A Charitable Gift Annuity (CGA) is a good planned giving option for donors who want to greatly support the 24/7 ministry of Youth-Reach Houston (YRH) while maintaining a stable, fixed income. In exchange for a large donation, a CGA gives a donor a fixed income stream for the term of the arrangement.
Here’s how a charitable gift annuity benefiting Youth-Reach Houston works:
Donors sign an annuity agreement with us that details the amount to be donated. Then, for the portion of the donation used for YRH’s ministry operations, the donor receives a tax deduction. YRH invests the donation, but regardless of how well the investment performs, we pay the donor a fixed amount for the length of time contractually agreed upon. When the donor passes, YRH gets to receive the balance of the donation investment.
A charitable gift annuity might be the right choice for you if…
- Protecting your income is a priority for you right now.
- You have a combination of cash, securities and/or personal property you want to give.
- You have mostly appreciated assets to donate, and you like the idea of avoiding some capital gains taxes while receiving certain income tax deductions for your gift.
What else should I know about charitable gift annuities?
- Like all income, part of your annuity income will be taxed.
- Annuity payment rates are based on the amount of the gift as well as the donor’s age at the time of the gift. You should consult with a tax advisor for your best planned giving option.
- Each CGA focuses on benefiting a single charity.
How do I get started setting up a charitable gift annuity?
Contact us today to have a member of our leadership team walk you through this process.