Planned Giving: Deferred Gift Annuity

Many donors may want to make a sizable charitable gift of capital now because they do not need additional current income.  They would also like to reduce their income taxes.  However, upon retirement, they would like to have additional income.  A Deferred Gift Annuity, sometimes called "the charitable IRA", can save income taxes now and provide retirement income later.  The donor makes a charitable gift but defers receiving income from it for more than one year.  For example, a 55 year old donor may defer the income until age 65 when he/she retires.  The longer the deferral, the higher the rate of the income, but the amount of the income is determined at the time of the gift.

The benefits at the time of the gift are similar to the Charitable Gift Annuity including a charitable deduction (can be spread over 5 years, 3 years for non-cash assets), capital gains tax savings and the ability to provide for a spouse or other beneficiary.  When the income stream starts, the donor may receive additional income tax savings and convenient monthly, quarterly or annual payments.  The minimum gift is $2,000.00.

If you establish a planned gift to benefit Andover Newton, you will be invited to become a member of our Heritage Society. An Honor Roll of Heritage Society Members is published in our Annual Report. You can choose whether or not you want your name to appear on the Honor Roll.

Contact Information