Charitable Gift Annuity

A Lifetime of Income & Personal Satisfaction

The charitable gift annuity program is a strategic donation method wherein you make a contribution to Baxter Health Foundation and, in return, receive a stream of fixed income for the rest of your life, or that of a designated beneficiary. In addition to the income you receive, you will also be eligible for a variety of tax breaks depending on the type of donation you made. This is a fantastic program for those who want to contribute to medical care in the community and make an investment in their financial future.

Some of the advantages of a gift annuity include:

• Income for Life – at attractive payout rates for one or two lives
• Tax Deduction Savings – a large part of what you transfer is a deductible charitable gift
• Tax-Free Payout – a large part of your annual payment is tax-free return of principal
• Capital Gains Tax Savings – when you contribute securities for a gift annuity, you minimize any taxes on your “paper profit”
• Personal Satisfaction – from making a gift of lasting significance

Understanding Gift Annuities

In a gift annuity, you determine how often payments are made and who will receive the returned income from the foundation. You can use cash or securities to fund the gift, with cash maximizing tax-free payments and securities minimizing capital gains taxes.

If you have a certificate of deposit that is nearing maturity, you may want to convert CD funds into a gift annuity. In many cases, you can receive greater returns on a gift annuity than the interest from a matured CD. For instance, a substantial gift to the hospital will result in annual income that will be partially tax free and a charitable tax deduction. Thus, you benefit from substantial tax breaks, a greater ROI, and the satisfaction of supporting healthcare in your community.

Determining Returns

As these investments are intended to last a lifetime, the income you receive from your gift annuity depends on the age of the beneficiary. The older the beneficiary, the higher the rate of the return. So, while someone aged 60 might receive 4.4% of a return on their investment every year, someone aged 80 could receive 6.8%.

If you decide to split the returns between two people, the rate of the return will be split to meet the long-term needs of both beneficiaries.

For more information on gift annuities, including a free analysis on what your gift could return, contact the Baxter Health Foundation at (870) 508-1770 or email foundation@baxterregional.org.