an arrangement whereby the starting date of income payments from a charitable gift annuity may be deferred for at least one year, thereby increasing both the annuity amount and the charitable deduction
a contract providing for the payment of a fixed income, like a regular gift annuity
an excellent means of supplementing retirement income
an excellent way for younger donors to make a gift and receive a charitable income tax deduction while providing income for the future
a variation on a gift annuity
A gift annuity agreement providing for payments to commence at a future date and to continue for life.
This is an annuity that is established currently, but the donor requests payments to begin at sometime in the future. Depending on the length of the deferral, a deferred gift annuity will yield a higher payout rate to the donor, and a higher current charitable deduction. However, a larger portion of the payments that are received by the annuitant in the future will be considered ordinary income.