Deferred Charitable Gift Annuities
Retirement Income with Immediate Tax Relief
What is a deferred charitable gift annuity?
The deferred charitable gift annuity involves the current transfer of cash, marketable securities, or in some special cases, real estate, to Wheaton in consideration for which Wheaton agrees to pay you an annuity at some future date. A deferred gift annuity produces a larger current tax deduction than most other life-income contributions and is particularly ideal if you are planning for retirement. The annuity rate depends on the age(s) of the beneficiary(ies) and is actuarially designed to result in a gift at least 50% of the value of the initial transfer. A portion of each annuity payment represents the tax-free return of your investment in the annuity and, if you transfer appreciated securities, you may report the capital gain associated with the value of the annuity ratable over a period equal to your life expectancy.
Is a deferred charitable gift annuity right for you?
If you wish to ensure reliable income for the future needs of yourself or someone close to you, or are planning for retirement, then you may find the deferred charitable gift annuity to be a way to make a gift to Wheaton. If you appreciate the value of deferring capital gains taxes, desire security and the predictability of a fixed income and wish to make a gift to benefit Wheaton, then a deferred gift annuity may be an ideal way to achieve this. It is designed to appeal to the younger donor who has a high current income, needs to benefit now from a current tax deduction, and may be interested in augmenting future income. The minimum gift is $25,000.
Benefits to You
- You are able to make a significant gift to Wheaton.
- You receive an immediate charitable deduction for a portion of the gift.
- A portion of each annuity payment is treated as a return of the original investment and is received income tax-free over your life expectancy.
- Any reportable capital gain is spread out over your life expectancy at the time of the gift.
Deferred gift annuity table
(for a gift of $25,000)*
| Age of Donor | Deferred to Age | Current Charitable Deduction | Annual Income at Age 65 |
|---|---|---|---|
| 45 | 65 | $14,290.50 | $4,125.00 |
| 50 | 65 | $13,667.50 | $3,200.00 |
| 55 | 65 | $12,915.50 | $2,475.00 |
| 60 | 65 | $11,816.00 | $1,925.00 |
* Based on rates in effect through November 1, 2006
+ Reflects discount rate in effect on 8/1/2003; deduction may vary with individual cases
This page is maintained by The Office of Gift Planning. Last updated on 9/27/06.
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