TAX-WISE END-OF-YEAR IDEAS FOR FRIENDS AND SUPPORTERS OF ST. ANDREW’S EPISCOPAL SCHOOL

Creative Giving

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.

8

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

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 invest-ments 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.”

GIFTS OF REAL ESTATE: HOME IS WHERE THE GIFT IS

1. You give or sell your residence or other property to St. Andrew’s for a price substantially below the appraised market value, resulting in a transaction that is part charitable gift and part sale.

2. SA sells the property and uses the net proceeds of the sale for the purpose you specify.

Benefits: By an outright gift of appreciated property to St. Andrew’s Episcopal School, you avoid capital gains tax and realize a charitable deduction for the full fair market value of the real estate.

1. You transfer your residence, farm, or vacation home to St. Andrew’s subject to a life estate.

2. You continue to live in the property for life (or for the lifetime of your surviving spouse) while assuming responsibility for all taxes and upkeep.

3. The property passes to SA when the life estate ends.

Benefits: Through such an arrangement, you are entitled to a current income tax deduction for a portion of the fair market value of the property.

12

ANDREW TOWNES

Transfer property to SA1

Donor remains in home for lifetime2

SA sells property3

THIRD PARTY

DONOR

Donate or sell property to SA1

SA sells property2

DONOR THIRD PARTY

CHARITABLE RETAINED LIFE ESTATECHARITABLE SALE OF A HOME 3

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 2011.4

BEQUESTS: WHERE THERE’S A WILL, THERE’S A WAY.

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 per-centage 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 per-sonal 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 chil-dren 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.”

5SHINN AND GRACE LEE

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.

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.

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?

CHARITABLE TRUSTS: DO MORE GOOD WITH WHAT YOU’VE GOT

1. You transfer cash, securities, or other appreciated property into a trust.

2. Depending on the nature of the trust you, your spouse, or your named beneficiaries receive a percentage or a fixed annual payment from the trust for life.

3. When the trust ends, the principal passes to St. Andrew’s.

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.

1. You contribute cash, securities, or other property to a trust.

2. The trust makes fixed annual payments to St. Andrew’s for a specified term of years.

3. When the trust ends, the remaining principal passes to your heirs.

Benefits: A charitable lead trust ultimately allows you to pass significant assets on to younger family members with little or 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.

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 con-tinue to pay them, those premiums will become tax deductible each year.

Insuring St. Andrew’s SuccessDavid 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 some-one in the advancement office mentioned it,” David Marsh says. “A life insurance policy is an easy, affordable way to make a significant contribu-tion that will help insure the success of St. Andrew’s down the road. “We support St. Andrew’s because we realize that our children bene-fited 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.”

6PATSY AND DAVID MARSH

7CHARITABLE REMAINDER TRUST

1

2

Remaining principal passes to SA

3

Transfer gift into trust

Donor receives income for life

DONOR

TRUST

CHARITABLE LEAD TRUST

Fixed yearly payments to SA

2

Remaining principal passes to heirs

3

Transfer gift into trust1

DONOR’S FAMILY

LEADTRUST

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 EndowmentEstablished by his family in memory of St. Andrew’s grandparent Charlton Roby

The Wells Family Unrestricted EndowmentEstablished 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 ScholarshipCreated by family and friends in memory of alumnus Craig Bluntson

Winifred G. and Reynolds Cheney Memorial ScholarshipCreated in memory of St. Andrew’s patrons Winifred and Reynolds Cheney

J. Paul and Dee Tankersley Faulkner ScholarshipEstablished by late St. Andrew’s patrons J. Paul and Dee Faulkner

E.E. Ford Foundation Scholarship GrantsNeed-based scholarships for students grades 9-12

Adele Franks Memorial ScholarshipCreated in memory of Adele Franks, a founder of St. Andrew’s Episcopal School

Elise Green Herring Memorial ScholarshipHonors the daughter of the owner of Green Hall, an antebellum home in which St. Andrew’s was housed from 1950 – 1966

David V. Hicks ScholarshipCreated in honor of David Hicks, a former St. Andrew’s headmaster

Frank S. Johns Memorial Scholarship for Creative WritingCreated by the family of Dr. Frank S. Johns

The Malone Family Foundation Scholars ProgramAn endowment awarded to outstanding private and independent schools to provide scholarships to gifted students with financial need

The McRae Scholarship EndowmentCreated by Vaughan and Nora Frances McRae for need-based aid

Jennifer Mosal Memorial ScholarshipCreated by family and friends in memory of former student Jennifer Mosal

The Providence Foundation Scholarship EndowmentScholarship through an endowment from the Providence Foundation

The James and Therese Rodgers and Thomas and Eva Bianco Scholarship EndowmentCreated 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 ScholarshipCreated in memory of St. Andrew’s patron Nancy Spencer

Alan Eugene Stallings III Memorial Award for CourageCreated in memory of former student Alan Stallings by Vaughan and Nora Frances McRae

Tyler Christopher Varnado Memorial ScholarshipCreated by his friends in memory of former student Tyler Varnado

Whitney Luckett Watkins Scholarship EndowmentCreated by her friends in memory of alumna Whitney Luckett Watkins

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

Marsha McCarty Wells Memorial Scholarship FundCreated by friends and family of Marsha McCarty Wells, a St. Andrew’s parent, trustee, and patron

8 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.

ENDOWMENTS FOR SPECIFIC PROGRAMS

John D. Bower Endowment for the Enrichment of the SciencesCreated by Dr. John Bower, Professor Emeritus of the University of Mississippi Medical Center and president of the Bower Foundation

Rebecca Hiatt Collins Theatre Equipment EndowmentCreated in honor of Rebecca Collins, St. Andrew’s director of institutional advancement

Dorothy Davis Library FundCreated in honor of Dorothy Davis, a former St. Andrew’s teacher, upon her retirement

Ouida C. Drinkwater Endowment for the ArtsCreated by her husband and children in honor of Ouida Drinkwater, a former parent, staff member, and trustee

J. Paul and Dee Faulkner Endowment for the Fine ArtsEstablished by late St. Andrew’s patrons J. Paul and Dee Faulkner

Guillot Global Fellows ProgramCreated by alumnus Creath Guillot to provide grants to Upper School students for service-oriented international travel

William Lee Heard III Endowment for the BandGiven in memory of Bill Heard III by his family

Bishop Keller MemorialHonoring a St. Andrew’s patron and providing support for the ongoing needs of the chapel

Dr. Randall Gerald Patterson Endowment for Speech and DebateEstablished by friends and colleagues in honor of Dr. Randy Patterson, former faculty member

Sara Smith Ray Endowment for the Performing ArtsCreated in honor of Sara Ray, former parent and trustee

Dan Rose Ninth Grade Biology Enrichment FundCreated in honor of former biology teacher Dan Rose

Miss Jo and Dorsey Wade Endowment for the Lower School LibraryCreated by Dorsey Wade in memory of her mother, Jo Timberlake Nicholson

ENDOWMENTS TO SUPPORT FACULTY

The Christian Alexander Allenburger IV Faculty AwardCreated by his family in memory of former St. Andrew’s student Chris Allenburger

J. Paul and Dee Faulkner EndowmentEstablished by late St. Andrew’s patrons J. Paul and Dee Faulkner for professional development for faculty

E. E. Ford Foundation Faculty Enrichment GrantsEndowment for faculty enrichment and development

BOOK AWARDS

Prizes in specific subjects created in memory or honor of St. Andrew’s students, faculty, and friends

James Parham Evans III Prize in American History

Edith Lee Evans Prize in AP Studio Art

Warren D. Reimers Prize in French

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 endow-ment, 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 finan-cial 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’ wid-ower. “However, with the support of her family, we are attempting to ful-fill 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 daugh-ters 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 chil-dren 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.”

ASHLEY WELLS HULLENDER, TERRY AND LESLIE WELLS

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 foren-sics team, one student asked how the forensics team would work with dead bod-ies. 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 Pat-terson Endowment for Speech and Debate was created to benefit the pro-gram Randy Patterson helped to create and nurture. “My first feeling was one of surprise and a deep feeling of gratitude,” Pat-terson 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 for-mer 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.”

RANDY PATTERSON

Non-ProfitOrganizationU.S. Postage

PAIDJackson, MS

Hederman DirectOFFICE OF INSTITUTIONAL ADVANCEMENT

370 OLD AGENCY ROAD

RIDGELAND, MISSISSIPPI 39157–9714

601.853.6000 / WWW.GOSAINTS.ORG

Our Mission

TO NURTURE A DIVERSE COMMUNITY IN

THE EPISCOPAL TRADITION, FOSTERING SPIRITUAL

GROWTH, MORAL RESPONSIBILITY, ACADEMIC

EXCELLENCE, AND ARTISTIC AND ATHLETIC

PURSUITS, WHILE PREPARING FOR A LIFE OF

SERVICE TO OUR COMMUNITY AND THE WORLD.