Deferred Gift Annuities


Donors of deferred gift annuities contribute cash or appreciated securities and receive annuity payments beginning at a future time they choose. The minimum age to contribute to a deferred gift annuity is 50. The annuity rate is based on how long payments are postponed, the age of the annuitant when payments begin, and other factors. The donor receives a larger charitable income tax deduction because of the deferral.

Example: Mr. Lyon, age 52, wishes to make a significant gift. He is in the highest income tax bracket and is interested in an offsetting charitable tax deduction. He funds a deferred gift annuity with $100,000 in appreciated securities. At age 70, when he has elected to begin receiving income payments, his income payment will be greater than it would be for an immediate payment annuity. His charitable tax deduction in the year of his gift also will be substantially higher than the deduction in the year of his gift also will be substantially higher than the deduction of an immediate payment annuity.

Minimum gift: $10,000