Deferred Charitable Gift Annuity
Boost future income with immediate tax savings
A deferred charitable gift annuity is basically the same as a standard charitable gift annuity with the exception that you choose to wait for the first annuity payment, rather than having your payments begin immediately.
At the time you enter into a deferred charitable gift annuity contract with the Michigan Tech Fund, you irrevocably transfer the gift assets and receive an immediate income tax deduction, but you set a future date for the annuity payments to begin. You also have the option to wait to make a final decision on the start date for the payments. In either case, the longer the period that your annuity payments are deferred, the greater will be the fixed income that the Michigan Tech Fund can agree to pay.
As with an immediate-payment gift annuity, you may establish a deferred-payment gift annuity with the Michigan Tech Fund with a gift of $10,000 or more. Your annuitants must be at least 60 years of age when payments begin.
A deferred charitable gift annuity can be the solution if you need tax relief now but want to defer the income for retirement, you want to support Michigan Tech but fear you may need the cash flow in the future, or you want to provide for the future of your children.
Contact the Office of Gift Planning for more information.
Benefits of deferred charitable gift annuities
- Simple way to receive future fixed income for you or a loved one
- Immediate income tax deduction
- Partial tax-free income
- Partial avoidance of capital gains tax on gifts of appreciated assets
- Removal of assets from your taxable estate
- Future funding for the Michigan Tech program of your choice
- Effective way for young donors to provide for their retirement and Michigan Tech's future
