Charitable Gift Annuities
Receive income today and make life better for children tomorrow
If you are over the age of 65, a Charitable Gift Annuity (CGA) is a great way to make life better for children while creating a lifetime of financial security. This life-income gift is made with a one-time donation to Children's Medical Center Foundation in exchange for monthly, quarterly or annual payments back to you and/or a loved one. At the end of the annuity, all remaining funds from the invested gift will support Children's Health.
How it works
You transfer cash or appreciated assets to Children's Medical Center Foundation.
The Foundation invests the funds.
We pay you and/or a loved one fixed payments for life based on a rate determined by your age(s).
The remaining funds are distributed to Children's Health after your lifetime(s) to make an even bigger impact.
Benefits of a Charitable Gift Annuity
Receive fixed payments to you and/or a loved one for your lifetime(s)
Benefit from consistent quarterly, semi-annual or annual payments
Delay income taxes and/or capital gains taxes
Make life better for children
Example: CGA funded with cash for two lives*
*January 2024 rates based on ages 71 and 65. Details will vary depending on your age(s) and the date of the gift. CGAs can be funded with cash, appreciated securities (stocks, bonds, mutual funds), personal property and, starting at age 70½, certain types of retirement accounts like IRAs.
Legacy IRA Act
With the passing of SECURE Act 2.0, if you are over the age of 70 ½, you may now transfer a one-time tax free gift (amount adjusted annually for inflation) directly from your retirement account to Children’s Health to fund a Charitable Gift Annuity (CGA).
Our team is here to help
If you have questions or would like to review a custom proposal, please reach out to 
GiftPlanning@childrens.com or 214-456-8360.
Important Considerations
Before pursuing this giving method, donors should be aware of the following:
A CGA is irrevocable: A Charitable Gift Annuity is a binding agreement. Once made, the gift cannot be returned and the contract cannot be canceled. Donors should ensure they can commit the assets before proceeding.
Payments are fixed, not indexed for inflation: CGA payments are fixed for life based on rates at the time of the gift. They do not increase with inflation, which means purchasing power may decline over time.
Minimum age requirement: Children's Medical Center Foundation offers CGAs to donors age 65 and older.
Payments may outlast the principal: If an annuitant lives a long time, total payments may exceed the original gift amount. Children's Medical Center Foundation guarantees payments for life regardless of investment performance.
Legacy IRA eligibility: Donors age 70½ or older may fund a CGA with a one-time tax-free transfer from an IRA (a "Legacy IRA" gift under SECURE Act 2.0). The maximum transfer amount via Qualified Charitable Distribution to fund a CGA is indexed for inflation annually. Consult a tax advisor for current limits.
This information is not intended as tax, legal, or financial advice. Consult your personal financial advisor for information specific to your situation.
Key Rules and Guidelines
The following IRS rules, limits, and requirements apply to this giving method:
ACGA suggested rates: Children's Medical Center Foundation follows rates suggested by the American Council on Gift Annuities (ACGA). Rates are based on the annuitant's age at the time of the gift and are updated periodically.
Partial tax-free return of principal: A portion of each CGA payment is considered a tax-free return of principal; the remainder is taxable as ordinary income. If funded with appreciated assets, some payments may also be characterized as capital gain income. If funded by a QCD from an IRA, the payments are taxed as ordinary income.
Charitable deduction calculation: An illustration will be provided detailing information needed regarding the charitable deduction portion of the gift prior to establishing a CGA.
State regulation: CGAs are regulated at the state level. Texas law governs agreements entered into with Texas-based donors. Children’s Medical Center Foundation only offers CGAs to Texas-based donors. Donors in other states should contact the Legacy and Gift Planning team for options to establish a CGA with another entity while naming the Foundation as the residuum recipient.
Legacy IRA annual limit: The one-time IRA-to-CGA transfer option created under SECURE Act 2.0 is adjusted annually for inflation. Ask your tax advisor about current limits. This transfer counts towards that year’s Qualified Charitable Distribution maximums (also adjusted annually) and may satisfy required minimum distribution (RMD) obligations.
Rules and limits referenced above reflect current law. Tax law is subject to change. Please consult a qualified tax or legal professional for advice specific to your situation.
Interested in learning more?
Reach out to our Legacy & Gift Planning team today to learn about ways to make a tax-smart gift.
Let us know
If you have been so generous as to already include Children’s Medical Center Foundation in your plans, please complete our recognition form to join our Bradford Society.
