University of Minnesota
University of Minnesota Foundation
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612-624-3333


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If You Don't Need Extra Income Right Now...

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If you are not yet retired, a deferred charitable gift annuity may be the right charitable gift for you. You'll receive the same benefits as regular gift annuities but with considerably higher rates.

How It Works
You make the contribution to us now, securing a current income tax charitable deduction. Starting at any date you select, the University of Minnesota Foundation provides you with fixed payments for life. This is especially advantageous if your tax bracket is higher now than it will be later when you retire. The rate depends on your age now and your age when the payments will begin. Because payments are deferred, the rate is considerably higher than with an immediate gift annuity. Your charitable deduction is larger, too, when you choose to defer the start of your payments.

In addition, for many people, contributions to IRAs, 401(k) plans and other retirement plans are limited. The deferred payment gift annuity is a good way to provide the additional retirement income you desire.

Deferred Charitable Gift Annuity
You
You
1
Gift of cash
2
Greater income tax deduction
Deferred Gift Annuity
3
Period of deferral
4
After your lifetime
Greater Fixed Payments for Life
Remainder Supports the University of Minnesota Foundation
eBrochures
 Download a free guide to learn more about deferred charitable gift annuities.


Your Rate
Generally, the older you are at the start of your payments, the higher your rate.

These rates are the maximum rates recommended by the American Council on Gift Annuities and are adjusted periodically.

Sample Deferred Gift Annuity Rates
One Life
Age
Deferred
Until Age
Rate
55 65 6.4%
60 70 7.0%
65 70 5.9%
65 75 7.9%
70 80 9.3%
75 80 7.9%
Two Lives
Age
Deferred
Until Age
Rate
55/55 75/75 9.4%
60/60 75/75 8.0%
65/65 80/80 9.1%
60/65 75/80 8.5%
65/70 80/85 9.8%
65/70 75/80 7.2%
Please contact us for a personal calculation to confirm your eligibility for this program


Not all organizations offer charitable gift annuities at the above ages and rates. Contact the University of Minnesota Foundation for a personalized illustration or for more information.

Example
Steve, 65, gives $10,000 to a qualified charitable organization for a deferred payment gift annuity, with payments to start at age 75. Steve is eligible for an immediate income tax charitable deduction of $4,617 (assumes annual payments and a 1.4 percent charitable midterm federal rate—deductions vary based on income earned) when he itemizes. At age 75, he will start receiving yearly payments of $790 (7.9 percent x $10,000) for the rest of his life. Of that amount, $449 is tax-free to him until he reaches his life expectancy in 12 years.


Contact Planned Giving at 612-624-3333 or 800-775-2187 or plgiving@umn.edu for more information.


Your Next Steps
Getting Started | If You Don't Need Extra Income Right Now... | Is This Gift Right for You? | Case Study | How to Complete Your Gift | Action Items




Charitable gift annuities may not be available in all states.

Copyright © The Stelter Company, All rights reserved.

The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.

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