A charitable gift annuity is one of the most rewarding ways to support St. Patrick Catholic School — because it gives back to you, too.

When you make a gift to The SPS Foundation, we agree to pay you — and a loved one, if you choose — a fixed amount each year for life. After your lifetime, the remaining balance supports our mission. It’s a straightforward arrangement that offers genuine financial security alongside lasting generosity.

Benefits include:

• Fixed, predictable payments for life, based on your age at the time of the gift
• A potential federal income tax deduction when funded with cash or appreciated assets (if you itemize)
• Reduced capital gains taxes when using appreciated property

Funding with IRA assets If you are age 70½ or older, you can make a one-time election of up to $55,000 from your IRA to fund a gift annuity. This option doesn’t provide an income tax deduction, but it avoids income tax on the transfer and can count toward your required minimum distributions — a meaningful advantage for many donors.

A charitable gift annuity is a simple, dependable way to invest in the future of St. Patrick Catholic School while strengthening your own financial security.

An Example of How It Works

Dennis, 66, and Mary, 65, want to make a contribution to The SPS Foundation but they also want to ensure that they have dependable income during their retirement years. They establish a $20,000 charitable gift annuity.

Based on their ages, they will receive a payment rate of 5.1%, which means that they will receive $1,020 each year for the remainder of their lives. They are also eligible for a federal income tax charitable deduction of $6,402* when they itemize. Finally, they know that after their lifetimes, the remaining amount will be used to support our mission.

*Based on annual payments and a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.

If you’ve built a sizable estate and want to turn assets into reliable income while making a lasting gift, a charitable remainder trust is worth a close look.

You transfer assets into a trust you establish, and in return, you or other named individuals receive income each year — either for life or for a period of up to 20 years. At the end of the trust term, the remaining balance supports St. Patrick Catholic School and its mission. The arrangement can also offer a federal income tax deduction and potential capital gains tax savings, depending on how the trust is funded.

There are two ways to structure your payments:

• Annuity trust: Pays a fixed annual amount you choose at the outset — steady and predictable, regardless of market fluctuations
• Unitrust: Pays a variable annual amount based on a fixed percentage of the trust’s value, recalculated each year — payments may grow if the trust grows, or decline if its value falls

A charitable remainder trust is a powerful way to provide for yourself and your loved ones today while making a meaningful commitment to Catholic education for years to come.

An Example of How It Works

Susan, 75, wants to make a gift to The SPS Foundation but would also like more income in the future. Susan creates a charitable remainder unitrust with annual lifetime payments to her equal to 5% of the fair market value of the trust assets as revalued annually. She funds the trust with assets valued at $500,000.

Susan receives $25,000 the first year from the trust. Subsequent payment amounts vary each year depending on the annual valuations of the trust assets. She is eligible for a federal income tax charitable deduction of $290,360* in the year she creates and funds the trust. This deduction saves Susan $92,915 in her 32% tax bracket.

*Based on a 5.2% charitable midterm federal rate. Deductions and calculations will vary depending on your personal circumstances.