Benefits Worth the Wait

A 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 your favorite charitable organizations 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, age 45, transfers $10,000 to us for a deferred payment gift annuity, with payments to start at age 73. Roger receives an immediate charitable deduction on his income taxes of $5,326*. At age 73, he will start receiving annual payments of $2,500 (25.0 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 4.6 percent charitable federal midterm rate

Please contact Mary Ludwig, Development Director at 712-732-5127, for more information.

The information on this site is not intended as legal, tax or investment advice. For such advice, please consult an attorney, tax professional or investment professional.

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