When we give, it’s because we support a certain cause or mission. Not because we expect something in return. However, there are gifts that allow you to support Oregon Health & Science University Foundation or Doernbecher Children's Hospital while also receiving benefits. Charitable gift annuities (CGA) are gifts that give back and pay you income for life.
How It Works
When you give a CGA, you make a contribution of cash, marketable securities or other appreciated property owned longer than one year to OHSU or Doernbecher. In return, we agree to make fixed payments to you for the rest of your life. The annual rate of your payment is based on your age at the time of the gift. The older you are, the higher the rate. Your payment rate doesn’t fluctuate with the stock market, interest rates or inflation. It is firmly set at the time of your gift and never changes. After your lifetime, Oregon Health & Science University Foundation or Doernbecher Children's Hospital uses the remaining balance for our work.
You can also provide payments for another individual—typically your spouse, but it could also be a parent, adult child, family member or friend. Or you can establish a two-life gift annuity that pays you and another person if you choose.
You can fund a charitable gift annuity with more than just cash. Perhaps you have stock that is producing lower dividends than you had planned on, or you have securities that have turned out to be higher risk than you’re currently comfortable with. You can exchange those for a secure, stable charitable gift annuity and maintain day-to-day financial security. Talk with us or your financial advisor about creative options for funding a gift annuity.
Our donor, age 75, plans to donate a maturing $25,000 certificate of deposit to Oregon Health & Science University Foundation or Doernbecher Children's Hospital. Because they need continuing income, they decide to give the cash in exchange for a one-life charitable gift annuity that we will issue at the suggested rate of 7.0%, or $1,750 per year.
Because our donor itemizes their tax deductions, they earn a federal income tax charitable deduction of $10,379* (the amount of the $25,000 donation attributable to the gift portion). With a marginal income tax bracket of 32%, the tax savings of $3,321 reduces the net cost of the gift to $21,679.
In the chart you will see recommended rates from the American Council on Gift Annuities, which most nonprofit organizations follow. Check with our representative for current rates and applicable ages for charitable gift annuity eligibility.
One Recipient | |
---|---|
Age | Rate |
60 | 5.2% |
65 | 5.7% |
70 | 6.3% |
75 | 7.0% |
80 | 8.1% |
85 | 9.1% |
90+ | 10.1% |
Two Recipients | |
---|---|
Ages | Rate |
60/65 | 4.8% |
65/70 | 5.2% |
70/75 | 5.8% |
75/80 | 6.5% |
80/85 | 7.3% |
85/90 | 8.7% |
90/95 | 9.9% |
*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.