Of all the gifts that pay you back, the charitable gift annuity is the simplest, most affordable and most popular. You make a gift to The Chester County Hospital Foundation and in return, we agree to make fixed payments to you for life. Your payments are fully backed by the assets of The Chester County Hospital Foundation.
First, you receive a charitable income tax deduction for creating a gift annuity, based on the fair market value of the assets you contributed minus the present value of the life-income interest you retained.
Second, if you fund your gift annuity with appreciated securities, no upfront capital gains tax is payable. Only a portion of your capital gain will be recognized, and the tax will be spread out over your annuity payments. The result? You can contribute appreciated but low-yielding assets and put the entire amount of your gift to work earning lifetime payments for you.
Third, a portion of your annuity payments will be taxed at a low 15% capital gains rate if you created your gift with appreciated securities. Another portion will be treated as the tax-free return of principal. Only the balance of your payment is taxed as ordinary income to you. This tax treatment will increase the effective yield of your gift annuity.
Now is a good time for a gift annuity.
Consider a gift annuity to take advantage of favorable taxation and guaranteed income.
|Age||Rates Effective Jan. 1, 2012|
For more information, please contact Colleen Becht-Foltz, Director of Development, at Colleen.Becht-Foltz@uphs.upenn.edu or by calling 610-431-5697.
Last Updated: 2/4/2016