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Deferred Gift Annuity: Give Now, Receive Later

A deferred charitable gift annuity (like a charitable gift annuity) is a simple contract between WHOI and you, the donor. In exchange for a gift of cash, appreciated securities, real estate or other asset, WHOI guarantees payments (beginning at a pre-determined future date) for life to the income beneficiary.

Benefits:

  • An increased income payment and charitable deduction compared with a charitable gift annuity
  • Guaranteed payments, protected from the fluctuations of the economy and backed by all of WHOI’s assets, for the lifetime of the beneficiaries
  • A federal charitable deduction representing a significant portion of the fair market value of the gift
  • An opportunity to minimize capital gains tax liability on appreciated assets, such as stock, when they are used to fund the gift annuity

The deferred gift annuity may be an attractive charitable gift option for several reasons. First, if you are still working, this may serve as an additional retirement instrument with current tax benefits. The donor can make a gift of $10,000 or more now, and defer the income until age 65 or older.

Second, by deferring your income to a later date, you receive a larger charitable deduction in the year of the gift, and you also receive a greater fixed income when payments begin.

Deferred gift annuities are ideal for building up resources for your retirement while enjoying tax benefits today.  Unlike retirement accounts, there is no ceiling on how much you can contribute.

The example below illustrates income benefits and charitable deductions for a $10,000 gift established at sample ages and deferred to age 70

Age Number of Years Before Payment Annuity Rate
55 15 8.2%
60 10 7.0%
65 5 6.0%

To see how this may fit into your philanthropic plans, try our planned gift calculator.


For more information about planned giving and the Paul M. Fye Society, please contact Jim Flynn, Director of Major Gifts and Planned Giving at (508) 289-2018, or at jflynn@whoi.edu.