More about Charitable Gift Annuities
Of all the gifts that pay you back, the charitable gift annuity is the simplest, most affordable, and most popular. You make a gift to Woodland Healthcare Foundation and in return, it agrees to make fixed payments to you for life. The gift agreement is a simple contract between you and Woodland Healthcare Foundation. Your payments become one of its general obligations, fully backed by all its assets, and will not fluctuate.
When the contract ends, Woodland Healthcare Foundation applies the balance of the gift annuity to the program you designated when you made your gift.
Gift annuities offer attractive tax benefits:
- You will receive a federal income-tax deduction for a portion of your gift, based on the full value of the assets you contribute minus the present value of the life-income interest you retain.
- If you fund your charitable gift annuity with appreciated securities, naming yourself as beneficiary, no capital-gains tax is due on the transfer. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.
- Part of each annuity payment will be treated as tax-free return of your principal. This effectively increases the yield from your annuity over your life expectancy.
This sounds great. What size contribution do I need to make?
You can fund a charitable gift annuity with a gift of $10,000 or more. Gift annuities bring the benefits of a life-income gift into reach for many donors.
Are there any other restrictions?
By law, your gift annuity can make payments to a maximum of two people. In addition, generally, gift annuities pay higher rates to those who are older. If you are under 65-years of age, you may choose to read more about the deferred charitable gift annuity.
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