Deferred Gift Annuities

Add Flexibility to your Gift Annuity

A Deferred Gift Annuity (DGA) is simply a contract in which you exchange cash or other assets for a guaranteed, fixed income for life--starting in some future year that you designate (usually the year you expect to retire).  A large part of what is transferred represents an important gift to BBC students, which translates into a sizable charitable deduction.  DGAs can be useful to individuals who have several more years to work before retirement but need a tax deduction and want to provide a fixed annual income for retirement.

Personal Benefits of Deferred Gift Annuities

• Receive a current income tax deduction now
• Part of each payment made to you is tax free
• Receive a charitable gift income tax deduction while in a high income tax bracket
• Installment sale treatment of capital gains tax if appreciated stock is used for the gift
• A reduction of any estate tax liability since the gift is no longer part of the estate
• Because your payments are deferred, it provides an increased income later

Payout Rates are Generous
How large can payments be from your DGA? That depends on your current age and the year you elect to have payments start. The rates table shows the rates that would apply if you choose an "immediate payment" gift annuity and the increased payouts available if the initial payment is deferred five, ten, 15, or 20 years.

DGAs also can be arranged to make payments for the lifetimes of two people, such as a husband and wife, brothers and sisters, parents and children, or close friends. Call our office (1-800-451-8668) or e-mail us at info@bbcfoundation.org to receive your personal illustration of payments and estimated tax savings.

Who This May Benefit
Members of the "baby boomer" generation may find Deferred Gift Annuities to be the perfect way to make a charitable gift and also supplement their IRAs, 401(k)s, or other retirement savings plans. If a person age 45 arranges a $10,000 Deferred Gift Annuity today, with payments to begin at age 65, he or she will be able to deduct $4,228 as a charitable contribution and receive $1,570 in annuity payments each year starting 20 years from the inception of the annuity.

Those who are already age 65 or older may find that a flexible DGA will give them a chance to make a donation during their life and the choice of receiving a payment if they need it in the future. If a person is age 65 and they would like to make a donation today but would like the option of receiving an income stream in the future if the need arises, he or she could make a flexible deferred gift annuity and have the joy of a gift today and the peace of mind that a payment from this gift can be made in the future, if deemed necessary.

See "Calculate Personal Illustration" or call us toll-free at (800) 451-8668 for a look at a personalized illustration.

Testimony
View Example Rates
Calculate Personal Illustration
Download Application