A deferred charitable gift annuity provides the same benefits as regular gift annuities, but if you defer the payments, the benefits multiply. With a deferred gift annuity, you make your contribution to Kappa Alpha Order Educational Foundation now and receive an income tax charitable deduction, but you postpone the start of your annuity payments until a specified future date.
The rate of return depends on your age now and your age when the payments will begin. Because payments are deferred, the rate is considerably higher than the rate for an immediate annuity. Example: Roger, aged 45, transfers $10,000 to us for a deferred payment gift annuity, with payments to start at age 72. Roger receives an immediate charitable deduction on his income taxes of $4,851*. At age 72, he will start receiving annual payments of $1,740 (17.4 percent x $10,000) for the rest of his life.
If you are currently earning a sizable income, deferring the payments of a gift annuity until later can supplement your retirement savings.
* Assumes a 3.4 percent charitable midterm federal rate.
The information in this Web site is not intended as legal advice. For legal advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income tax include federal taxes only. Individual state taxes and/or state law may impact your results.
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