The U.S. Charitable Gift Trust

The U.S. Charitable Gift Trust A Tax-Advantaged Charitable Giving Program Sponsored by Eaton Vance. The U.S. Charitable Gift Trust c/o Renaissance Administration LLC, 8910 Purdue Road, Suite 500, Indianapolis, IN 46268

Americans love to give. Every year Americans give hundreds of billions of dollars to charity. What could motivate people to donate such astounding sums? In truth, the motivations behind charitable giving are many and are often deeply personal. Some people, having been blessed by circumstance and good fortune, feel a deep-rooted obligation to give back to society or to those less fortunate. Many want to make a difference in this world and derive great personal satisfaction from witnessing the positive impact of their generosity. Then there are those who, after a history of giving, wish to establish a charitable legacy, hoping to inspire their children and future generations to continue their tradition of philanthropy. If you regularly give to charities, or would like to, you might like to know about a simple, straightforward way to realize all the satisfaction that can come from giving. It s called The U.S. Charitable Gift Trust, sponsored by Eaton Vance. 1

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 02110. 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. For more complete information about about the Trust, please contact your financial advisor for the Trust s Gifting Booklet dated June 30, 2016 (as may be amended), which should be read carefully 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. 2

Charitable Giving Made Easy The U.S. Charitable Gift Trust (the Trust ), sponsored by Eaton Vance, is a tax-exempt public charity, approved by the U.S. Internal Revenue Service ( IRS ), that receives donations from individuals, corporations and others and makes gifts to qualified charities throughout the United States. Through its Donor Advised Funds and Pooled Income Funds, the Trust offers you the opportunity to manage your philanthropic interests and goals through one simple, straightforward vehicle and provides you with cost efficiencies and investment diversification that is not possible with individual planned gifts. Moreover, the Trust platform will provide you with many of the same advantages as a private foundation, but without the complexity and the cost. 3

With the Trust, you can open an account for a Donor Advised Fund or a Pooled Income Fund, and you will be eligible to receive a federal income tax deduction. Your contributions to the Donor Advised Funds and Pooled Income Funds are invested in Eaton Vance-sponsored investment companies, giving your account the potential to increase in value and provide greater support to your favorite charities. With the Trust, all of your record keeping and tax reporting is consolidated in one account, which you may access online. In addition, with respect to the Donor Advised Funds, you may make grant recommendations to qualified charities and appoint account successors to help you establish a legacy of charitable giving. Eaton Vance is one of the nation s most experienced and respected investment advisers, with a history dating to 1924. 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. No matter what your charitable motivations, the Trust can simplify your giving, while helping you fulfill your goals. Most gifting is made with cash or securities, but it may be possible to gift noncash assets, such as real estate and restricted or privately held shares. Donors with sizable estates, annuities, life insurance or IRAs may also be able to name the Trust as a beneficiary. 4

The U.S. Charitable Gift Trust offers you two solutions for your philanthropic goals 1. The Donor Advised Funds are simple but powerful vehicles that combine the flexibility to support your favorite charities now or at any time going forward, with favorable tax benefits for you today. What s more, you do not incur the costs and administrative burdens associated with a charitable foundation. In fact, an account costs nothing to establish, and there are no additional out-of-pocket expenses.* 2. The Pooled Income Funds may be most appropriate to those in, or nearing, retirement and/or those who own appreciated securities with an unknown or complicated cost basis and who do not wish to pay capital gains tax. A Pooled Income Fund is an investment vehicle** that combines tax benefits with a lifetime stream of income for you, for joint lives or for your chosen income beneficiary(ies). With a Pooled Income Fund, you make gifts to charities only after all income beneficiaries are deceased. A Pooled Income Fund offers the tax advantages of a charitable remainder trust but, like a Donor Advised Fund, short-term or tax-exempt securities are not acceptable. Both the Donor Advised Funds and the Pooled Income Funds allow you to: Open an account with cash or appreciated securities Diversify concentrated holdings Consolidate and simplify giving, record keeping and tax reporting Be eligible for an immediate income tax deduction Avoid capital gains tax with gifts of appreciated securities Avoid estate tax Create a legacy of giving Take advantage of professional money management by Eaton Vance *Expenses for investment management, administration, fundraising and servicing are deducted from the Donor s account. **Tax deductions for amounts contributed to a Pooled Income Fund are taken at the time of the contribution to the Pooled Income Fund. Pooled Income Funds are not designed to be, or to compete with, an investment made for private gain. Your intention to benefit the Trust and its eligible charities should be a significant factor in your decision to contribute to a Pooled Income Fund. Charitable donations accepted by a Pooled Income Fund are irrevocable. Account values and income distributions will fluctuate. For more complete information, prospective donors should contact their financial advisor for the Trust s Gifting Booklet dated June 30, 2016, as it may be amended. Read the Gifting Booklet carefully before contributing. 5

The Donor Advised Funds The Donor Advised Funds allow you to recommend grants to charities of your choice, on your timetable, while allowing you to receive an up-front tax deduction for your contribution. As a Donor, you may give your account a specific charitable contribution name and pass along the role of Donor Advisor to heirs, establishing a legacy of charitable giving. Donor(s) Give Cash or Securities Receive Immediate Dollar-for-Dollar Income Tax Deduction John Smith Charitable Fund You Decide When and How Much to Gift Charities You Recommend The Donor Advised Funds: Benefits and Highlights Your Benefits Immediate income tax deduction No capital gains or estate taxes on gifts You recommend Which charities When to distribute How much ($100 minimum) Easy to set up and maintain Name successors to direct gifts and maintain your legacy Account Highlights $10,000 minimum initial donation Portfolio diversification Professional management by Eaton Vance No annual grant requirement Gift to charity has growth potential Online account access Recurring grant option to automatically send gifts on a predetermined schedule Investment Options: Growth Fund Growth & Income Fund Income Fund Gift Preservation Fund Cash Management Fund Or you may elect different combinations All assets are invested in Eaton Vance-sponsored registered investment companies. 6

Sample Case Donor Advised Funds Dave and Karen Cooper (both age 55) are married and typically gift $10,000 cash annually divided among their 10 favorite charities. The Coopers derive deep satisfaction from giving, but they also need tax deductions to help offset taxable income each year. They also realize that, if they were to gift their appreciated stock, they would avoid capital gains, but they have been reluctant to gift stock because of the paperwork involved in transferring stock to 10 different charities in December. A DONOR ADVISED FUND may be the solution. Instead of writing 10 checks to their favorite charities, the Coopers decided to gift $10,000 ($2,000 basis) of appreciated stock to a Donor Advised Fund and receive the following benefits: Simplified charitable giving: The Coopers can make one transfer of stock to their Donor Advised Fund Account and receive one tax receipt for their gift. They are eligible to receive an income tax deduction based on the entire amount contributed. By gifting appreciated stock, the Coopers will avoid paying $1,904 in capital gains tax.* They will be able to deduct and give what would otherwise be paid as capital gains tax. The proceeds will be placed in an account from which the Coopers can make recommendations for cash distributions to the charities of their choice and on their own timetable. The account will consolidate their charitable giving. The Trust s Administrator will handle all record keeping, administration and paperwork. *Assumes the Coopers are in the top tax rate and for families with income over $466,950 ($415,050 for single). The maximum 23.8% (includes the 3.8% surtax) federal long-term capital gains rate on an $8,000 capital gain. Check with your tax advisor or state to determine whether there are additional capital gains taxes due. Note: a state income tax deduction may also be available. 7

The Pooled Income Funds The Pooled Income Funds are designed for Donors whose most immediate need is for income but who ultimately would like their donation to the Trust to benefit the charities of their choice. Donors are eligible to reduce income taxes immediately, whether they donate cash or long-term appreciated securities. Donor(s) Give Cash or Securities Receive Partial Income Tax Deduction Income for Life John Smith Charitable Fund On Your Passing, You Can Name Charities or Your Successors Can Direct Assets Charities You Recommend or Donor Advised Fund Pooled Income Funds ( PIFs ): Benefits and Highlights Your Benefits Ultimately support the charities of your choice Receive monthly income for life Diversify concentrated holdings No capital gains tax on contributed securities Eligibility for immediate income tax deduction Avoid estate taxes Easy to set up and maintain Name successors to carry on your legacy Account Highlights $20,000 minimum initial donation Portfolio diversification Professional management by Eaton Vance Monthly income will vary based on performance Online account access Three investment options: Growth & Income PIF Current Income PIF High Yield PIF May invest in all three pools as long as $20,000 minimum is invested in each All assets are invested in Eaton Vance-sponsored registered investment companies. 8

Sample Case Pooled Income Funds Greg (age 70) and Susan (age 66) Tucker have been retired for a few years. The Tuckers own a highly appreciated position of XYZ stock ($100,000 with a basis of $20,000) and are in the 39.6% tax bracket. They seek potential current income and diversification without having to pay taxes or costs up front. The Tuckers would like to sell the XYZ stock to reinvest for income but don t want to pay $19,040 in capital gains taxes. 1 Their other choice is to contribute to the Pooled Income Funds and avoid paying capital gains taxes. A POOLED INCOME FUND may be a solution. The Tuckers contribute the XYZ position to a Pooled Income Fund. By doing so, Greg and Susan receive the following benefits: Greg and Susan avoid capital gains tax, and the entire $100,000 is invested to generate income. By having the entire $100,000 go to work, the Tuckers will receive more income for retirement $5,000 annually and $110,000 for their lives (assuming a yield of 5.00% and joint life expectancy of 22 years after donation). Not only do the Tuckers avoid paying capital gains tax, they also may be eligible to receive a current income tax deduction of $78,606. 2 That could be a tax savings of $31,128. Upon the death of the last income beneficiary, the remainder principal can be used to establish The Greg and Susan Tucker Family Foundation, from which the Tucker children can recommend grants to perpetuate the family legacy of giving. This hypothetical illustration is provided solely to demonstrate the long-term effect of applying mathematical principles to an assumed set of facts. Actual results will differ and could be substantially different. Have your financial advisor contact Eaton Vance to obtain an estimated income tax deduction based on your specific situation. Note: A state income tax deduction may also be available. 1 Assumes the Tuckers are in the top tax rate and for families with income over $466,950 ($415,050 for single). The 23.8% (includes the 3.8% surtax) maximum federal long-term capital gains rate applied toward the potential recognized gain of $80,000. Check with your tax advisor or state to determine whether there are additional capital gains taxes due. 2 The donor is eligible to claim an itemized federal income tax deduction the year in which the contribution to the Pooled Income Fund is completed. The amount of the deduction will be equal to the discounted value of the Trust s remainder interest in the contribution. The value of the remainder interest will depend on the fair market value of the contribution, the age of the named income beneficiaries and the rate of return as determined by the IRS. 9

Donor Advised Fund Investment Options When you donate cash or securities to a Donor Advised Fund, you then recommend the Investment Fund that you feel is most suitable while your donation remains in a Donor Advised Fund. There are five Investment Funds, each of which may be used alone or may be combined. All are managed by Eaton Vance and its affiliates. Eaton Vance is one of the oldest and most distinguished investment management organizations in the United States. Investment Funds and Objectives Investment Fund Growth Fund Growth & Income Fund Income Fund Objective Seeks long-term capital growth by investing primarily in common stocks, including U.S., developed international and emerging market equities. It has the highest potential for longterm appreciation (and depreciation) of the five available Investment Funds. Seeks total return by investing primarily in income-producing equity securities and investmentgrade debt obligations. The Growth & income Fund invests in a mix of U.S., international and emerging market equities, investment grade debt and below investment grade obligations. It seeks to realize both capital appreciation and current income. Seeks current income from a variety of debt and other income-producing securities, including global equities. The Income Fund s principal value will fluctuate. Gift Preservation Fund Invests primarily in debt securities with low interest rate risk.* Cash Management Fund Invests in institutional shares of BlackRock Treasury Trust Fund, an unaffiliated money market fund.* All assets are invested in Eaton Vance-sponsored registered investment companies. No matter your initial choice, however, you or your Donor Advisor may recommend transfers from one Investment Fund to another, subject to the approval of the Board of Directors. Earnings of each Investment Fund accumulate tax free, so your gifts have the potential to grow and could, therefore, provide greater support to your favorite charities. The Trust is ready-made to provide you with the opportunity to consolidate all your charitable giving into one account. The Trust maintains records of all account activity. You ll receive timely notice of contributions and grants made to charities. Quarterly statements reflect your account balance and activity. In addition, the Administrator will provide you with an acknowledgement of your gift to the Trust in accordance with IRS regulations. Whatever goals you have, whatever IRS-approved public charities you care about, we ll help you concentrate on the satisfaction of giving, not the complications. *This Investment Fund is not a money market fund and has principal risk. 10

Pooled Income Fund Investment Options Gain the satisfaction of making a charitable gift that benefits you or your loved ones now and your most favored charities later. When you donate cash or securities to a Pooled Income Fund, your donation is invested in the Investment Pool you select. Under a Pooled Income Fund, you have three choices, all of which are invested in shares of Eaton Vance-sponsored open-end registered investment companies and institutional shares of BlackRock Treasury Trust Fund, an unaffiliated money market fund. Donors should be mindful, however, that once an investment selection has been made it cannot be changed. The amount of income paid to you and your spouse at your death will be determined by the income generated by the Pooled Income Fund in which you invest. Eaton Vance is a major distributor, investment adviser and administrator of registered investment companies. Investment Pools ( PIFs ) and Objectives PIF Objective High Yield PIF Seeks to maximize current income by investing primarily in high-yielding obligations rated below investment grade. The High Yield PIF s principal value (and corresponding income payments) may decline over time. Current Income PIF Growth & Income PIF Seeks current income from a variety of debt and other income-producing securities (including global equities), the majority of which will be rated investment grade by established ratings agencies. The Current Income PIF is subject to market volatility. Seeks total return by investing primarily in income-producing equity securities and investment-grade debt obligations. The Growth & Income PIF invests in a mix of U.S., international and emerging market equities, investment grade debt and below investment grade obligations. It seeks to realize both capital appreciation and current income. The Growth & Income PIF is subject to stock market volatility. Generally, The Growth & Income PIF will likely have a lower current yield but higher potential for growth of principal than the other Pooled Income Funds. Therefore, it may be more appropriate for longer-term Donors. For those interested in a higher level of relative income but do not have a need for a relatively stable level of income over time, the High Yield PIF may be a better option. Consult with your financial advisor about the most appropriate Pooled Income Fund for your needs. 11

Getting Started... We ve Made That Easy, Too Opening a Donor Advised Fund Account To open an account in a Donor Advised Fund, simply complete the Donor Information Form (located in the Donor Advised Fund Forms Booklet) and, if you are donating securities, the Letter of Authorization to Transfer Securities. The minimum initial contribution is $10,000. Opening a Pooled Income Fund Account To open an account in a Pooled Income Fund, simply complete the Donor Information Form (located in the Pooled Income Funds Forms Booklet) and, if you are donating securities, the Letter of Authorization to Transfer Securities. The minimum initial contribution is $20,000. In either case, you should consult with your tax or financial advisor to determine how the Donor Advised Funds or the Pooled Income Funds can best suit your situation. If you have questions about the Donor Information Forms and/or about transferring assets to the Donor Advised Fund or the Pooled Income Funds, call the Administrator: Renaissance Administration LLC at 1-800-664-6901. 12

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Contact Information Administrator The U.S. Charitable Gift Trust c/o Renaissance Administration LLC 8910 Purdue Road Suite 500 Indianapolis, IN 46268 Tel: 1-800-664-6901 Fax: 1-877-227-3479 www.uscharitablegifttrust.org uscgt@reninc.com Sponsor and Investment Adviser Eaton Vance Management Two International Place Boston, MA 02110 eatonvance.com Tel: 1-800-225-6265 14

You must be the change you wish to see in the world. Mahatma Gandhi Find out more about The U.S. Charitable Gift Trust. Visit our website: www.uscharitablegifttrust.org 15

Two International Place, Boston, MA 02110 uscharitablegifttrust.org 2016 Eaton Vance Distributors, Inc. 800-225-6265 3826 6.30.16