New Hampshire Revised Statutes 403-E:1 – Definitions
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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. § 501(c) (3)); or
(b) Section 170(c), Internal Revenue Code of 1986 (26 U.S.C. § 170(c)).
IV. “Director” means the director of charitable trusts, serving pursuant to N.H. Rev. Stat. § 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. § 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.
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.
Terms Used In New Hampshire Revised Statutes 403-E:1
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Donor: The person who makes a gift.
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
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. § 501(c) (3)); or
(b) Section 170(c), Internal Revenue Code of 1986 (26 U.S.C. § 170(c)).
IV. “Director” means the director of charitable trusts, serving pursuant to N.H. Rev. Stat. § 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. § 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.