Planned Giving: Ways to Give
Bequests
Remembering the Theatre in your will benefits the institution in many ways–helping to support a captivating repertoire of classics, contemporary and new works, technology, artistic innovation, capital improvements, student matinees and, education and community engagement efforts. A bequest is one of the simplest ways to provide for Alley Theatre’s future and can take many forms.
You may arrange for the Theatre to receive:
- a specific dollar amount
- specified assets, such as securities, real estate, or tangible personal property
- all or a percentage of the remainder of your estate after all other obligations (a residuary bequest)
- a contingent bequest, making Alley Theatre the beneficiary only if a named beneficiary is unable to accept the bequest
You may make a bequest to Alley Theatre by preparing a new Will or adding a codicil to your present Will. An outright bequest to the Theatre is fully tax-deductible for estate-tax purposes.
How to Make a Bequest: Useful Language
The most useful bequest is an unrestricted bequest for the general purposes of the Theatre. This permits the Theatre to use your gift wherever it is most needed at the time.
Suggested language for making an unrestricted bequest: “I give, devise and bequeath [the sum of ____ dollars], [all or ____ percent of the rest, remainder and residue of my estate of every kind and description (including lapsed legacies and devises)] to Alley Theatre, 615 Texas Ave, Houston, Texas, for its general corporate purposes.”
Suggested language for a specific purpose: “I give, devise and bequeath [the sum of ____ dollars], [all or ____ percent of the rest, remainder and residue of my estate of every kind and description (including lapsed legacies and devises)] to Alley Theatre, 615 Texas Ave, Houston, Texas, to create an endowment fund which, subject to the Theatre’s endowment spending rule, is to be used for the following purpose: [state the purpose].”
Important Note: If you do specify a use for your bequest, the following language will ensure that your gift will always remain productive: “If at any time in the judgment of the Trustees of The Alley Theatre the designated use of this bequest is no longer practicable or appropriate, then the Trustees shall use the bequest to further the general purposes of the Theatre, giving consideration, where possible, to my special interest as described above.”
Charitable Gift Annuities
This agreement between the donor and Alley Theatre provides the donor with an annuity, an annual fixed payment for life, in exchange for irrevocably transferring assets to the Theatre.
- Gifts can be made with cash or marketable securities.
- The fixed payment amount the donor receives will be determined by how much is contributed and age at the time the gift is made.
- Payments for life may be paid to one or two annuitants. The minimum age at which an annuitant can receive payments is 65.
- A portion of the payment is tax-free.
- A charitable deduction is available for a portion of the contribution on the donor’s income tax return in the year the gift is made.
- It is possible to defer receiving payments for one or more years. This will result in higher annuity payments, higher tax deduction (available in the year the gift is made), allowing the donor to enjoy increased retirement income.
Charitable Rollover Gift Annuity
As of January 1, 2023, donors who are 70 ½ or older can now make a Qualified Charitable Distribution (QCD) in exchange for a charitable gift annuity. Please be aware of the rules and limitations:
- The transfer is a once per lifetime opportunity, up to $50,000 within a single year.
- If both Spouses have an IRA, each can contribute up to $50,000 to establish one single joint-life charitable gift annuity for $100,000.
- The entire payment you receive from your charitable gift annuity will be subject to income tax.
- There is no income tax deduction for this contribution, although there is no tax on the QCD either.
Nina Vance Legacy Society
If there is one individual who defines Alley Theatre. It is fitting that Alley formed the Nina Vance Legacy Society in Nina’s memory. Nina founded the Theatre, oversaw the construction of two different performing homes and established its national reputation for outstanding work during her 33-year tenure as artistic director.
Nina Vance may have started out in the theater in fairly humble fashion, but even early on she was developing her own vision of what theater could be. When her friends Bob and Vivien Altfeld suggested starting a theater, Nina began planning a fundraiser. She reached into her purse and found $2.14 so she bought 214 penny postcards and mailed them with a handwritten appeal to join her on October 7, 1947 to discuss bringing a new theater to Houston. When the question of what to call the new theater was raised, Actress Rita Cobler looked at their surroundings and the narrow path leading to the building and suggested “The Alley.” The name was accepted unanimously. “In the excitement, I didn’t mind it much that night,” recalled Nina. “But I was shocked to see it written in the next day’s papers. I think I had subconsciously imagined some rather grand name.”
Nina found her first play for the new theater at the library, the war play, A Sound of Hunting. Opening night, November 18, 1947 saw about 80 people in the audience. The next day, the Houston Post’s critic wrote what would prove to be understatement, “the city has brought forth another interesting and hopeful theater experience.”
Her triumphant February 8, 1949 production of Lillian Helman’s The Children’s Hour crystallized her realization that Houston theater audiences wanted and appreciated mature, thought-provoking theater experiences. When the show ended and the cast came out to bow, the applause was overwhelming. After the applause finally ended, Nina stepped forward on stage and exclaimed, “Houston, this is your theater!”
In addition to her contributions to Alley Theatre, Nina served on President John F. Kennedy’s Advisory Committee of the National Cultural Center in 1961 and in 1977 was one of eight American directors invited by the U.S. Department of State and the Russian Ministry of Culture to observe Russian Theatrical production in Moscow and Leningrad.
In recognition of this commitment and to acknowledge the significant role planned giving donors play in the ongoing success of Alley Theatre, a range of benefits is offered exclusively to members of the Nina Vance Legacy Society. By joining the Nina Vance Legacy Society and allowing us to include your name you encourage others to do the same.
Benefits:
- Acknowledgment in the Playbill: Your contribution will be recognized in our production program, celebrating your support with our audience.
- Exclusive Access: Enjoy access to the Connie and Roger Plank Family Greenroom, available to you one hour before and during intermission at all Hubbard Theatre performances, offering a complimentary beverage and snack.
- Special Invitations: You will receive exclusive invitations to appreciation events, including the Nina Vance Legacy Society appreciation event, where you can connect with fellow supporters and artists in our community.
Retirement Assets, Live Insurance, and Real Estate
Retirement Assets
Retirement account assets, if left to anyone other than a spouse, may be subject to very high taxation. However, by designating Alley Theatre as a recipient of any benefits remaining in the donor’s retirement plan, the donor may effectively reduce the taxes on those assets.
Current Giving Opportunity
Donors aged 70 ½ or older may contribute up to $100,000 to charity from their Individual Retirement Accounts (IRAs). Such contributions may also qualify as required minimum distributions. For more details, please contact your financial planner.
Life Insurance
You may wish to make the Theatre the beneficiary of a policy.
Real Estate
The gift of your home is a unique and meaningful way to support Alley Theatre. You can enjoy the satisfaction of making such a gift during your lifetime—without affecting your current lifestyle—by a special arrangement called a retained life estate. Real estate can also be a valuable asset when used to fund either a charitable remainder trust or a charitable lead trust.
Other Ways to Give
Charitable Remainder Trusts
This arrangement is an individually managed trust that may be tailored to meet your specific financial needs and can provide either a fixed or variable income for the life of the beneficiaries or for a set number of years, not to exceed 20.
The donated assets (typically cash, securities, and/or real property) are irrevocably transferred to a Trustee. There are two variations:
- A charitable remainder annuity trust pays income as a fixed dollar amount that remains constant for the term of the trust.
- A charitable remainder unitrust pays income that varies from year to year.
At the termination of the trust, the remaining assets pass to Alley Theatre for its general purposes or for the use you specify. A charitable deduction for a portion of your contribution is available on your income tax return in the year you make the gift.
Pooled Income Fund
This arrangement operates somewhat like a mutual fund. The Fund accepts irrevocable gifts from many donors, manages them as a common fund, and then distributes the income proportionately to the beneficiaries.
- You can make gifts with cash or marketable (but not tax-exempt) securities. The minimum gift is $10,000.
- The income may be paid to one or two beneficiaries and will vary depending on the earnings of the fund.
- You will receive an immediate income tax charitable deduction for some portion of your gift.
- Upon the death of the beneficiary, the remaining principal passes to Alley Theatre for the purpose the donor has stipulated or for the Theatre’s general purposes.
Charitable Lead Trusts
This arrangement provides income to Alley Theatre for a period of years, after which the trust property typically passes to the donor’s heirs.
- Income-producing assets that are expected to gain in value, such as stock or income-producing real estate, are irrevocably transferred to a trust. A minimum gift of $100,000 is recommended.
- The Theatre receives income from the trust for a specified number of years, after which the property in the trust is transferred to the heirs without the imposition of any additional taxes.
- An immediate charitable deduction on your gift tax return is available for the present value of the total income stream the Theatre will receive during the trust term.
- This gift can reduce or effectively eliminate the gift and/or estate tax that would normally be payable on the transfer of these assets to your heirs.
Planned Giving Glossary
Annuitant
One who receives annual fixed payments from an annuity
Annuity
A fixed sum payable annually
Appreciated securities
Stocks and/or bonds that have increased in value since they were acquired
Beneficiary
The person named to receive the income from, or remaining assets of, a trust
Bequest
A gift through one’s Will
Capital gains tax
The tax imposed upon profits realized from the sale of financial assets that have increased in value since they were acquired
Codicil
An addition to a Will that either modifies it or revokes part of it
Gift tax
A tax imposed on someone who gives money or property to another person without compensation
Irrevocable gift
A gift that cannot be annulled, undone, or changed
Mutual fund
An investment company that invests the money of its shareholders in a diverse group of securities of other corporations
Present value
The value, in today’s dollars, of assets to be received at some future time
Principal
The initial sum invested or borrowed, or the remainder of that sum after payments have been made
Real property
Immovable property; land, together with all the property on it that cannot be moved, together with any attached rights; often referred to as “real estate”
Retained life estate
The right to use property for life (usually a residence or a farm) after contributing the remainder interest to a charitable institution
Retirement accounts
Qualified plans like IRAs and 401(k) accounts that permit individuals to accumulate savings tax-free for retirement
Tangible personal property
Includes movable objects (e.g. china, books, cars, clothes, art, etc.) but does not include land, buildings, or other forms of real estate (real property—see above), or stocks, bonds, copyrights, cash, or other “intangible” personal property
Trust property
Property held in trust by one person (trustee) for the benefit of another (beneficiary)
Variable income
Payments received on a regular basis that are subject to change, not fixed
Support Alley Theatre
For more information on ways to give, including bequests, donor advised funds, charitable gift annuities and retirement assets, please contact Alley Theatre Development Department at development@alleytheatre.org or 713.315.3326.
Alley Theatre recognizes its donors, who have enabled the organization to enrich the lives of thousands of Houstonians through powerful theatre experiences on stage and in the community. Please click the link below to see the most current listing of donors who have supported the Alley over the last 12 months:
