You should develop charitable gift annuity risk management policies that answer the following questions:
- Is limiting risk important to our management of a CGA program?
- When will we try to reduce risk and which strategies will we employ?
- At what level should we consider reinsuring a part of the gift?
- At what level would we cross our risk tolerance threshold and reinsure the gift?
- Is lowering long-run costs important to our organization?
Clearly, every organization will have different answers to these questions, but it is important to view charitable gift annuity gift acceptance beyond minimum ages and minimum gift sizes.