Joe DiMaggio Children's Hospital Foundation
FAQs About Charitable Gift Annuities
What is a Charitable Gift Annuity?
A Charitable Gift Annuity (CGA) is a simple contract between you and Joe DiMaggio Children's Hospital Foundation. In exchange for your irrevocable gift of cash, securities or other assets, the Foundation agrees to pay one or two annuitants you name a fixed sum each year for life. Gift Annuity payments are based on rates recommended by the American Council on Gift Annuities. Current rates are between 6 and 11.3 percent, depending on the age of the donor and the type of gift selected. The payments are guaranteed and backed by the net assets of the Foundation.
How does the CGA Program work?
A minimum gift of $10,000 is required to establish a CGA, and gifts in increasing increments of $5,000 are welcome.
There are two basic types of CGAs and each meets different needs of donors:
Immediate Payment
With this type of gift annuity, your payments begin as soon as the
contract takes effect. For example, if quarterly payments are elected,
payments begin at the end of the quarter in which you make your gift.
Recommended age is 60 or older.
Deferred Payment
This CGA allows donors and annuitants to defer the start of payments
until they have reached retirement age. In the same manner as an immediate
payment gift annuity, you can take a charitable deduction in the year
you make your gift. Because payments are deferred, you or your designated
annuitants will receive substantially higher income payments later.
This type of gift works best for income beneficiaries between the
ages of 40 and 60.
What are the advantages?
- Guaranteed fixed income for life. Payments are never affected by fluctuating interest rates or changes in the economy and markets
- Rates of return as much as 10.5% for single life (slightly less for two lives)
- Charitable income tax deduction for a portion of your gift
- Tax-advantaged income on each payment or a portion of each payment under most circumstances
- Reduced capital gains tax — limited to the gain attributed to your retained income interest
- Potential reduction of estate tax liability
- The satisfaction of making a substantial gift to Joe DiMaggio Children's Hospital Foundation and its programs to improve the health of the community into the future
Charitable Gift Annuity Rates
Effective June 2009
Single Life*
Gift Amount $50,000
| Age | Rate | Amount You Receive Annually for Life** |
Charitable Tax Deduction** |
| 60 | 5.5% | $2,750 | $12,701.50 |
| 65 | 5.7% | $2,850 | $16,126.50 |
| 70 | 6.1% | $3,050 | $19,034.00 |
| 75 | 6.7% | $3,350 | $21,719.50 |
| 80 | 7.6% | $3,800 | $24,279.50 |
| 85 | 8.9% | $4,450 | $26,657.00 |
| 90 and over | 10.5% | $5,250 | $29,356.50 |
* Single Life Annuitant Rate for ages at the nearest birthday. Joint Annuitant Rates also available.
** Based on IRS discount rate values as of 7/1/08
Charitable Gift Annuities may be established at a minimum contribution of $10,000
For a no-obligation, personalized financial illustration, or for more information, contact the Director of Planned Giving at (954) 265-3454.
Or send us an e-mail.
IMPORTANT NOTE: These examples are for illustrative purposes only and are not intended as legal or tax advice. Consult your own legal and tax advisors prior to making any material decisions based on this data.