Bill found that he could make a contribution through a charitable gift annuity and receive income for life. Congress has, through our tax laws, provided a variety of incentives and advantages to help concerned and sharing individuals, like yourself, to satisfy their desire to help organizations like The Actors Fund.

What is a Gift Annuity?
The gift annuity is an agreement between you and The Actors Fund under which you give a specific sum of cash or securities or other property (valued at $5,000 or more) and, in return, are guaranteed a fixed annual income for life. The transfer is part gift and part purchase of an annuity.

You may include a second beneficiary (such as your spouse) in the gift annuity agreement. Should the second beneficiary survive you, The Actors Fund will continue to make the payments for the life of the second beneficiary.

The amount you will receive annually for life (and that for your survivor beneficiary, if any) is determined at the inception of the agreement and is based on your age and how much you give.

Your benefits with a Gift Annuity
You receive a guaranteed and fixed annual income for life. Often the income rate is higher than that received from certificates of deposit or securities. A large portion of the annual income may be tax-free (return of principal). This increases your after-tax income.

Income payments start at the interval you select - monthly, quarterly, semiannually, or annually.

You will have available a charitable contribution deduction amounting to a portion of the value of the cash or asset given. If the gift is in cash, the deductible portion is available up to 50% of your adjusted gross income with a five-year carryover for any excess.

If the gift annuity is funded with long-term appreciated securities, the charitable contribution portion can be deducted up to 30% of your adjusted gross income with a five-year carryover for any excess. This is an excellent way to minimize and spread out the capital gain tax. Capital gain taxes are minimized because an exchange of appreciated securities for a gift annuity is, in part, a bargain sale of the securities. Therefore, part of the appreciation escapes capital gain taxation entirely. In addition, any capital gain that is reportable may be spread out over the donor's life expectancy.

Additional Benefits To You
In addition to the tax benefits, people are often attracted to the gift annuity for other, less obvious reasons. Gift annuities may be funded with contributions as small as $5,000. The procedure is straightforward and simple. There is no need, for example, for a person to make a new will. And because donors receive the income from their contributions, the gift annuity enables people of modest means to make gifts during their lifetime without financial sacrifice.

An additional benefit of a gift annuity is freedom from the details of managing an investment portfolio, since the charitable organization arranges for investment of the funds. Click here for more information on Charitable Gift Annuities, including a way to defer income for a period of time to increase income and tax benefits later.

Does it require cash to fund the Gift Annuity?
No. You may choose to transfer securities, which you hold. Of course, you may fund the plan with cash as well.

What determines the amount of the annuity payments?
The amount of the annuity payment depends upon the age(s) of the individual receiving the annuity and the amount of the gift. The American Council on Gift Annuities maintains suggested payout rates at different ages.

May we plan together?
Thoughtful philanthropy involves more than tax planning. Ideally, substantial charitable gifts should be shaped with consideration to your age, family circumstances and total financial resources. We will be pleased to talk with you about the gift annuity programs that we offer. Please use the response/request form or contact us directly to indicate your interest in our annuity program and to learn how you can participate. We will respond to your inquiry promptly without obligation to you.

The next page has some final thoughts.