Establishing a charitable gift annuity
A charitable gift annuity, or CGA, is part investment and part charitable contribution that can help you accomplish your financial and philanthropic goals.
When you establish a CGA at Rush, you create a bright future for medical research, education, community-based programs and patient care while securing a dependable income stream for life for yourself or a loved one.
CGAs are popular because they provide immediate and future tax benefits. And, as of Jan. 1, 2023, CGA rates increased, which means you can receive higher annual payments. CGAs are simple to arrange: You make a gift to Rush, and in exchange, Rush pays you or your beneficiary payments for life. When the annuity is terminated, the remaining value becomes available to Rush and will continue to support our mission.
How can a CGA work for me?
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 typically distributed in quarterly installments. Once the annuity is terminated, the remainder will be directed to support Rush.
With a deferred CGA, your payments begin at a date one year or more into the future. Because investments have additional time to grow, the annual payout 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.
What are the advantages of a CGA?
There are many advantages to charitable gift annuities, making them a popular choice for Rush donors.
- 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, such as stocks or mutual funds, you may be able to reduce or postpone capital gains taxes.
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.
If you are interested in learning more about establishing a charitable gift annuity with Rush or to further discuss your gift planning goals, please contact Susan Sasvari, senior director of gift planning at Rush University Medical Center, at (312) 942-3691 or Susan_Sasvari@rush.edu or Alexander F. Pope, vice president of philanthropy and community engagement at Rush Copley Medical Center, at (630) 978-4946 or Alexander_F_Pope@rush.edu.