OREGON

01-01-2006: Oregon law no longer requires charity to file for a Permit/Certificate of Authority to accept CGA gifts or issue CGA agreements. Charity must qualify to be immune from following the Oregon Insurance Code, which is required by commercial insurance companies. Prior to 01-01-2006, a Permit is required before issuing CGA agreements.

Starting 01-01-2006, the charitable organization must:

1) … have a minimum of $300,000 in net assets as shown by an annual audited financial statement by an independent certified public accountant (CPA);
2) … have been in continuous operation for at least five years, and
3) … maintain a separate, distinct trust fund as a reserve fund, adequate to meet future payments under all outstanding annuity agreements. See links below.

Notification to the Oregon Insurance Dept. is NOT required if the above three requirements are met.

Notice to donor: Charity shall disclose in writing to each donor and annuitant, that the annuity is (1) not issued by an insurance company, (2) is not subject to regulation by the state of Oregon or (3) protected by an insurance guaranty association. These requirements can be met by placing such disclosure wording in the charitable gift annuity agreement.

Annuity forms and applications to be used starting 1-1-2006, need NOT be submitted for approval to the Oregon Insurance Dept.

If charity already holds a Certificate of Authority (Permit) from Oregon, it:

a) … may continue to issue annuity agreements, even if it does NOT have $300,000 in net assets or has been in continuous operation for five years;
b) … shall NOT be required to hold a certificate of authority after 12-31-2005;
c) … shall return any certificates held as of 12-31-2005 to the OREGON Insurance Dept.;
d) … annual report filings required for the year 2005 shall be submitted to the Oregon Insurance Dept, even if 2005 reports are due in 2006.

Links to recent changes in OR CGA law. (Note: These two links below require Adobe Reader.)

1) CGA Changes in OREGON (effective 01-01-2006):
http://www.cbs.state.or.us/external/ins/docs/company/gift_annuities-deregulation.pdf

2) Copy of House Bill HB2092 (Effective 01-01-2006):
http://www.leg.state.or.us/05reg/measpdf/hb2000.dir/hb2092.en.pdf

Federal law (Public Law 104-62) also requires charity to supply a Gift Annuity Disclosure Statement to all annuitants in the Fund and to all prospective donors prior to making their first annuity gift. Click here.

This page last updated December 30, 2005.