Charitable Gift Annuity – The gift that gives back guaranteed income What is a charitable gift annuity? A Charitable Gift Annuity (CGA) is a simple contract between you and Mental Health America. In exchange for your irrevocable gift of cash, securities or other assets, MHA agrees to pay one or two annuitants you name a fixed sum each year for life. Gift Annuity payments are based on rates recommended by the American Council on Gift Annuities. The payments are guaranteed by the general resources of MHA, and backed up by a reserve account. Minimum initial gift is $10,000. Different types of CGAs There are two basic types of CGAs and they each meet different needs: Immediate Payment With this type of gift annuity, your payments begin as soon as the contract takes effect. For example, if quarterly payments are elected, payments begin at the end of the quarter in which you make your gift. Recommended age is 65 or older. Deferred Payment This option allows younger donors and annuitants to defer the start of payments until they have reached retirement age. Like an immediate payment gift annuity, you can take a charitable deduction in the year you make your gift. Because payments are deferred, however, you or your designated annuitants will receive substantially higher income payments later. This type of gift works best for income beneficiaries between the ages of 40 and 60. See Deferred Gift Annuities. What are the advantages?
Example You donate $10,000 of appreciated stock, originally purchased for $2,500, to a Single-Life Gift Annuity with quarterly payments that begin
immediately. Assume IRS discount rate of 4.2%.
PLEASE NOTE: These examples are for illustrative purposes
only and are not intended as legal or tax advice. Consult your own legal
and tax advisors prior to making any material decisions based on this data. 
For more information E-mail us, complete the Personal Illustration form, or call us at (703) 838-7533 so that we can assist you.
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