A Deferred Gift Annuity
- A prospective donor transfers cash or securities to The Prout School and retains a lifetime income from the gift. The payments will begin at a future date determined by the donor at the time of the gift. The annuity rate is based on the age of the donor and the number of years before the first payment. In all cases, the rates are higher than for current gift annuities. In the case of a Deferred Gift Annuity, the longer the deferral, the higher the rate the prospective donor receives. The donor receives a charitable income tax deduction in the year of the gift based on the age and deferral period. There is no immediate capital gains tax on the transfer of appreciated securities. Taxation of the deferred annuity payment is mostly ordinary income. The deferred gift annuity is appropriate for a donor who does not need income currently, but who wishes to establish an income for retirement while receiving an income tax deduction immediately. Prospective donors interested in a deferred gift annuity may contact Mrs. Rhonda Skinkle in The Office of Institutional Advancement at (401) 789-9262 ext. 537 for further details.