Funding a Charitable Gift Annuity with Cash or Appreciated Securities

Which is Right for You?

Creating a Charitable Gift Annuity (CGA) is a wonderful way to support Froedtert Hospital and Medical College of Wisconsin while securing fixed payments for your life. Two excellent options for funding your CGA are cash and appreciated securities, such as stocks, bonds, or mutual funds that you have held for more than one year. Each option offers unique benefits, so it’s worth exploring which funding source aligns best with your financial and philanthropic goals.

Why Choose a Charitable Gift Annuity?

A Charitable Gift Annuity is a simple contract between you and Froedtert Hospital and Medical College of Wisconsin. In exchange for your charitable gift, Froedtert Hospital and Medical College of Wisconsin agrees to make fixed payments to you every year for life. The payment amount depends on your age at the time of the gift, and it remains constant, providing reliable payments that won’t fluctuate with the market. This stable income can be particularly appealing if you are looking to supplement retirement income. Once the annuity ends, the remaining balance supports Froedtert Hospital and Medical College of Wisconsin’s mission, creating a lasting legacy.

Funding a CGA with Cash:

Straightforward Setup: Funding a CGA with cash is simple and quick. There’s no need to account for market value fluctuations or calculate capital gains, making cash funding ideal if you want an easy, straightforward gift.
Tax-Free Payments: You receive fixed payments each year for life. A portion of these payments will be tax-free for many years. This tax advantage can make cash a cost-effective option for funding your CGA.
Charitable Deduction: You are eligible for an immediate income tax charitable deduction based on the value of your gift and the annuity payout, 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.
Ideal for Those with Ample Cash Reserves: If you have liquid assets that you don’t need for other expenses, using cash to fund a CGA can help convert cash into a steady stream of payments while supporting a cause you care about.

Funding a CGA with Appreciated Securities

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 sell the appreciated securities yourself, you will 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 Payments: You receive fixed payments for life. A smaller portion of the payments will be tax-free for many years than if you fund the CGA with cash. The difference will be capital gain income instead.
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.

Which Option is Right for You?

Consider your personal financial situation and goals:

Choose Cash if you prefer a simpler process, have ample cash reserves, or want to maximize the tax-free portion of your annuity.
Choose Appreciated Securities if you wish to avoid capital gains taxes in addition to receiving a substantial income tax deduction, or to diversify your investment portfolio.

Consult with Your Advisors

Before you fund a Charitable Gift Annuity, we encourage you to speak with your financial and tax advisors to evaluate how a CGA fits within your overall financial plan.

If you would like to explore establishing a CGA with cash, 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.