Deferred Gift Annuity

Give Now, Receive Later

A deferred charitable gift annuity (like a charitable gift annuity) is a simple contract between WHOI and its supporters. In exchange for a gift of cash, appreciated securities, real estate or other asset, WHOI guarantees payments (beginning at a pre-determined future date) for life to the income beneficiary named in the contract. Payout rates are highly competitive and reflect the maximum recommended by the American Council on Gift Annuities.

Benefits:

  • An increased income payment and charitable deduction over a charitable gift annuity
  • Guaranteed payments, protected from the fluctuations of the economy and backed by all of WHOI’s assets, for the lifetime of the beneficiaries
  • A federal charitable deduction representing a significant portion of the fair market value of the gift
  • An opportunity to minimize capital gains tax liability on appreciated assets, such as stock, when they are used to fund the gift annuity
  • A means to increase yield and generate tax-free return of principal when funded with cash or assets with little or no appreciation

The deferred gift annuity may be an attractive charitable gift option for several reasons. First, if you are still working, this may serve as an additional retirement instrument with current tax benefits. The donor can make a gift of $10,000 or more now, and defer the income until age 65 or older.

Second, by deferring your income to a later date, you receive a larger charitable deduction in the year of the gift, and you also receive a greater fixed income when payments begin.

Deferred gift annuities are ideal for building up resources for your retirement while enjoying tax benefits today.  Unlike retirement accounts, there is no ceiling on how much you can contribute.

The example below illustrates income benefits and charitable deductions for a $10,000 gift established at sample ages and deferred to age 70

Age

Number of Years Before Payment

Annuity Rate

55

15

10.3%

60

10

8.5%

65

5

7.0%

To find out current rates on your own, please try our planned giving calculator. For more information, please contact Jayne Iafrate at (508) 289-3313 for information.