WASHINGTON

Charitable Gift Annuities (CGAs) regulated by State Code Section 48.38.

Permit (Certificate of Exemption) issued/regulated by State Insurance Department.

Annual filing of activity of CGA Fund is required to be filed with WA Dept. of Insurance (by US Mail and postmarked) by March 1st annually to avoid late fines starting at $1,000 for being from 1 to 31 days late and $2,500 for being more than one month late.

Charity must have $500,000 in “Unrestricted Net Assets” in any year it accepts a CGA gift.

Reserve CGA Fund is required.

Charity must be in continuous operation for three years.

Age of annuitant(s) must be shown in agreement.

Agreements must be sequentially numbered in upper right corner.

Corrective action required if age or sex of annuitant is wrong.

Law is silent on acceptance of real estate for a gift annuity, so it can be accepted, but may not qualify for holding in Annuity Fund as an investment, unless it is earning a reasonable income to help pay for annuities, if it does not meet the reasonable conditions of "prudent investor rules" of the State of Washington.

Reasonable Commensurate Value must be shown in agreement.

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.

The state has mandated that with gifts issued on or after July 1, 1998, the Annuity 2000 Table must be used to calculate the Required Reserve for your State of WA Required Reserve Report. Prior to that date, you use the 1983a Mortality Table. Fund earnings interest rate assumption for 2004 Report is 5.5%.

State will fine charity for writing CGA without benefit of Certificate of Exemption. Total fine includes $25 for each year charity has accepted CGA gifts without benefit of Certificate, plus $5 for each CGA gift agreement, plus a $100 fine.

This page last updated March 11, 2005.