New York Life Boosts Charitable Gift Annuity Program

New York Life has added insurance to its charitable gift annuity program to make it more attractive to investors and charities like. Because the stock market’s performance has been so weak, not to mention increasing longevity, the obligation of charitable gift annuities to continue to pay donors an income for life has put undue financial risks on the charities that offer them.

Charitable annuities permit donors to take a charitable deduction on their taxes and, in return for their one-time donation, receive income for life.

Thus, New York Life is offering nonprofits the chance to transfer complex investment and longevity risks to a Triple-A insurer, whereby New York Life will ensure that a charity’s investments will be able to support the gift annuity payouts.

“Charities are in a bit of a bind today with declining assets due to the collapse of the stock market, donors living longer and donations that are likely to be declining, all at a time when the need for their charitable programs is rising,” explained Bob Rock, senior vice president at New York Life. “Rather than cutting back on programs or staff, reinsuring gift annuities can provide funds today that may match or exceed what charities would have been able to achieve during more favorable times.”