• Effective July 1, 2009, the California fee has been reduced from $3,599 to $3,383
• Effective January 1, 2009, Tennessee changed from an exempt state requiring notification to a fully regulated state requiring a detailed application
• For a detailed list of requirements by state, visit the American Council on Gift Annuities
• See our state registration map for a visual representation of the most current gift annuity registration requirements of each state

In 1939, New York became the first state to regulate charitable gift annuities.  In the intervening years, 45 other 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.

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. 

Our deliverables in this particular area often include: 

• Review state regulations with the charity
• Outline a plan for registrations and notifications
• Provide a written summary of issues (optional)
• Prepare applications and notification letters
• Prepare state forms and prototype gift annuity agreements
• Assist with inquiries and requests from state officials

*Discounts apply when application services are provided for multiple states.