Life Income Gifts
Deferred Charitable Gift Annuities
Deferred annuities are a form of charitable gift annuity that provide income starting at a future date of the your choice. Deferred annuities are safe since your rate is locked in on the date of your gift and is backed by all of our assets, not just the annuity reserve.
In addition to the benefits of a current annuity, a deferred annuity offers:
- Higher fixed income rates
- Larger income tax deductions
Example:
If you were to donate $10,000 of appreciated securities, with a cost basis of $4,000, at age 60, to establish a deferred gift annuity that would begin payments when you reached 65, you would:
- Receive $650 a year, for life (6.5% annuity rate)
- Be able to take an immediate income tax deduction of more than $3,700
- Avoid capital gain tax on almost $2,300 of the appreciation
- Receive part of your annuity tax-free for your actuarial life expectancy
- This example uses rates effective February 1, 2009
Every gift is unique. Your benefits will vary with the timing of your gift.
This information is for informational purposes only. Earthjustice is not in a position to offer financial or estate planning advice. We recommend reviewing any gift plan with your personal advisors.