Creative Giving 8 TAX-WISE END-OF -YEAR IDEAS FOR FRIENDS AND SUPPORTERS OF ST. ANDREW’S EPISCOPAL SCHOOL
A memorial fountain in the courtyard of the new McRae Science Center was given in honor of the late Marsha McCarty Wells. Read the story inside.
As 2011 draws to a close, we hope you will consider a gift to St. Andrew’s Episcopal School in your year-end planning. Making a gift to St. Andrew’s could be easier and more beneficial than you’d imagine. In the following pages, you’ll discover many creative ways to make a meaningful gift to St. Andrew’s that may also result in a significant tax advantage for you. The Legacy League, a subset of the St. Andrew’s Touchstone Circle, was recently established to distinguish and recognize those alumni and friends who have included a designated gift for St. Andrew’s in their estate plans. These planned gifts may take many forms, including simple bequests (gifts from your will), trusts, life insurance, or real estate. We would be honored to include you as a member of The Legacy League. And if you’re still searching for a truly memorable holiday gift for a friend or family member, an endowed fund in his or her
honor could be the ideal solution. A gift made to the Touchstone Endowment will permanently honor you, your family, or a loved one, and you’ll be celebrated for your thoughtfulness and gift-giving creativity. The St. Andrew’s Office of Institutional Advancement will be happy to help you with all of the details and provide a letter suitable for framing and wrapping. Now, isn’t that more memorable than another tie or sweater? Happy holidays and once again, thank you for your continued support of St. Andrew’s Episcopal School. FOR ADDITIONAL INFORMATION: PLEASE CONTACT REBECCA COLLINS OR ELIZABETH BUYAN IN THE OFFICE OF INSTITUTIONAL ADVANCEMENT AT 601.960.6000 OR BY EMAIL AT REBECCAC@GOSAINTS.ORG OR BUYANE@GOSAINTS.ORG OR VISIT GOSAINTS.ORG/TOUCHSTONEENDOWMENT.
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GIFTS OF CASH: A BUCK IN THE HAND IS WORTH A DEDUCTION ON THE RETURN There’s no easier way to garner a charitable deduction for 2011 and support St. Andrew’s Episcopal School at the same time than by simply writing a check. As long as your envelope is postmarked by December 31, 2011 your gift will qualify as a 2011 deduction.
GIFTS OF STOCK: HOW THE SAVVY DONOR PLAYS THE MARKET
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ANDREW TOWNES
A gift of long-term, appreciated stock offers you a two-fold tax savings. First, you avoid paying any capital gains tax on the increase in the value of your stock. Second, you receive a tax deduction for the full fair market value of the stock.
Taking Stock of What They Believe In
Andrew and Jan Townes are active volunteers at St. Andrew’s, where their son, Holland, is a fifth grader. When the Townes decided to make a financial gift to the school, Andrew Townes relied upon his expertise as vice president of investments with UBS Financial Services, Inc. in planning their financially savvy gift of appreciated stock. “A gift of stock may bring significant tax advantages for the donor, as was the case with our donation,” Townes explains. “Assuming the donor has owned the stock for more than one year, the donor is allowed to deduct the fair market value of the stock on the date the gift is made. This sure beats selling the stock and paying the IRS at least 20 percent in federal and state taxes. “Like all parents, our child’s future is of the utmost importance to us. We want him to dream big and go for it,” Townes continues. “We feel extremely fortunate that we are able to give both our time and monetary gifts to the school. We’ve always supported what we believe in, and we believe in St. Andrew’s.”
1. You transfer your residence, farm, or vacation home to St. GIFTS OF REAL ESTATE: HOME IS WHERE THE GIFT IS 1. You give or sell your residence or other property to St. Andrew’s subject to a life estate. Andrew’s for a price substantially below the appraised market 2. You continue to live in the property for life (or for the value, resulting in a transaction that is part charitable gift and lifetime of your surviving spouse) while assuming responsibility part sale. for all taxes and upkeep. 2. SA sells the property and uses the net proceeds of the sale 3. The property passes to SA when the life estate ends. for the purpose you specify. Benefits: Through such an arrangement, you are entitled to a Benefits: By an outright gift of appreciated property to St. current income tax deduction for a portion of the fair market Andrew’s Episcopal School, you avoid capital gains tax and value of the property. realize a charitable deduction for the full fair market value of the real estate.
CHARITABLE SALE OF A HOME 1
Donate or sell property to SA
DONOR
3
CHARITABLE RETAINED LIFE ESTATE 1
Transfer property to SA 3 SA sells property
THIRD PARTY DONOR THIRD PARTY
2
SA sells property
2
Donor remains in home for lifetime
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GIFTS FROM YOUR IRA: 70 ½ CANDLES ON YOUR CAKE? If you’re at least 70 ½, the tax law allows you to give St. Andrew’s Episcopal School up to $100,000 directly from your IRA without triggering federal income taxes. This includes transfers from a traditional or Roth IRA (distributions from employer-sponsored retirement plans are not eligible). Please note that these special rules are currently scheduled to expire at the end of 2011. IF YOU HAVE AN IRA AND YOU ARE APPROACHING YOUR 70TH BIRTHDAY, CONSIDER TAKING ACTION ON A POSSIBLE GIVING OPPORTUNITY/TAX BREAK SCHEDULED TO EXPIRE ON DECEMBER 31, 2011. BEQUESTS: WHERE THERE’S A WILL, THERE’S A WAY. SHINN AND GRACE LEE
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You may name St. Andrew’s Episcopal School as a beneficiary in your will in a number of ways. You may specify an outright gift of cash, securities, real estate, or personal property. You may also consider a gift in your will of a certain percentage of your estate rather than a fixed sum or asset.
Thinking Globally, Giving Locally Grace and Shinn Lee have strong ties to St. Andrew’s. The Lees are the parents of two St. Andrew’s alumni, Wellington ’97 and Edmund ’04, and Grace Lee is a former board member. But when the Lees decided to create a bequest in their will for St. Andrew’s, their decision was influenced by more than just their personal ties to the school. As president of Trilogy Communications, Inc., Grace Lee sees St. Andrew’s as vital to the future of Mississippi. “When I was on the board in the 1990s, globalization was identified as one of the critical issues, and look where we are today,” Grace Lee says. “Shinn and I were so impressed when our vice president of sales’ children, a kindergartener and first grader at St. Andrew’s, recently greeted us in Chinese Mandarin. St. Andrew’s is so far ahead of all other schools in Mississippi in preparing our children to be well versed in all cultures and prepared for the global business world. “A bequest is the best way to increase the endowment fund with the lowest cost alternative to donors,” Lee continues. “Donors who create a bequest to the school give St. Andrew’s ongoing funds to continue to do wonderful things.”
THE AVERAGE AGE OF A PERSON DRAFTING HIS OR HER FIRST WILL IS 44. THE AVERAGE AGE OF A DONOR’S FIRST CHARITABLE BEQUEST IS 49. IS IT TIME FOR YOU TO BEGIN PLANNING?
IF YOU ALREADY HAVE A VALID, UP-TO-DATE WILL, YOUR ATTORNEY MAY PREPARE A CODICIL (A SUPPLEMENT OR APPENDIX), NAMING ST. ANDREW’S EPISCOPAL SCHOOL AS A BENEFICIARY WITHOUT HAVING TO REWRITE YOUR ENTIRE WILL.
AVAILABLE IN 2011 AND 2012 ONLY, THERE IS A $5 MILLION GIFT/ESTATE TAX EXEMPTION. IN 2013, THE EXEMPTION GOES BACK TO $1 MILLION.
PATSY AND DAVID MARSH
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GIFTS OF LIFE INSURANCE: DEDUCT TODAY, GIVE TOMORROW
If you own a life insurance policy that is no longer needed, consider it as the perfect vehicle for a charitable gift. To receive a charitable deduction, name St. Andrew’s Episcopal School as both the owner and beneficiary of the policy. If the policy is paid in full and has a cash value, you may take a charitable deduction approximately equal to the cash value at the time of the gift. If annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year.
Insuring St. Andrew’s Success
David and Patsy Marsh are the parents of two Alpha Omega graduates, Anna ’02 and David ’07. The Marshes have been active volunteers at St. Andrew’s, where David is currently serving his third term on the board of trustees. Recently, the Marshes found yet another way to support the school their entire family has come to love – a life insurance policy that names St. Andrew’s as the beneficiary. “We actually never thought of using life insurance as a gift until someone in the advancement office mentioned it,” David Marsh says. “A life insurance policy is an easy, affordable way to make a significant contribution that will help insure the success of St. Andrew’s down the road. “We support St. Andrew’s because we realize that our children benefited greatly from the vision and generosity of those who came before us,” Marsh continues. “We sincerely hope that our contribution will play a part in maintaining the environment at St. Andrew’s that was so special to our family.”
CHARITABLE TRUSTS: DO MORE GOOD WITH WHAT YOU’VE GOT
1. You contribute cash, securities, or other property to a trust.
3. When the trust ends, the principal passes to St. Andrew’s.
no estate or gift tax. In this arrangement, the school “leads the way” (hence the name of the trust) allowing you to realize certain philanthropic goals during your lifetime.
2. The trust makes fixed annual payments to St. Andrew’s for 1. You transfer cash, securities, or other appreciated property a specified term of years. into a trust. 3. When the trust ends, the remaining principal passes to your 2. Depending on the nature of the trust you, your spouse, or heirs. your named beneficiaries receive a percentage or a fixed annual Benefits: A charitable lead trust ultimately allows you to pass payment from the trust for life. significant assets on to younger family members with little or Benefits: A charitable remainder trust allows you to transfer assets now into a trust with the income paid directly to you or your named beneficiaries for life.
CHARITABLE REMAINDER TRUST 1
Transfer gift into trust 3 Remaining principal
passes to SA
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CHARITABLE LEAD TRUST 3
Remaining principal passes to heirs 2 Fixed yearly
payments to SA
TRUST DONOR
2
Donor receives income for life
DONOR’S FAMILY
1
LEAD TRUST
Transfer gift into trust
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THE TOUCHSTONE ENDOWMENT Gifts to the endowment of any size are greatly appreciated. With a minimum gift of $20,000, you may establish a permanent endowment named in honor of yourself, your family, or a loved one. The following named endowments were created in honor or in memory of St. Andrew’s students, alumni, faculty, friends, and programs.
UNRESTRICTED ENDOWMENTS
Ellen and Eason Leake Unrestricted Endowment Established by the Leakes for funds to be directed at the discretion of the board of trustees Charlton Stevens Roby Endowment Established by his family in memory of St. Andrew’s grandparent Charlton Roby The Wells Family Unrestricted Endowment Established by Marsha and Terry Wells for funds to be directed at the discretion of the board of trustees ENDOWED SCHOLARSHIPS John D. and Scott Adams Alumni Scholarship Created by John and Barbara Adams in honor of their sons and awarded to a child of an alumnus The Christian Alexander Allenburger IV Honor Scholarship Created by his family in memory of former student Chris Allenburger Craig D. Bluntson Memorial Scholarship Created by family and friends in memory of alumnus Craig Bluntson Winifred G. and Reynolds Cheney Memorial Scholarship Created in memory of St. Andrew’s patrons Winifred and Reynolds Cheney J. Paul and Dee Tankersley Faulkner Scholarship Established by late St. Andrew’s patrons J. Paul and Dee Faulkner E.E. Ford Foundation Scholarship Grants Need-based scholarships for students grades 9-12 Adele Franks Memorial Scholarship Created in memory of Adele Franks, a founder of St. Andrew’s Episcopal School
Frank S. Johns Memorial Scholarship for Creative Writing Created by the family of Dr. Frank S. Johns The Malone Family Foundation Scholars Program An endowment awarded to outstanding private and independent schools to provide scholarships to gifted students with financial need The McRae Scholarship Endowment Created by Vaughan and Nora Frances McRae for need-based aid Jennifer Mosal Memorial Scholarship Created by family and friends in memory of former student Jennifer Mosal The Providence Foundation Scholarship Endowment Scholarship through an endowment from the Providence Foundation The James and Therese Rodgers and Thomas and Eva Bianco Scholarship Endowment Created by the Rodgers’ son and the Biancos’ daughter, Mike and Karen Rodgers, to cover the gap between a student’s need-based financial aid award and the actual cost of tuition Nancy Spencer Memorial Scholarship Created in memory of St. Andrew’s patron Nancy Spencer Alan Eugene Stallings III Memorial Award for Courage Created in memory of former student Alan Stallings by Vaughan and Nora Frances McRae Tyler Christopher Varnado Memorial Scholarship Created by his friends in memory of former student Tyler Varnado Whitney Luckett Watkins Scholarship Endowment Created by her friends in memory of alumna Whitney Luckett Watkins
Elise Green Herring Memorial Scholarship Honors the daughter of the owner of Green Hall, an antebellum home in which St. Andrew’s was housed from 1950 – 1966
William Watkins Endowment Scholarship for the Arts Created in memory of Bill Watkins, a former St. Andrew’s art teacher, whose generous gift of his retirement fund to St. Andrew’s became the basis of this scholarship
David V. Hicks Scholarship Created in honor of David Hicks, a former St. Andrew’s headmaster
Marsha McCarty Wells Memorial Scholarship Fund Created by friends and family of Marsha McCarty Wells, a St. Andrew’s parent, trustee, and patron
ENDOWMENTS FOR SPECIFIC PROGRAMS John D. Bower Endowment for the Enrichment of the Sciences Created by Dr. John Bower, Professor Emeritus of the University of Mississippi Medical Center and president of the Bower Foundation Rebecca Hiatt Collins Theatre Equipment Endowment Created in honor of Rebecca Collins, St. Andrew’s director of institutional advancement
Sara Smith Ray Endowment for the Performing Arts Created in honor of Sara Ray, former parent and trustee Dan Rose Ninth Grade Biology Enrichment Fund Created in honor of former biology teacher Dan Rose Miss Jo and Dorsey Wade Endowment for the Lower School Library Created by Dorsey Wade in memory of her mother, Jo Timberlake Nicholson
ENDOWMENTS TO SUPPORT FACULTY Dorothy Davis Library Fund Created in honor of Dorothy Davis, a former St. Andrew’s teacher, The Christian Alexander Allenburger IV Faculty Award Created by his family in memory of former St. Andrew’s student upon her retirement Chris Allenburger Ouida C. Drinkwater Endowment for the Arts Created by her husband and children in honor of Ouida J. Paul and Dee Faulkner Endowment Established by late St. Andrew’s patrons J. Paul and Dee Faulkner Drinkwater, a former parent, staff member, and trustee for professional development for faculty J. Paul and Dee Faulkner Endowment for the Fine Arts Established by late St. Andrew’s patrons J. Paul and Dee Faulkner E. E. Ford Foundation Faculty Enrichment Grants Endowment for faculty enrichment and development Guillot Global Fellows Program Created by alumnus Creath Guillot to provide grants to Upper BOOK AWARDS School students for service-oriented international travel Prizes in specific subjects created in memory or honor of St. Andrew’s students, faculty, and friends William Lee Heard III Endowment for the Band Given in memory of Bill Heard III by his family James Parham Evans III Prize in American History Bishop Keller Memorial Edith Lee Evans Prize in AP Studio Art Honoring a St. Andrew’s patron and providing support for the Warren D. Reimers Prize in French ongoing needs of the chapel Dr. Randall Gerald Patterson Endowment for Speech and Debate Established by friends and colleagues in honor of Dr. Randy Patterson, former faculty member
Adele Franks Leadership Medal Frances Elizabeth Dyess Memorial Prize in Science Ross F. Bass Shakespeare Prize for Excellence in English
Continuing a Legacy
The late Marsha McCarty Wells was a parent, patron, and volunteer leader at St. Andrew’s, serving in roles from room mother to “track team mom” and chairing numerous committees as a long-time member of the board of trustees. Wells understood the importance of creating a permanent source of funds for St. Andrew’s and was instrumental in helping to launch the Touchstone Endowment. Since her untimely death in 2005 at the age of 50, Wells’ friends and extended family members have created a number of tributes at St. Andrew’s in her honor, including a scholarship endowment and an unrestricted endowment, as well as tangible memorials including a memorial garden and the fountain in the courtyard of the new McRae Science Center. “Marsha and I had discussed numerous ways to make a long-term financial commitment to St. Andrew’s in the months prior to her sudden death, but we had not finalized those plans,” says Terry Wells, Marsha Wells’ widower. “However, with the support of her family, we are attempting to fulfill her wishes of financial support for St. Andrew’s.” “I know my mother wanted to give back to the institution that gave so much to her children,” says Marsha’s daughter, Leslie Wells ’06, who is now the graphic design teacher at St. Andrew’s. “I feel it is our duty as her daughters to carry on her legacy. She left some big shoes to fill, but by staying involved and active with the school we can continue her work.” “Whether she was passing out snacks before players got on the bus for an away game or raising money for the Center for Performing Arts, my mom was always giving to St. Andrew’s,” says Marsha’s older daughter, Ashley Wells Hullender ’03. “My goal as an alumna is to one day instill in my own children the same service values that she modeled for my sister and me. I’m so proud of the legacy my mother established at St. Andrew’s, and I hope to follow in her footsteps.”
A Sound Argument for an Endowment
During his 15-year tenure at St. Andrew’s, Dr. Randy Patterson chaired the Department of English and the Department of Speech Communication. Patterson was instrumental in launching the St. Andrew’s speech and debate program and in guiding the program to national prominence. “St. Andrew’s did not have a speech and debate team before 1995,” Patterson recalls. “When I announced the first meeting of students interested in a forensics team, one student asked how the forensics team would work with dead bodies. Her parents were both doctors, and she was thinking of forensic medicine.” Upon his retirement in 2010, Patterson’s friends surprised him with the establishment of an endowment in his honor. The Dr. Randall Gerald Patterson Endowment for Speech and Debate was created to benefit the program Randy Patterson helped to create and nurture. “My first feeling was one of surprise and a deep feeling of gratitude,” Patterson says. “This endowment shows that the hard work the speech and debate students, the parents, the other coaches, and I put in through the years – including the time given, the financial resources invested, and the skills gained – continues to be deeply valued by the St. Andrew’s community.” The lead gift for the endowment was provided by Jackson attorney and former St. Andrew’s trustee Danny Cupit, a longtime friend of Patterson’s and a supporter of the speech and debate program at St Andrew’s since its inception. “Randy Patterson did more for the speech and debate program than anyone could have asked,” Cupit says. “I thought an endowment in his name was only fitting to help ensure the future of a program he cared so deeply about.”
ASHLEY WELLS HULLENDER, TERRY AND LESLIE WELLS
RANDY PATTERSON
Non-Profit Organization U.S. Postage
PAID
Jackson, MS Hederman Direct
OFFICE OF INSTITUTIONAL ADVANCEMENT 370 OLD AGENCY ROAD RIDGELAND, MISSISSIPPI 39157–9714 601.853.6000 / WWW.GOSAINTS.ORG
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