Deferred Gift Annuity
Unlike most qualified retirement plans and IRAs that have contribution limits, the Deferred Payment Charitable Gift Annuity allows you to contribute an unlimited amount as often as you like. The minimum gift is $10,000. Each gift creates a different annuity.
Advantages of a Deferred Gift Annuity
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You provide a gift for the Evangelical Lutheran Church in America ministry of your choice.
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Because your payments are deferred, your immediate charitable income tax deduction (if you itemize deductions) will be larger than through a typical Charitable Gift Annuity. The longer the payments are deferred, the larger the charitable deduction.
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Your payout rate will be higher once payments begin
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You receive guaranteed annual lifetime payments, starting when you choose. Generally you will benefit from being in a lower income tax bracket when you begin to receive your payments.
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Your gift has increased your overall retirement package. In addition, you can add to that package every year with a new Deferred Payment Charitable Gift Annuity
Giving through a Deferred Payment Charitable Gift Annuity
Your Deferred Payment Charitable Gift Annuity can be made with gifts of cash, long-term appreciated stocks, bonds, mutual funds or incentive cash bonuses. When funding such a gift with long-term appreciated stock, part of the capital gains tax is by-passed; the rest is prorated over your life expectancy.
Giving to Evangelical Lutheran Church in America Ministries
You may choose any Evangelical Lutheran Church in America to receive the charitable remainder of your gift. Ministries include your congregation, synod, social ministry organizations, colleges and seminaries, Lutheran Disaster Response, World Hunger Appeal or others. Gifts in certain amounts may establish an endowment to benefit specific ministries forever.
Retirement Planning with Deferred Payment Charitable Gift Annuities
Unlike most qualified retirement plans and IRAs that have contribution limits, the Deferred Payment Charitable Gift Annuity allows you to contribute an unlimited amount as often as you like. The minimum gift is $10,000. Each gift creates a different annuity.
You may like the idea of a current charitable deduction while supplementing your retirement income but cannot make one large gift this year. One option is to make gifts of a smaller amount for several years, funding multiple Deferred Gift Annuities that will all begin payment the same year.
