Charitable Gift Annuity
A charitable gift annuity is a simple agreement between you and Rochester Regional Health where you will receive fixed payments for life in exchange for a gift of cash or securities to the health system. Up to two people can receive the payments.
The older you are when you make your gift, the greater the payment rate you will receive. If other people are receiving the payments from your gift annuity, their ages (must be at least 65 years old) at the time of your gift will determine their payment rate.
Is a charitable gift annuity right for you?
Here are some simple questions to help you decide:
- Are you at least 60 years of age?
- Are you considering a gift amount of $25,000 or more?
- Do you want to maintain or increase your income?
- Do you want the security of fixed, dependable payments for life?
- Do you want to save on income taxes or capital gains taxes?
- Do you want income that may be partially tax-free?
Helen is a 71-year-old widow. She would like to demonstrate her gratitude for all the compassionate care her late husband received. However, she depends on the income produced by her investments. One of these investments is stock in XYZ Widget Corporation that she and her late husband purchased many years ago for $3,000.
Her stock is now worth $25,000 but provides little income - about $315 after tax. Helen is reluctant to sell her stock to reinvest in higher yielding assets because she will have to pay $4,400 in capital gains tax in the process. This will leave her with just $20,600 to reinvest.
Helen is pleased to learn that she can make a significant gift to Rochester Regional Health and increase her cash flow by giving her XYZ Widget stock to Rochester Regional in exchange for a gift annuity. She can also avoid and defer capital gains taxes, and will receive an income tax deduction that may provide additional tax savings.