Planned Giving

Deferred Payment Gift Annuity

The deferred payment gift annuity generally appeals to individuals in the 40-60 year age bracket who have a high current income, could benefit now from a current income tax deduction, and are interested in additional income for retirement. With a deferred payment gift annuity:

• You transfer cash or marketable securities to Claflin University.
• You could make a single transfer, annual transfers, or periodic transfers.
• In exchange, Claflin University guarantees to pay you an annuity starting at a future date -- usually at the donor's retirement.
• You receive an income tax deduction when you make the gift.
• Annuity payments are favorably taxed when you receive them.

You realize an immediate charitable deduction for the gift portion of each transfer to the deferred gift annuity plan. A portion of each annuity payment, when the payments begin, will be a tax-free return of principal over the life expectancy of the annuitant. When appreciated, long-term, capital-gain securities are transferred any reportable capital gain is spread out over the donor-annuitant's life expectancy.

Example:

Dr. Iris Nelson, 45, decides to make annual cash contributions of $10,000 to Claflin University in exchange for a series of deferred payment gift annuities. Payments are to begin upon her retirement in 20 years and continue for the rest of her life. The tax and financial benefits of this arrangement are as follows:

• She will receive an annual annuity payment of $20,570 to begin when she reaches the age of 65 and to continue for the duration of her life.
• She will be allowed charitable deductions totaling $68,246 over 20 years—which represents more than 34% of her total contributions of $200,000. (The annual deduction will vary from $3,313 for the first year to $3,283 for the last year.)
• Unlike a qualified retirement plan, there are no upper or lower limits to her contributions or other restrictive requirements on the design of the plan.
• Will have made a significant gift to Claflin University.

To make a gift or to request additional information about deferred charitable gift annuities, contact:

Sunya L. Young
Director of Planned Giving
Division of Institutional Advancement
400 Magnolia Street Orangeburg, SC 29115
Phone: (803)535-5704; Toll Free: (888)223-7103; Fax: (803)535-5371
E-mail: syoung@claflin.edu

The information provided on this website is for informational purposes only and is not intended as legal, tax or investment advice. Please consult your accountant, financial advisor or attorney to assist you in determining which planned giving option is most appropriate given your financial goals and objectives.