Deferred Charitable Gift Annuities
If you do not need additional income now, but would like to generate supplemental income for yourself upon retirement or for a designated annuitant, deferred gift annuities offer considerable advantages.
Like an immediate-payment gift annuity, a deferred gift annuity is a contract between you and Reed College. You make a gift of cash, securities, or other assets to Reed, and in exchange, Reed agrees to pay you, or your annuitant, a fixed sum for life. But with a deferred gift annuity, you can specify the date upon which you or your
annuitant begins to receive payments. Deferring income over time generates an annual payment that is often considerably higher than it would be for an immediate- payment gift annuity, thus providing more disposable income to you during your retirement years. The deferral period can be as long as you choose, although it must be at least one year from the time you make the gift.
Good Tax News
- A deferred charitable gift annuity allows you to defer your annuity payment until needed, but you can enjoy the tax benefits associated with a charitable gift annuity in the year of your gift.
- Both the tax deduction and the level of annuity payment increase with the length of the deferral.
- Deferred gift annuities, when properly structured, can also provide a source of future income to children, free from gift and estate taxes
This guide is not intended to provide specific advice about your estate plan or to recommend a specific course of action. We suggest you consult your professional advisers before taking any action, then contact Reed's planned giving office to learn more about these giving strategies. Charitable gift annuities from Reed are not available in all states.