Flexible deferred charitable gift annuities function similarly to traditional deferred CGAs with one key difference–donors can choose several payment start dates rather than just one. Like traditional deferred CGAs, this vehicle is ideal for pre-retirement donors or those in their highest-earning years who want to defer their annuity payments.
What you need to know
- Deferred CGAs are established through irrevocable gifts of at least $10,000 in the form of cash, appreciated securities, or property.
- The value of your gift is invested in the college’s gift annuity pool.
- In exchange for the gift, St. Olaf promises to pay a fixed amount each year (an annuity payment) to you and/or one other income beneficiary for life.
- Payments begin on a future date. When the gift is made, you can determine several time frames for when payments begin.
- The payment amount is based on the ages of the income beneficiaries, the size of the gift, and the length of the deferral period.
- You can tailor the payment start date to fit your financial needs.
- The longer payments are deferred, the larger the annuity payment will be.
- Payments are guaranteed for life and are backed by the full faith and credit of St. Olaf.
- After the final beneficiary’s lifetime, the college and its students benefit from the remaining value of your gift.