Title: What’s in a Higher Rate? Understanding Deferred Gift Annuities

Presenters: Mark Ladendorf and Damon Whelchel

Date: March 30, 2021

Time: 1:00 to 2:00 p.m. EST

Younger donors who want to support your charitable organization and supplement income in retirement are often good prospects for a deferred gift annuity. If the gift is large and the deferral period is lengthy, the offered rate can appear to be so high that an institution might decline the gift because it is deemed too risky. Yet, the American Council on Gift Annuities suggested rates for deferred gift annuities are based on the same rate schedule used for current gift annuities rates and the same 3.25% net return assumption applied over the deferral period. Since the rates for current and deferred gift annuities are based on a consistent methodology, is there a need to think about deferred gift annuity contracts differently than current contracts? Are deferred gift annuities inherently more risky than current gift annuities because of the higher rate or are they less risky because of the deferral period? How should we think about risks and what do we mean by “more risky?" In this session we will share our findings regarding the risks and opportunities associated with deferred gift annuities from an investment analysis as well as the data from experience with gift annuities across our clients.

          - Identify the key benefits to both donors and institutions that deferred gift annuities offer.

          - Understand how deferred gift annuity rates are calculated and how we should think about the rates offered on deferred gift annuities in relation to rates for immediate gift annuities.

          - Have a deeper understanding of the risks inherent with deferred gift annuities to the institution, how to evaluate them, and how to manage them.

Mark Ladendorf

senior Relationship manager, tiaa kaspick  

Mark Ladendorf is a Senior Relationship Manager at TIAA Kaspick. Prior to joining Kaspick in 2008, he was President and CEO of The Lutheran Hour Ministries Foundation and Director of Advancement for Lutheran Hour Ministries in St. Louis, MO. Mark has more than 25 years of experience in gift planning and fundraising management. He has served on the national board of the Association of Lutheran Development Executives and as co-chair of the 2007 International Educational Conference. He received a BA in Economics and International Studies from American University, Washington, DC, and an MA from Washington University, St. Louis, MO.

Damon Whelchel

senior director, investment management, tiaa kaspick 

Damon L. Whelchel is Senior Director, Investment Management, at TIAA Kaspick. He has over 25 years of investment experience. His responsibilities include advising nonprofit organizations on investment policy, asset allocation, portfolio design and manager selection and oversight. He has spoken at national seminars and conferences on investments, portfolio design and risk management. Prior to joining TIAA Kaspick in 1997, Damon worked as an economic and financial markets analyst at Wells Fargo Capital Management and Treasury market analyst at MMS International/Standard and Poor’s. He holds a BA in Economics from Gustavus Adolphus College and an MS in Economics from Purdue University. He was awarded the CFA charter in 1997 by the CFA Institute and the CAIA charter for alternative investments in 2010 by the CAIA Association. 

Group webinars are intended for CGP affiliated councils or groups of up to 30 individuals.


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Tuesday, March 30, 2021 - 01:00