If you are between the ages of 45 and 65 and would like to make a gift towards the Lord’s work that provides an income source during retirement—and a charitable deduction now (while income is higher), consider a deferred gift annuity.
A deferred gift annuity allows you to make a gift of cash or appreciated assets in exchange for fixed quarterly payments starting at a future date and continuing until you go to heaven. After that, the residual of the gift will be used by your congregation, synod, or another WELS affiliated ministry. The following example illustrates the benefits of a single-life annuity (two-life annuities are also available). It is based on:
- a gift of $10,000 (minimum) in cash
- a payment rate of 6.4 percent for someone who is 55 years old and wants payments to begin 10 years from now (rates vary based on these factors)
You may claim a charitable income tax deduction of approximately $3,446.10 and receive annual payments of $640 for the rest of your life. And $329.60 of the payments you receive each year will be tax-free during the first 19.9 years. Then, after you’re in heaven, the residual value of your gift annuity would go to the ministry of your choice.
Transferring stocks, bonds, or mutual funds may be an even more beneficial way right now to fund your deferred gift annuity. In many cases these assets are highly appreciated, so a gift allows you to avoid capital gains taxes now and pay them in a more favorable way later.
A WELS Christian giving counselor can discuss the details for your personal situation. Call WELS Ministry of Christian Giving at 800-827-5482.