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Gift Annuity State Registration
Complying with state’s requirements

In total, 46 states have enacted legislation pertaining to the issuance of gift annuities. The degree of regulation varies substantially; depending on the state, a charity may find it needs to meet only certain minimal criteria or that it must hold the annuity reserve assets in a specific manner and submit a detailed annual reporting to the state.  Before embarking on the registration process, a charity is wise to consider the range of issues and be sure it fully understands what is required of it.

The first step in state registration isn’t filling out a form - it’s talking to an expert about the benefits and costs associated with gift annuity state registration. Only individuals familiar with this complicated terrain should advise you on the risk and rewards of this important business decision. Our state registration consultants, led by nationally recognized expert Edie Matulka, have a wisdom about the nature of the regulatory process that is entirely unique.

Our work with clients in this particular area often includes: 

  • Reviewing applicable state by state regulations for gift annuities with the organization
  • Creating a framework for registrations and notifications
  • Providing a written summary of issues (optional)
  • Preparing actual applications and notification letters
  • Preparing state forms and prototype gift annuity agreements
  • Assisting with inquiries and requests from state officials

Registration
While instinct might suggest that a national charity would want to be able to offer gift annuities in as many states as possible, there may be good reasons to stay out of certain states. Weighing the registration requirements against the number of potential donors in a given state provides a mechanism for making that decision, and we can help. 

Compliance
Most states are able to impose fines for non-compliant issuance of gift annuities. However, the most commonly stated reason for registering has little to do with state enforcement.  Instead it has to do with donor relations and the sense that non-compliance is not the public face the organization wants to put forward. Once a charity has registered in a state, it must comply with any ongoing requirements.  While this involves submitting annual filings in those states with such a requirement, other action may be required by the charity as well, involving areas such as annuity rates, annuity agreements, marketing materials, minimum asset requirements, and activity in the state.  For states that require it, it is the charity’s responsibility to submit any annual filing in a timely fashion.  Failure to do so, absent an extension from the state, may result in suspension or revocation of the certificate of authority and/or imposition of a fine. 

The table below describes fees for state registration services.

The first fee is applicable if your organization has not already issued CGAs in the corresponding state. For example, if your organization has not already issued CGAs in the state of California, the PG Calc fee to apply would be $1,500. If you have existing CGAs in the state of California, the fee would be $2,000.

PG Calc Fees (per state)  
 
No Existing CGAs in State
Previously Issued CGAs in State
CA
$1,500
$2,000
NY
$925
$1,400
NJ*
$1,050
$1,250
WA
$850
$1,050
MD
$750
$875
TN, AR
$750
$850
FL
$325
$450
AL, WI
$750
$750
HI, ND
$550
$550
AK, CT, GA, ID, IA, MS, MO, MT, NV, NH, NM, NC, OK, TX , WV
$150
$150
State Application Fees  
CA
$3,848**
 
NJ
$100
 
ND
$100
 
TN
$675
 
WA
$25
 
WI
$200
 
AL (per agent)
$60
 

* In the case of New Jersey, the higher fee is if there are existing CGAs issued in any state.

** The total application fee with the registered agent fee is $3,913 for non-CA charities.  

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