HB 527 - AS INTRODUCED
2021 SESSION
21-0662
04/08
HOUSE BILL 527
AN ACT relative to the charitable gift annuities exemption.
SPONSORS: Rep. Infantine, Hills. 13
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill adds an additional definition for qualified charitable gift annuity issued by a charitable
organization.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
 HB 527 - AS INTRODUCED
21-0662
04/08
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to the charitable gift annuities exemption.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 Charitable Gift Annuities Exemption; Definition of Qualified Charitable Gift Annuity
2 Amended. Amend RSA 403-E:1, V to read as follows:
3 V.(a) "Qualified charitable gift annuity" means a charitable gift annuity described by
4 section 501(m)(5), Internal Revenue Code of 1986 (26 U.S.C. section 501(m)(5)), and section 514(c)(5),
5 Internal Revenue Code of 1986 (26 U.S.C. 514(c)(5)), that is issued by a charitable organization that
6 on the date of the annuity agreement:
7 [(a)] (1) Has a minimum of $300,000 in unrestricted cash, cash equivalents, or publicly
8 traded securities, exclusive of the assets funding the annuity agreement;
9 [(b)] (2) Has been in continuous operation for at least 3 years or is a successor or affiliate
10 of a charitable organization that has been in continuous operation for at least 3 years;
11 [(c)] (3) Issues charitable gift annuities with payout ratios no greater than recommended
12 by the American Council on Gift Annuities at the time of issuance;
13 [(d)] (4) Retains 100 percent of the contribution made in exchange for each charitable
14 gift annuity, increased by earnings on the contribution and decreased by annuity payments and
15 expenses properly allocated to the annuity, until the annuity is terminated; and
16 [(e)] (5) Invests contributions made in exchange for charitable gift annuities solely in
17 conformance with article 9 of RSA 564-B, general standards of prudent investment; or
18 (b)(1) Has a minimum of $25,000 in unrestricted cash, cash equivalents, or
19 publicly traded securities, exclusive of the assets funding the annuity agreement;
20 (2) Has been in continuous operation for at least one year or is a successor
21 or affiliate of a charitable organization that has been in continuous operation for at least
22 one year, including Donor Advised Foundations and any sub-foundations affiliated with a
23 501(c)(3) organization;
24 (3) Issues charitable gift annuities with payout ratios no greater than
25 recommended by the American Council on Gift Annuities at the time of issuance; and
26 (4) Within 5 business days of receiving funds for a charitable gift annuity,
27 re-insures said annuity by purchasing an annuity contract from a commercial insurance
28 company licensed to transact business in the state of New Hampshire, and such insurer
29 carrier assumes all risk, administration, and payment responsibility.
30 (c) A charitable organization that issues a qualified charitable gift annuity
31 which meets the requirements of subparagraph (b) may expend, or reallocate for current of
 HB 527 - AS INTRODUCED
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1 future use, any residual balance that remains after purchasing the commercially-insured
2 annuity.
3 2 Effective Date. This act shall take effect 60 days after its passage.


Statutes affected:
Introduced: 403-E:1
latest version: 403-E:1, 403-E:3