You can transform lives for years to come — by creating a charitable gift annuity with City of Hope.
How a Charitable Gift Annuity Works
- A Gift of Hope for City of Hope Patients. Your gift ensures City of Hope’s groundbreaking research and compassionate patient care will continue uninterrupted, regardless of what’s happening in the world.
- Attractive Payment Rates. Depending on your age, rates go as high as 9.7%, (and even higher for certain deferred charitable gift annuities). If you’re not sure when you would need your payment to start, a flexible deferred charitable gift annuity allows you to decide later. The longer the deferral, the higher your payment rate.
- Lower Taxes. With a charitable gift annuity, you are eligible for an income tax deduction and a portion of your payments are typically tax-free.
- Fixed, Guaranteed Payments. The fixed payments from a charitable gift annuity can help balance equity risk in your portfolio. The amount paid to you is determined by your age at the time your charitable gift annuity is created, and this amount will never change, regardless of market fluctuations or how long you live. If you don’t need income immediately or are looking ahead to retirement, you can schedule payments to begin at least one year after your donation, at a higher rate.
- Benefit up to Two People. Provide financial security for yourself and a spouse or other loved one. You each receive payments for your lifetimes.
New Higher Charitable Annuity Rates**Rates as of January 2023. Based on one beneficiary and a gift of $25,000 (our minimum gift amount). All examples are for illustration purposes only. Your rates may differ. For Oklahoma residents: A charitable gift annuity is not regulated by the Oklahoma Insurance Department and is not protected by a guaranty association affiliated with the Oklahoma Insurance Department.
Frequently Asked Questions
Q: I am 70.5 and older. There is news that I can now fund a charitable gift annuity with a Qualified Charitable Distribution (QCD) from my IRA. How can I do that?
A: Under the provisions of the Secure 2.0 Act, signed into law on December 31, 2022 as part of the federal omnibus spending bill, donors age 70.5 and older may take a one-time qualified charitable distribution to fund a charitable gift annuity. There are a few differences between annuities funded with a QCD and those funded with cash or appreciated securities:
- This is a one-time opportunity. While you may continue to direct QCDs to your favorite charities in any year, you may only fund a gift annuity with a QCD in one tax year.
- You may only give a total of $50,000 to fund charitable gift annuities, across all charities. However, you may still make up to $100,000 in total QCD gifts in a year, as long as not more than $50,000 funds a charitable gift annuity.
- The entire gift annuity payment will be taxable as ordinary income. When a gift annuity is funded with cash or securities, some of the annuity payment will not be taxed.
- A gift annuity funded by a QCD can only benefit the donor and/or the donor’s spouse.
- You may not defer payments more than one year.
- There is no charitable deduction available, although your QCD amount is still excluded from your adjusted gross income.
Q: Is a charitable gift annuity a good alternative for my maturing low-rate certificate of deposit?
Q: Is there a way to avoid capital gains taxes when redeeming appreciated stock?
Q: Are my payments secure?
Q: Is there a minimum age or donation amount required to establish a City of Hope charitable gift annuity?
A: City of Hope requires a minimum donation of $25,000, although it is not uncommon to contribute $100,000 or more. You must be age 60 or older to establish a charitable gift annuity with us. Younger donors may be able to establish a deferred charitable gift annuity. If you are looking ahead to retirement, you can delay the start of payments and realize a higher payment rate.