Charitable Gift Annuity
You may be tired of living at the mercy of the fluctuating stock and real estate markets. A charitable gift annuity is a gift made to our organization that can provide you with a secure source of fixed payments for life.
Benefits of a charitable gift annuity
- Receive fixed payments to you or another annuitant you designate for life
- Receive a charitable income tax deduction for the charitable gift portion of the annuity
- Benefit from payments that may be partially tax-free
- Further the charitable work of Greater Baltimore Medical Center with your gift
How a charitable gift annuity works
A charitable gift annuity is a contract between you and Greater Baltimore Medical Center.
- You transfer cash or property to Greater Baltimore Medical Center.
- In exchange, we sign an annuity contract and promise to pay fixed payments to you for life. The payment can be quite high depending on your age, and a portion of each payment may even be tax-free.
- You will receive a charitable income tax deduction for the gift portion of the annuity.
- You also receive satisfaction, knowing that you will be helping further our mission.
If you decide to fund your gift annuity with cash, a significant portion of the annuity payment will be tax-free. You may also make a gift of appreciated securities to fund a gift annuity and avoid a portion of the capital gains tax. Please contact us to inquire about other assets that you might be able to use to fund a charitable gift annuity.
Contact us
If you have any questions about charitable gift annuities, please contact us. We would be happy to assist you and answer your questions.
Additional Information
Current charitable gift annuity (payments begin within one year). With a current gift annuity, you may transfer cash or property in exchange for our promise to pay you fixed payments beginning as early as this year. You will receive an income tax charitable deduction this year for the value of your gift to Greater Baltimore Medical Center.
Deferred charitable gift annuity (for payments at future date). Perhaps you are not ready to begin receiving payments until a future date, such as when you retire. With a deferred gift annuity, you establish the gift annuity today, receive a charitable income tax deduction this year, but defer the payments until a designated date sometime in the future. Best of all, because you deferred the payments, your annual payment will be higher when the payments start than they would have been with a current gift annuity.
Flexible deferred charitable gift annuity (gives you flexibility as to when the payments will start). With a flexible deferred gift annuity, you retain the flexibility to decide when the annuity will begin making payments. As with a deferred gift annuity, you establish the annuity today and receive a charitable deduction this year, but the payments are deferred until such time as you elect to begin receiving the payments.
Suggested Maximum Rate Schedules Effective January 1, 2024
Single Life Suggested Maximum Gift Annuity Rates
| Age | Rate |
|---|---|
| 60 | 5.2 |
| 61 | 5.3 |
| 62-63 | 5.4 |
| 64 | 5.6 |
| 65 | 5.7 |
| 66 | 5.8 |
| 67 | 5.9 |
| 68 | 6.1 |
| 69 | 6.2 |
| 70 | 6.3 |
| 71 | 6.4 |
| 72 | 6.6 |
| 73 | 6.7 |
| 74 | 6.8 |
| 75 | 7.0 |
| Age | Rate |
|---|---|
| 76 | 7.2 |
| 77 | 7.4 |
| 78 | 7.6 |
| 79 | 7.8 |
| 80 | 8.1 |
| 81 | 8.3 |
| 82 | 8.5 |
| 83 | 8.7 |
| 84 | 8.9 |
| 85 | 9.1 |
| 86 | 9.3 |
| 87 | 9.5 |
| 88 | 9.7 |
| 89 | 9.9 |
| 90+ | 10.1 |
Notes:
- The rates are for ages at the nearest birthday.
- For immediate gift annuities, these rates will result in a charitable deduction of more than 10% if the annuitant is at least 50 years of age and the Charitable Midterm Federal Rate (CMFR) is 3.2% or higher. If the annuitant age is less than 50 and the CMFR is less than 3.2%, the deduction might be less than 10% when annuitants are below certain ages.
- For deferred gift annuities with longer deferral periods, the rates may not pass the 10% test when the CFMR is low.
- To avoid adverse tax consequences, the charity should reduce the gift annuity rate to whatever level is necessary to generate a charitable deduction in excess of 10%.
- The rates are different, when there are two (2) annuitants. Contact us for more information.
Please see the rate chart above for the most current one-life gift annuity rates.