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FAQ Flexible Deferred Gift Annuities

Are the annuity payments guaranteed?
Yes. A gift annuity is a contractual agreement between the donor and Whitman College. The full faith and credit of Whitman College is pledged to support the annuity payments.

Will I know what my annuity rate options are before making a gift?
Yes. The Office of Gift Planning can produce custom financial illustrations before the gift is funded detailing gift annuity rates based on a variety of factors and for different deferral periods.

When is my annuity rate final?
The annuity rate becomes final upon receipt of the gift to fund the annuity and execution of the annuity contract.

Will my annuity rates change after I make my gift?
No. The annuity payments are detailed in the annuity contract and will not fluctuate based on changes in market conditions. A detailed schedule of the payout rate for each year of deferral is included in all flexible deferred gift annuity contracts.

Can I use stock to fund a gift annuity?
Yes. A gift annuity can be funded with cash, stocks, mutual funds and bonds. If you use appreciated securities, a portion of the capital gain is excluded with the remainder incorporated into the actuarial term of the annuity.

Do I have to start my annuity payments at some point?
No. With flexible deferred gift annuities, a range of payment start dates is created. If you defer your payments up to the last option, we will ask one last time if you want to start your annuity. If you do not want to receive income from the annuity, the contract will terminate, and the college will be relieved of its obligation to make annuity payments.

May I cancel the annuity contract if I don’t need the income?
Yes. You may assign the annuity to the college early and receive a supplemental charitable deduction for doing so. The annuity is only assignable to the college and does not have a cash exchange value.

How long may I defer my annuity payments?
The flexible deferred gift annuity payments must be deferred a minimum of 1 year, but the length of deferral in excess of a year is your choice. The amount of charitable deduction you may claim is dependent on the length of the initial deferral period, and a longer initial deferral period will result in a larger charitable deduction.

What does Whitman do with my gift to fund an annuity?
When Whitman receives a gift to establish an annuity, the funds are held in segregated accounts for the term of the annuity. Whitman works with a professional planned gift administrator and investment manager, Kaspick & Company, for day-to-day management of the gift annuity program. The proceeds from each segregated account are not used by the college until the termination of the related gift annuity.

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