Giving through a charitable gift annuity.
Make a gift to support Texas Alpha Endowment Fund through a charitable gift annuity, and you can earn income for life. With a charitable gift annuity you agree to make a gift to the Texas Alpha Endowment Fund and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life. The balance is used to support our work.
This type of donation can provide you with regular payments for life and allow the Texas Alpha Endowment Fund to further our mission. You can also qualify for a variety of tax benefits, including a federal income tax charitable deduction if you itemize.
How does a charitable gift annuity (CGA) work?
A charitable gift annuity provides a way for you, as a donor, to make an irrevocable gift to support the mission of Texas Alpha Endowment Fund, while at the same time providing a source of fixed income for life to you — or another recipient of your choosing.
- When you sign an annuity agreement with a charity Texas Alpha Endowment Fund, you make a lump sum donation and take a partial tax deduction.
- Once the lump sum is invested, you or a person of your choosing receive payments on a fixed schedule for life, per terms of the agreement.
- After the recipient’s lifetime, the charity receives the balance of the invested funds.
Is a charitable gift annuity right for me?
A charitable gift annuity (CGA) might be right for you if you:
- want to receive fixed payments for life that will not fluctuate.
- have assets that would be advantageous to give away during your lifetime, such as cash or funds earning low interest rates, or appreciated securities.
- want to reduce your current income taxes with an income tax charitable deduction.
An Example of How It Works
Frank, 75, and Charlotte, 73, want to make a contribution to the Texas Alpha Endowment Fund, but they also want to ensure that they have dependable income during their retirement years. They fund a $25,000 charitable gift annuity with appreciated stock that they originally purchased for $10,000.
Based on their ages, they will receive a payment rate of 5.1%, which means that they will receive $1,275 each year for the remainder of their lives. They are also eligible for a federal income tax charitable deduction of $10,217* when they itemize. Finally, they know that after their lifetimes, the remaining amount will be used to support Texas Alpha.
*Based on a 3.6% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.
Please always confer with your legal and/or tax advisor for more information and to determine if a bequest to/for Texas Alpha Endowment Fund is right for you.