SECURING YOUR FINANCIAL FUTURE – AND OURS

THE BENEFITS OF A DEFERRED CHARITABLE GIFT ANNUITY
Support Baystate Health Foundation now, increase your future income in retirement

One of the financial realities of retirement is that you no longer have a steady income from employment. Financial advisors encourage clients to identify other sources of income to replace a steady paycheck.  A deferred charitable gift annuity can enable you to provide a source of retirement income for future retirement and make a gift now to Baystate Health Foundation—and you will receive a charitable deduction that can reduce your income taxes.

How it works

A deferred charitable gift annuity is a simple arrangement between you and Baystate Health Foundation(BHF): in exchange for your contribution of cash or appreciated securities, BHF agrees to pay one or two individuals a fixed amount of money beginning on a date you choose. This is a way to support Baystate Health’s lifesaving mission and increase retirement income, while enjoying the security of a fixed income for life, regardless of market fluctuations. 

Choose when your income starts

A deferred gift annuity may be the right fit for you if you do not need additional current income, but want a charitable deduction now and/or a strategic way to increase income in the future. You choose when your income begins–at age 65 or later. The longer you wait for your income stream to start, the higher the rate. Once the payments begin, they never fluctuate and will not be affected by changes in the economy or financial markets. You receive an income tax charitable deduction for a portion of your gift and your annuity payments may be partially tax-free for a time.

A deferred charitable gift annuity can benefit you in many ways:
  •  Secure a fixed amount payment for your lifetime and/or that of your loved one
  • Receive an immediate charitable tax deduction
  •  Choose when your payments begin – at age 65 or later – the older you are when your payments start, the higher amount of your annuity
  •  Enjoy reduced or eliminated capital gains tax liability for gifts of appreciated securities
  •  Establish your gift with as little as $10,000 in cash or securities.
  •  Support the lifesaving and life-enhancing mission of Baystate Health.
Why a deferred charitable gift annuity might be appealing

Donors choose deferred gift annuities because they want to increase their future cash flow; seek the security of fixed payments that will not vary; desire tax savings; and would like to support the mission of Baystate Health. A deferred charitable gift annuity might be appealing in the following circumstances:

  •  The interest rate on a CD or other fixed income investment is low and you would like to increase your future cash flow.
  •  You own appreciated stock or mutual fund shares, have considered selling some of the shares and reinvesting the proceeds to generate more income, but don't want to pay tax on the capital gain.
  •  You would like fixed payments which are unaffected by interest rates and stock fluctuations and which you cannot outlive.
 
 
  •  You want to assure continuation of payments to a loved one without the delay of probate proceedings and in a tax-efficient manner.

Sample deferred charitable gift annuity for a gift of $10,000

Age at Gift Years Deferred Payment Rate Payment Deduction

55

10

9%

$900

$4,552

57

8

8.2%

$820

$4,415

59

6

7.4%

$740

$4,317

60

5

7.1%

$710

$4,205
(The amount of your annuity and deduction will depend upon the timing and other details of your gift.)
 
How do I get started?
  •  Contact Kylie Johnson at 413-794-7789 or Kylie.Johnson@BaystateHealth.org to receive a financial illustration showing the amount of payments, how they would be taxed, and the charitable deduction generated by the gift – and to explore how your gift can make a difference for Baystate Health.
  •  Discuss the financial illustration with your tax and financial advisors. They can help you make an informed decision, taking into consideration all relevant factors.
Your priorities accomplished!
  •  You will have created a steady source of additional retirement income.
  •  You will have made a significant gift to Baystate Health Foundation.