This version of the charitable gift annuity is especially designed for younger donors. Called the deferred gift annuity, it makes fixed annual payments to you and/or another beneficiary for life, with payments commencing at a future date. Because of the deferral of income:
These two features make the deferred gift annuity quite attractive to donors in high-earnings years who are concerned about securing both current tax deductions and additional sources of retirement income.
Many donors establish a series of deferred annuities over several years, using funds they had already set aside for retirement saving. They set the commencement date for payments from these annuities to coincide with their or their spouse's retirement.
The deferred gift annuity offers the same benefits of simplicity, security, and attractive income taxation that the regular gift annuity provides our donors:
With this option, you are not immediately locked into how long you wish to defer payments. It allows the income beneficiary to choose to start receiving payments on any one of a range of dates that are more than one year after the date of the gift. You might choose the start date of the range based on your expected retirement date or other considerations. The longer the deferral period, the greater the fixed income The Nature Conservancy can agree to pay.
You would choose an initial target date for the payments to start. The Conservancy would then offer a range of payouts with differing fixed payment amounts and differing starting dates. The income beneficiary would decide on an annual basis whether or not s/he wishes the annuity payments to start that year. You receive an immediate income tax deduction for a portion of your gift. It is based on the lowest deduction amount out of all of the years in the range.
Example: You are 55 and currently employed. You expect to retire within the next few years, and would like supplemental income to begin at that time. Since you are unsure exactly when that will be, you fund a $10,000 flexible deferred gift annuity with the following options:
|Age at Start Date||Annuity Rate||Annual Income||Tax Deduction|
*This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.
Are you planning for your retirement? Find helpful tips.
You can protect mountains and other natural places by making a planned gift with The Nature Conservancy. Contact us today.March 12, 2013