A charitable gift annuity is a simple contract between Lancaster General and you as a donor. The agreement pays the donor a fixed annual amount for life in exchange for an irrevocable gift of at least $5,000 in cash, securities or other assets. 

Payments, which can be received monthly, quarterly, semi-annually or annually, are based on the age of the donor at the time of the gift. Lancaster General uses rates recommended by the American Council on Gift Annuities to determine the payment amounts of the annuities. Donors should be aware that the payment of annuity income is a general obligation of the charity, and is backed by its assets. 

In addition, the charitable gift is irrevocable, and the annuity income will remain fixed and will not be adjusted for inflation. In addition to the revenue stream created by the gift annuity, the donor may also enjoy significant income tax, estate tax and capital gains tax benefits. In the year of the gift, the donor can claim an income tax deduction for the remainder value of the gift. Often part of each annuity payment is tax-free. 

Furthermore, because a charitable gift annuity is considered part gift and part annuity, a gift funded with appreciated securities or real property may be partially exempt from capital gains taxes. Finally, since the charitable gift is made before the donor's death, the transferred assets may avoid estate taxes and probate costs. 

There are many ways to give to Lancaster General, but few offer the potential benefits and versatility of a Charitable Gift Annuity. It's a way to give that can help both benefactor and recipient. 

For more information on gift annuities, please contact the Development Office at (717) 544-5956.