Did you know that the beneficiaries named on your retirement plan or life insurance policy will determine who receives those funds, even if your will specifies something different? Additionally, if you leave funds from your IRA to your estate, they could be subject to multiple levels of taxation.

If you're considering including a gift to Saint Joseph Academy in your will, here's an easy solution: Name Saint Joseph Academy as a beneficiary (or partial beneficiary) of your retirement plan and leave other assets, which are taxed less, to your family.

It's Easy as 1, 2, 3!

1. Request a "change of beneficiary" form from your plan administrator.

2. List Saint Joseph Academy as a beneficiary with the following details: Saint Joseph Academy 101 Saint Joseph Dr. Brownsville, TX 78520 EIN is 20-0468149

3. Let us know about your gift so we can thank you for your generosity! For more information please contact Monica Rodriguez at 956-542-3581 or at mrodriguez@sja.us.

Named Endowments at Saint Joseph Academy

At Saint Joseph Academy, we invite donors to establish named endowments with a minimum contribution of $50,000, as determined by our Board of Directors' Finance Committee.

Donation Options

· One-Time Donation: Donors may contribute the full amount in a single payment.

· Pledge Option: Alternatively, donors can pledge $10,000 annually for five years. Financial aid distributions may begin once the second $10,000 payment has been received.

Scholarship Distribution

Each year, 5% of the endowment principal is allocated to fund financial aid scholarships for students in need. Donors can choose how they would like their scholarships to be distributed:

· Yearly Awards: We recommend awarding scholarships to a freshman, sophomore, junior, and senior each year. As each senior graduates, the scholarship would be awarded to the next incoming freshman.

· Support One Student: Some donors prefer to support one student throughout their entire journey at Saint Joseph Academy, beginning with seventh grade and continuing until graduation.

· Sophomore Start: Other donors may choose to begin awarding scholarships to freshman, allowing for more time to evaluate potential recipients.

Custom Criteria

While all named endowments are intended for financial aid, donors can establish specific criteria that reflect their personal values or interests. Examples include:

· Occupation: Policemen, teachers, etc.

· Family Background: Single parents, students with the greatest financial need, etc.

· Geography or Activity: Students from certain schools, cities, sports teams, or clubs.

At the start of each academic year, we match the donor’s criteria with eligible students. Donors can either trust us to select the recipients or review anonymous student summaries to make their own decisions. Recipients are required to maintain academic and behavioral standards, and must complete the necessary financial aid forms annually. For more information please contact Monica Rodriguez at 956-542-3581 or at mrodriguez@sja.us.

The Advantages of Using a Donor Advised Fund (DAF)

Donor Advised Funds (DAFs) offer significant benefits, and with the recent changes in tax laws, their appeal to strategic donors is expected to grow. DAFs are simpler to set up than private foundations and enable you to support Saint Joseph Academy with relatively modest contributions.

How Does a Donor Advised Fund Work?

By opening a DAF, you are creating a distinct entity whose sole purpose is to manage and distribute assets to qualified charities. You can fund your DAF by irrevocably donating assets such as cash, appreciated stock, insurance proceeds, or other forms of capital. Since the DAF is a separate entity, you can claim an immediate tax deduction for the donated amount.

As the advisor of your DAF, you can either manage the investments yourself or select a professional investment advisor to handle the portfolio.

There are two primary ways to support Saint Joseph Academy through your DAF: by assigning them as a beneficiary or by recommending grants.

Beneficiary

By designating Saint Joseph Academy, or other charitable organizations, as a beneficiary, you ensure that when the DAF no longer has an advisor, the remaining assets will be transferred to SJA.

Grants

As long as you or your appointed successor(s) are advising the fund, you can recommend grants from the DAF to support Saint Joseph Academy or other charitable organizations.

What Are the Benefits?

· Receive an immediate tax deduction.

· Allow assets in the fund to grow tax-free.

· Establishing a DAF is easier and more affordable than creating a private foundation.

· Start with a relatively small contribution, as little as $500.

· A tax-efficient option for those utilizing the "lumping" strategy under new tax laws.

With a low entry threshold and several ways to make a charitable impact, DAFs are an excellent tool for charitable giving. If you have questions or would like more information about setting one up, please contact Monica Rodriguez at 956-542-3581 or via email at mrodriguez@sja.us.

Make Saint Joseph Academy a Part of Your Personal Legacy with a

Charitable Gift from Your Estate

Gifts Through Wills and Trusts:

When making a charitable gift to Saint Joseph Academy through your will or trust, it's essential to use the charity's legal name, address, and other identifying details. To name Saint Joseph Academy in your estate plan, please use the following suggested language:

Residual Bequest Language

A residual bequest comes to us after your estate expenses and specific bequests have been fulfilled: "I give and bequeath to Saint Joseph Academy, Brownsville, TX (EIN 20-0468149), all (or specify a percentage) of the remainder of my estate, both real and personal, to be used for its general support (or for the support of a specific fund or program)."

Specific Bequest Language

You may also designate a specific amount or asset to Saint Joseph Academy from your estate: "I give and bequeath to Saint Joseph Academy, Brownsville, TX (EIN 20-0468149), the sum of $ ____________ (or '____ shares of ___________ stock') to be used for its general support (or for the support of a specific fund or program)."

Contingent Bequest Language

Saint Joseph Academy can also be named as a contingent beneficiary in your will or trust, should any of your specific bequests be unfulfilled: "If (insert name of heir) is not living at the time of my death, I give and bequeath to Saint Joseph Academy, Brownsville, TX (EIN 20-0468149), the sum of $ (or 'all' or '_____ percentage of the residue of my estate') to be used for its general support (or for the support of a specific fund or program)." For more information please contact Monica Rodriguez at 956-542-3581 or at mrodriguez@sja.us.

IRA Charitable Rollover: A Smart Way to Give

The IRA Charitable Rollover offers a great opportunity to make a charitable gift during your lifetime from an asset that would otherwise be taxed heavily if left in your taxable estate.

Eligibility Requirements

· You must be at least 70 ½ years old at the time of the gift.

· Transfers must be made directly from your traditional IRA account by your IRA administrator to Saint Joseph Academy. Gifts that are withdrawn by you and then donated do not qualify. Transfers from 401(k), 403(b), SEP, or other retirement plans do not qualify.

· Gifts must be outright donations. Distributions to Donor Advised Funds or life-income arrangements such as charitable remainder trusts (CRTs), charitable gift annuities (CGAs), or gifts made in exchange for benefits (such as event tickets) are not eligible.

Example

Jane is 73 years old and required to take a $20,000 minimum distribution from her IRA, but she does not need the income. She can instruct her IRA administrator to transfer the $20,000 directly to Saint Joseph Academy. This $20,000 gift will not be subject to federal income tax and will count toward her required minimum distribution (RMD). It could also potentially lower her taxable income, possibly affecting her tax bracket.

Note: Under the Secure Act 2.0, the age for required minimum distributions (RMDs) has been raised to age 73 for individuals born between 1951 and 1959, and to age 75 for those born in 1960 or later.

Benefits of Qualified Charitable Distributions (QCDs)

· QCDs can total up to $105,000 annually.

· They are not included in your taxable income on your IRS Form 1040 (though no charitable deduction is available).

· They count toward your RMD, if applicable.

Life-Income Gifts

Under the 2023 CAA, a one-time transfer from your IRA can be used to create a life-income gift, most commonly a charitable gift annuity (CGA) or a charitable remainder trust (CRT). This allows for a maximum transfer of $53,000 to a qualified CRT or in exchange for a CGA. Please consult our office or your financial advisor for full details and conditions.

This type of gift can reduce the value of your IRA, which in turn lowers your future RMDs (since they are based on your IRA's value). A CGA, in particular, offers a guaranteed lifetime income stream, making it a smart way to diversify your holdings while securing a strong return. For more information please contact Monica Rodriguez at 956-542-3581 or at mrodriguez@sja.us.

A life insurance policy can be a versatile and effective tool for making a meaningful charitable gift to Saint Joseph Academy. There are two primary ways to use life insurance to support St. Joe, each offering distinct benefits.

Option 1: Name Saint Joseph Academy as the Beneficiary of the Policy

This option allows you to:

· Create a lasting legacy at St. Joe

· Reduce the size of your taxable estate

· Retain the flexibility to change your mind at any time

Option 2: Make Saint Joseph Academy the Owner and Beneficiary of an Existing Policy

This option enables you to:

· Make an irrevocable gift to St. Joe today with little or no impact on your current cash flow

· Receive a charitable tax deduction for a portion of your gift

· If premiums remain due on the policy, you can receive a charitable deduction for each contribution you make to cover those premiums

Planning Tips

To make Saint Joseph Academy the beneficiary or both the owner and beneficiary of your life insurance policy, simply contact your insurer and complete the necessary form. You may need to provide the following information:

Legal Name: Saint Joseph Academy

Tax ID Number: 741319922

Address: 101 St. Joe Dr.

Brownsville, TX 78520

You can also consider using a charitable donation to purchase a new policy for the benefit of St. Joe. If you're interested in this option, contact us early in the planning process, and we’ll guide you through the steps.

If you're considering designating your gift for a specific purpose, such as a scholarship fund or support for a particular department, please contact us to ensure we understand your wishes.

Before finalizing a gift of life insurance, we recommend reviewing your other assets (such as appreciated stock or IRA accounts) to ensure that this is the most effective way to achieve your charitable and financial goals. For more information please contact Monica Rodriguez at 956-542-3581 or at mrodriguez@sja.us.

Gifts Through Wills and Trusts:

When making a charitable gift to a nonprofit, it is essential to use the charity's correct legal name, address, and other identifying details. To include Saint Joseph Academy in your will or trust, please use the following suggested language:

Residual Bequest Language:

A residual bequest is made after your estate expenses and specific bequests are settled: “I give, devise, and bequeath to Saint Joseph Academy, Brownsville, TX (EIN 20-0468149), all (or specify a percentage) of the residue of my estate, both real and personal, to be used for its general support (or for the support of a specific fund or program).”

Specific Bequest Language:

You may also name Saint Joseph Academy as a beneficiary for a specific amount from your estate: “I give, devise, and bequeath to Saint Joseph Academy, Brownsville, TX (EIN 20-0468149), the sum of $ ___________ (or '____ shares of ___________ stock') to be used for its general support (or for the support of a specific fund or program).”

Contingent Bequest Language:

Saint Joseph Academy can be named as a contingent beneficiary in your will or trust in the event that one or more of your specific bequests cannot be fulfilled:

“If (insert heir's name) is not living at the time of my passing, I give and bequeath to Saint Joseph Academy, Brownsville, TX (EIN 20-0468149), the sum of $ (or 'all' or '_____ percentage of the residue of my estate') to be used for its general support (or for the support of a specific fund or program).”

Gifts of Appreciated Securities Tax ID Number: 741319922

Beneficiary Gifts from Retirement Plans, Life Insurance, Brokerage Accounts, or Other Beneficiary-Designated Plans:

Please contact your plan provider to obtain a change of beneficiary form. Once completed, kindly send a copy to Monica Davis ’90, Director of Academy Advancement and Alumni Affairs, at mrodriguez@sja.us.

· Legal Name: Saint Joseph Academy

· Tax ID Number: 741319922

· Address: 101 Saint Joseph Dr., Brownsville, TX 78520

Note to Attorneys, Accountants, and Professional Advisors:Thank you for assisting your clients with their charitable planning. As professionals, you build client relationships based on trust and mutual respect, which we also value in our relationships with our donors and friends.

We understand that each individual’s financial, philanthropic, and estate goals are unique. Therefore, we welcome the opportunity to help you incorporate your clients' charitable objectives into well-designed estate plans. We also encourage potential donors to consult with their professional advisors before making decisions based on the information we provide.

If you have any questions, please contact Monica Rodriguez at 956-542-3581 or email mrodriguez@sja.us.

One of the greatest tax advantages in charitable giving is the double benefit you receive when donating appreciated assets, such as stocks, to Saint Joseph Academy instead of giving cash. By donating stocks held for more than one year, you can claim a charitable tax deduction for the full market value of the asset and avoid paying capital gains taxes that would apply if you sold the stock and donated the proceeds in cash.

To direct your broker to transfer shares to Saint Joseph Academy, please provide the following information:

· Saint Joseph Academy

· 101 Saint Joseph Dr.

· Brownsville, TX 78520

· EIN: 20-0468149

Account Name: Saint Joseph Academy

Please notify Saint Joseph Academy with the details of the transfer (stock name, quantity of shares, and the purpose of the gift) so that we can properly acknowledge and credit your donation. For any questions, please contact Monica Rodriguez at 956-542-3581 or via email at mrodriguez@sja.us.