Making a difference through corporate philanthropy. Good for charities. Good for your business.

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1 Making a difference through corporate philanthropy Good for charities. Good for your business.

2 Corporate philanthropy is as vital as ever to America s charities and the communities they serve, and more and more businesses and corporations are heeding the charitable call. According to the Committee Encouraging Corporate Philanthropy, corporate charitable giving totaled $17.8 billion in Oftentimes, companies undertake charitable endeavors because they feel a responsibility to give back to the communities in which they do business. But philanthropic initiatives can create long-term financial value for a company or business too. Four reasons to start a corporate giving program Good for your business Supporting local causes can help your business develop a positive image in the community and strengthen relationships, both with customers and with community leaders and officials. Good for your community Studies show that thriving communities have vibrant charitable organizations supported by the financial largess of local businesses and citizens. Many business owners and executives appreciate that quality of life is important to a healthy business environment. Demonstrates leadership Great business leaders tend to be great community leaders as well. Your support for one or more causes may incite confidence, act as a catalyst for others to get involved and create optimism. Increases employee engagement, boosts morale and attracts employees The organizations and community groups that you support may be those your employees care about, too. Your support can create a positive work atmosphere and a sense of shared purpose and pride. It may even help you attract and retain employees. I helped to start the Committee Encouraging Corporate Philanthropy with the belief that corporate America could be a force for good in society. Paul Newman ( )

3 Top priorities for giving Disaster 2% Civic & Public Affairs 7% Most companies support several program areas with varying levels of funding. The chart on the right represents the breakdown of funding by program area for an average company in Source: Committee Encouraging Corporate Philanthropy. Environment 4% Culture & Arts 5% Community & Economic Development 20% Education: Higher 14% Health & Social Services 28% Education: K-12 20% Charitable giving made easy Although there are several ways to institute a corporate giving program, The U.S. Charitable Gift Trust (the Trust ) may offer many advantages over other options. The Trust is a tax-exempt public charity that receives donations from individuals, corporations and others and makes gifts to qualified charities throughout the United States. * Since it commenced operation in April 2000, the Trust has gifted more than $535 million (as of June 30, 2016) to charities. Through its Donor Advised Funds, the Trust offers you the opportunity to manage your organization s philanthropic interests and goals through a simple, straightforward vehicle, and provides you with cost efficiencies and investment diversification that may not be possible with an independently managed corporate giving program. *Except Puerto Rico. Corporate philanthropy has become part of a good strategic business plan. It is integral to corporate reputation, employee morale and stakeholders at all levels. Ken Derr, Retired Chairman and CEO Chevron Corporation

4 Introducing the Trust s Donor Advised Funds The Trust s Donor Advised Funds are simple but powerful vehicles that combine the flexibility to support your favorite charities now or in the future with favorable tax benefits for your organization today. What s more, your company or business does not incur the upfront costs and administrative burdens associated with a charitable foundation. Key features of the Trust s Donor Advised Funds Cost effective No start-up costs and no additional out-of-pocket expenses. $10,000 to open an account; $1,000 for subsequent contributions. Expenses for investment management, administration, fundraising and servicing are deducted from your account. Flexible You may generally choose the name for your account (e.g., The XYZ Corporation Charitable Fund). You may recommend: The charities of your choice When to distribute grants How much to distribute ($100 minimum) Simple and easy Provides tax reporting, record keeping and other administrative work that your employees or others would otherwise have to perform. Enables you to support multiple charities from one donation. Recurring grant option to send gifts automatically on a predetermined schedule (monthly, quarterly, semiannually or annually). No annual gift requirement at the account level. Online account access. Tax-smart Professional managed Donations to the Trust are eligible for federal tax deduction. All assets are invested in registered investment companies. Professional money management by Eaton Vance, whose history dates to Matching Gift Programs Through a matching gift program, a company matches employee donations of money or time to eligible nonprofit organizations. Source: Committee Encouraging Corporate Philanthropy.

5 Advantages over a private foundation A Donor Advised Fund may be more advantageous than a foundation, and generally is easier and less expensive to establish and maintain. Start-up costs and time Annual required distribution of principal to charities Excise taxes Tax deduction Donor generally may name account Privacy Donor s role in investment management Donor s administrative responsibilities Donor Advised Fund No costs; can be established immediately. None at individual account level; 5% at Trust level. No In general, C-Corps are limited to up to 10% of corporate taxable income. In general, partnerships, limited liability companies and S-Corps have a pass-through taxation. So charitable deductions flow through to individual owners and are subject to their regular limitations. 1 Yes Yes, donor name can be kept confidential, and grants can be made anonymously. Donor chooses allocations to five Eaton Vance investment funds. Recommend grants to favorite charitable causes. Private Foundation Legal and start-up fees; typically takes weeks or months to create. Yes 5%. Yes typically 2% of annual net investment income. In general, C-Corps are limited to up to 10% of corporate taxable income. In general, partnerships, limited liability companies and S-Corps have a pass-through taxation. So charitable deductions flow through to individual owners and are subject to their regular limitations. 2 Yes No, must file detailed and public tax returns on grants, investment fees, trustee name, staff salaries, etc. Donor has greater flexibility with investments. Manage assets, keep records, select charities, administer grants, file annual state and federal tax returns, maintain board minutes, etc. Enjoy lower cost as compared to a private foundation - virtually no paperwork and simple maintenance, with online capabilities to review accounts and send grant recommendations. 1 Gifts of cash to a public charity are deductible up to 50% of AGI, gift of capital gains property to a public charity is deductible up to 30% of AGI. Amount of the contribution that exceeds the deduction limit may be carried over for 5 years. 2 Gifts of cash to a private charity are deductible up to 30% of AGI, gift of capital gains property to a private charity is deductible up to 20% of AGI. Amount of the contribution that exceeds the deduction limit may be carried over for 5 years. The information contained herein has been prepared solely for informational purposes and is not intended as tax advice. Eaton Vance does not provide tax advice and does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness or relevance of any information contained herein and takes no responsibility. Investors should consult a tax and/or legal advisor before making any tax-related investment decisions.

6 About Eaton Vance Eaton Vance is one of the nation s most experienced and respected investment advisers, with a history dating to Throughout its existence, Eaton Vance s investment teams have followed time-tested principles of investing that emphasize avoidance of unnecessary risk and the pursuit of consistent, longterm results. From its beginnings, Eaton Vance has been focused solely on the business of managing investments for our clients. Getting started we ve made that easy, too Opening a Donor Advised Fund account is as easy as completing the Donor Information Form available in the Donor Advised Funds Forms Booklet or may be downloaded from The U.S. Charitable Gift Trust website: uscharitablegifttrust.org. If you have a current situation you would like to discuss or have questions setting up a Donor Advised Fund account, please contact your financial advisor or Eaton Vance s Charitable Marketing department at You must be the change you wish to see in the world. Mahatma Gandhi

7 Contact Information The Administrator The U.S. Charitable Gift Trust c/o Renaissance Administration LLC 8910 Purdue Road, Suite 500 Indianapolis, IN Voice: Fax: Sponsor and Investment Manager Eaton Vance Management Two International Place Boston, MA eatonvance.com Tel: It s easy to make a buck. It s a lot tougher to make a difference. Tom Brokaw The U.S. Charitable Gift Trust (the Trust ) is a tax-exempt public charity that receives donations from individuals, corporations and others, and that makes grants to numerous charitable organizations throughout the United States, including charities selected by the Trust and those recommended to the Trust by Donors and others authorized by the Donor to make grant recommendations. The Trust is located at Two International Place, Boston, MA Charitable contributions accepted by the Trust are irrevocable. Donors have no right to income or principal other than as provided by Pooled Income Fund accounts, and account values will fluctuate. The Trust and its Pooled Income Funds are not guaranteed or insured by any governmental body. The Trust is not available in Puerto Rico. A financial statement of the Trust, for whom the solicitation is being made, and a copy of the contract will be provided upon request. Prospective donors are encouraged to consult their tax advisors regarding their specific tax status before contributing. Eaton Vance Distributors, Inc. is a paid solicitor which will receive as costs, expenses and fees a portion of the solicited funds raised through the solicitation campaign. For more complete information about such fees, please see the Trust s Gifting Booklet dated June 30, 2016, as it may be amended.

8 Two International Place, Boston, MA uscharitablegifttrust.org 2016 Eaton Vance Distributors, Inc