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How Can a Gift Pay me Back?
There is a family of gifts that transfers assets to Children's Hospital and then returns income to you. You can use them to convert low-yielding securities to a higher income stream at a greatly reduced capital gains cost. You can receive fixed or variable income, take payments for your lifetime or for a term of years, and direct the income to other beneficiaries. In essence, you make a contribution yet retain benefits from what you gave away.
Your charitable deduction is based on the full market value of the assets you gave, minus the present value of the income interest you retained. The higher the income payout, the lower the deduction.
These flexible, creative gifts address a variety of your planning objectives. For our part, the return of income permits a more substantial gift to Children's Hospital than you might be able to afford in an outright format. Even though we cannot use these gifts until the death of the last income beneficiary, they give us long-term financial strength that will sustain Children's Hospital in the future.