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?

  1. Like all income, part of your annuity income will be taxed.
  2. 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.
  3. 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.