Please consider one of the many giving options listed below as a way to help support the school’s founding mission that “No qualified student who could benefit from a St. Charles education would ever be turned away because of a family’s inability to pay tuition.”
Corporate Matching doubles many gifts
Corporate Matching Gifts also continue to be a great way to effortlessly increase your financial support. St. Charles is registered under the Catholic Diocese of Columbus as a 501(c)(3) organization, thus making it eligible to receive corporate-foundation matching gifts.
For more than 14,000 companies and corporate foundations, matching gift programs represent an important share of their annual charitable contributions. In a 2006 survey done by the Council for Education, 756 educational institutions reported over $157 million in matching gift dollars!
I encourage you to check with your Human Resource or Personnel Office to see if your company/corporation participates in this benefit. In short, if they do, a personal gift made by you to St. Charles will be matched, making your gift significantly larger.
If you would like to learn more about either of these opportunities, please contact Development Director Mike Duffy by phone at 614-252-9288 (ext. 20) or by e-mail at [email protected]
There are also several more ways to make a charitable gift in support of St. Charles. They include:
Tax-Wise Guide to Cash Gifts
A gift of cash is the simplest and most popular form of giving. Federal tax deductions help make it worthwhile to give cash. To illustrate the “net costs” of making a cash gift, please refer to the gift chart below, which assumes the donor is in the 28% tax bracket.
Cash Gift: $1,000
Cost of Making Gift: $720
Tax Savings: $280
Cash Gift: $2,000
Cost of Making Gift: $1,140
Tax Savings: $560
Cash Gift: $5,000
Cost of Making Gift: $3,600
Tax Savings: $1,400
Cash Gift: $10,000
Cost of Making Gift: $7,200
Tax Savings: $2,800
Cash gifts to donors who itemize: Donors should be aware of the annual limitation on the use of charitable deductions claimed for gifts to public charities, which for any given year is 50 percent of the donor’s adjusted gross income (AGI) for cash gifts. Any “unused” portions of those gifts can be carried over and used as deductions for as many as five additional years.
Giving Securities and Real Estate
A gift of appreciated securities or real estate provides substantial support to St. Charles and is one of the most tax-wise ways of giving. Gifts of appreciated stocks, bonds, mutual funds, or securities, which you have owned for over a year, may be deducted at the full fair market value, no matter how much you originally paid for it. You also avoid all of the capital gains taxes that would otherwise be due on a sale of securities.
The same benefits apply to gifts of real estate. Factors that must be considered carefully for the school to accept gifts of real estate include: a) the use of the property, if it is to be retained; b) the marketability of the property, if it is to be sold; c) the taxes, assessments, encumbrances on the property, and maintenance costs. Mortgaged property raises a great many questions in terms of the advisability of accepting such a gift. The school requests that the donor have a qualified appraisal made on the property. This appraisal will verify the current fair market value of the property. Consult your tax advisor or financial planner for advice. See attached transfer options.
Giving through Your Will
By naming St. Charles in your will, you can make the gift of a lifetime and your estate may benefit from reduced estate taxes. There are many ways to make a gift or “bequest” in your will including: Giving a Specific Amount, Giving Specific Property, Giving a Percentage of Your Estate, and Giving all or a part of “what’s left” — “the residue.” Choosing the right one for you may depend on a number of factors including your assets and your family considerations.
You can also make arrangements now for a named endowment that will be established as part of your estate settlement. Such a fund will exist at St. Charles in perpetuity and will be administered according to your wishes. Please consult with your estate-planning attorney regarding tax thresholds, estate taxes that might impact next of kin, and ways to avoid paying federal estate taxes altogether.
Federal Estate Tax Thresholds
No federal estate tax if estate is under the following amounts and the decedents dying in:
-2014: $5,340,000 for an individual, $10,680,000 for a married couple
-2015: $5,430,000 for an individual, $10,860,000 for a married couple
-2016: $5,450,000 for an individual, $10,900,000 for a married couple
-2017: $5,490,000 for an individual, $10,980,000 for a married couple
Giving through Life Income Plans
If you would like to make a significant gift to St. Charles, but you need the income generated by your assets, consider one of the following life-income gifts – the gift that pays you back.
A Charitable Gift Annuity is a simple and safe gift opportunity which provides you with guaranteed lifetime income – up to 12% depending on your age – in exchange for your gift of cash or appreciated securities. Payments to you may be deferred for an even greater percentage of lifetime income. You receive a tax deduction, tax-free return of principal, and deferral of capital gains taxes.
How the Charitable Gift Annuity works:
1. You transfer cash or securities to the Catholic Foundation of the Diocese of Columbus.
2. You receive an income tax deduction and may save capital gains tax.
3. The Foundation pays a fixed amount each year to you or to anyone you name for life. Typically, a portion of these payments is tax-free.
4. When the gift annuity ends, its remaining principal passes to St. Charles.
Charitable Remainder Trusts
Charitable Remainder Trusts are gift plans defined by federal tax law that allow you to provide income to yourself or others for life or for a term of years while making a generous gift to St. Charles.
Charitable Remainder Annuity Trusts
You transfer cash, securities, or other property to a trust. You receive an income tax deduction and pay no capital gains tax. During its term, the trust pays a fixed amount each year to you or to anyone you name. When the trust ends, its remaining principal passes to St. Charles.
Charitable Remainder Unitrusts
You transfer cash, securities, or other property to a trust. You receive an income tax deduction and pay no capital gains tax. During its term, the trust pays a percentage of its value each year to you or to anyone you name. When the trust ends, the remaining principal passes to the school.
Giving through Life Insurance
A gift of a life insurance policy may offer a simple way to support St. Charles, especially if your family no longer needs the policy for financial security after your death. You can make a gift of life insurance by making St. Charles an owner of an existing policy or by making the school an owner of a new policy. If the policy is paid up, your charitable contribution is generally the replacement value or your cost basis, whichever is less. If the policy is not paid up, your additional premiums may also qualify for charitable deductions.
Giving through Retirement Plans
A gift of a retirement plan is a simple method of preserving the value of your hard-earned assets. It is possible that retirement assets which are left to an heir, other than a spouse, may be subject to confiscatory taxes. Retirement assets come in many forms: a pension plan; profit-sharing plan; annuity plan; 401(k); 403(b); stock bonus plan, Employee Stock Ownership Plan (ESOP); a simplified employee pension; Keogh accounts; and Individual Retirement Accounts (IRAs). Assets from these retirement plans could be taxed up to 75% and higher after federal estate and income taxes are considered. By naming St. Charles as a beneficiary of your retirement plan, your estate pays no federal estate tax on the gift and the school pays no income taxes because of our tax-exempt status. The full value of your retirement assets therefore passes to the school.
Giving Tangible Property/Gifts-in-Kind
St. Charles accepts gifts of tangible property (gifts-in-kind). Some examples of gifts-in-kind property are computers, books, equipment for our physical facilities, or food for an event. The donor’s tax deduction is the fair market value of the item if the item is related to the school’s tax-exempt purpose of teaching. It is the donor’s responsibility to determine the gift value for tax purposes. St. Charles cannot substantiate the value because it is a party to the transaction. The donor must complete IRS Form 8283 for charitable deductions of $500 and above.
CARE Act allows tax-free transfer from IRA to charity
A relatively new opportunity to consider in direct support of the school is the Pension Protection Act or “CARE Act” as it is known to some. Since 1974, millions of Americans have saved billions of pre-tax dollars in Individual Retirement Accounts (IRA’s). Thanks to continued savings and investment returns, an estimated $3.6 trillion currently is invested in IRAs. HR 1424 signed by President Bush allows IRA owners to share the wealth of their retirement savings by giving directly to charity – without first counting it as income and paying tax.
Some retirees are finding that they have more money in their IRA accounts than they will ever need and many have expressed an interest in giving the funds to charity. However, income tax must be paid on all withdrawals which reduces the value of the gift. Designating children as beneficiaries may also draw additional tax consequences.
A provision in HR 1424 creates a new option: transferring IRA assets directly to charity. By going directly to charity, the money is not included in the IRA owner’s income and – most importantly – is not taxed, preserving the full amount for charitable purposes. The law covers all gifts made this year (2009).
In 2009, traditional IRA holders who are at least 70 ½ years old can make direct charitable transfers up to $100,000 per year. We at St. Charles can help our donors execute the transfer and offer several fund options for their gift. Donor-advised funds do not qualify for tax free IRA transfers although two funding areas we are always looking to continue to significantly increase do qualify – scholarship funds and unrestricted funds.
A Word about Making Tax-Wise Gifts and Estate Planning:
The information being presented is not intended as legal or tax advice for your specific situation. We encourage you to share this information with your attorney, tax advisor, or financial planner. Please call the St. Charles Alumni & Development Office at (614) 252-9288 for more details.
St. Charles Alumni Practicing Estate Planning Law
St. Charles is proud to be the alma mater of numerous alumni practicing in the area of estate-planning law. While the following roster is not exhaustive, it will give the reader an idea of the broad representation of St. Charles alumni practicing in the community. Note Bene: This roster is not to be considered an endorsement.
If you are a practicing attorney in estate planning and tax law and wish to be added to this roster, please contact the St. Charles Alumni & Development Office at (614) 252-9288.
Mr. Thomas L. Horvath ’65
90 North Nelson Road
Columbus OH 43219-2935
E-mail: [email protected]
Mr. James M. Vonau ’74
Decker Vonau, LLC
620 E Broad Street
Columbus, OH 43215
E-mail: [email protected]
Donating Appreciated Securities to St. Charles
Three Convenient Options:
Option #1 – Call Your Broker
1. If your broker or bank holds your securities, call your broker and tell him/her which securities you wish to donate to St. Charles Preparatory School. (Most firms require written instructions.)
Then, have your broker contact:
Mr. Timothy M. Ryan (St. Charles Class of 1975)
Ryan & Ryan Merrill Lynch
65 East State Street
Columbus, OH 43215-4213
Tim can arrange to have your broker transfer the securities by wire. Please use the “DTC” #8862 for the benefit of St. Charles, and transfer to account #656-04025. If you need the St. Charles federal tax ID #, please contact the school at 614-252-6714.
2. On the same day you call your broker, please confirm your instructions in writing to your broker and state your desire to make a gift to St. Charles Preparatory School, including the number of shares, the name(s) of the stock(s), and the purpose for which you are designating your gift. (for example, you can augment your existing endowment fund at St. Charles).
In your letter, include your broker’s phone number and send a copy of your letter to St. Charles (see address below). In order to give prompt and accurate credit for all gifts received, it is important for St. Charles to know the identity of its securities donors, especially those gifts which are received via electronic transfer. Since it is difficult to obtain donor identity once the transaction has been processed, donors are requested to identify themselves when the DTC transfer instructions are executed.
Option #2 – Send Via U.S. Mail
1. Send your unendorsed stock certificate(s) by registered mail to St. Charles.
2. In a separate envelope, by regular mail, send to the same address:
-a. A signed stock power (one power for each certificate; complete the signature block only). Stock powers are available from your broker or your bank. The signature on the mailed stock power MUST match (exactly) the name on the certificate.
-b. A brief note identifying yourself (name, address, phone number) and the number of shares, the name(s) of the stock(s) and the stated purpose for which you are directing your gift.
3. Mail both envelopes on the same day. The “date of gift” is determined by the later postmark.
Option #3 – Hand Delivery
Bring your unendorsed stock certificate(s) to St. Charles with a stock power. Sign a stock power (one power for each certificate; complete the signature block only). You should receive a receipt acknowledging your gift and its purpose. The “date of gift” is the date you deliver the securities.
Gift Valuation Date
The gift valuation date for physical securities is determined by the postmark on the envelope used to mail the securities. For hand delivery of securities, it is the date the securities are delivered to St. Charles.
The gift valuation dated for securities sent to St. Charles via DTC is the date the securities are deposited to our Merrill Lynch account.
The value of a stock gift is calculated by averaging the high and low quoted selling prices for the stock as of the gift valuation date.
If you would like more information on making a gift, you are invited to contact the school’s Development Office and ask to speak with Michael Duffy, the St. Charles Development Director. He can be reached at 614-252-9288 extension #20 or at [email protected]