How a Charitable Gift Annuity Works
One of the reasons charitable gift annuities are so popular is that they offer a variety of attractive benefits:
- 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 10.1%. You can benefit up to two people and provide financial security for yourself and a spouse or other loved one. You each receive payments for your lifetimes.
- Rates can be even higher. 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 is typically tax-free.
- Fixed, guaranteed payments. The fixed payments from a charitable gift annuity can help balance equity risk in your portfolio. Your payment will never change and is backed by the full assets of City of Hope.
Current Charitable Annuity Rates*
| Age | Rate | Annual Payment | Tax Deduction |
|---|---|---|---|
| 60 | 5.2% | $1,300 | $8,843 |
| 65 | 5.7% | $1,425 | $9,109 |
| 70 | 6.3% | $1,575 | $9,673 |
| 75 | 7.0% | $1,750 | $10,655 |
| 80 | 8.1% | $2,025 | $11,612 |
| 85 | 9.1% | $2,275 | $13,469 |
| 90 | 10.1% | $2,525 | $15,574 |
From a Supporter Like You
City of Hope donors
Heinz’s philosophy is simple yet profound:
You can’t take it with you.
Heinz chooses to experience the joy of giving in his lifetime, ensuring his legacy lives on through his support for the remarkable work of City of Hope.
Frequency Asked Questions
I am 70 ½ or older. There is news that I can now fund a charitable gift annuity with a Qualified Charitable Distribution from my IRA. How can I do that?
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 ½ or older may take a one-time QCD 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 $54,000 to fund charitable gift annuities, across all charities. However, you may still make up to $108,000 in total QCD gifts in a year, as long as not more than $54,000 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.
Is a charitable gift annuity a good alternative for my maturing low-rate certificate of deposit?
If increasing cash flow is a top priority, the generous, guaranteed, fixed payments from a charitable gift annuity are a great solution. Charitable gift annuity payment rates are very attractive, as high as 10.1% (and even higher for certain deferred gift annuities), depending on your age.
Is there a way to avoid capital gains taxes when redeeming appreciated assets, such as stock?
Yes! If you contribute appreciated assets, such as stock to City of Hope, to create a charitable gift annuity, you may avoid paying immediate capital gains tax. You will also be eligible for a charitable income tax deduction — plus you will enjoy a fixed, guaranteed income for your lifetime.
Are my payments secure?
City of Hope’s charitable gift annuity program has made payments to hundreds of annuitants for more than 50 years, and each charitable gift annuity is backed by the full faith and credit of City of Hope.
Is there a minimum age or donation amount required to establish a City of Hope charitable gift annuity?
City of Hope requires a minimum donation of $25,000, although it is not uncommon to contribute $105,000 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.