A deferred charitable gift annuity provides fixed payments to you for life in exchange for your gift of cash or securities. The payments start on a date you choose that is at least one year after you make the gift.
Deferred gift annuities are easy to set up, and the payments you receive are backed by the general resources of St. Lawrence University for as long as you live.
A deferred charitable gift annuity could be right for you if:
You have sufficient income now but want to supplement your cash flow later, for example, when you retire.
You want the security of fixed, dependable payments for life.
You want to save income taxes or capital gains taxes.
You would like income that may be partially tax-free.
You are considering a gift amount of $10,000 or more.
How Your Gift Helps Your gifts to the University help to make it possible for current and future Laurentians to have the St. Lawrence experience through financial aid, as well as critical resources for new academic initiatives such as...
Providing the best possible education for today’s world...
Learning that occurs both inside and outside the classroom...
and improved infrastructure and learning technologies.
Because everyone’s situation is different, we encourage you to seek professional legal, estate planning, and financial advice before deciding on a course of action. This information does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice.
A simple contract A deferred gift annuity is a simple arrangement between you and St. Lawrence University that requires a one or two page agreement. There are minimal or no costs to you to establish the arrangement and no costs at all to maintain it.
Irrevocable gift A deferred gift annuity is an irrevocable arrangement. Once you transfer assets in exchange for the deferred gift annuity, you cannot change your mind and get the assets back. This requirement assures that whatever is left of your gift when the deferred gift annuity ends will go to support St. Lawrence.
Fixed payments for life, starting when you want them In exchange for your irrevocable gift of cash, securities, or other assets, St. Lawrence will pay you a fixed amount each year for life.
You choose when payments start. For example, you can specify that payments start in the year you plan to retire.
Once your payments start, they will last for your lifetime. You cannot outlive your payments.
Payments are predictable. Your payments will not be affected by investment performance or market conditions. You will get the same amount each year, no matter what.
Payments are very secure. They are backed by the general resources of St. Lawrence, not just by the assets you donate.
Tax-advantaged payments Typically, part of each payment will be tax-free for many years. This tax free portion makes your payments more valuable than an equal amount of fully taxable income.
Who can receive payments? You decide who will get the payments from your gift annuity. Usually, this will be you, or you and your spouse. You can, however, select any one or two people to receive the payments from your gift annuity. For example, you may wish to provide income for a child, a sibling, or a faithful employee.
Payment amount depends on your age and years until payments start As shown in the table below, the older you are when you start receiving payments and the longer you wait to start your payments, the greater the payment rate you will receive.
Sample deferred annuity rates for a $10,000 gift
Age at Gift
Income tax savings You will earn an immediate income tax charitable deduction in the year of your gift, providing tax savings if you itemize. The amount of this deduction will depend on several factors. If you cannot use the entire deduction in one year, you may carry forward your unused deduction for up to five additional years.
Capital gains tax savings If you give appreciated property, such as stock, to create a deferred gift annuity, you will pay tax on only some of your capital gain in the property. Even better, if you are the payment recipient of your deferred gift annuity, this capital gain will be spread out in installments over many years and won't start until the year you begin to receive payments. In this case, your capital gain income will replace some of the tax-free portion you would receive if you were to give cash.
Estate tax savings By removing the gift assets from your estate, you may also reduce future estate taxes and probate costs. The amount of these savings will depend on the size of your estate and on estate tax law in force at the time your estate is settled.