Especially designed for younger donors, deferred gift annuities make fixed annual payments to you and/or a beneficiary for life, with payments commencing at a future date. This gift offers the same benefits of simplicity, security and attractive income taxation of a regular gift annuity, but a higher income rate can be offered because the payments are deferred. Additionally, it may qualify you for a larger charitable income tax deduction than any other life-income gift plan. Request more information from our gift-planning experts.
How It Works
- You transfer cash, securities or other property to The Nature Conservancy.
- Beginning on a specified date in the future, The Nature Conservancy begins to pay you, or up to two beneficiaries, fixed annuity payments for life.
- The principal passes to The Nature Conservancy after the lifetime(s) of the beneficiaries.
- Defer payments to permit a higher annuity rate and generate a larger charitable deduction. The longer payments are deferred, the higher the effective rate.
- Target annuity payments to begin when you need them, such as at retirement or when a grandchild needs help with college tuition.
- Obtain satisfaction in making a significant gift now that benefits both you and The Nature Conservancy later.
You May Want to Consider a Deferred Gift Annuity If:
- You are in high earnings years, looking for income tax savings now and an additional source of revenue for retirement.
- You want to make a significant gift to The Nature Conservancy and receive payments in return.
- You want to maximize payments received from your planned gift while lowering income tax on those payments.
- You want the security of payments that won't fluctuate during your lifetime.
- You appreciate the safety of your payments being a general financial obligation of the institution.
- A deferred gift annuity at The Nature Conservancy can be made with a gift of $5,000 or more.
- The minimum age to start a deferred gift annuity is 35 and payments must be deferred until at least age 50.
- A deferred annuity is a contract between The Nature Conservancy and you. Annuity payments are an obligation backed by the Conservancy’s assets.
- You secure a charitable income tax deduction based on the market value of the assets you contributed, minus the present value of the life-income interest retained.
- No up-front capital gains tax is payable if the deferred gift annuity is funded with appreciated securities. Only a portion of the gain is recognized, with tax spread over annuity payments.
- Part of each annuity payment comes tax-free as the return of principal. The balance remaining in the deferred annuity after the death of the beneficiaries will be used by The Nature Conservancy for the purpose you designated when you created the gift.
Another option available to you is a flexible deferred gift annuity, which allows the beneficiary to start receiving payments on any one of a range of dates. The Conservancy offers a range of payouts with differing fixed payment amounts and differing starting dates - the longer the deferral period, the greater the fixed income. The donor receives an immediate income tax deduction for a portion of the gift based on the lowest deduction amount out of all of the years in the range, and decides on an annual basis whether s/he would like to start receiving payments.
Flexible Deferred Gift Annuity Example: You are 55 and 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|
Once your retirement date is set, you contact The Nature Conservancy to notify us of the date you'd like to start receiving payments. Note: This example is based on a factor that changes monthly. Contact our office for a personal illustration based on the latest rates.
- Learn about all the life-income gift opportunities.
- Are you planning for your retirement? Find helpful tips.
You can protect rivers and lakes and other natural places by making a planned gift with The Nature Conservancy. Contact us today.