Deferred Charitable Gift Annuities

With a deferred gift annuity, a donor benefits in two ways: first, by receiving an immediate charitable income tax deduction (thus, decreasing income taxes during high income years) and second, by building retirement income on a tax-sheltered basis. Because the investment has time to grow while income payments are deferred, the donor ultimately receives higher income payments and simultaneously creates an even greater gift to GFA World.

Example:

Susan is single and has reached that milestone age of 50 years old. She is actively saving for her retirement years. She is also very interested in doing something special to support GFA World. She decides to put these two objectives together. Her investment portfolio includes $50,000 in CDs that are about to mature. She decides to use this cash to fund a deferred payment charitable gift annuity that will begin paying her a fixed lifetime annuity of $4,150, (of which $1,863 is tax-free) at age 62. Susan also gets an immediate income tax deduction of $8,244, further increasing her total effective return for this investment. GFA World will receive the remaining balance upon Susan's death; or if the annuity is reinsured, will receive funds (the present day value of the future gift) that can immediately be used on the mission field.

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