You can supplement your income through a gift that returns payments to you during your lifetime, and you can enjoy the benefits of your support starting today. If you want to supplement your current or retirement income, while achieving your charitable goals here are several options to consider.
Deferred Gift Annuity
A deferred gift annuity is an agreement between you and Boston Conservatory at Berklee, which provides you regular annual income in the future. You fund your gift today and receive an income tax deduction, however, you determine the number of years in the future when you will begin to receive annual income payments. Typically, the designated future point is your planned retirement age. When the annuity terminates, the remaining principal comes to Boston Conservatory at Berklee to be used for a purpose you direct.
Here is an example:
Dancer, now aged 45, wants to create an endowed fund to support Boston Conservatory's dance program. He is concerned about income during his retirement. He funds a $25,000 gift annuity today with the expectation of deferring income payments until he reaches the age of 65.
Here are his benefits:
- $2,225 annual payments beginning at age 65 for the remainder of his life.
- $7,452 charitable income tax deduction in the year of the gift.
- Dancer may designate his 50-year-old spouse as a lifetime beneficiary as well.
Contact Dana Grider, senior director, Institutional Advancement, at email@example.com or 617-747-2439 if you are interested in Deferred Gift Annuity.