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I Don't Need Additional Income Now. Can I Make a Current Gift and Delay Receiving Payments?
Yes, this is known as a "deferred" gift annuity. You can make a gift now and designate the time in the future when income payments are to begin, and they will be higher than an immediate annuity's payments. The amount of the charitable tax deduction will usually be higher than that for an immediate-payment annuity. Payments are based on the original gift value.
Gift Spotlight: Alex, 55, a successful professional, is interested in establishing a charitable gift annuity with Colgate but is too young to receive immediate income, given Colgate's minimum age threshold of 60 years. He also maxes out his retirement contributions. He decides to contribute $50,000 for a deferred gift annuity that will begin paying him when he retires at 67. His gift generates an income-tax charitable deduction of $26,139, and Alex will receive $4,550 each year beginning at the age of 67. |
