Diocese of Ogdensburg

The Roman Catholic Church in Northern New York

A Deferred Charitable Gift Annuity is a contract between The Foundation and you. You make a charitable gift and receive income for life starting at a future date. Payment rates are set by the American Council on Gift Annuities and are based on your age. Payments can also be structured to pay over two lives.

If you are interested in receiving income for life, but don’t need those incomes until some future date, a Deferred Charitable Gift Annuity through The Foundation is an excellent way to use current assets to make a gift to the Church and also have extra retirement funds when you want them. Younger donors find the Deferred Charitable Gift Annuity particularly appealing because it allows them to postpone receiving income until their retirement. Because the gift has been under management during the period that the payments are not being made, the charitable gift portion of the annuity is larger. This increases the size of the allowable charitable deduction, providing another tax advantage.

The annuity at the end of your life becomes an endowment fund to benefit the specific purpose you have designated. Because the annuity is structured to ultimately go to charity, you will receive an income tax deduction in the year it is established. Depending on your age(s), an annuity may outperform current rates on CD’s and savings accounts. Also, because part of each payment represents a tax-free return of principal, the effective return may be greater than a similar fully-taxable investment.

Annuities can be an ideal planning vehicle for retirement income. The major advantages of a Deferred Charitable Gift Annuity are:

  • Fixed income for life at a predetermined age
  • Tax deduction savings
  • Majority of income is tax-free
  • Capital gains tax savings
  • Personal satisfaction from making a gift of lasting significance