Fund a Charitable Gift Annuity (CGA) with Long-Term Appreciated Property
A Tax-Smart Giving Strategy
Creating a Charitable Gift Annuity using long-term appreciated property — such as stocks, mutual funds, or real estate — can be an excellent way to support Froedtert Hospital and Medical College of Wisconsin while securing fixed payments for life. In addition to these benefits, this approach offers unique tax advantages that may reduce your capital gains tax burden.
What is a Charitable Gift Annuity?
A Charitable Gift Annuity is a simple contract between you and Froedtert Hospital and Medical College of Wisconsin. You donate long-term appreciated property, and in return, Froedtert Hospital and Medical College of Wisconsin agrees to make fixed payments to you for life. Your payment amount is determined by your age at the time of the gift and does not change over your lifetime, providing reliable income regardless of market fluctuations.
Why Fund a Charitable Gift Annuity with Long-Term Appreciated Property?
While you can use cash to fund a Charitable Gift Annuity, using long-term appreciated property can provide you with additional tax benefits. Here’s why it’s advantageous to consider funding a Charitable Gift Annuity with long-term appreciated property:
- Reduced Capital Gains Taxes: You recognize only a portion of your capital gain in the appreciated securities. What’s more, in most cases you can spread payment of the capital gains tax you do owe over many years. If you were to sell the appreciated securities yourself, you would owe capital gains taxes on all the appreciation in the year of sale.
- Income Tax Deduction: You are eligible for an income tax charitable deduction based on the fair market value of the property you give, subject to IRS limitations. This deduction can reduce your taxable income in the year of your gift. You may carry forward any unused deduction for up to five additional years.
- Lifetime Income: You receive fixed payments for life, based on the value of your gift and your age at the time of the gift. In addition, your payments are partially tax-free for many years. This stable payment stream can be particularly appealing if you are looking to supplement retirement income.
- Diversification: Donating appreciated securities to fund a CGA can serve as a diversification strategy, allowing you to reduce concentrated holdings in your investment portfolio without incurring immediate capital gains taxes.
- Charitable Impact: After the annuity payments conclude, the remaining funds support Froedtert Hospital and Medical College of Wisconsin’s mission, making a lasting impact.
Consult with Your Advisors
A Charitable Gift Annuity funded with appreciated property is a powerful way to secure fixed payments for life and tax benefits while supporting the values and work of Froedtert Hospital and Medical College of Wisconsin.
Before you fund a Charitable Gift Annuity, however, we encourage you to speak with your financial and tax advisors to evaluate how it fits within your overall financial plan.
If you would like to explore establishing a CGA with appreciated property or other assets, please contact us. We can provide you with information tailored to your needs, including the current annuity rates, potential tax benefits, and the long-term impact of your gift.
Thank you for considering a generous gift to help sustain Froedtert Hospital and Medical College of Wisconsin.
What to Expect for Clinic Visits
We understand that visiting any health care facility during this time may cause some concern. That is why we want to assure you of the safe, expert care you will receive. Here is what you can expect when you visit one of our locations.
1. Scheduling Your Appointment
Safety precautions begin before your visit. When scheduling, our team will screen for signs and symptoms of COVID-19 and may offer a virtual visit instead or as part of your follow-up care. If an in-person visit best meets your needs, we will help you prepare for your visit and what to expect when you arrive.
How to Prepare for Your Visit
- Please wear a face covering over your mouth and nose when entering our facilities and during your visit. If you do not have a face covering, we will provide one.
- Limit the number of people who come with you. For clinic visits, our visitor policy generally allows one visitor or support person per patient. Anyone accompanying you must wear a face covering at all times and be symptom-free.
2. When You Arrive
Our staff will welcome you at your designated entrance or check-in desk. To ensure the safety of everyone, you and anyone accompanying you should:
- Let us know if you are ill or if you are currently experiencing any of these symptoms: Fever, body aches, headache, cough, sore throat, runny or stuffy nose, nausea, vomiting, diarrhea, fatigue, new loss of taste or smell, shortness of breath or difficulty breathing.
- Sanitize your hands.
- Wear your face covering over your mouth and nose. Ask for a face mask, if you do not already have one.
- Allow extra time for a health screening when you arrive. At our hospitals, we will take your temperature and ask additional screening questions at each entrance.
3. During Your Visit
Please wear your face covering over your mouth and nose at all times and maintain a safe six-foot distance from others to the greatest extent possible. You may notice extensive safety precautions in waiting areas and other public spaces, including:
- Hand sanitizer stations
- Furniture rearranged or removed to promote social distancing
- Floor markers to guide you in maintaining a safe, six-foot distance from others
- Safety messages posted as a reminder to all
- Magazines, coat racks, beverage stations and other commonly shared items removed
- Enhanced cleaning practices, including frequent disinfecting of high-touch surfaces such as elevator buttons, vending machines and door handles
4. When You Meet With Your Care Team
You can expect thoughtful, expert care in a safe environment.
- To keep everyone safe, our staff and providers are required to get vaccinated unless they qualify for a medical or religious exemption.
- You and your care team will stay masked whenever possible. Patients may be instructed to take off face coverings, if needed to provide care.
- Your care team will wear personal protective equipment.
- Our providers and staff are screened for signs and symptoms of COVID-19 prior to reporting to work to confirm they are well.
- Examination and procedure rooms are thoroughly cleaned and disinfected between every patient using stringent guidelines.
- Froedtert Pharmacy offers many ways to stay safe while getting your prescriptions, including free home delivery, drive-thru and curbside pickup.