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Payments for Life From Our Charitable Gift Annuity

You can secure fixed annual payments for life by making a contribution to our organization.

Our charitable gift annuity (CGA) will pay you (and a survivor, if desired) a fixed dollar amount when you make an irrevocable gift to us to further our mission. The rate of payment is determined by your age at the time of your contribution.

Here are examples of the annuity rates recommended by the American Council on Gift Annuities.* These rates increase the older you are when you start, but the rate remains constant throughout your life once the gift is made.

One Life

Two Lives

Your Age	Rate of Return
50	5.1%
55	5.3%
60	5.5%
65	5.7%
70	6.1%
75	6.7%
80	7.6%
85	8.9%
90+	10.5%

Your Ages	Rate of Return
50/55	4.4%
55/60	4.7%
60/65	5.3%
65/70	5.5%
70/75	5.8%
75/80	6.2%
80/85	6.9%
85/90	7.9%
90/95+	9.4%

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.

Generous Income Tax Advantages
Assuming you itemize deductions, you can take a charitable deduction for part of the value of your gift when you file that year's income tax return. The amount depends, in part, on your age.

A sizable part of each annuity payment is also income tax-free.

When a CGA is funded with appreciated property, the up-front capital gains tax that would have been owed if the property had been sold is avoided. A portion of the annuity amount is reported as capital gain income over your life expectancy if you name yourself as the sole annuitant.

Use a Deferred Payment Gift Annuity to Supplement Your Retirement Funds
You can also have payments deferred until a later date. You make the contribution now, securing a current income tax charitable deduction, and we agree to pay you fixed annual payments starting at any age you choose, especially when your tax bracket may be lower.

For many people, tax reform has over time curtailed the tax benefits of IRAs, 401(k) plans and other retirement plans. The deferred gift annuity is a good way to make up for the loss of the future funds you may need.

Example: Fred, age 50, transfers $2,000 annually to a series of deferred payment charitable gift annuities, arranging for payments to start when he reaches age 65. Fred is in a 25 percent tax bracket, and he itemize his deductions. The first year he deducted $549 of the $2,000 transferred. The amount of his deduction varies slightly each year thereafter. Based on then-current rates, he would receive $2,502 each year (partly tax free) beginning at age 65, a rate of 8.3 percent on his contributions totaling $30,000.

Worry-Free Funds
A CGA is a gift that gives you fixed and attractive retirement funds with no investment worries or responsibilities, and is a way to support us when the remainder becomes available. We will be glad to explain the financial benefits you can enjoy.


	Calculate how a charitable gift annuity can benefit you.


	Calculate how a deferred charitable gift annuity can benefit you

¹This example and the following assume quarterly payments and a 3.4 percent charitable midterm federal rate.

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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.