A charitable gift annuity (CGA) is a meaningful way to produce significant immediate tax benefits, a life-long income stream for you and a loved one, and a future and lasting philanthropic impact at the Mount Vernon Ladies’ Association for generations to come.
How It Works:
Create Your Fund: Donate an asset (cash, stock, etc.) to the Mount Vernon Ladies’ Association and receive immediate charitable tax benefits:
- Income tax deduction for the gift’s net market value
- Reduction of capital gains taxes owed on a gift of appreciated assets: You can fund the CGA with a minimum amount of $10,000 in cash, publicly traded securities, or other assets, such as real estate, business interests, or art.
Your gifted assets are sold in the annuity and reinvested to grow and support your future income payments.
- Receive Income Payments: One to two qualified individuals (you alone, you and your spouse, or any two qualified individuals) receive fixed income payments for life. Payment amounts are determined based on the age of each individual annuitant (see the table to the right).
- A portion of the income payments are tax-free
- You can defer payments to begin later
- Payments can be quarterly, semi-annually, or annually
- Leave a Legacy: The remaining funds at the end of the annuitants’ lives support the Mount Vernon Ladies’ Association according to your expressed intent.
| One Individual | Two Individuals |
| 70 | 6.3% | 70/70 | 5.5% |
| 75 | 7.0% | 75/75 | 6.2% |
| 80 | 8.1% | 80/80 | 6.9% |
| 85 | 9.1% | 85/85 | 8.1% |
Example:
Jim and Sharon are both 75 years old, retired, and loyal supporters of the Mount Vernon Ladies’ Association. They rely heavily on their fixed-income investments like CDs, bonds, and money market funds to support their retirement spending. They have considered making a future estate gift because they need their assets now to provide for their life expenses. Jim and Sharon decide to fund a CGA now with appreciated publicly traded securities valued at $25,000.
They receive an income tax deduction of approximately $9,240 for a portion of their gift and fixed periodic payments of $1,550 per year for life (6.2% of $25,000). This earns them a higher return than their fixed income investments.
Part of each payment is tax free, and the capital gains tax on the gifted securities is greatly reduced. Based on their life expectancy, they are expected to gift approximately $12,500 to the Mount Vernon Ladies’ Association.
Consider a CGA if you wish to:
- Donate to the Mount Vernon Ladies’ Association but need income now or at some point in the future - during retirement, to pay for children’s education, etc.
- Receive fixed income payments that are unaffected by interest rates or stock market volatility (diversify your income in retirement).
- Leave an estate gift to the Mount Vernon Ladies’ Association but wish to receive charitable tax benefits for that gift during your lifetime.
- Provide for someone else, like a parent, spouse, or older child.
- Avoid paying legal fees, as you would if creating a charitable trust that provides income.
CGAs are particularly attractive right now. The combination of high payout rates, expanded IRA funding options, and market volatility has made CGAs particularly appealing for donors seeking both charitable impact and financial security.
Did you know? You may be able to make a once-in-a-lifetime distribution of up to $55,000* from your qualified IRA to fund your Charitable Gift Annuity. *Based on 2026 limits for individuals 70 ½ years or older, as part of the $111,000 annual limit for IRA charitable distributions.
Depository Information for establishing your CGA:
- Checks or Physical Securities Eligible for Deposit:
PNC Bank NA
Asset Transfer
4100 West 150th Street
Mail Stop B7-YB17-03-3
Cleveland, OH 44135
- Stocks or Eligible Securities:
PNC Bank
DTC # 2616
Reference: 21-45-001-3614882 The Mount Vernon Ladies’ Association of the Union
- Wiring Funds:
ABA# 043-0000-96
F/C/T PNC Bank NA AMG Client Uninvested Cash
Bank 21, Account 1014093644
F/F/C/T The Mount Vernon Ladies’ Association of the Union, Account 21-45-001-3614882
Attention: Julie Surman, 412-762-856
The Mount Vernon Ladies’ Association of the Union, Tax ID #54-0564701, a charitable corporation located in Virginia with the mailing address of P.O. Box 110, Mount Vernon, VA 22121. The Mount Vernon Ladies’ Association does not provide investment, tax, or legal advice. Please consult with your personal advisors before making financial
decisions based on this information. The information presented here is for general educational purposes, is not specific to any individual’s personal circumstances, and may change at any time without notice.
Questions?
Contact our office or fill out for an illustration showing what you would receive if you funded a gift annuity life-income plan. We can work with you and your professional advisor to determine the best way to design your CGA based on your personal situation and interests. Contact Carolina Camargo, Senior Director of Development at [email protected] or 703.799.8652.
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