It’s truly wonderful to make a difference in the lives of the students at St. Mark’s School while at the same time improving one’s own financial situation. That is possible with a St. Mark’s gift annuity.
Gift annuities are a popular way to give, allowing our supporters the opportunity to make a difference at St. Mark’s and at the same time provide for their future financial security. \
What are the financial benefits?
In exchange for your gift of $10,000 or more, you can make a positive impact at St. Mark’s and receive financial benefits, including:
- Secure fixed payments to you and/or a loved one for life
- A charitable deduction in the year of the gift
- Tax-free treatment of a portion of each payment to you
- Reduced capital gains taxes for gifts funded with appreciated assets
| Age | Payment Rate | Annuity | Deduction |
|---|---|---|---|
| 50 | 3.3% | $330 | $1,902 |
| 55 | 3.7% | $370 | $2,041 |
| 60 | 3.9% | $390 | $2,778 |
| 65 | 4.2% | $420 | $3,441 |
| 70 | 4.7% | $470 | $3,981 |
| 75 | 5.4% | $540 | $4,904 |
| 80 | 6.5% | $650 | $4,904 |
* Please note that this information is for illustrative purposes and is not intended as tax or legal advice. Rates are subject to change and are based on rates suggested by the American Council on Gift Annuities as of August 2021.
How Does it Work?
Most charitable gift annuities are funded with cash or appreciated securities that have been owned for at least one year. When you contribute securities, the annuity payments will probably exceed the dividends you might have been receiving.
While many people usually name themselves as beneficiaries, a relative or friend could be named as well. Married persons typically provide for payments to be made over both of their lives. When the first person passes away, the payments continue at the same level to the survivor.
The amount of the annual payments will depend on the amount transferred, the ages of the beneficiaries, and the annuity rate schedule in effect at the time of the gift. Once the annuity is established, the payments will remain fixed, regardless of changes in the economy. This makes the gift annuity especially attractive to older donors who like the security of fixed, guaranteed payments.
St. Mark’s invests and manages your contribution, and at the end of your life the remainder is available to us to use where it is most needed or to support a program you care about.
Other Ways to Enjoy the Benefits of a Gift Annuity
If you don’t need the income yourself, you can establish a gift annuity for the benefit of someone else. A gift annuity might work for you if you provide supplemental financial support for aged parents who have limited income or regularly subsidize siblings who are struggling financially.
If you want an income tax charitable deduction now but do not need payments until later you can establish an annuity and receive payments in the future. You can even have the flexibility to choose when to start receiving payments in the future without having to pick a start date to receive payments. The longer you defer receiving payments, the higher your deduction and the higher the annuity rate.
We would be pleased to answer your questions or send you a personalized, no-obligation illustration.