Deferred gifts come in a variety of forms, but the basic idea is the same for all of them. You contribute principal assets to a fund or account of one sort or another, and you (or someone else you designate) receive back an income stream for your life, their life or a set term of years. You may also receive a tax deduction when you make or establish the deferred gift arrangement. The gift is considered deferred because North Central College does not have the unrestricted right to assets until after your death or a set term of years. A deferred gift may be in annuity or trust form.
There are many variations on these themes and some of these gift transactions may work better for some donors than others. Substantial tax and financial benefits can be available, though, for contributors seeking multiple benefits from their gift planning.