After several years of declining or static gift annuity rates, the American Council on Gift Annuities (ACGA) has recommended a rate increase effective July 1, 2010. It isn’t much, but it does signal a move in a positive direction, a development we’ve been hoping to see for quite some time.

As you know, St. Labre follows the recommendations of the ACGA because the Council researches diligently to make sure rates reflect the realities in the economy and current actuarial calculations. In its recent statement about the 2010 rate change, the Council said, “Its (the Council) suggested rates have long been recognized, not only by charities and donors but also by state insurance departments and the Internal Revenue Service, as being actuarially sound and in the best interests of all parties involved.”

If you are 72 years old, and fund an annuity for $2,500, your rate of return would be 6%. Your immediate tax deduction would be $1,014.25, almost half of the value of the annuity. Your annual annuity would be $150 and the tax-free portion of that over the next 14.5 years would be $102.45. The taxable amount each year would only be $47.55. The best part is that you would receive this income for the remainder of your life.

How can you go wrong? A lifetime income most of which is tax free, a substantial immediate tax deduction, and best of all the satisfaction you receive from knowing you are helping hundreds of Native American children obtain a quality education.

St. Labre Legacy Society
The St. Labre Legacy Society is now a reality. The only qualification for membership is that you remember St. Labre in your estate plans. This is a step an increasing number of our benefactors are taking because they have a vision and a commitment to help ensure a bright future for generations of deserving, Native American children to come.

You may mark the box by Legacy Society on the flap on page 2 and return it to the planned giving department to receive a free Legacy Society brochure, or call us at the toll-free number at the end of this article for more information. We look forward to hearing from you.

Estate Planning
Are you ready for the many changes coming to the tax structure over the next year and a half? The Economic Growth and Tax Relief Reconciliation Act of 2001, which provided many tax cuts throughout the past ten years, is scheduled to expire in 2011. With continued economic uncertainty and a federal deficit in the trillions, lawmakers will be looking for new sources of revenue as they prepare the next set of tax regulations.

Fortunately, current charitable giving options can provide you with tax relief, especially if you are facing a large tax liability, such as can happen with the sale of a business or property other than your primary residence.

The St. Labre Planned Giving Department is ready to assist you with your estate and tax questions. Although we don’t dispense financial advice per se, we can visit with you about gift annuities and trusts of various types, which could alleviate tax problems, save you money, help support the mission of St. Labre and, certainly, bless the children for whom we care so much.

Call the planned giving office toll-free at 1-866-652-0959 to learn more about giving options and for a no-obligation projection on a gift annuity. Or check the items which interest you on the flap on page 2 and mail it back to us. Be sure to fill in your contact information.