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A Gift to Us That Returns the Favor to You

You've heard the old adage that it's better to give than to receive. But with a charitable gift annuity, you help yourself at the same time you are helping us.

Add Up the Numbers
A charitable gift annuity provides annuity payments to you for your entire life in exchange for a gift to us. After your lifetime, the balance is available to help support our mission.

Most organizations use annuity rates recommended by the American Council on Gift Annuities.* These rates are the same for men and women and are slightly lower for two annuitants of the same age.

Let's look at what these rates mean for a donor aged 75. Jane has long wanted to make a significant gift to Sisters Hospital Foundation, but she likes the security of receiving payments from her assets, and she doesn't want to give that up.

One Life
Your Age	Rate of Return
50	4.4%
55	4.8%
60	5.0%
65	5.3%
70	5.7%
75	6.3%
80	7.1%
85	8.1%
90+	9.5%

Two Life
Your Ages	Rate of Return
50/55	3.9%
55/60	4.4%
60/65	4.8%
65/70	5.0%
70/75	5.3%
75/80	5.8%
80/85	6.5%
85/90	7.5%
90/95+	9.0%

The rate of return is slightly lower for two lives because the period of payment generally is longer.

*Please be advised that not all organizations offer CGAs at the above ages and rates. Contact Sisters Hospital Foundation for current rates.

After hearing about the benefits of charitable gift annuities though, Jane finds that she can make a charitable gift and receive a steady stream of payments. With a gift of $10,000 to Sisters Hospital Foundation, she sets up an annuity that pays her $630 annually (6.3 percent of her $10,000 gift).

As a result of her generosity, Jane will also be able to claim a charitable deduction of $4,557 on her income tax return in the year she makes the gift.¹ At her 28 percent annual income tax rate, this saves her $1,276—making her out-of-pocket cost for the gift only $8,724. Taking into account her tax savings, with each annual gift annuity payment of $630, she is actually receiving 7.2 percent of her out-of-pocket cost.

Assuming she lives to age 87, her life expectancy, nearly three-fourths of the gift annuity payments she receives will be nontaxable.


	Calculate how a charitable gift annuity can benefit you.


	Calculate how a deferred charitable gift annuity can benefit you.

¹This figure is calculated using annual payments and a 3.4 percent charitable midterm federal rate, a figure used by the IRS in determining the future value of a gift.

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Please call Julie Snyder at 716-862-1992, or e-mail us at jsnyder@chsbuffalo.org, for more information.

The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxes only. Individual state taxes and/or state law may impact your results.