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Charitable Gift
Annuity Bill Passes House
Murkowski's HB 121 Informs Consumers

(JUNEAU) - The House unanimously passed House Bill 121 today to provide Alaskans some assurances about the financial strength and stability of charitable organizations which issue charitable gift annuities.

Rep. Lisa Murkowski (R-Anchorage), chair of the House Labor and Commerce Committee, defined a charitable gift annuity as a contract under which a person makes a charitable donation, and the receiving charity agrees to pay the donor or other beneficiaries an annuity in exchange for lifetime payment.

"There are several benefits to charitable gift annuities," said Murkowski, "You get the personal satisfaction of giving to the charity of your choice, and a tax deduction for the value of that gift. But you also receive the benefit of a guaranteed income stream over a given period, a portion of which can be tax deductible."

While charitable gift annuities are already available in Alaska, only a handful of charities or foundations offer them, and they are not widely understood, Murkowski said. She said she introduced HB 121 to protect consumers by making sure only established charities can issue gift annuities.

"This bill would protect both donors and charities by providing that donors be given full information about exactly what is involved in a gift annuity, and requiring charitable organizations to notify the state Division of Insurance when entering into their first qualified charitable gift annuity," Murkowski said.

HB 121 also requires that charities seeking to issue gift annuities must have been in operation for at least three years, must have at least $300,000 in assets, and must register with the state Division of Insurance.

The bill is based on model legislation developed by the National Association of Insurance Commissioners, which has been passed in 30 other states.

HB 121 moves to the Senate for consideration.

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