Establishing a Charitable Gift Annuity

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Charitable Gift Annuity

Your Plans.Your Impact.

Establishing a Charitable Gift Annuity Secure a financial future and support Rush A charitable gift annuity is part investment and part charitable contribution that helps you accomplish your financial and philanthropic goals. When you establish a CGA, you create a bright future for medical research, education and patient care while securing a dependable income stream for yourself or a loved one. CGAs are popular because they provide immediate and future tax benefits. A charitable gift annuity is simple to arrange: You make a gift to Rush and, in exchange, Rush pays you and/or a beneficiary payments for life. When the annuity is terminated, the remaining value becomes available to Rush and will continue to support Rush’s mission.

“My whole first experience visiting Rush proved there was a lot of great research and work being done with significant support — but I knew there would always be a need for more. The overall benefits of a charitable gift annuity were far greater than those of the other investment vehicles I was pursuing, and they also allowed me to help Rush do great things.” — Bob Behling

Rush is grateful for all gifts. We are ready to work with you and your advisors to arrange a giving plan that meets your charitable and financial objectives. To discuss your goals in confidence with our gift planning staff, please call (312) 942-3691 or email giftplanning@rush.edu. Visit rush.edu/giftplanning to learn more about supporting Rush while planning for your own financial future.


How can a CGA work for me?

What are the advantages of a CGA?

Annuity payments can begin immediately, or they can be deferred until a later date. The amount is fixed at the time you establish the annuity, and payments are distributed in quarterly installments. Once the annuity is terminated, the remainder will be directed to the area of your choice.

There are many advantages to charitable gift annuities, making them a popular option for Rush donors.

With a deferred CGA, your payments begin at a date one year or more in the future. Because investments have additional time to grow, the annual payout rate is higher. A deferred CGA is an excellent tool for donors who wish to reduce their taxable income during their peak earning years and receive extra income when needed, such as in retirement. A deferred CGA can also be flexible. If you are not ready to determine when you would like your annuity payments to begin, you can make that decision later.

Fixed income for life: A CGA can be set up to provide lifetime annual income to one or two beneficiaries, helping to secure a steady income stream for you or a loved one.

Immediate and future tax benefits: Donors receive an immediate tax deduction, and a portion of future payments from the annuity will be tax-free.

Guaranteed: When you invest in a CGA, you are able to avoid the risks of fluctuating markets. Rush guarantees your gift annuity payments for life. Gift Planning Tip: If you fund your CGA with appreciated assets (e.g., stocks or mutual funds), you may be able to reduce or postpone capital gains taxes.

Example Rates Based on One Annuitant If payments begin immediately

If payments are deferred five years

60

3.9%

4.8%

65

4.2%

70

Rates Based on One Annuitant If payments begin immediately

If payments are deferred five years

60/60

3.6%

4.3%

5.4%

65/65

3.8%

4.8%

4.7%

6.2%

70/70

4.2%

5.3%

75

5.4%

7.4%

75/75

4.6%

6.2%

80

6.5%

8.7%

80/80

5.4%

7.4%

85

7.6%

9.8%

85/85

6.5%

9.4%

Age

Ages

Rates may vary depending on the time of gift or the date of birth of the donor. These rates are also subject to change as suggested by the American Council on Gift Annuities.

Next Steps If you are interested in learning more about establishing a charitable gift annuity with Rush, please contact Rush’s gift planning team. Staff members can create and discuss a sample calculation that shows your annual payment and potential charitable tax deduction.

Office of Gift Planning Rush University Medical Center (312) 942-3691 giftplanning@rush.edu

The general information provided in this document is furnished with the understanding that neither Rush University Medical Center nor this document’s author are authorized to provide legal or tax advice. We encourage the reader to consult professional counsel before taking action on any of the gift, estate or financial planning options. Rush is a tax-exempt, 501©(3) charitable organization.


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