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.
Special Opportunity!
If you are age 70 ½ or older, you can make a one-time distribution of up to $54,000 from your IRA to fund a charitable gift annuity. Your gift counts for your required minimum distribution and still provides fixed annual payments for as long as you live.
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 Supporters Like You
Don and Lois Hoffman
City of Hope CGA donors
“It’s a way of investing in the future of City of Hope and getting something back,” Don says. “We give because it’s a great charity,” Lois adds.
When Don faced a lung cancer diagnosis in 2022, they jumped in and made a gift to speed research. Prior to that, they created several charitable gift annuities, blending dependable lifetime income with future cures.
Frequently 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 for 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 $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.