A gift annuity is a simple contract between you and the Holy Cross Hospital Foundation in which the Foundation, in exchange for your gift, provides you with annual, favorably taxed payments for your life. The transaction can usually be completed within a few days and does not require legal assistance. However, as with all significant gifts to charity, advice from your proper professional counsel is recommended.
The annuity can be set up to benefit one person (a one-life CGA) or it can continue to benefit a survivor (a "two-life" CGA). The payment is based upon your age; the older you are, the higher the rate. In general, annuity rates will be slightly higher for a one-life gift and slightly lower for a two-life gift. With a deferred CGA (when you give now but agree to start receiving your payments later), the payment increases the longer you defer the payments.
Another benefit is that the payments to you will be favorably taxed. If you give cash, the payments to you will be partially ordinary income, part tax-free return of principal. If you give appreciated securities, the payments can be taxed as part ordinary income, part capital gain, part tax-free return of principal.
Because this is ultimately a gift to benefit Holy Cross Hospital, you also receive a charitable income tax deduction in addition to the favorably taxed payments and the appreciation of the grateful staff and patients your gift will ultimately benefit.
The Holy Cross Hospital Foundation, like most charities, uses the rates set by the American Council on Gift Annuities, who meets periodically to determine and recommend the maximum amount annuities should pay out to you. Rest assured that once you establish a CGA, your payout rate does not change and will continue for your lifetime.
Everyone Wins with a Gift Annuity-You and Holy Cross Hospital
You've worked hard over the years and hopefully made some smart investments. If you are discouraged by low earnings on cash investments, a charitable gift annuity (CGA) - with its fixed annual payments and numerous tax advantages - may interest you. With a gift annuity, you still feel the satisfaction of making a substantial gift to support our important mission of service to our community. In addition, you receive tax benefits and regular, fixed payments for the rest of your life.
Charity Begins at Home
Make sure your assets will continue to provide you with a comfortable income, protect your wealth from unnecessary taxes and inflation, and shield your estate against unexpected ravages such as the cost of a catastrophic illness. If you want to make a significant gift to benefit Holy Cross Hospital but find that you could use some income in return for your gift, please consult your professional advisors to determine whether a charitable gift annuity fits your circumstances.