Gift Annuities Benefit Donors, Nonprofits

Charities aren't required to adopt the recommended rates but most will, Kelly said.

Under the new rates, a 70-year-old donor making a charitable gift of $100,000 would receive $5,700 a year, down from $6,100 under the current rates. Tax advantages vary with an individual's specific circumstances.

People with existing contracts aren't affected by the lower annuity rates.