Gifts that pay income for life

Charitable gift annuities (CGA)

A charitable gift annuity (CGA) provides a way for you to make an irrevocable gift to support Spectrum Health or Helen DeVos Children’s Hospital, while at the same time providing guaranteed fixed payments to you (and someone else, if you choose) for your lifetime. The remaining balance is then used to support the hospital’s greatest needs. You may also designate the corpus to a particular program or service at the time the CGA contract is set-up with the Foundation.

In addition, a CGA may be right for you if you have assets that would be beneficial to give away during your lifetime, such as cash, appreciated securities, or funds earning low interest rates. You may also qualify for a variety of tax-related benefits, depending on your personal situation.

Charitable remainder trusts

A charitable remainder trust (CRT) provides a way for you to irrevocably transfer assets into trust, and you (and someone else, if you choose) receive payments from the trust for life, or another time-period of your choice. The remainder of the trust is then used to support the hospital’s greatest needs, or a particular program or service.

Many different assets can be transferred to a charitable trust such as cash, stock, mutual fund shares, or property interests. A charitable trust may be managed by a bank, trust or investment company that is chosen by the donor.

These types of gifts may also offer you tax-related benefits, depending on your personal situation, in addition to the option for income. There are two ways to receive payments:

A charitable remainder annuity trust (CRAT) is an individually managed trust that pays beneficiaries a predictable fixed dollar amount or fixed percentage of the initial value of the assets which funded the trust, regardless of market conditions. The CRAT cannot accept additional gifts after it has been established.

A charitable remainder unitrust (CRUT) is an individually managed trust that pays beneficiaries a fixed percentage of the current value of the trust, reassessed annually, for life or a term of years. The payout will increase, or decrease, based on changes in the trust’s value. Another variation is a FLIP-CRUT, which holds assets for a period of time and pays actual earnings, if any, to the beneficiaries. It then ‘flips’ to a standard payment unitrust when an anticipated event occurs, such as the sale of the property held by the trust.

Contact us

If you would like to learn more about how to include Spectrum Health or Helen DeVos Children’s Hospital in your charitable estate planning, or if you intend to/have already remembered the hospital in your plans, we would love to hear from you.

Kristin Long MPA, CFRE, CAP®
Kristin.Long@spectrumhealth.org
616.486.6590

We are here to help and share the many ways you can make a difference through your philanthropy, now and in the future.

Disclaimer and tax information:
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Spectrum Health Foundation, including Helen DeVos Children’s Hospital Foundation, has 501(c)(3) non-profit tax-exempt status. Our federal Tax ID number is #38-2752328.

Information contained herein was accurate the time of posting and is taken from sources believed to be reliable. The information on this website is not intended as legal or tax advice; for such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results. You are encouraged to seek the advice of your financial planner, attorney, and/or tax advisor to make certain a contemplated gift aligns with your overall circumstances and planning. All conversations are confidential; no obligations are associated with these conversations.