CHARITABLE GIFT ANNUITIES EXEMPTION

RSA tit. XXXVII, ch. 403-E

in effect

RSA 403-E:1 Definitions.

403-E:1. Definitions. In this chapter: I. "American Council on Gift Annuities" means the organization which on the effective date of this chapter has its principal place of business in Indianapolis, Indiana, and which advises charitable organizations and promulgates recommended standards regarding the provision of charitable gift annuities. II. "Charitable gift annuity" means a transfer of cash or other property by a donor to a charitable organization in return for an annuity payable over one or 2 lives, under which the actuarial value of the annuity is less than the value of the cash or other property transferred and the difference in value constitutes a charitable deduction for federal tax purposes. III. "Charitable organization" means an entity described by: (a) Section 501(c) (3), Internal Revenue Code of 1986 (26 U.S.C. section 501(c) (3)); or (b) Section 170(c), Internal Revenue Code of 1986 (26 U.S.C. section 170(c)). IV. "Director" means the director of charitable trusts, serving pursuant to RSA 7:20. V. "Qualified charitable gift annuity" means a charitable gift annuity described by section 501(m)(5), Internal Revenue Code of 1986 (26 U.S.C. section 501(m)(5)), and section 514(c)(5), Internal Revenue Code of 1986 (26 U.S.C. 514(c)(5)), that is issued by a charitable organization that on the date of the annuity agreement: (a) Has a minimum of $300,000 in unrestricted cash, cash equivalents, or publicly traded securities, exclusive of the assets funding the annuity agreement; (b) Has been in continuous operation for at least 3 years or is a successor or affiliate of a charitable organization that has been in continuous operation for at least 3 years; (c) Issues charitable gift annuities with payout ratios no greater than recommended by the American Council on Gift Annuities at the time of issuance; (d) Retains 100 percent of the contribution made in exchange for each charitable gift annuity, increased by earnings on the contribution and decreased by annuity payments and expenses properly allocated to the annuity, until the annuity is terminated; and (e) Invests contributions made in exchange for charitable gift annuities solely in conformance with article 9 of RSA 564-B, general standards of prudent investment. Source. 1999, 68:1. 2004, 130:5, eff. Oct. 1, 2004.

RSA 403-E:2 Qualified Charitable Gift Annuity is Not Insurance.

403-E:2. Qualified Charitable Gift Annuity is Not Insurance. I. The issuance of a qualified charitable gift annuity does not constitute engaging in the business of insurance in this state. II. A charitable gift annuity issued before the effective date of this chapter shall be deemed to be a qualified charitable gift annuity for purposes of this chapter, and the issuance of that charitable gift annuity shall not constitute engaging in the business of insurance in this state, if the charitable organization issuing such annuity has given notice to the director pursuant to RSA 403-E:3, II(a). Source. 1999, 68:1, eff. May 28, 1999.

RSA 403-E:3 Disclosures; Notification; Recertification.

403-E:3. Disclosures; Notification; Recertification. I. (a) When entering into an agreement for a qualified charitable gift annuity, the charitable organization shall disclose to the donor in writing in the annuity agreement that a qualified charitable gift annuity is not insurance under the laws of this state and is not subject to regulation by the insurance department or protected by an insurance guaranty association. The following information shall also be similarly disclosed: (1) The value of the property being transferred. (2) The amount of the annuity to be paid. (3) The manner in which, and the intervals at which, the payment is to be made. (4) The date that payments are to begin. (b) The disclosures required by this paragraph shall appear on the first page of the annuity agreement in a print size no smaller than that employed in the annuity agreement generally. II. (a) A charitable organization that issues qualified charitable gift annuities shall notify the director in writing by the later of 90 days after the effective date of this chapter or the date on which it enters into the organization's first qualified charitable gift annuity agreement. The notice shall: (1) Be signed by an officer or director of the organization; (2) Identify the organization; and (3) Certify that: (A) The organization is a charitable organization; and (B) The annuities issued by the organization shall be limited to qualified charitable gift annuities, as defined in RSA 403-E:1, V. (b) Subsequently, each charitable organization that issues qualified charitable annuities shall, as part of its report submitted to the director pursuant to RSA 7:28, II and III, annually recertify that the annuities issued by the organization shall be limited to qualified charitable gift annuities, as defined in RSA 403-E:1, V. (c) The organization shall not be required to submit additional information except to determine appropriate penalties that may be applicable under RSA 403-E:4. Source. 1999, 68:1, eff. May 28, 1999.

RSA 403-E:4 Failure to Comply.

403-E:4. Failure to Comply. The failure of a charitable organization to comply with the requirements imposed under RSA 403-E:3 of this chapter shall not prevent a charitable gift annuity that otherwise meets the requirements of this chapter from constituting a qualified charitable gift annuity. The director shall enforce performance of RSA 403-E:3 by sending a letter by certified mail, return receipt requested, demanding that the charitable organization comply with the requirements of RSA 403-E:3. The director may fine the charitable organization in an amount not to exceed $1,000 per qualified charitable gift annuity agreement issued until such time as the charitable organization complies with RSA 403-E:3. Source. 1999, 68:1, eff. May 28, 1999.

RSA 403-E:5 Not Unfair or Deceptive Trade Practice.

403-E:5. Not Unfair or Deceptive Trade Practice. The issuance of a qualified charitable gift annuity shall not constitute a violation of RSA 417. Source. 1999, 68:1, eff. May 28, 1999.

Source: New Hampshire General Court (gc.nh.gov)URL: https://gc.nh.gov/rsa/html/NHTOC/NHTOC-XXXVII-403-E.htmFetched: 10/20/2026