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A
Wise Choice:
A Charitable Gift, Income to You
for Life, Plus Tax Advantages
Are you a "Wise
Donor" who would like to support the
charitable work of the Rockford Memorial
Development Foundation yet still receive
regular income on a donated asset?
Then please let us tell you more
about the Foundation's newly introduced
Charitable Gift Annuity program.
What
is a charitable gift annuity?
A charitable gift annuity is a
contract between you and the Foundation.
It's as simple as this:
you transfer cash or appreciated
assets (like stocks or real estate) to
the Rockford Memorial Development
Foundation and, in exchange, we promise
to pay you a fixed income for life.
That promise is backed by the
full resources of the Rockford Memorial
Development Foundation. For example, you
make a gift of $10,000 or more to the
Foundation. The Foundation then invests
the funds and pays a fixed income for
life to one or two people.
The rate of the payment is
determined by your age/s at the time of
the gift.
At the end of your lifetime, the
Rockford Memorial Development Foundation
retains the balance of your gift to
support our charitable mission.
What are some of the "wise donor"
advantages of a gift annuity?
The income you receive can be
quite high, depending on your age.
In fact, the older you are, the
higher the rate of income you will
receive.
And a portion of your income may
even be tax-free.
Best of all, because a charitable
gift annuity is partly a gift and partly
an investment in an annuity contract,
you are entitled to an income tax
deduction for the gift portion of the
annuity amount.
Plus you have the satisfaction of
contributing to a worthy cause – helping
provide the best in medical excellence
and compassionate care to the patients
of Rockford Health System.
Tell me more about how to fund a gift
annuity.
You can choose to make your annuity
gift with several types of assets, any
of which will entitle you to a
charitable tax-deduction.
Cash
A cash gift is an excellent
way to fund a gift annuity.
Not only will you receive a
tax-deduction, but a large portion of
your annuity income will be tax-free.
Appreciated Securities
A portion of the capital gains
tax may be bypassed on a gift of
appreciated securities used to fund a
gift annuity.
Additionally, a portion of the
income you will receive will be taxed at
the lower capital gains rate and another
portion may be tax free.
Real Estate
Marketable real estate may be
accepted by the Foundation to fund a
gift annuity.
Such a gift may enable you to
bypass capital gains tax and also
receive a fixed income for life.
A portion of your annuity income
may be taxed at the lower capital gain
rate and another portion may be
tax-free.
What are the current gift annuity rates?
The Rockford Memorial
Development Foundation uses the
Charitable Gift Annuity rates
established by the American Council on
Gift Annuities.
A sampling of today’s rates
includes:
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One Annuitant
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Age
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Rate
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70
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6.5
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75
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7.1
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80
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8.0
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85
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9.5
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90+
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11.3
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Two Annuitants
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Age
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Rate
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70/72
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6.0
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75/77
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6.4
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80/82
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7.1
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85/87
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8.1
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90/92
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9.6
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How can I find out more about my
specific situation and creating a gift
annuity?
The Foundation can provide you
with a confidential, no-obligation gift
illustration, based on your specific
information, the type of gift asset, and
other factors.
We can even provide illustrations
that show the differences between a
number of giving options.
While the Rockford Memorial
Development Foundation can offer general
information about tax benefits, we
encourage you to seek advice from your
own tax advisor.To get started, it’s a simple as
calling Foundation Executive Director
Helen Brooks at 815-971-4141.
If you prefer, you can e-mail
Helen at
hbrooks@rhsnet.org.
Thank
you for considering making this
important and beneficial gift to the
Rockford Memorial Development
Foundation.
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