DEFERRED CHARITABLE GIFT ANNUITIES
A deferred charitable gift annuity is similar to a charitable gift annuity except that the payments are deferred to a future date. A donor may defer payments to years when income is needed more, such as retirement. The donor obtains a substantial charitable income tax deduction in the year that the gift is made. Because payments are deferred, allowing the principal to grow, the donor enjoys a high payout rate later.
A deferred gift annuity is an excellent way to make a gift and receive a charitable income tax deduction while providing income for the future. Like the charitable gift annuity, the minimum gift amount is $5,000.
Summary of financial benefits:
- Guaranteed fixed payments for life, a portion of which may be nontaxable
- Charitable income tax deduction for a portion of the gift
- Reduced capital gains taxes