Charitable Gift Annuity

A charitable gift annuity (CGA) is an agreement between you and MedStar Health. In exchange for your gift, MedStar agrees to give you a lifetime fixed income payout.  Annuities simultaneously provide a charitable donation, an income tax deduction and a guaranteed lifetime income stream.

CGA’s are flexible, so you can start to receive benefits immediately, or wait for several years. They can be set up to provide benefits to one or two people – the latter being called a ‘two-life gift annuity.’

They also come with tax advantages, including when you make your gift you become eligible for an immediate federal income tax charitable deduction for a portion of your gift’s value.

Benefits

  • Flexible instruments that provide a tax deduction.
  • Tax-free income for part of your payment.
  • Fixed income received for your lifetime or joint lifetimes.
  • Be recognized TODAY, for your generous commitment.

Example

John establishes a $20,000 charitable gift annuity with MedStar National Rehabilitation Network.  Based on his age, 70 years old, he will receive a payment rate of 5.1 percent, which means he will receive $1,020 each year for the remainder of his life, part of which is tax-free income. John is also eligible for a federal income tax deduction of $8,304 when he itemizes (deductions vary based on income earned).  Finally, John knows at the end of his lifetime, the remaining amount will benefit the patients served by MedStar Washington Hospital Center.

 

Back to Create Your Legacy Page