To Give and Not to Count the Cost
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t. Xavier High School is grateful for all its benefactors and is always looking for ways to help those generous people realize their dreams of making a St. X education possible for every qualified student. One way to support our mission— and to receive steady payments during your retirement years— is to establish a charitable gift annuity. Setting up a charitable gift annuity is a fairly simply procedure, a contract, in fact. The benefactor agrees to make a donation of cash, stocks or other assets to St. Xavier High School. In return, the school agrees to pay the benefactor a fixed amount each year for the rest of his or her life. The benefactor also may choose to add a second person—a spouse or child, for example—to the annuity payment. In addition to providing a gift to
St. Xavier High School and receiving fixed payments for life, a benefactor also receives benefits including: • Your initial gift is partially income tax–deductible. • Your charitable gift annuity payments are partially income tax–free throughout your estimated life expectancy. • Your payments are not affected by ups and downs in the economy. • The gift annuity can be for one or two people, so your spouse or another loved one can also receive payments for life. • If you use appreciated stock to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy. Generally, the older you are at the start of your annuity payments, the higher the payments will be. The rate of return varies with age, ranging from 4.7 percent at age 65, 5.1 percent at age 70 and 6.8 percent at age 80. (These rates are
“One way to support our mission— and to receive steady payments during your retirement years—is to establish a charitable gift annuity.”
current through January, 2012, but are subject to change.) As an example, let’s say a 70-yearold established a $20,000 charitable gift annuity. Based on that age, the person receives an annuity rate of 5.1 percent. St. Xavier will pay $1,020 each year for the remainder of the benefactor’s life; $824 of that annual payment is taxfree throughout his or her life expectancy. The donor also receives a charitable deduction of $7,231 if he or she itemizes income taxes (assumes annual payments and a 1.4 percent charitable midterm federal rate). When the benefactor passes, the remaining money in the annuity is used to support St. Xavier High School. For more information on charitable gift annuities, please consult your financial professional, attorney or major and planned giving officers Ed Franchi or Andy Sweeny (’68) at 513-761-7815, ext. 115 or 122. For more ways to get involved in supporting St. Xavier, please visit the “Supporting St. X” tab on the home page of our website at www.stxavier.org.
SPRING 2012
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