Gift Annuities Benefit Donors, Nonprofits

The American Council on Gift Annuities, a nonprofit that sets the rates that guide annuity payments, cut its recommended rates by .4% to .7% for annuities funded after Feb. 1.

But with guaranteed rates of 5.3% to 9.5% for individuals 65 and older, gift annuities compare favorably with cash-like investments. Five-year certificates of deposit are yielding 2.78%, for example, and the yield on 10-year Treasurys is 2.67%.