The Gift That Gives Back
Charitable Gift Annuities are an easy way for donors to match their passion for making a meaningful gift to a charity, like the New
Hanover Regional Medical Center Foundation, with their desire to provide a fixed income stream for themselves or loved ones. A charitable gift annuity is created by making a gift of cash or securities to a charity in exchange for being paid a guaranteed income
amount for the donor’s lifetime. Te donor receives an immediate income tax charitable deduction, and at the end of the donor’s lifetime, the charity receives the balance of the annuity. Te annuity rate depends on a donor’s age and current rates set forth by the American Council on Gift Annuities. Charitable gift an-
nuity rates are lower than those offered by insurance companies so a significant portion of the contribution will be available for charitable purposes. Gift annuities are ideal for donors whose intent is to provide a charitable gift to NHRMC Foundation while providing an income stream to themselves or others.
A charitable gift annuity would be ideal for donors:
• whose fixed-income investments have declined and would like to increase their cash flow • who own appreciated assets and are considering selling some of the shares, but don’t want to pay tax on the capital gain • who count on fixed payments and want to ensure continuation of payments to a surviving spouse
Te following illustrates a basic Charitable Gift Annuity gift:
John Q. Smith, 80, wants to support the Zimmer Cancer Center because of the extraordinary care he received, but he also needs to be able to count on a fixed cash flow. So, he makes a cash donation to the NHRMC Foundation of $10,000 to establish a Charitable Gift Annuity to benefit the Zim- mer Cancer Center. Based on the American Council on Annuities guidelines, Mr. Smith is eligible to receive a 7.1% annuity rate. Mr. Smith’s donation allows him to realize a $5,022.60 charitable deduction and receive an annual annuity payment of $710; $529.66 of the annual payment is tax- free and $180.34 is ordinary taxable income.
To learn more about how a gift annuity may be beneficial to you and your family, we recommend
you contact your financial planner, or call the New Hanover Regional Medical Center Foundation to discuss your options.
Contributing authors: Jim Gallaher, Planned Giving Advisor
Wachovia Non-Profit & Philanthropic Services Center for Planned Giving, Southern Region 100 N. Main Street
Winston-Salem, NC 27150 336.732.2612
Jody Burke, Financial Advisor Wells Fargo Advisors, L.L.C. 1017 Ashes Drive, Suite 206 Wilmington, NC 28405 910.509.3985
www.nhrmcfoundation.org
Visit our website for information about:
• ways to give
• special event photo albums
• special events sponsorship opportunities • online giving opportunities
• current and archived Thank You Notes newsletters • community partner events
6 Spring 2010
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