Deferred gift annuities
A deferred gift annuity, like a charitable gift annuity, provides
a fixed income for life in exchange for a gift to MIT. With a deferred
gift annuity, however, payments begin at a specified future date. This
can be an attractive option for younger donors, who may wish to supplement
future income.
Donors of deferred gift annuities will receive an income tax deduction
for the year in which the gift is made, and when payments begin, a portion
of each payment will be tax-free. Deferred gift annuities can be established
with cash or securities.
To request a personalized proposal, please use our electronic
form and
provide us with some basic information.
Or, feel free to contact MIT’s Office
of Gift Planning at
gift_planning@mit.edu or 617.253.6463
with your questions.
Case study: Establishing a deferred gift annuity
Dave and Donna Barns, ages 60 and 63, don’t plan to retire for
several years. Their father, Don Barns, is looking for a way to contribute
to MIT, while ensuring a comfortable retirement for his children. In
consultation with MIT’s Office of Gift Planning, the family decides
to establish a five-year deferred gift annuity by donating appreciated
stock worth $250,000, which Don Barns originally purchased for $100,000.
In accordance with the senior Barns’ wishes, the gift is targeted
to Alzheimer’s research at the Institute.
As the donor, Don Barns is entitled to take an immediate charitable
income tax deduction of $61,227. In addition, he has—
- helped further the goal of curing Alzheimer’s disease,
- secured a guaranteed future income for his children,
- avoided capital gains taxes, and
- received a significant income tax deduction.
As for his children: Dave and Donna Barns will begin receiving an annual
income of $16,000, starting in five years.
[ top ]
|
