USAA Giving Fund. Achieve Your Charitable Goals. Process Flow Chart. A Donor Advised Fund Program Powered by Renaissance Charitable Foundation Inc.

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1 USAA Giving Fund A Donor Advised Fund Program Powered by Renaissance Charitable Foundation Inc. Achieve Your Charitable Goals The USAA Giving Fund can serve as an effective, flexible and efficient means of meeting your charitable goals. Offered only to our clients, the Fund has been designed to simplify your family s annual giving by allowing you to contribute appreciated assets to the fund when you feel the timing is right, and then recommend grants over time - to the charities of your choice. The grantmaking process has been simplified as well and you will be able to research grantees through your online portal, and recommend gifts to be sent from your personal account to the charities of your choice. Finally, your contributions to the Fund can be invested in an array of USAA investment options, ranging from equity to money market investments. Setting up your account is simple, cost-effective and convenient, whether you open it directly online through our website, or with your financial advisor. You will be able to work in concert with your financial advisor to recommend the appropriate mix of asset classes for your charitable giving fund. The USAA Giving Fund can provide you and your family with the following benefits: Simplified charitable structure Streamlined granting process Convenient online access and service Easy account set up Efficiency and flexibility Process Flow Chart TAX DEDUCTIONS ACCESS DONOR ACCESS ONLINE DONOR PLATFORM CHILDREN ACCESS SPOUSE MULTIPLE GRANTEES The USAA Giving Fund is a donor-advised fund program whose sponsoring charity is Renaissance Charitable Foundation Inc. located in Indianapolis, Indiana. Contributions to the USAA Giving Fund are irrevocable gifts to Renaissance Charitable Foundation, which maintains exclusive legal control over the USAA Giving Fund. 1

2 The Benefits of Giving Tax Advantages You receive an immediate tax-deduction for contributions, and you avoid capital gains taxes on any appreciated assets. Efficiency The Fund offers an efficient means of managing your family s charitable gifting by removing the need to write and track checks for tax reporting, and delivering an intuitive online portal to research, recommend and manage grantmaking. You can even set up recurring grant recommendations to save time. Simplified Administration The USAA Giving Fund provides virtually all the administrative services that are related to your family s philanthropy, including consolidated reporting and record-keeping. Maintain a Legacy You may name your family members or individuals of your choice to access your account to continue the tradition of giving beyond your lifetime. Privacy You can recommend charitable grants secure in the knowledge that, if desired, all information will remain confidential and anonymous. Enhanced Giving Power You have the ability to recommend how funds are invested among several investment options, including a money market fund, with the potential for tax-free growth, facilitating greater charitable giving in the future. Separation of Tax Planning & Charitable Decisions The ability to make contributions of appreciated assets when the timing is right to capture your gains, without the need to identify and manage direct gifts to a charity at that time, helps to separate the timing of decisions regarding asset management from decisions regarding grantmaking. Convenience of Online Features & Services Whether you want to look up comprehensive account information, research charitable organizations or recommend a grant distribution to a charity, you can do it all online through secure account access. 2

3 Increase Giving Maximize Benefits Donating appreciated securities results in larger gifts, at a lower cost to you. Benefits Sell appreciated securities and donate cash proceeds to a donor-advised fund Donating appreciated assets results in greater grantmaking potential, at a lower cost to you Current value of securities $100,000 $100,000 Capital gains tax paid by donor (20% of $90,000) $18,000 $0 Amount received by charity $82,000 $100,000 Charity receives an additional $18,000 Income tax savings (36% tax bracket) $29,520 $36,000 Cost of donation to donor $70,480 $64,000 You save $6,480 3

4 An Alternative to a Private Foundation USAA Giving Fund versus Private Foundations Similarities USAA Giving Fund and Private Foundations Maintain a family legacy Avoid capital gains taxes on contributed assets Contributions have the ability to appreciate over time Ability to recommend an investment style Flexibility in timing of contributions and grants Differences USAA Giving Fund No start-up costs Income tax deductibility: Cash: up to 50% of AGI Publicly traded securities: up to 30% of AGI No excise tax No annual tax reporting Ability to recommend grants Low fees and expenses Distribution generally on donor s timetable Anonymity generally if desired Few regulatory requirements Private Foundation Substantial start-up costs Income tax deductibility: Cash: up to 30% of AGI Publicly traded securities: up to 20% of AGI Subject to 2% federal excise tax Annual state and federal tax reporting Responsibility to manage assets, select charities, administer grants and keep records Annual expenses are often substantial 5% distribution required annually Activities are public record Extensive regulatory requirements 4

5 Key Facts Fund Highlights Minimum Initial Contribution $5,000 Additions to the Account: Irrevocable Gifts: Additional contributions of at least $1,000 may be made at any time. Contributions to the USAA Giving Fund are irrevocable and nonrefundable. Types of Gifts: Naming the Account: Account Advisors: Successor Advisors and Beneficiaries: Areas of Interest: You may contribute cash, stocks and bonds, or you may speak to your portfolio manager about other types of gifts including real estate, annuities, and tangible assets. You will be asked to name your account. You may want the name to reflect your charitable goals, for example, the Smith Family Charitable Fund. You may assign advisors to the account who can recommend grants and eventually become successors to the account. You may specify one or more family members or other individuals as successors. A successor gains full responsibility for the account upon the death of the original advisors, with the ability to make contributions, recommend grants and name advisors and successors. To honor the charitable intent of the original donor and in the event no successor advisors are named after the last advisor passes, donors are required to indicate a charitable organization, area of interest, or geographical area for final grants, in the event no successor is named to manage the fund. Minimum Grant Recommendation Amount: $50 Annual Administration Fee Up to $500, % per Account Fee Next $500, % per Account Fee Next $1,500, % per Account Fee Next $12,500, % per Account Fee Above $15,000, % per Account Fee Giving You may also choose to fund or add to an existing account through deferred gifts, such as through a charitable remainder trust, a bequest in an estate or as a beneficiary of qualified retirement plans. 5

6 Investment Strategies You can recommend the allocation of your contributions among the following investment pools consisting of mutual funds managed by USAA: Strategy Description USAA Treasury Money Market Trust The Treasury Money Market Trust invests at least 80% of its assets in U.S. government securities with maturities of 397 days or less; which include U.S. Treasury bills, notes, and bonds; repurchase agreements collateralized by such obligations; and other obligations of the U.S. Treasury. The Cornerstone Conservative Fund invests in a selection of USAA mutual funds Conservative Fund (underlying USAA funds) consisting of a target asset class allocation of approximately 20% equity securities and 80% fixed-income securities. This is often referred to as a fund-of-funds investment strategy. The actual asset class allocation can deviate from time to time from these targets as market conditions warrant. Moderately Conservative Fund The Cornerstone Moderately Conservative Fund invests in equities, bonds, and money market instruments. The Fund will have a target asset class allocation of approximately 40% equity securities and 60% fixed-income securities. The actual asset class allocation can deviate from time to time from these targets as market conditions warrant. The Cornerstone Moderate Fund (Formerly the Balanced Strategy Fund) invests in Moderate Fund equity securities, bonds, money market instruments, and other instruments. The Fund will have a target asset class allocation of approximately 50% equity securities and 50% fixed-income securities. The actual asset class allocation can deviate from time to time from these targets as market conditions warrant. Moderately Aggressive Fund The Cornerstone Moderately Aggressive Fund invests in equity securities, bonds, and money market instruments. The Fund will have a target asset class allocation of approximately 60% equity securities and 40% fixed-income securities. The actual asset class allocation can deviate from time to time from these targets as market conditions warrant. Aggressive Fund The Cornerstone Aggressive Fund invests in equity securities, bonds, and money market instruments. The Fund will have a target asset class allocation of approximately 80% equity securities and 20% fixed-income securities. The actual asset class allocation can deviate from time to time from these targets as market conditions warrant. The Cornerstone Equity Fund invests at least 80% of its assets in a selection of USAA Equity Fund mutual funds (underlying USAA funds) consisting of a long-term target asset allocation in equity securities. This is often referred to as a fund-of-funds investment strategy. The target asset class allocation can deviate from time to time from these targets as market conditions warrant. 6

7 Investment Strategies (continued) Consider the investment objectives, risks, charges and expenses of the USAA Mutual Funds carefully before investing. Contact us at (800) for a prospectus containing this and other information about the funds from USAA Investment Management Company, Distributor. Read it carefully before investing. You could lose money by investing in money market funds. Although these Funds seek to preserve the value of your investment at $1 per share, they cannot guarantee they will do so. An investment in these Funds is not a deposit in USAA Federal Savings Bank, or any other bank, and is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. The Funds sponsor has no legal obligation to provide financial support to these Funds, and you should not expect that the sponsor will provide financial support to these Funds at any time. Download investment strategies online at: 7

8 USAA Giving Fund A Donor Advised Fund Program Powered by Renaissance Charitable Foundation Inc. (800) Fredericksburg Rd. San Antonio, TX Investments are: Not FDIC Insured Not Bank Issued, Guaranteed or Underwritten May Lose Value Investing in securities products involves risk, including possible loss of principal. USAA Giving Fund- A donor advised fund powered by Renaissance Charitable Foundation, Inc. The USAA Giving Fund is offered through USAA Financial Advisors, Inc., a registered broker-dealer. USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor. Financial planning services and financial advice provided by USAA Financial Planning Services Insurance Agency, Inc. (known as USAA Financial Insurance Agency in California, License #0E36312), a registered investment adviser and insurance agency and its wholly owned subsidiary, USAA Financial Advisors, Inc., a registered broker dealer. Investments provided by USAA Investment Management Company and USAA Financial Advisors Inc., both registered broker dealers, and affiliates. USAA means United Services Automobile Association and its insurance, banking, investment and other companies. Banks Member FDIC. Investments provided by USAA Investment Management Company and USAA Financial Advisors Inc., both registered broker dealers, and affiliates.