Celebrating sixty years of giving, the Entertainment Industry Foundation (EIF) is the philanthropic voice of the entertainment industry. Charitable Services Funds at EIF provide a vehicle through which individuals and organizations can support critical needs of our community.

Establishing a Charitable Services Funds fund under the broad charitable mission of the Entertainment Industry Foundation represents an excellent opportunity for you or your company to directly impact a specific charity or cause that is of greatest importance to you. The Entertainment Industry Foundation provides customized giving opportunities.

The charities that you support through the Entertainment Industry Foundation are carefully researched. The Entertainment Industry Foundation has extensive experience in funding the most qualified, deserving, and reputable organizations to assure the greatest impact for your gift.

You may determine the purpose of your fund and can choose to endow that fund in a way that provides the most advantageous tax treatment for you, your family and/or company. Here are some examples of the types of funds you can create and how gifts to these funds can be structured to meet your charitable, financial, and estate planning goals.

Types of Funds

Typically, Charitable Services Funds are established in either an endowed or non-endowed account at the Entertainment Industry Foundation. In our endowed accounts, principal is invested long term with periodic distributions from earned income to organizations of the donor's choice. Our non-endowed accounts serve as the repository of Charitable Services Funds intended for immediate distribution to designated charities.

Unrestricted/Greatest Need Fund (Endowed and/or non-endowed):
This type of fund provides maximum flexibility to help meet current and future community needs. These grants, established with a current gift or provided for in your will, living trust or estate plan, can be made in any area of philanthropy as determined by EIF's Grant Review Committee and the Board of Directors. The fund can be established in your name and any grants made will identify your fund as the grantor.

Field of Interest Fund (Endowed and/or non-endowed):
Gifts made to this type of fund designate grants to a particular area of interest, but do not identify the specific organizations to receive funding. For example, you may establish a Cancer Research Fund in your name. Donors can choose to address a specific area of interest, such as arts, education, environment, etc.

The specific grant recipients will be identified by the Entertainment Industry Foundation and awards will be made in your name. You will receive regular reports on all grants.

Designated Fund (Endowed and/or non-endowed):
This type of fund benefits a specific charitable organization(s) that you may wish to designate to receive funding. You may designate one or more charitable organizations to receive ongoing funding. These charities may be identified as recommended recipients of your designated fund and can be supported even after your lifetime. In addition, because the Foundation is a permanent entity, the charitable intent of the donor will always be protected.

Field of Interest/Designated Fund:
This type of fund provides flexibility. It allows you to recommend specific charities for funding and set aside a portion of the funds to support other areas of interest. You may designate the portions of funds allocated for each purpose.

Memorial Fund:
The Memorial Fund is a wonderful way to recognize a friend or colleague who has passed. Family, friends or corporations can contribute to the fund to memorialize the individual's lifelong contributions. Grants will be awarded in the person's name. Each grant will be accompanied by a biographical sketch celebrating the life of the individual.

Community Action Fund:
Allows donors to see their charitable dollars put to work immediately and effectively. Gifts to this Fund will be invested as grants in local organizations within one year, and are used to address urgent community needs. Donors may focus their contributions on specific issues.

Endowment Fund:
An endowment is an established fund of cash, securities, or other assets which is set aside to provide a long-term stream of income for the maintenance of a non-profit organization. Distributions are made from income only.

Funding Your Philanthropic Goals

Although every fund is custom designed, most are created from a variety of approaches. Many of these techniques can be used together to best meet your financial situation and philanthropic goals. This high level of personalization and professionalism is one of the key advantages for establishing a fund at the Entertainment Industry Foundation. These techniques provide special tax advantages to the donor — advantages that have been legislated specifically to encourage philanthropic giving. The techniques comply fully with current tax laws. The Entertainment Industry Foundation will provide, at no obligation, additional information on how these philanthropic approaches can be used.

Cash:
A gift of cash is the most straightforward way to establish a fund. It is fully tax-deductible. You may add to the fund at any time — and you may also choose to use other approaches to grow the fund in the future. Grants may be made with the annual proceeds from the fund.

Appreciated Assets:
Assets that have appreciated over time, such as securities and real estate, present additional advantages. These gifts are tax-deductible at their fair market value while allowing the donor to avoid the payment of capital gains tax on the asset's growth.

Private Foundation Transfer:
Many private foundations have been established in the past few years. Trustees are encountering new regulations that make the private foundation's operation increasingly costly and cumbersome. In fact, private foundations pay an excise tax, whereas Entertainment Industry Foundation, as a public charity does not. A transfer from a Private Foundation can be made directly to an EIF Charitable Services Fund. Future donations to the fund can be made under public charity rules, which provide enhanced tax advantages.

Life Insurance:
A gift of life insurance can also be made to your named fund. A policy that has cash value may be donated to the fund and the cash value taken as a donation. New or ongoing premiums on life insurance policies donated to the fund may also be taken as a donation.

Charitable Lead Trust:
Lead trusts generate income for a named fund while passing the remaining interest back to your family. This approach is often used to provide for grandchildren or to pass a closely held business on to heirs. These trusts are carefully designed so that you donate part of your estate to the trust now, and the income goes to your named fund for a designated period of years. Your estate/gift taxes may be reduced and the property may not be taxed to your children. When your grandchildren reach maturity, the trust terminates and the assets go to their benefit. The net effects of this trust are twofold. First, the charity benefits during the life of the trust and secondly, your grandchildren or heirs may receive a larger portion of your estate.

Life Income Trust:
Creating a trust while you are alive is one of the best ways to establish both a fund and generate current income from the donated asset. You receive a charitable income tax deduction based upon the value of the donated asset, the annual percentage pay-out and the ages of those to receive annual income. If funded with an appreciated asset, the donor may also avoid payment of capital gains tax. Upon the death of those receiving income from the trust, the remainder goes to the EIF fund established in your name. Two types of trusts are available:

• A fixed amount or Annuity Trust provides you with the same amount of income each year for life or a term, not to exceed 20 years.

• A variable amount or Unitrust provides you with the flexibility to specify the percentage of the Fund's assets paid to you each year based on the net fair market value of the trusts assets which are valued annually. If the funds grow, annual payments may also increase. If the fund earns more than it pays out in income, the remainder amount left to charity is greater.

We are eager to partner with you in fulfilling your immediate and long-term philanthropic objectives. For more information please contact:

Merrily Newton, Sr. Vice President and CFO
Entertainment Industry Foundation
1201 West 5th Street., Suite T-700
Los Angeles, CA 90017
213.240.3900

The Entertainment Industry Foundation manages several donor-advised funds for entertainment industry members and companies.