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Example: George and Jane, both age 60, are in their peak earning years and highest tax bracket. They had planned to make a gift to
WWF through their will. They are also concerned with assuring themselves adequate retirement income.
George and Jane decide to transfer $50,000 to WWF for a deferred gift annuity agreement. They receive an income tax charitable deduction this year for
over $22,000, which helps offset income taxes today. When they reach age 70, annual payments of
9.7% of the amount donated, or $4,850, will begin and continue for as long as either of them lives.
George and Jane plan to create another deferred gift annuity each year until retirement. They are thus able to make substantial and much appreciated gifts to
World Wildlife Fund while they help build future economic security using funds that they had already planned to leave to
WWF.
|
| Amount transferred to WWF |
|
... $50,000 |
| |
| Annual payments beginning at age 70
for as long as either George or Jane lives |
|
... $4,850
|
| |
| Immediate income tax charitable deduction |
|
*... $20,000
|
|
*depends upon IRS discount rate in effect
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