A Donation that Gives Back

Charitable Gift Annuities

A charitable gift annuity is a powerful tool for philanthropy because it has benefits for supporters as well as The University of Vermont Health Network – Champlain Valley Physicians Hospital (CVPH).

With your donation, you can create a guaranteed income stream for yourself or others, receive tax benefits, and make a transformative gift to CVPH. This method of donating has been used around the country since the 19^th century and is a simple contract between a donor and The Foundation of CVPH.  In exchange for the donor’s contribution, The Foundation promises to make fixed payments for life back to the donor or chosen beneficiary of the annuity.  The annuity to the beneficiary is based on their age(s) and follows the rate schedule set by the American Council on Gift Annuities.  Beneficiaries can start receiving annuity payments as early as 59 ½ years old.  The minimum gift level is $5,000 and a portion is tax deductible. For added benefits, donors can fund a gift annuity with appreciated stock instead of cash and defer the capital gain tax while creating income. The Foundation can create illustrations for you to review that demonstrate the annuity and tax benefits for your specific situation.

Recently the American Council on Gift Annuities announced an increase in the gift annuity rates for gifts established on or after January 1, 2023. These new rates mark the highest they’ve been in more than a decade. Once you establish your charitable gift annuity with CVPH your rate is locked in too.

The table below shows selected current and new comparative rates:

*Chart courtesy of The Stelter Company

Benefits of a charitable gift annuity include:

• A guaranteed fixed annual payment for life
• A portion of your annuity payment may be tax free
• Receive an immediate income tax charitable deduction in the year the annuity is created
• Capital gains tax is deferred when funding an annuity with appreciated securities
• Annuity remainder can be designated to the department or in honor of the caregiver of your choice
• Your annuity rate is based on the age of the beneficiary and does not entail any health or lifestyle considerations in the way life insurance does

At the conclusion of the lifetime of the last beneficiary, the remaining funds from your gift annuity are automatically invested in the mission of The Foundation.  The Foundation of CVPH is touching thousands of lives throughout the North Country by enhancing services at the hospital and providing health and wellness programs that support our local community.  Investing in this work is crucial to ensuring that we have a healthy community, far into the future.

The Foundation recommends that you consult with your financial advisors to see if a charitable gift annuity fits in with your financial plans.  To discuss annuity options and receive illustrations that will explain the rate and estimated tax benefits specific to your situation, contact CVPH Associate Vice President of Philanthropy Kerry Haley at (518) 562-7168 or email khaley@cvph.org.