Vermont Statutes Title 9 Sec. 2517
Terms Used In Vermont Statutes Title 9 Sec. 2517
- 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.
- Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
- Donor: The person who makes a gift.
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
§ 2517. Charitable gift annuities
(a) Definitions. As used in this section:
(1) “Annuity obligation” means the present value of the charity‘s payment obligation to the donor as calculated by the Internal Revenue Code actuarial tables.
(2) “Charitable gift annuity” means an annuity described in 26 U.S.C. § 501(m)(5) and 514(c)(5).
(3) “Charitable organization” means an entity described either in 26 U.S.C. § 501(c)(3) or 170(c).
(4) “Qualified charitable organization” means a charitable organization that:
(A) has a minimum of $300,000.00 in unrestricted cash, cash equivalents, or publicly traded securities, in addition to the assets necessary to fund the charity’s outstanding annuity obligations; and
(B) has been in continuous operation for at least three years, or is a successor or affiliate of a charitable organization that has been in continuous operation for at least three years.
(b) Limitation. Charitable gift annuities may be issued and maintained only by a qualified charitable organization.
(c) Notice to donor. When entering into an agreement for a charitable gift annuity, the charitable organization shall disclose to the donor in writing in the annuity agreement, in print no smaller than that used in the annuity agreement generally, that a charitable gift annuity is not insurance under the laws of this State and is not subject to regulation as insurance by the Department of Financial Regulation or protected by an insurance guaranty association. The following information shall also be similarly disclosed:
(1) the intervals at which payment is to be made;
(2) when payments are scheduled to begin; and
(3) the amount of each payment.
(d) Effect of failure to provide notice. The failure of a charitable organization to comply with the notice requirements imposed under subsection (c) of this section does not prevent a charitable gift annuity that otherwise meets the requirements of this section from constituting a valid charitable gift annuity. The Attorney General may enforce the performance of the requirements of subsection (c) of this section by sending a letter by certified mail, return receipt requested, demanding that the charitable organization comply with the requirements of subsection (c) of this section. A charitable organization that fails to comply with subsection (c) of this section shall be subject to a civil penalty not to exceed $1,000.00 for each noncomplying agreement, up to a maximum total penalty of $10,000.00. (Added 2001, No. 37, § 2; amended 2021, No. 20, § 24.)