Deferred-Payment Gift Annuity

This type of gift might appeal to you if you want to support the UW Foundation, you’re 40 to 60 years old, you need to benefit now from a current tax deduction, and you are interested in augmenting your future income.

The deferred-payment gift annuity involves the current transfer of cash or marketable securities in exchange for which the UW Foundation agrees to pay the donor an annuity starting at a future date—usually at the donor’s retirement. The gift can consist of a single transfer, a series of transfers, or periodic transfers to the plan in high-income years.

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.