Deferred Gift Annuity
Fixed Income, Deferred Until Age 65
For those alumni and friends aged 45-64, the deferred gift annuity may be an attractive charitable gift vehicle for several reasons. First, if you are still working, this may serve as an additional retirement instrument with current tax benefits. The donor makes a gift of $25,000 or more, and defers the income until age 65 or older.
The deferral period not only results in a larger charitable deduction in the year of the gift, but generates a greater fixed income when payments begin. Like the charitable gift annuity, income payments are made in quarterly installments.
The example below illustrates income beginning at age 65 and the charitable deduction in the year of the gift. (Please note: Carnegie Mellon only follows the ACGA recommended deferred gift annuity rate up to 15%, then "caps" them subsequently.) Rates vary monthly.
|Current Age||Income at 65||Charitable Deduction|
||$3,025 (12.1% of $25,000)||$5,876|
|50||$2,450 (9.8% of $25,000)
|55||$2,000 (8.0% of $25,000)
|60||$1,625 (6.5% of $25,000)
Please contact Christine Tebes to learn more about deferred gift annuities.