A charitable gift annuity is a special type of gift that pays you back.
How a Gift Annuity Works
One of the reasons gift annuities are so popular is that they offer a variety of attractive benefits:
- Attractive Payment Rates. Depending on your age, rates go as high as 9%, (and even higher for certain deferred gift annuities). If you’re not sure when you would need your payment to start, a flexible deferred gift annuity allows you to decide later. The longer the deferral, the higher your payment rate.
- Lower Taxes. With a gift annuity, you are eligible for an income tax deduction and a portion of your payments are typically tax-free.
- Fixed Payments. The fixed payments from a gift annuity can help balance equity risk in your portfolio. The amount paid to you is determined by your age at the time your gift annuity is funded 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.
- A Gift of Hope for City of Hope Patients. A gift annuity is a wonderful way to fund City of Hope’s compassionate patient care and lifesaving research.
Sample Payment Rates*
Frequently Asked Questions
Q: Is a 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 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 gift annuity with us. Younger donors may be able to establish a deferred gift annuity. If you are looking ahead to retirement, you can delay the start of payments and realize a higher payment rate.