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Charitable Gift Annuities

woman in workshop A charitable gift annuity is a simple combination of two concepts: a charitable gift and income for life. Think of it as the gift that gives back. A gift annuity allows you to make a gift to Mercy Foundation North program of your choice and benefit from the following:

Safe, fixed income for your life and the life of a loved one (spouse or parent)
Tax savings immediately and in the future
Favorable treatment of capital gains if funded with appreciated assets

How does a Charitable Gift Annuity work?

In exchange for an irrevocable gift of cash or publicly traded securities, our Foundation's Charitable Gift Annunity provides a charitable income tax deduction and agrees to pay one or two persons a fixed annual income that is backed by the resources of the medical center. The charitable gift annuity rate of return is set by the American Council on Gift Annuities and is often higher than what is available from many conservative investments. The gift is set aside in a reserve account and invested. At the end of your life (and that of your loved one, should you choose an additional income beneficiary), Mercy Foundation North receives the remainder of the gift which will be distributed to the program of your choosing.

Are there any age or gift amount restrictions?

The minimum contribution to establish a gift annuity at Mercy Foundation North is $10,000. You may establish more than one annuity. There is no maximum gift amount. The minimum age is 60.

What assets can I use to fund a Charitable Gift Annuity?

While cash is the most popular way to fund a gift annuity, you may also use the proceeds from maturing CDs or publicly traded stock.

Is it worth the time and energy to change from my current investment to a Charitable Gift Annuity?

Yes, especially if your current investment yields a variable rate of return. Because your income from our charitable gift annuity will never decrease—nor can you outlive it—this one-time purchase can provide a stable annual income. This income can allow you to meet important needs, such as buying long-term care insurance or offsetting the costs of retirement facility care.

How is the annuity rate determined?

The annuity rate depends on the age of the annuitant(s) at the time of the gift. The older the annuitant(s), the more income Mercy Foundation North can agree to pay annually. The rate in effect when you establish the annuity never changes and is guaranteed for life.

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If you are tired of living at the mercy of the fluctuating stock and
real estate markets, make an investment that is
secure today—and in the future—by establishing a
charitable gift annuity with Mercy Foundation North
to benefit one of our
three North State hospitals, Connected Living, or Hospice.

<< Estate and Planned Giving

Gift Planning Tip

If you fund the annuity with appreciated securities, you avoid a portion of the capital gains tax. The simplicity of establishing a gift annuity, along with the tax incentives and guaranteed rate of return, makes this a very popular giving option. The team at Mercy Foundation North is available to answer any questions and/or provide you with a confidential, no-obligation illustration to show how a gift annuity would benefit you and your specific situation. As with any charitable gift agreement, we encourage you to consult with your financial adviser as well.

Call us today at (530) 247-3424 or inquire via email at MercyFoundationNorthContactUs@
DignityHealth.org.

Mom and daughter riding on a swing
A new law, SECURE Act 2.0, allows those age 70½ and older to use their IRA to make a one-time election to fund a CGA of up to $50,000. Special rules apply, so contact Mercy Foundation North for an illustration for your own specific situation.