Deferred Gift Annuities

Donors can delay the beginning of income payments from gift annuities.

A delay or deferral of income payments produces income rates and charitable deductions that are higher and larger than with annuities that pay income immediately. Many donors set payments to begin at a future date when they or their spouse will need additional income.

The deferred gift annuity is especially attractive to pre-retirement donors who are still in their high-income years and who are looking for tax deductions and additional sources of retirement income.

Comparison: Gift Annuity vs. Deferred Gift Annuity

Options Immediate Payment
Annuity		 Income Deferred
Five Years		 Income Deferred
10 Years
Contribution $20,000 $20,000 $20,000
Income Rate 6.5 percent 8.4 percent 11.7 percent
Annual Income (fixed) $1,300 $1,680 $2,340
Charitable Deduction $5,587 $8,390 $10,591


For information and assistance with any form of giving to Kanuga, please contact Randy Boone, Kanuga’s director of development, at 828-692-0077, ext. 240, or . Persons considering a sizeable donation to Kanuga or interested in providing for Kanuga in their estate plan should seek the advice of a financial advisor and/or attorney.