(also see Charitable Gift Annuities)

A deferred gift annuity is a variation on a charitable gift annuity. A gift is made and the charitable organization promises in return to pay an income stream that begins on a future date you specify. Since the payments do not begin for a period of time, the fund will grow until the payments begin. With more money in the fund once payments begin, payments are larger than with a comparably-sized immediate annuity.

"The deferred charitable gift annuity was attractive to me because it assured a steady stream of fixed payments for retirement while also providing for Millikin's future needs," says Gail Knobloch '63.

Gail established her charitable gift annuity in 1993, approximately eight years before her retirement. She began receiving payments in 2003. The deferred annuity's flexibility often makes it possible for donors to choose exactly when they want payments to begin, giving the deferred gift annuity its deserved reputation as a "charitable retirement plan."

Educated at Millikin as a choir teacher, Gail taught junior high choir for years before moving to California and embarking upon a second career as a supervisor in the California Department of Motor Vehicles. In retirement, Gail's days are literally filled with volunteering for the Braille Institute, the local Animal Control shelter, and a local elementary school, where she tutors children. Obviously, Gail believes in giving back, and she is pleased that she can do the same for Millikin.

"I had a wonderful experience at Millikin," Gail says, "and since I'm not nearby to volunteer my time for the university, this is one way I can show my appreciation-by helping its future."

An attractive benefit of this arrangement is that it enables a donor to make a gift now and take a charitable income tax deduction now while in a high tax bracket. Income may be deferred, for instance, until after retirement, when the rate of tax will presumably be lower. Deferred gift annuities are creative ways to delay income to pay for children's or grandchildren's college expenses, supplement your retirement income, or help with assisted-care living arrangements.

A part of each payment, as in any gift annuity, will be tax-free for a period of years. However, the precise amount of each payment will depend on the tax rules in effect when the gift is made. Deferred gift annuity payments cannot begin until one year from the gift date.

Charitable gift annuities are the gifts that keep on giving. Please contact us for an illustration of how your gift can produce income for life.