Deferred Charitable Gift Annuity

Deferred Charitable Gift Annuity

With a deferred gift annuity, a donor benefits in two ways: first, by receiving an immediate charitable income tax deduction (thus, decreasing income taxes during high income years) and second, by building retirement income on a tax-sheltered basis. Because the investment has time to grow while income payments are deferred, the donor ultimately receives higher income payments and simultaneously creates an even greater charitable gift.

Example:

Susan is single and 51 years old and actively saving for her retirement years. She is also very interested in doing something special to support the Mission. in exchange for a deferred payment gift annuity that will begin paying her a fixed lifetime annuity at age 62. Under this arrangement, when Susan turns 62, she will receive annual annuity payments of $3,050, or 6.1% of her gift (of which $1,970 is tax-free). Susan also gets an immediate income tax deduction of $5,058, further increasing her total effective return for this investment. Susan will receive these payments as long as she lives, and afterwards, the Mission will receive the remaining balance.

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