St. Louis University High School

Immediate Payment and Deferred Payment

A Charitable Gift Annuity is a simple contract providing for our payment to you (and an optional second beneficiary) of a fixed amount for life in return for your contribution. The gift annuity offers you the assurance of payments that will not fluctuate, and that are secured by all the assets of St. Louis University High. And the minimum gift to establish a charitable gift annuity is low -- a contribution of $10,000 or more will enable you to share in the benefits of this program.

A charitable gift annuity offers you three distinct tax benefits:

1. You will receive an income tax charitable deduction for your gift annuity, based on the full value of the assets you contribute minus the present value of the life-income interest you retain (see the box below for more details).

2. If you fund your charitable gift annuity with appreciated securities, no upfront capital gains tax is payable. Only a portion of your capital gain will be reportable, and the tax will be spread over your annuity payments.

3. Part of each annuity payment will be considered the tax-free return of your principal. This effectively increases the cash flow from your gift annuity, and is not available with other types of life-income gifts.

(The IRS provides that the capital gain and tax-free-payment benefits are in effect during your life expectancy - if you live beyond your life expectancy, the entire annuity payment will be taxed as ordinary income.)

Your gift annuity can start paying you once you make your contribution (an immediate-payment gift annuity), or payments can commence at a later date selected by you (a deferred gift annuity). Deferral allows us to offer you a higher annuity rate and gives you a larger charitable deduction.

Many younger donors create a series of deferred gift annuities over multiple years, jointly timed to begin making payments when they retire. To fund their gifts, they use assets they've already designated for retirement savings. Their deferred gift annuities give them an income tax deduction when they most need it, and an additional source of cash during their retirement years.

How It Works

You transfer cash or securities to SLUH.
SLUH pays you, or up to two annuitants you name, fixed income for life.
The principal passes to SLUH when the contract ends.

Benefits

• You receive an immediate income tax deduction for a portion of your gift.
• Your annuity payments are guaranteed for life, backed by a reserve and the assets of SLUH.
• Your annuity payments are treated as part ordinary income, part capital gains income (15%), and part tax-free income.
• You can have the satisfaction of making a significant gift that benefits you now and SLUH later.

A Gift Annuity is for you if...

• You want to make a significant gift to us and receive lifetime payments in return;
• You want to maximize the payments you receive from your planned gift -- and, you want to lower your income tax on those payments;
• You want the security of payments that won't fluctuate during your lifetime;
• You also appreciate the safety of your payments being a general financial obligation of the institution.

A Deferred Gift Annuity is for you if...

• You are in high earnings years, looking for both income tax savings now and an additional source of revenue when you retire.

To learn more about charitable gift annuities, E-mail us, complete the Information Request form, or call us at 314.531.0330 so that we can assist you.

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