In exchange for your irrevocable gift (usually of cash or securities), Shriners Hospitals for Children® agrees to pay one or two annuitants that you name a fixed sum each year for life. The payments never change and are backed by the general assets of Shriners Hospitals for Children®. Charitable Gift Annuities (CGAs) may be funded with a minimum of $5,000 and can be funded, in some instances, with appreciated assets.
The fixed rate of return is based on the age of the donor and any other beneficiary on the date the agreement is entered. Shriners Hospitals for Children uses the suggested rate chart published by the American Council on Gift Annuities. The rate is set with the intention that this charity will retain approximately 50 percent of the donor's original gift. Payments can be made on an annual, quarterly or monthly basis.
Important benefits of the CGA program include:
- You may qualify for a charitable deduction, if you itemize on your income tax return.
- Your fixed annuity payments will be the same regardless of fluctuations in the economy.
- If you fund the CGA with appreciated assets, you may be taxed on only part of the gain.
- Your estate may enjoy reduced probate fees and estate taxes.
- Your gift will help children get the medical care they need and your generous support will be recognized by Shriners Hospitals for Children®.
Please note, under government rules, a contribution for a gift annuity is irrevocable and the principal you contribute cannot be returned. Shriners Hospitals for Children® Charitable Gift Annuities may not be available in certain states.