It is argued in this book that while there can be a significant payoff for deferred giving programs, it is important to determine their cost effectiveness. Modern business methods of cost accounting, benefits analysis, and actuarial and econometric forecasting are applied to the Pomona College plan, whose study was supported by Lilly Endowment, Inc. The book provides valuable working tools for determining what is involved in a successful planned giving program, what the program will cost, what the criteria are for gift acceptability, and what are reasonable expectations from gift annuities, charitable remainder unitrusts, annuity trusts, and pooled life income funds. After chapter 1 places planned and deferred giving programs in appropriate context, the second chapter examines the problem to be solved: How do the parties determine the present value of the future interest? Succeeding chapters describe the origin of the Pomona Plan, and the college's marketing of its annuity and trust program. The methodology findings of the joint study of the authors and representatives of Ernst & Whinney are reviewed, followed by description of a method for evaluating the criteria for acceptability of deferred gifts and the management of life income gifts and annuities. Among the conclusions are: the time-consuming efforts necessary to collect data and to perform the arithmetic calculations are worthwhile; trust management is the key to operating a cost-effective deferred giving program; and donor motivation plays a significant part in determining the cost effectiveness of a deferred giving program. Appendices, a glossary, a bibliography, and an index are provided. (LC)