Gifts That Pay You Back
Income Gifts
Charitable Gift Annuities (CGA)
A St. Rose Dominican Health Foundation Charitable Gift Annuity is a very popular way to make a significant gift to Dignity Health - St. Rose Dominican (St. Rose) while at the same time gaining many personal financial benefits. A Gift Annuity is an irrevocable gift that provides lifetime fixed income and a very nice charitable income-tax deduction to the donor(s) in the year the gift is made. Gift Annuity rates are based on the age(s) of the donor(s), the older the income recipient(s) the higher the annuity rate. For instance a single 75-year old currently qualifies for an annuity rate of 5.8%, while for two 75 year-olds the rate for a two-life gift annuity would be 5.0%. The charitable income tax deduction is equal to approximately 50% of the amount and for a period of time, part of the annuity payment is considered tax-free income. While the average Gift Annuity at St. Rose is $25,000, the minimum amount needed to fund a gift annuity is $10,000. Charitable Gift Annuities are highly regulated and St. Rose gift annuities are administered by Wells Fargo Bank.
St. Rose also offers Flexible Deferred Charitable Gift Annuities for our benefactors. As inferred, the start date on deferred gift annuity payments commences at any time after the first year. The longer a person waits to start the annuity payments the higher the payments will be to the income recipient(s). This type of gift annuity is for the person or couple not needing immediate income but might need it in the future to meet expenses such as long-term care expenses. Some donors fund deferred gift annuities to provide retirement funds for relatives or long-time trusted employees similar to a personal "pension" plan.
Charitable Remainder Trusts (CRT)
A more sophisticated and powerful type of planned gift is a charitable remainder trust (CRT). CRTs permit donors to make significant gifts while at the same time: (1) earn fixed or variable income for life or a term of years, (2) avoid capital gain taxes on the sale of highly appreciated assets (securities and real estate), (3) receive a generous charitable income tax deduction at the time of the gift and (4) remove an asset from your taxable state. Since CRTs are trusts, the establishment of one requires the services of a knowledgeable attorney and the involvement of your personal professional advisors. CRTs are normally used for people who are both philanthropic and own highly appreciated, low yield properties. CRTs work best for gifts exceeding $250,000.
To obtain more detailed information about Charitable Gift Annuities and Charitable Remainder Trusts, please contact the Foundation office at 702.616.4545 to arrange for a confidential, non-obligation meeting with a staff member well versed in all aspects of charitable gifting.