Charitable Gift Annuity

Many donors who make a planned gift to Childrens Hospital Los Angeles choose this program because they appreciate the dependability of knowing that every quarter, they will receive the same payment, year after year. 

Benefits Include:

• Excellent payment rate (up to 11.1%)
• Income that is partially tax-free
• Income tax charitable deduction
• Providing a legacy for generations to come
• Can be used to provide stable retirement income

Many times, the disbursement from a charitable gift annuity is greater than an individual might receive from another equally stable investment.  For example:

Mr. & Mrs. Jones (age 82 and 80, respectively) have $100,000 invested in money market accounts that pay them 3% per year.  They remove their $100,000 from their money market account and create a charitable gift annuity.  Based on January 2008 federal annuity tables, the Jones' receive payments 7.1%.
As a result, the Jones:

• Double their annual income from this asset
• Receive an immediate federal income tax deduction of $41,000 (approx)
• Help provide care for sick and injured children in need of excellent medical care

Even Greater Returns from a Deferred Charitable Gift Annuity
A standard annuity provides immediate payments to philanthropists. 
However, a Deferred Annuity provides greater returns. 

How it works:

• You make a contribution now and receive an income tax deduction.
• You postpone the start of your income payments until a specified future date.
• Your rate of return is calculated at a greater rate dependent upon your birthdate and the payment date specified.
• Because payments are deferred, payment rates are considerably higher than the rates for an immediate annuity.  For example (using January 2008 federal tables):
• Mr. Smith (age 60), transfers $50,000 to Childrens Hospital to create a deferred gift annuity.
• Payments are specified to begin when Mr. Smith turns age 70. 
• When Mr. Smith turns 70, he begins receiving fixed annual payments at a rate of 10.8%. 

NOTE:  Although the information set forth herein is believed to be accurate, you should consult your attorney or other tax advisor prior to taking any action.