Vermont § 2517 - Charitable gift annuities

§ 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.)