Deferred Gift Annuities
Flexible Gift Annuities

Complete Gift Description

These gift annuities are especially designed for donors in their mid-50s. They make fixed annual payments to you and/or another beneficiary for life, with payments commencing at a future date. Because of this deferral of income:

• Binghamton University Foundation can offer a higher income rate for these annuities than for annuities whose income starts immediately, and
• You may receive a larger charitable deduction than you could get from any other life-income plan.

These features make the deferred gift annuity and the flexible gift annuity quite attractive to donors in high-earnings years who are looking for both current tax deductions and additional sources of retirement income.

Deferred Gift Annuities

Donors can establish a deferred gift annuity as they are approaching retirement, or they can set up a series of deferred annuities over several years that will begin making one combined income payment at a future date. Deferred gift annuities offer all the security and tax benefits of a standard gift annuity, but their payments are scheduled to commence at a pre-determined future date. Donors often set this date to correspond with retirement, so that the income from the deferred annuity can supplement their other retirement earnings.

Flexible Gift Annuities

Donors set a target date to begin receiving payments from their flexible gift annuity, but they are not bound to that date if their financial circumstances change. Instead, the donor can tell us to commence payments earlier or later within a range of years around the target date. When the donor creates the gift we set a schedule of the annuity payments available from earlier through later starting dates.

The charitable deduction for your flexible gift annuity will be based on the earliest starting date within the range you set to begin receiving income payments. Once your gift is made and you fix the income starting date, your charitable deduction will not be affected. We will begin paying you the appropriate income amount that corresponds to that starting date.

Planning points

Both the deferred gift annuity and the flexible gift annuity are donor-friendly tools that allow you to create a significant gift while also making your retirement more secure. In addition, they offer the same benefits of simplicity, security and attractive income taxation that our standard gift annuities provide:

• You’ll secure a charitable income tax deduction for the value of the assets (cash, securities or other marketable assets) you give us, minus the present value of the life-income interest you retained;
• No up-front capital gains tax is payable if you fund your deferred or flexible gift annuity with appreciated securities; only a portion of your gain is recognized, with the tax spread over your annuity payments;
• Part of each annuity payment comes to you tax-free;
• You can specify how Binghamton is to use the proceeds of your annuity when it terminates.
• A deferred or flexible gift annuity benefiting the Binghamton University Foundation can be created with a gift of $10,000 or more.

How do you create a deferred or flexible gift annuity?

The agreement is a simple contract. We will provide a draft for review by you and your advisors. We will be happy to provide any additional material that you or your advisors may request.