Charitable Gift Annuity - Deferred:


How can this gift enhance my retirement savings?

A deferred charitable gift annuity provides lifetime annuity payments commencing at a future date.  Because of this deferral, payments from deferred charitable gift annuities are higher than from annuities whose payments begin immediately, and donors usually receive a larger charitable deduction than they would for an immediate-payment annuity.  Many donors use deferred charitable gift annuities as a source of supplemental retirement income.  They often create their annuity with funds they had already set aside for retirement, and set their anticipated retirement as the date to begin receiving payments.  An attractive option is to establish a series of deferred charitable gift annuities over several years, all scheduled to begin payments upon the donor's retirement.

May I choose the start date for my annuity payments?

Yes, you may. Choose whatever date makes sense to you, so long as you (or other beneficiary/ies) are at least 60. Remember the longer you wait, the larger your payments will be.

Do I need to choose the start date for annuity payments now?

With the flexible start date option, you can set a number of years as a target range to begin receiving payments. Then you can wait to choose your payment start date until you're ready. Because your annuity rate will be determined by your age and the number of years you wait to receive the first payment, your lifelong income payment rate will increase each year you decide to delay your first payment.

Is it better to use gifts of cash or stock for my deferred gift annuity?

One is not necessarily better than the other. Both have distinct advantages. A gift of cash will produce a larger tax-free portion of the annuity. A gift of stock will reduce the donor’s capital gains tax and produce income that will likely be at a lower tax rate. Both assets produce an equal annuity rate and charitable income tax deduction.