A deferred charitable gift annuity works like a standard charitable gift annuity (CGA), with one powerful difference: you choose when payments begin. The longer you wait between funding your annuity and starting your payments, the higher your rate. For those who are looking to supplement future retirement income but don’t need to increase current cash flow, a deferred CGA can deliver significantly higher planned giving retirement income than an immediate annuity.

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What Is a Deferred Charitable Gift Annuity?

A deferred charitable gift annuity (deferred CGA) is a planned giving arrangement in the form of a contract by which you transfer assets to Pomona College today in exchange for fixed, secure payments that begin on a future date you select. The date must be at least one year from the gift date, and you must be at least 60 years old when payments begin. Your rate is based both on your age when payments start and the number of years you defer payments. The longer you defer, the higher your payments.

Like all Pomona Plan gift annuities, payments from your deferred CGA are backed by the full financial resources of Pomona College.

Is a Pomona Plan Deferred Gift Annuity Right for You?

A deferred CGA may be a strong fit if you want to:

• Supplement your retirement income and secure an increased future cash flow
• Lock in a higher payment rate than an immediate gift annuity would provide
• Receive fixed, dependable payments for life starting on a date you choose, when you are at least 60
• Reduce your tax burden through an immediate tax deduction and capital gains tax savings
• Receive partially tax-free income once payments begin
• Fund a gift of $25,000 or more
• Make a lasting gift that supports future Pomona students
   

The Longer You Wait, the More You Earn

Rates increase with both age and deferral period. The following sample deferred gift annuity rates for 2026 apply to a $100,000 single-life deferred gift annuity:

Sample rates for illustration purposes only. Please call 1-800-761-9899 to confirm the rate for your closest age and deferral period.

How Does a Deferred Charitable Gift Annuity Work?

A deferred gift annuity is a one- or two-page contract between you and Pomona College with no setup fees or ongoing administrative costs.

1. You make an irrevocable gift. Transfer cash, appreciated securities or other eligible assets to Pomona College today. You receive an immediate charitable gift annuity tax deduction in the year of the gift, even though payments don't begin until later.
2. You choose when payments begin. Payments must start at least one year after the gift date, but you decide exactly when. Many donors align the start date with their planned retirement year. A flexible deferred gift annuity lets you choose from several future start dates and payment rates when the time comes — a good option if your retirement timeline isn't yet fixed.
3. Pomona pays you for life. Once payments begin, they are fixed and never change regardless of market conditions. You cannot outlive them. Payments are backed by the full financial resources of Pomona College, not just the assets you donate.
4. You name up to two beneficiaries. Most donors name themselves, or themselves and a spouse. You may also designate another individual, such as a child, sibling, close friend or household employee. The minimum age for payments to begin is 60.
5. Your legacy supports Pomona students. At the end of the annuity, the remaining value allows talented young people from all backgrounds to access a world-class liberal arts education.

Tax Benefits of a Deferred Charitable Gift Annuity

Immediate charitable income tax deduction. You receive a federal gift annuity tax deduction in the year of your gift, even though payments don't begin until later. Any unused deduction can be carried forward for up to five additional years.

Capital gains tax savings. Fund your annuity with appreciated securities and you recognize only a portion of the capital gain. Unlike an immediate CGA, that gain isn't recognized until payments actually begin, at which point it is spread over many years.

Estate and probate savings. Removing assets from your taxable estate through a deferred gift annuity may reduce future estate taxes and probate costs, depending on your situation and applicable law.

Best Assets to Fund Your Deferred Gift Annuity

Cash and low-yield accounts. CDs and money market accounts often earn very little, typically 2%-4%. A deferred gift annuity can convert those same dollars into significantly higher guaranteed retirement income supplement payments, plus an immediate tax deduction today.

Appreciated stock and securities. Long-held stock with a low-cost basis is among the most effective assets to use. You unlock value, secure future additional retirement income and defer capital gains recognition until payments begin, all in a single transaction.

Real-World Example: How a Deferred CGA Can Significantly Increase Your Retirement Income

David Munoz, 72, is semi-retired, but still working part time. He expects to be fully retired in another 5 years or so. He owns CDs and a money market account, both of which pay about 2% interest each year.

David wants to be sure he has adequate cash flow after he fully retires. He can dramatically increase his after-tax cash flow in his retirement by giving some of his CD or money market account funds to Pomona College in exchange for a deferred gift annuity.

The table below illustrates the results if David gives $50,000 to create a deferred gift annuity that starts making payments in 5 years. In addition to earning a substantial income tax charitable deduction, David is able to significantly increase his cash flow from the $50,000, and will receive an immediate income tax deduction that may provide tax savings!

Deduction amount varies with timing. For educational purposes only; not tax advice.

Frequently Asked Questions About Deferred Charitable Gift Annuities

How is a deferred gift annuity different from an immediate gift annuity? With an immediate CGA, payments begin within a year of your gift. With a deferred CGA, you choose a future start date. In exchange for waiting, you receive a significantly higher payment rate. The longer you defer, the higher your rate.

When can payments begin? Payments must start at least one year after the gift date. You must be at least 60 when payments begin. Many donors align the start date with their planned retirement year.

What is a flexible deferred gift annuity? A flexible deferred CGA lets you choose from several future start dates and payment rates at the time payments begin, rather than locking in a single date at the outset. It is a good option if your retirement timeline is not yet certain.

What is the minimum gift amount? The minimum gift is $25,000.

Can I fund a deferred gift annuity with appreciated stock? Yes, and it can be especially advantageous. Capital gains recognition is deferred until payments begin, then spread over many years rather than recognized all at once.

Are payments guaranteed? Yes. Once payments begin, they are fixed for life and backed by the full financial resources of Pomona College. You cannot outlive your payments.

Let’s Talk About Your Retirement Picture.

Find out what a Pomona Plan deferred gift annuity could pay you at retirement and how much it could save you in taxes today. Our team will walk you through a free, personalized illustration with no obligation.