Deferred Gift Annuities
(Gift example*)
Deferred Charitable Gift Annuity
Stephanie, age 60, establishes a deferred payment gift annuity with a cash gift of $50,000. She locks in a rate of $8.5%, or $4,250 annually, for her lifetime. Her payments will begin when she reaches age 70. Of the $4,250 she will receive each year, $1,746 will be tax-free for many years. She will also receive a charitable deduction of $22,242.50 in the year of her gift.
Stephanie hopes to retire in ten years, and knows that her gift annuity will provide a fixed income to supplement her retirement portfolio. Her gift allows her to plan for the future—both her own and the future of Yale
Summary of Benefits
8.5% Deferred Gift Annuity |
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ASSUMPTIONS: |
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Annuitant |
60 |
Cash Donated |
$50,000.00 |
Payout Rate |
8.5% |
Payment Schedule |
quarterly |
BENEFITS: |
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Charitable Deduction |
$22,242.50 |
Annuity |
$4,250.00 |
Tax-free Portion |
$1,746.75 |
Ordinary Income |
$2,503.25 |
After 15.9 years from the year the payments begin, the entire annuity becomes ordinary income. |
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Basic Gift Illustrations IRS Discount Rate is 3.4% These calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice. Your actual benefits may vary depending on several factors, including the timing of your gift. |
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