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Planned Giving for Financial Advisors

Charitable Gift Annuity — Flexible

Flexible Deferred Gift Annuity Gift Diagram

How they work

  • Your client transfers cash or securities to Harper College Educational Foundation in exchange for a flexible gift annuity. Our minimum funding value is $10,000.
  • Your client specifies a range of possible starting dates for the annuity payments to begin. Each date offers progressively higher payment rates.
  • When your client later selects the annuity start date, Harper College Educational Foundation begins paying your client fixed annuity payments for life.
  • At the end of the annuity term, the remaining contract balance (residuum) will be applied by Harper College Educational Foundation to the purpose your client stipulated when she signed her annuity contract.

Benefits for your clients

  • Even if your client doesn't know when she's going to retire she can create a gift annuity with a flexible start date.
  • The contract will include a range of possible annuity start dates, and each date will offer your client progressively higher payment rates. Her charitable deduction will be an amount that corresponds to the earliest possible starting date.
  • Deferral of payments yields a higher annuity rate and generates a larger income tax charitable deduction. The longer payments are deferred, the higher the annuity rate and deduction will be.
  • The annuity payments will be treated as part ordinary income, part capital gains income and/or part tax-free income, depending on the assets used to create the annuity.
  • Payments are typically much higher than the return on low-earning savings accounts and CDs or low-dividend stock.
  • Your client will have created a meaningful gift for Harper College Educational Foundation while providing income for her named beneficiary/ies.

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