Help Further Our Mission With a Planned Gift.
A gift to HopeHealth in your will or trust, or by beneficiary designation, can help ensure our exceptional care and services are available today and for years to come. Learn how today!
Charitable Gift Annuities
A charitable gift annuity (CGA) provides fixed payments for life in exchange for a gift of cash or securities to HopeHealth. Payments are backed by the general resources of our organization.
A CGA may be right for you if:
- You want dependable, fixed income for life.
- You would like to reduce income or capital gains taxes.
- You prefer income that is partially tax-free.
- You want to make a meaningful gift to HopeHealth.
- You are 65 or older and considering a gift of $10,000 or more.
How It Works
A charitable gift annuity is a simple contract between you and HopeHealth. It typically requires only a brief agreement and minimal setup costs.
Your gift is irrevocable, meaning assets transferred cannot be returned. In exchange, you receive:
- Fixed payments for life — You cannot outlive them.
- Predictable income — Payments do not fluctuate with the market.
- Security — Payments are backed by the full resources of HopeHealth.
You may designate payments for yourself, you and your spouse, or up to two beneficiaries.
Payout Rates
Payment rates depend primarily on age—the older the recipient, the higher the rate. Our minimum age for payment recipients is 65.
Sample Annuity Rates for Gift Amount of $50,000
| Age | Payment Rate | Annuity | Deduction |
|---|---|---|---|
| 65 | 5.7% | $2,850 | $17,605 |
| 66 | 5.8% | $2,900 | $17,848 |
| 67 | 5.9% | $2,950 | $18,132 |
| 68 | 6.1% | $3,050 | $17,935 |
Tax Advantages
A CGA offers several potential tax benefits:
- Immediate income tax charitable deduction (if you itemize).
- Partially tax-free payments for many years.
- If funded with appreciated securities, capital gains tax may be reduced and spread over time.
- Possible reduction of estate taxes by removing assets from your estate.
The exact benefits depend on your circumstances.
Assets to Consider
Common funding options include:
- Cash from savings or CDs
- Appreciated securities held more than one year
A CGA can convert underperforming assets into reliable income while supporting HopeHealth.
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EXAMPLE
Annette Tucker is a 71 year-old widow. She would like to make a significant gift to HopeHealth, but she is dependent 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 $10,000 but provides little income - about $126 after tax. Annette is reluctant to sell her XYZ Widget stock to reinvest in higher yielding assets because she will have to pay $1,400 in capital gains tax. This would leave her with just $8,600 to reinvest.
Annette is pleased to learn that she can make a significant gift to HopeHealth and increase her cash flow by giving her XYZ Widget stock to HopeHealth in exchange for a gift annuity. She can also save substantial income taxes plus avoid and defer capital gains taxes, and will receive an income tax deduction that may provide additional tax savings at the same time.
| Tax result | Cash flow before tax | Cash flow after tax (37% tax rate) | |
|---|---|---|---|
| Annette keeps her stock | None | $200 | $126 |
| Annette sells and reinvests for 4.0% yield | Owes $1,400 capital gains tax | $344 | $217 |
| Annette funds a 6.4% gift annuity | $3,847* income tax deduction Avoid tax on $2,693* of capital gain | $640 | $496 |
*Deduction amount and capital gains tax avoided may vary depending on the gift timing.
Take the Next Step
A charitable gift annuity can provide lifetime income, meaningful tax advantages, and a lasting legacy. If you would like a personalized illustration showing your payment amount and tax benefits, we would be pleased to prepare one for you.
Contact us today to explore whether a charitable gift annuity fits your financial and philanthropic goals.