Charitable Gift Annuity Rates on the Rise

A charitable gift annuity (CGA) enables you to donate to a charity and boost your retirement income, all while getting a nice tax deduction. What’s not to like?

Interest in CGAs is sure to rise because of the American Council on Gift Annuities (ACGA) recent increase in suggested maximum charitable gift annuity rates. On average, rates will increase an estimated 30 to 50 basis points on gifts established on or after July 1, 2018. The last time the ACGA increased the suggested maximum annuity rates was in 2010. 

How It Works 

The concept is simple. You make a donation using cash, marketable securities or other assets, and Sun Health in turn pays you a fixed amount for life. With this type of gift, you can feel secure knowing you can count on receiving stable payments for as long as you live. And now, if you make your gift on or after July 1, the gift annuity rates will be an estimated 30 to 50 basis points higher. A more complete listing of the current and new rates can be found at
acga-web.org/gift-annuity-rates.

A Case in Point 

Under the current rate schedule, Mary, 79, transfers $25,000 in exchange for a charitable gift annuity. She will receive annual payments of $1,650, a rate of 6.6 percent. Instead, if Mary waits to make her gift on or after the new rate schedule is in place on July 1, the same gift amount will provide $1,775 in annual payments, reflecting a 7.1 percent rate. That’s a payout rate increase of approximately 7.5 percent.

In addition to the opportunity to increase your retirement income while supporting health care in your community, gift annuities offer you numerous tax benefits, including: 

  • A partial income tax charitable deduction now for your gift when you itemize.
  • Part of each payment is income tax free throughout your estimated life expectancy.
  • Capital gains tax savings on appreciated property you donate.

You are our future

Contact any of the Foundation development staff to discuss how a charitable gift annuity allows you to make a gift and provides you, and another person if you choose, with secure, tax-favored payments for life. With your help, we can continue to positively impact the health of the communities we serve.  

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