Deferred Charitable Gift Annuity

A deferred gift annuity is a simple contract between you and Babson College.

In exchange for your irrevocable gift of cash, securities, or other assets, Babson College agrees to pay one or two annuitants you name a fixed sum each year for life, with payments starting at least one year after your gift.

The older your designated annuitants are at the time of gift and the longer payments are deferred, the greater the fixed income Babson College can agree to pay.

In most cases, part of each payment is tax-free, increasing each payment’s after-tax value. If you give appreciated property, you will pay capital gains tax on only part of the appreciation. In addition, if you name yourself as an annuitant, the capital gains tax will be spread out for many years and the first installment will not be due until you receive your first annuity payment.

At the end of the lifetime(s) of the annuitants, Babson will use the remainder in accordance with the terms you have established for your gift.

Benefits Include:

• You will qualify for a federal income tax deduction.
• The annuitants you name will receive fixed annual income for life, guaranteed by the general resources of Babson College, starting in the year you choose.
• If you fund the annuity with an appreciated asset, you will incur tax on only part of the gain. If you name yourself as an annuitant, this tax will be spread out over many years and the first installment will not be due until after you receive your first payment.
• Your estate may enjoy reduced probate costs and estate taxes.
• You will become a member of the Roger and Grace Babson Legacy Society.
• You will provide generous support to Babson College.

*Note: The information on this site is not intended as legal, "tax" or investment advice. For such advice, please consult an attorney, "tax professional" or investment professional.