An AIER CGA is a contract (not a trust), under which AIER, in return for a transfer of cash, marketable securities or other assets, agrees to pay a fixed amount of money to one or two individuals, for their lifetime, not a term of years. A person who receives payments is called an "annuitant". Annuity payments are fixed and unchanged for the term of the contract. The contributed property, given irrevocably, becomes a part of the charity's assets, and the payments are a general obligation of the charity. The annuity is backed by the charity's entire assets, not just by the property contributed. AIER will identify and report taxable and non-taxable portions of gifts and annuity payments.

AIER's CGAs may be one of the following two types:

• Immediate Annuities: Contracts initiated in exchange for transferred property that is intended to provide a rate of return sufficient to currently, regularly and periodically pay a fixed annuity to a donor.
• Deferred Annuities: Contracts initiated in exchange for transferred property that is intended to generate a rate of return that will be used to provide a future regular and periodic payment fixed annuity to a donor, with the initial payment to be made at least one year (or longer) after the Institute receives the transferred property. The deferral period will be at the discretion of the donor.

The fair market value of property contributed in exchange for a gift annuity shall be at least $5,000 regardless of when the first annuity payment will be made or the number of annuitants. Gift assets will be limited to cash and securities for which a ready market exists. Transfers of cash or publicly traded securities are strongly preferred for AIER's CGAs, though an AIER CGA also may be issued for other transferred property, subject to AIER's gift acceptance policies. Donations of securities shall be valued for CGA purposes at the average of the high and the low of their trading range on the date that the property is received by AIER. Closely held stock will not be accepted. Transferred property shall not be subject to any mortgage or other security interest. AIER CGAs may not be available in all states.

An AIER CGA shall not have more than two annuitants. AIER will accept annuity gifts for one life, two lives in succession, or joint and survivor annuity agreements. Each annuitant shall be at least 55 years of age on the date the CGA is issued unless a deferred charitable gift annuity with the first payment when the donor is at least 55 years of age. The donor shall be the first (or primary) annuitant. The annuity rate payable to the annuitant(s) shall be firmly established at the time of the issuance of the annuity, and generally shall be the Uniform Gift Annuity Rate in effect on the annuity issue date as promulgated by the American Council on Gift Annuities.

AIER will operate a segregated gift annuity fund, in which identifiably separate investments will be maintained and which is not part of any other AIER investment or funds. The full annuity gift will be admitted to the gift annuity fund of the institution and will be maintained until the demise of the last annuitant in the agreement. AIER will monitor market performance over the life of the annuity so that an appropriate amount may be withdrawn from the overall gift annuity fund at the termination of the agreement.