Charitable Gift Annuity – The gift that gives back guaranteed income

What is a charitable gift annuity?

A Charitable Gift Annuity (CGA) is a simple contract between you and Abington Memorial Hospital Foundation. In exchange for your irrevocable gift of cash, securities or other assets, AMHF agrees to pay one or two annuitants you name a fixed sum each year for life. Gift Annuity payments are based on rates recommended by the American Council on Gift Annuities. The payments are guaranteed by the general resources of AMHF, and backed up by a reserve account. Minimum initial gift is $50,000.

Different types of CGAs

There are two basic types of CGAs and they each meet different needs:

Immediate Payment

With this type of gift annuity, your payments begin as soon as the contract takes effect. For example, if quarterly payments are elected, payments begin at the end of the quarter in which you make your gift. Recommended age is 65 or older.

Deferred Payment

This option allows younger donors and annuitants to defer the start of payments until they have reached retirement age. Like an immediate payment gift annuity, you can take a charitable deduction in the year you make your gift. Because payments are deferred, however, you or your designated annuitants will receive substantially higher income payments later. This type of gift works best for income beneficiaries between the ages of 40 and 60. See Deferred Gift Annuities.

What are the advantages?

• Guaranteed fixed income for life
• Rates of return up to 10% for single life (slightly less for two lives)
• Charitable income tax deduction for a portion of your gift
• Tax-advantaged income (your payments will be part tax-free under most circumstances)
• Reduced capital gains tax when donating appreciated assets (you pay capital gains tax only on the gain attributed to your retained income interest)
• Potential reduction of estate tax liability
• The satisfaction of making a substantial gift to AMHF during your lifetime

Click here to calculate your benefits from a life-income gift!

WARNING: Consult your legal and tax advisors before making any material decisions based on this information.

For more information

If you are considering this gift, please complete the personal illustration form so that we can assist you through every step of the process or contact us at:

Abington Memorial Hospital Foundation
1200 Old York Road
Abington, PA 19001
215-481-4019 | Fax: 215-481-4019
E-mail: acarthy@amh.org

*Notice: Consult your legal and tax advisors before making any material decisions based on this information.