Deferred payment gift annuities offer many of the same benefits as charitable gift annuities. These annuities are a sound investment and are especially a good choice for younger people. Since payments are deferred for a specified period, it is a great way to combine charitable wishes with retirement planning.
Deferred payment gift annuities require a simple agreement between Emory and the giver. The investment is managed by Emory and Emory guarantees the payments. Charitable tax deduction are immediately applicable.
Let's look at how this might work. A 52 year-old donor makes a contribution of $50,000 of appreciated stock in 2001, creating a deferred payment gift annuity to benefit a collection or program in the library. The donor chooses to defer payments for thirteen years until 2014 in order to begin receiving support from these funds at age 65. At that time from the 13.7% deferred payment gift annuity, the donor receives an annual payment of $6,850, paid quarterly. The payments are largely considered ordinary income, with a small portion tax-free. No capital gains tax will ever be owed. There are no lengthy legal documents to consider and the benefits are far reaching. Not only does the donor earn an immediate income tax charitable deduction of $22,260 for the gift, this reduces potential capital gains taxes on the sale of the appreciated stock. In this case, they are eliminated altogether. The donor also makes an important contribution to the library’s collections or programs. Through the deferred payment gift annuity, a donor can effectively made a gift that provides a guaranteed, supplemental income during retirement.
For more information, please contact:
Kate Myers, Assistant Director of Development & Alumni Relations, Emory Libraries, at 404 727-2245 or email Kate at Kate.Myers@emory.edu.