District Financial Resource Team. Coordinator: Roy Balfour Ofc: Fax: Page 1 of 9

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1 Page 1 of 9 Would You? QUESTION? Donate $ to a charity you already support with your time, if It did not come out of your pocket? Did not effect your life style? Not a significant negative impact on your family? Knew its effect would last forever? or Came from new cash flow savings? (tax or expense) Even if the process of planning a donation resulted in: Re-enforced your on the right track Point to significant wealth improvements < Source of $Donation Corrected "unintended consequences Improved control, protection and value to your family? If yes to any of these then read on

2 How to donate Page 2 of 9 Testamentary Gifts.. least effort and cost. Benefactor Provision in an estate plan to gift $1,000 or more. Funded by Will/Bequest, Outright gift, Other (ie: insurance) Bequest Society Provision in an estate plan to gift $10,000 or more. Funded by Will/Bequest, Living Trust, Life Insurance, Charitable Remainder Trust, IRA/401(k), Other 1- Page Form RI Recognition Benefactor Commitment Card: 149-EN Easy to do: Fill in a simple half page Rotary form then add either (A or B): Bequest Society Member Card: 098-EN A. Call your insurance agent and ask RI Foundation be an Insurance Co-beneficiary of some part of your current whole life or universal life insurance policy. Naming additional Beneficiary: Rotary Foundation of Rotary International One Rotary Center, 1560 Sherman Avenue Evanston IL Tax ID: Send just the Rotary Form & Insurance Co-Beneficiary page only. (not the whole policy) B. Ask your attorney for a simple Codicil to your Will or Living Trust naming RI Foundation donation. Sample text below, however the Rotarian s personal attorney can prepare it to be in conformity to current Massachusetts Law. "I give to The Rotary Foundation of Rotary International, an Illinois not-for-profit corporation, located in Evanston, Illinois (insert here the sum, description of property, or percentage of residual estate) This gift is to be placed in said Foundation's endowment, The Rotary Foundation Permanent Fund, from which a spending portion will be used to support the Foundation's activities and programs." Send just the Rotary Form & Codicil page only. (not the whole Will) Give the Rotary form and A or B support items to DFRT Coordinator or your club Rotary Foundation Chairperson. Thats all there is to it! Major Impact: February 2009 there are: 79,000 Benefactors $1,000 or more 6,000 Bequest Society $10,000 or more 85,000 only 7% of all Rotarians = $478 million increase TRF by 81% Just think what could be done if 100% of Rotarians did this simple step!

3 Living Gifts Page 3 of 9.. more effort, greater donation and family benefits. You don't have to be Bill Gates to use tax saving techniques, to make charitable contributions during your lifetime through Estate & Family Wealth Planning Tools. Ask your advisors to work together and help you make a plan to donate. The evaluation process alone can result in improving your family situation. (even if in the end you don t donate!) Update a Family Wealth or Estate Plan? Why Setup? To prevent the 3-destroyers of wealth: Litigation, Divorce and Taxes. Plans generate Income Tax savings (living benefit) and Estate Tax savings (death benefit) to improve control, protection and increased value to your heirs. Why Update Existing? Periodically to keep them on track. Adapt to new laws, adjust to financial market performance and correct any unintended consequences Using newer updated strategies can create efficiencies and tax savings! It is these new savings that provide opportunity to donate to 501(c)3 Charities. Unique opportunity to act now! While transfer assets & taxes are still low. o Plan... not to worry the IRS has one for you! EXAMPLE: $1 becomes $2 benefit! Although there are over 400+ Estate Tax Savings Tools that a skilled Family Wealth Strategist working with your current advisor team can help determine what is best for you, one example is a CRT that with one gift you can Make a major donation. Receive immediate tax benefits. Reduce capital gains tax on donated appreciated assets and investments. Receive lifetime income for you or your family. Replace donation value to your heirs with tax free Insurance benefit. (CRT) Charitable Remainder Trust. Example: 50yr old, 30% Tax Bracket > $500k Donation (ie: Stocks) You /Donor Donate $500k $150k Tax Deduction* $30k yr Income for Life To you or your family Trust $500k Balance to Charity At Trust End Family $500k becomes $1 million Benefit for your Family and Charity $1 becomes $2 benefit! $11k yr = $500k Insurance Policy Cash Accessible Value Charity * $150k Tax Deduction taken over 5yrs = $30k per yr offsetting $30k Trust Income becomes tax free!

4 Page 4 of 9 How to get started Make a Plan to donate by working with Your Trusted Advisor Team & Rotary Like your business: Set your family goals Select a skilled team Develop your plan Teamwork is the key Financial trusted advisors need coordinated interactions and transparency to succeed. Protection Savings Growth Your Trusted Advisor Team Accountant Attorney Tax/Estate P&C Insurance Agent Life Insurance Agent Financial Planner Banker Benefits Advisor Investment Advisor Realtor & Mtg Advisor Exit Plan Specialist Estate Strategist The District 7910 "DFRT",, is open to all Rotary member financial professionals. It is a coalition of Attorneys, CPA's, Insurance, Investment Advisors and others. Our goal is to augment the skill sets of any Rotarian s current financial advisors and provide insights and resources to help our fellow Rotarians achieve their financial goals and at the same time help when feasible to increase RI Foundation donations. Who do you trust? O O E PERSO! (especially if named Bernie Madoff) Consider trusting in a common sense process where your advisors are willing to work together to provide a consensus plan with financial models to show impact of any decisions before they are made and future impact. Financial Industry: Problem: Transparency Trust Solution: (back to basic common sense) Use an Advisor team that works together. Consider augmenting missing advisor or skill sets of your team with a fellow Rotarian. Its better than checking the yellow pages, since they operate from the same 4-Way test you do. Need a new advisor? See attached file: District 7910 DFRT.xls If you have questions, need help or have suggestions, please do not hesitate to call or anytime. Roy Balfour Tel: FOLLOWING 4-PAGES: Rotary Benefactor & Bequest forms (case you need one)

5 Bequest Card Page 1 of 2 Page 5 of 9

6 Bequest Card Page 2 of 2 Page 6 of 9

7 Benefactor Card Page 1 of 2 Page 7 of 9

8 Benefactor Card Page 2 of 2 Page 8 of 9 See District 7910 Contact Info

9 Testamentary Gifts Who does what, when. Page 9 of 9 District 7910 Benefactor & Bequest Steps STEP#1 Rotary Member to.. Fill-in a Rotary Form (copy of both are in this packet) Benefactor Form for $1,000 or more (or ) Bequest Society Form for $10,000 or more WE SUGGEST: SHARE so our District Benefits too. Add either support document (A or B) A. Insurance policy Co-beneficiary page (only). Additional Beneficiary: Rotary Foundation of Rotary International One Rotary Center, 1560 Sherman Avenue Evanston IL Tax ID: B. Will Codicil: If you are drafting a new will or codicil or establishing a trust, the following is sample language that can be used in a bequest: "I give to The Rotary Foundation of Rotary International, an Illinois not-for-profit corporation, located in Evanston, Illinois (insert here the sum, description of property, or percentage of residual estate) This gift is to be placed in said Foundation's endowment, The Rotary Foundation Permanent Fund, from which a spending portion will be used to support the Foundation's activities and programs." Unless further directed by the donor, the spending portion will be directed to support Foundation programs as determined by the Trustees of The Rotary Foundation. If it is your intention that a portion of the spending be directed through a specific Rotary district, please indicate this on the Benefactor Commitment Card. The Rotary Foundation urges you to seek advice from a legal or financial professional of your choosing in all matters pertaining to a bequest or living trust. Your done! Give RI form & support to your club DFRT coordinator or Foundaton Chair. STEP#2 DFRT Coordinator or Foundation Chair to send form and support document to: Benefactors: Bequest Society: PDG Carl Kliszewski (Ofc: ) Bryan Rourke (Cell ) c/o avigator Financial Services c/o Hayden Wood Insurance Agency, Inc. 8, Lake Street, Webster, MA Turnpike Rd Ste#5 Southborough, MA They will assure documents are in proper order, keep a record for the district and assure that recognition materials are requested & received: Benefactor = Pin + Certificate Bequest = Pin + Crystal Display STEP#3 PDG Carl or Bryan will send documents to: Rotary International Attn: Benefactor/Bequest Coordinator Wesley Gathings (Ofc: ) One Rotary Center 1560 Sherman Ave., Evanston IL STEP#4 Recognition materials sent from RI to PDG Carl / Bryan for member presentation