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Learn how to make Kosair Charities part of your planned giving.
Deferred Gift Annuity Example
My husband I are now in our 50's with two teenagers. My husband provides the bulk of the family income and retirement savings. We are in the 33% tax bracket and have reached the maximum contribution limit for our group pension plan.
He wants to make a gift of $50,000 to Kosair Charities, but he is finding it hard to locate the assets to make a gift outright. We would also like to find a way to offset our taxable income and find other options for our retirement.
We have decided that starting this year, we will create five deferred gift annuities of $10,000 each. Payments from all five annuities will commence when my husband becomes 65 years of age thirteen years from now, and will continue for the balance of our lives.
The five annuities will have different income rates and charitable deductions because the deferral periods will get shorter each year. Listed in the chart below are the income and tax benefits of the five deferred gift annuities:
For example if the charitable annuity is funded with $30,000.00 Cash the breakdown would be as follows:
| |
Annuity Rate |
Annuity Amount |
Tax-Free Income |
Charitable Deduction |
Year 1 |
10.4% |
$1,040< |
$270 |
$3,012 |
Year 2 |
9.8% |
$980 |
$265 |
$2,982 |
Year 3 |
9.3% |
$930 |
$262 |
$2,733 |
Year 4 |
8.9% |
$890 |
$261 |
$2,507 |
Year 5 |
8.3% |
$830 |
$253 |
$2,507 |
Total |
|
$4,670 |
$1,311 |
$13,633 |
*This example is based on a factor that changes monthly.
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