Planned Giving for Financial Advisors
Charitable Gift Annuity — Deferred — Detailed Gift Description
Deferred Gift Annuities are created the same way immediate Charitable Gift Annuities are, and they carry similar tax and other benefits, but they allow your client to postpone the start date of the annuity payments. The longer the payment start date is delayed, the higher your client's annuity rate and income tax charitable deduction will be.
Deferred Gift Annuities are especially attractive to donors 40 to 60 years of age who are looking for relatively high tax deductions to offset income during high-earning years as well as an additional source of income for future needs like retirement or a child's college education.
Your client can also create a series of Deferred Gift Annuities over several years, all set to start making annuity payments on a single date in the future. Individuals who "ladder" certificates of deposit (CDs) may find deferred payment gift annuities more appealing and predictable.
You client can retain the right to elect to have the annuity payments compressed, or “commuted,” into a shorter period of time, perhaps to bridge the gap between her retirement date and when pension payments will begin, or when a child’s or grandchild’s college tuition payments will come due. Your client can also consider a Flexible Gift Annuity if she wants the flexibility to choose her payment start date.
Is this gift right for your client?
A deferred gift annuity may work for your client if…
- She wants to make a significant gift to Harper College Educational Foundation and receive payments in return.
- She is in high earnings years, looking for both income tax savings now and an additional source of revenue later.
- She wants to maximize the payments she receives from her gift — and she wants to lower her income tax on those payments.
- She wants the security of payment amounts that won't fluctuate.
- She appreciates the security of her payments being a general financial obligation of Harper College Educational Foundation.