Ways to Give
About Gift Annuity
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.
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