable/index.html

2. New Hampshire Charitable Registration Forms
http://doj.nh.gov/publications/charitable_forms.html

3. Form to file for issuing Charitable Gift Annuities in NH
http://doj.nh.gov/publications/pdf/125130-1.pdf

This page last updated February 21, 2006.