Charitable gift annuities are a contractual arrangement between the donor and the Hospital. Donors exchange their gifts for a guaranteed annuity representing a value less than the contributed asset. The contract between the donor and the Hospital is for a guaranteed annual payment for life.

Charitable Gift Annuity (Standard)
Gift annuities provide a fixed and guaranteed annual income for the lifetime(s) of one or two annuitants. Annuity rates vary according to the age of the beneficiary/ies and are based on rates recommended by the American Council on Gift Annuities. Generally speaking, the older the annuitant, the higher will be the rate of return. The annuitant’s annual payment may include ordinary income, taxable capital gains, and a tax-free return of gift principal. The distribution of the annuitant’s payment among these various income types is based on the nature of the contributed property.

Gift annuities may be established with gifts of cash, appreciated securities,
real estate, or personal property. An immediate charitable contribution
deduction is available for a portion of the gift, which varies according to
the rate of payment and the number and ages of the beneficiaries.

Charitable Gift Annuity (Deferred Payment)
Deferred payment gift annuities offer all of the basic features and benefits of a standard gift annuity, including the limitation to two annuitants. With the deferred annuity, the start of annual payments is delayed for a period of time (minimum one year) that is determined by the donor at the time of his gift. Both the fixed and guaranteed annuity rate and the portion of the gift which may be deducted as a charitable contribution are enhanced by the length of the period during which income is deferred.

Charitable Gift Annuity (Flexible)
The flexible gift annuity is structured much like the deferred payment gift annuity, including the two annuitant limitation, with the donor funding the annuity with his charitable gift and deferring the receipt of income for a period of time (minimum one year). The flexible annuity allows the donor to elect to begin to receive payments at a future date, at his discretion, and the guaranteed rate of return will be fixed at the time of that election. The rate of return increases slightly with the passage of each year during which the donor defers the start of payments. This increase in the annual rate of return is determined at the time of the gift. Annual payments may include ordinary income, taxable capital gains, and a tax-free return of principal, depending upon the nature of the contributed asset.

The donor is entitled to claim an immediate charitable contribution deduction for a portion of the gift. That deduction is based on the rate applicable for the minimum one-year deferral period.

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