Deferred Gift Annuities

Fixed Income for Life—Starting Later On

A Deferred Gift Annuity is ideal for those who want to make a gift today, but don’t need to receive income right now. Rather, they prefer fixed, guaranteed income for life—starting some years later.

This is a version of the Charitable Gift Annuity, except that the payments start later on and are higher because they are delayed until the time that you choose. The payments are larger, but are also fixed and guaranteed by People For the American Way Foundation (PFAWF). They also provide a larger income tax deduction.

Examples of Deferred Gift Annuities

1. Mary Smith is 50 and plans to retire at 70. She has a small business and has already maxed out on her retirement plan. She would like the security of adding to her retirement income. She gives PFAWF $10,000 for a Deferred Gift Annuity.
   
   In return, she will receive a guaranteed payment of $2,170 each year for life, starting at age 70. She will also receive an income tax deduction of approximately $5,200.


2. George & Donna are 60 and 65. They are receiving annual payments of $1,100 per year from the sale of a small tract of land that will be paid off in 10 years. They would like to replace this income once the property is paid off and help PFAWF at the same time.
   
   They make a $10,000 gift to PFAWF for a deferred gift annuity to start payments in 10 years. Starting in 10 years, they will receive $1,170 per year for as long as either of them live.