Ben and Sheila Rowland* met Louis Diamond, MD, renowned Children's Hospital Boston hematologist, when their baby was born with erythroblastosis, a result of Rh incompatibility. Tragically, the Rowland's baby did not survive, but Dr. Diamond saved Sheila's health and helped the couple adopt two children. Dr. Diamond went on to be the first to perfect a blood transfusion procedure to treat Rh negative babies. The Rowlands decided to honor his memory by establishing a $100,000 gift annuity, funded with appreciated securities. They receive an annual annuity of $7,000, based on their combined-age annuity rate of 7% percent. A portion of that is tax-free and a portion is reportable as tax-favored capital gain income. The balance of their annuity income is taxed as ordinary income. If they outlive their actuarial life expectancy, the entire annuity is treated as ordinary income.

They have:

• Increased their annual income from this asset
• Reduced and deferred capital gains taxes
• Received an immediate federal income tax deduction of approximately $41,000
• Supported Children's Hospital Boston

*These donors' names have been changed to protect their anonymity.