Donors can delay the beginning of income payments from their gift annuity. The deferral produces both a higher income rate and a larger charitable deduction than does an annuity paying income immediately. Many donors set payments to begin at a future date when they or their spouse will need additional income.

The deferred gift annuity is especially attractive to donors still in high-income years who are looking for both tax deductions and additional sources of retirement income.

Comparison: Gift Annuity and Deferred Gift Annnuity

Assumptions: Donors aged 65 and 62 contribute securities worth $20,000

Option One: Gift Annuity paying income immediately;
Option Two: Deferred Gift Annuity beginning income in 5 years;
Option Three: Deferred Gift Annuity beginning income in 10 years.

Options	Immediate Payment Annuity	Income Deferred 5 years	Income Deferred 10 years
Contribution:	$20,000	$20,000	$20,000
Income Rate	5.8%	7.7%	10.5%
Annual Income (fixed)	$1,160	$1,540	$2,100
Charitable Deduction	$2,365	$3,563	$5,312

Deferred Gift Annuities

Donor Advised Funds

Charitable Remainder Unitrusts

Charitable Remainder Annuity Trusts

Charitable Lead Trusts

InterVarsity Christian Fellowship/USA^® does not offer legal or tax advice for your gift plans, but we do strive to provide helpful educational information and also strive to work carefully with you and your advisors to help you to accomplish your charitable goals.