Donor Advised Funds and Pooled Income Funds

Transcription

1 Donor Advised Funds and Pooled Income Funds Gifting Booklet Supplement December 29, 2017 This Supplement dated December 29, 2017 forms part of the Gifting Booklet dated October 2, 2017 (the Gifting Booklet ) for The U.S. Charitable Gift Trust (the Trust ). Capitalized terms not otherwise defined herein have the meanings specified in the Gifting Booklet. Effective December 29, 2017, all references herein to the BlackRock Treasury Trust Fund are removed and replaced with the State Street Institutional U.S. Government Money Market Fund.

2 Donor Advised Funds and Pooled Income Funds Gifting Booklet October 2, 2017 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 was established to provide support to a broad range of charities over time, without incurring the costs and administrative burdens associated with the creation and operation of separate charitable foundations, while at the same time allowing Donors to determine when and how to make their charitable gifts. All gifts made to the Trust are under the exclusive legal control of the Trust and its Board of Directors. The Pooled Income Funds are separate trusts established by The U.S. Charitable Gift Trust. The Pooled Income Funds are designed to provide future support for the Trust (and, ultimately, eligible charities that receive grants from the Trust) and, at the same time, to provide a tax deduction to the Donor and a source of income for one or two beneficiaries. Eaton Vance Management ( Eaton Vance ), an investment adviser registered with the U.S. Securities and Exchange Commission ( SEC ), is the sponsor and an investment adviser of the Trust and its Pooled Income Funds. Calvert Research and Management ( Calvert ), a SEC-registered investment adviser and a recognized leader in responsible investing, is an investment adviser of the Trust and a wholly-owned subsidiary of Eaton Vance. Eaton Vance and Calvert are investment advisers of SEC-registered investment companies. Offered through The U.S. Charitable Gift Trust. A simplified and tax-advantaged approach to charitable giving. Sponsored by Eaton Vance. Gifting Booklet October 2, 2017 The U.S. Charitable Gift Trust c/o Renaissance Philanthropic Solutions Group, 8910 Purdue Road, Suite 500, Indianapolis, IN 46268

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4 As of this date, The U.S. Charitable Gift Trust (the Trust ) has registered in all states that require registration under relevant securities and nonprofit laws and in the District of Columbia. Audited financial statements for the Trust for the preceding year are available upon request. The Trust makes contributions to charitable organizations that are not affiliated with the Trust, and a list of all such organizations to which contributions have been made during the prior calendar year is available to the public as part of the Trust s annual information filing with the U.S. Internal Revenue Service ( IRS ) (Form 990). Below are certain state notifications: Alabama These securities are offered pursuant to a claim of exemption from registration under section 37(h) (see section , Code of Alabama 1975) of the Alabama Securities Act and section 3(a)(4) of the Securities Act of 1933, as amended. A registration statement relating to these securities has not been filed with the Alabama Securities Commission or with the United States Securities and Exchange Commission. Neither the Alabama Securities Commission nor the United States Securities and Exchange Commission has passed upon the value of these securities, made any recommendations as to their purchase, approved or disapproved the offering, or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is unlawful. Colorado Colorado residents may obtain copies of registration and financial documents from the office of the Secretary of State, , re: Reg. No Florida A COPY OF THE OFFICIAL REGISTRATION AND FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF CONSUMER SERVICES BY CALLING TOLL-FREE, WITHIN THE STATE, HELP-FLA. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE. Georgia These securities have been registered with the Securities Commissioner of the State of Georgia. The Securities Commissioner, by accepting registration, does not in any way endorse or recommend the purchase of any of these securities. The Trust will provide a full description of its program and/or a financial statement upon request. Illinois Contracts and reports regarding the Trust are on file with the Illinois Attorney General. Indiana The Indiana Securities Division has not in any way passed upon the merits or qualifications of, or recommended or given approval to, the securities hereby offered, or passed upon the accuracy or adequacy of the prospectus. Any representation to the contrary is a criminal offense. Kansas An annual financial report is on file with the Secretary of State. The Trust s charitable solicitation license number in Kansas is Maryland Documents and information filed with respect to the Trust may be obtained for the cost of copying and postage from the Secretary of State, Charitable Division, State House, Annapolis, MD or by calling Michigan The Trust s registration number is MICS No Mississippi The official registration and financial information of the Trust may be obtained from the Mississippi Secretary of State s office by calling Missouri The official registration and financial information of the Trust may be obtained from the Mississippi Secretary of State s office by calling Registration by the Secretary of State does not imply endorsement by the Secretary of State. New Hampshire Neither the United States Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed on the adequacy or accuracy of this offering circular. Any representation to the contrary is a criminal offense. New Jersey INFORMATION FILED WITH THE ATTORNEY GENERAL CONCERNING THIS CHARITABLE SOLICITATION AND THE PERCENTAGE OF CONTRIBUTIONS RECEIVED BY THE TRUST DURING THE LAST REPORTING PERIOD THAT WERE DEDICATED TO THE CHARITABLE PURPOSE MAY BE OBTAINED FROM THE ATTORNEY GENERAL OF THE STATE OF NEW JERSEY BY CALLING AND IS AVAILABLE ON THE INTERNET AT REGISTRATION WITH THE ATTORNEY GENERAL DOES NOT IMPLY ENDORSEMENT. New York A copy of the last financial report filed with the Office of the Attorney General of New York may be obtained by writing to The U.S. Charitable Gift Trust, Two International Place, Boston, MA 02110, or the office of the attorney general of New York, Charities Bureau, 120 Broadway, New York, NY North Carolina Financial information about this organization and a copy of its license and financial information about the solicitor and a copy of its license are available from the state solicitation licensing branch at The licenses are not an endorsement by the State. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offense. 1

5 Pennsylvania The official registration and financial information of the Trust may be obtained from the Pennsylvania Department of State by calling toll-free, within Pennsylvania, Registration does not imply endorsement. Tennessee In making an investment decision investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offense. These securities may not be transferred or resold. Investors should be aware that they will be required to bear the financial risk of this investment for an indefinite period of time. Eaton Vance Distributors, Inc. is a paid solicitor that will receive as costs, expenses, and fees a portion of the solicited funds raised through the solicitation campaign. For more information about such fees, please refer to this gifting booklet. Vermont Prospective donors should be aware that Eaton Vance Distributors, Inc. ( EVD ) is reimbursed by the Trust to cover the costs of fundraising and servicing donor accounts. EVD will not profit from raising assets for the Trust. In addition, EVD may compensate financial advisors that assist in maintaining and servicing donor accounts. For information on how much of your contribution goes to the Trust and how much to Eaton Vance Distributors, Inc., contact the Vermont Consumer Assistance Program, Morrill Hall, UVM, Burlington, VT 05405, tel , or the Vermont Attorney General s Internet website, Virginia A financial statement is available from the state Office of Consumer Affairs, P.O. Box 1163, Richmond, VA or by calling Washington The Trust is registered in Washington. Information about its financial affairs is available by calling the Secretary of State, toll-free from within Washington, at Any prospective purchaser is entitled to review financial statements of the issuer which shall be furnished upon request. Receipt of notice of exemption by the Washington Adminstrator of Securities does not signify that the administrator has approved or recommended these securities, nor has the administrator passed upon the offering. Any representation to the contrary is a criminal offense. The return of the funds of the purchaser is not permitted. West Virginia West Virginia residents may obtain a summary of the registration and financial documents from the Secretary of State, State Capitol, Charleston, WV Registration does not imply endorsement. Wisconsin In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering. These securities have not been recommended by any federal or state securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this document. Any representation to the contrary is a criminal offense. A financial statement of the Trust disclosing assets, liabilities, fund balances, revenue, and expenses for the preceding fiscal year will be provided upon request. 2

6 Table of Contents Donor Advised Funds 4 Federal Tax Benefits and Considerations 5 Making Contributions 6 Investment Funds 7 Naming Your Donor Account and the Role of the Donor, Donor Advisor and Financial Advisors 9 Making Grants 10 Maintenance of Donor Accounts and Reporting 11 Donor Advised Fund Expenses 12 Board of Directors 13 Pooled Income Funds 14 Federal Tax Benefits and Considerations 15 Making Contributions 17 Investment Pools 18 The Charitable Remainder Interest 19 Naming Your PIF Account and the Role of Financial Advisors 19 Reporting to Donors 19 PIF Expenses 20 Board of Directors 21 3

7 The U.S. Charitable Gift Trust Donor Advised Funds A Donor Advised Fund of The U.S. Charitable Gift Trust (the Trust ) can provide you (the Donor ) with the opportunity to: Make tax-deductible charitable contributions to the Trust of cash or securities (acceptable to the Trustee (defined below)); Recommend grants from the Trust to qualified charitable organizations; and Potentially increase your philanthropy through money management by Eaton Vance (defined below). The Trust has received a determination from the U.S. Internal Revenue Service ( IRS ) that it is a tax-exempt organization as described in Sections 501(c)(3) and a public charity as described in Sections 509(a)(1) and 170(b)(1)(a)(vi) of the U.S. Internal Revenue Code of 1986, as amended (the Code ). Eaton Vance Management ( Eaton Vance ), Two International Place, Boston, MA is the sponsor and an investment adviser of the Trust. Calvert Research and Management ( Calvert ), 1825 Connecticut Avenue N.W., Suite 400, Washington, D.C , is an investment adviser of the Trust. Eaton Vance Trust Company (the Trustee ), Two International Place, Boston, MA is the Trustee of the Trust. Renaissance Philanthropic Solutions Group (the Administrator ), 8910 Purdue Road, Suite 500, Indianapolis, IN maintains the Trust s records and administers the grant making by the Trust. You may recommend that your contribution to the Trust be allocated among the Trust s separate investment funds ( Investment Funds ), each of which is professionally managed according to different investment objectives. The Investment Funds consist solely of Trust assets. The Investment Funds invest their assets in registered investment companies to meet their investment objectives. The Trust will maintain a subaccount ( Donor Account ) that will reflect your contribution to the Trust, your Donor Account s share of investment returns and grant activity. You will receive a Donor Account statement quarterly. You may recommend that qualified charitable organizations receive grants of $100 or more from your Donor Account at any time. All grant recommendations are subject to approval by the Trust s Board of Directors (the Board of Directors ). All activities of the Trust and Donor participation are subject to the requirements of state and federal law as well as the terms and conditions of the Trust s declaration of trust ( Declaration of Trust ), this gifting booklet ( Gifting Booklet ) and the Donor Information Forms that Donors must complete. The Board of Directors reserves the right to modify the program at any time, subject to the provisions of the Declaration of Trust and state and federal law. A copy of the Declaration of Trust may be obtained by calling Eaton Vance or the Administrator at the numbers on the inside back cover of this Gifting Booklet. 4

8 Federal Tax Benefits and Considerations Charitable Income Tax Deduction. You will be eligible to take an itemized federal income tax deduction for a charitable contribution to the Trust effective on the date that the contribution is received by the Trust in good order. A physical contribution (i.e., a check or stock certificate with a properly executed stock power), however, generally will be effective when postmarked. Gifts received via an undesignated private carrier will be eligible for a charitable deduction in the year the package is received by the Trust. Your deduction will, in part, depend on the type of asset contributed to the Trust and will be valued as follows: Cash: amount of the cash contribution accepted by the Trust. Publicly Traded Securities: if held for more than one year, the mean of the high and low trading prices as reported on the date of the contribution. For mutual fund shares held for more than one year, the value will be the closing price on the date of the contribution. For securities or mutual fund shares held for one year or less, your deduction is the lesser of your cost basis or fair market value. Non-Publicly Traded and Restricted Securities: the value must be determined by an independent appraisal, which the Donor is required to have prior to filing the return on which the deduction is claimed, for a Donor claiming a deduction in excess of $10,000 for nonpublicly traded securities. For contributions of non-publicly traded stock valued at less than $10,000 but more than $5,000, the Donor must attach a partially completed appraisal summary (Form 8283) to the Donor s return. For contributions of non-publicly traded stock valued greater than $10,000, a fully completed appraisal summary (Form 8283) with an appraiser s signature and the signature of a representative of the Trust is required. Also, for contributions greater than $500,000, the appraisal must be attached to the Donor s tax return. Deduction Limitations. Individual Donors are eligible for an itemized deduction for cash contributions to the Trust in an amount up to 50% of their contribution base (in general, adjusted gross income ( AGI )), in the tax year in which the contribution is made. Deductions for contributions of appreciated securities are limited to 30% of AGI. Special rules govern the interplay of these limits. Corporate deductions are limited to 10% of corporate taxable income as specially calculated. Any excess amount may be carried forward and deducted, subject to the applicable limitations, in the five-year period after the year of contribution. Your ability to deduct itemized deductions may be subject to certain other limitations. Charitable contributions are not a preference item for purposes of the federal alternative minimum tax. Please consult your tax advisor to review your personal situation and tax law applicable at the time of your contribution. Estate Planning. Contributions to the Trust and any earnings related to your contribution are not part of your taxable estate and are not subject to probate. Amounts contributed to the Trust should not be included in your gift and estate tax applicable exclusion amount calculation. Balances in your Donor Account cannot be appointed, transferred or bequeathed as part of your estate, although Successor Donor Advisors may be designated as described in the Naming Your Account and the Role of the Donor, Donor Advisor and Financial Advisors section of this Gifting Booklet. Tax Treatment of Trust Income. Income that accrues to a Donor Account is income of the Trust, not income to you and, therefore, you may not take a charitable deduction for it. Income to the Trust (net of expenses) will, however, increase the value of Donor Account units and thus the amount available for distribution to qualifying charities pursuant to your recommendations. Tax Treatment of Grants Made to Other Charities. When the Trust redeems units of an Investment Fund and grants the proceeds to a qualified charitable organization, the Trust is granting its own assets. You cannot claim an additional charitable deduction for such grants. 5

9 Making Contributions Eligible Donors. The Trust will accept contributions from individuals, companies, trusts and estates, and others. The Trust will also accept contributions from other donor advised funds and private foundations, although such donations are not tax deductible by the Donor. Contributions to a single Donor Account (whether an individual or joint account) may be made by multiple Donors (up to four), such as spouses who own securities in their individual names. Donor Contribution(s). All new contributions must be accompanied by a completed Donor Information Form. Additional contributions must be accompanied by an Additional Contribution Form. These forms can be delivered to the Administrator by mail or fax. Appropriate transfer forms must also be delivered to the Administrator if applicable. Contributions of cash or securities, including mutual fund shares, stocks, bonds, certain restricted stock, and privately held stock, are eligible for contribution to the Trust. The Administrator will determine whether a non-cash contribution is acceptable. The minimum initial contribution to the Trust is $10,000. The minimum initial contribution amount may be waived in certain circumstances, including for grants received from other donor advised funds. The minimum amount for subsequent contributions is $1,000. Cash contributions must be denominated in U.S. dollars and delivered by check or wire. Checks should be delivered to: The U.S. Charitable Gift Trust, c/o Renaissance Philanthropic Solutions Group, 8910 Purdue Road, Suite 500, Indianapolis, IN For additional information, including wire instructions, please review the Gifting to The U.S. Charitable Gift Trust instructions in the Donor Advised Funds Forms Booklet or call the Administrator for instructions at When you contribute securities, your Donor Account will be credited with the net proceeds (gross proceeds less brokerage commissions and any other fees) received from the sale of the securities as determined by the Trustee in its sole discretion. This may be on a date later than the date the contribution is made to the Trust. The value of your Donor Account is determined on the date on which the Trust receives the net proceeds from the sale of contributed securities. This value may fluctuate from the date of the contribution to the date of the sale. The Administrator will seek to sell the securities promptly under prevailing market conditions but cannot guarantee that it will obtain the most favorable price. For delivery instructions for securities, please review the Gifting to The U.S. Charitable Gift Trust instructions in the Donor Advised Funds Forms Booklet or call the Administrator for instructions at Donors are reminded of the risk that a substantial reduction can occur in the value of in-kind contributions from the time securities are received by the Administrator until the time such securities are sold. A Donor Account value will be based on the net proceeds received from the sale of contributed securities. Third-Party Contributions. Other individuals, including individuals authorized by the Donor to make grant recommendations ( Donor Advisors ), may contribute to a Donor Account. Such contributions must be a minimum of $1,000. If multiple individuals contribute to a Donor Account, the total amount of $1,000 may be delivered to the Administrator. The Trust will provide receipts to individuals in accordance with IRS regulations. Although Donor Accounts may accept contributions from third parties, only Donor Advisors and Financial Advisors may have access to Donor Account information. Third-party contributors may not recommend grants from the Donor Account. All contributions are subject to review and approval by the Trustee prior to acceptance. Contributions not accepted will be returned without interest as soon as practicable. The Administrator will provide a written acknowledgement at the time of acceptance of a contribution in accordance with IRS regulations. The acknowledgement will include the amount of any cash contribution and, in the case of securities, a description of the securities and the date the Trust received the gift. The Donor is responsible for determining the value of the contributed property for purposes of his or her charitable deduction. Any contribution, once accepted by the Trustee, represents an irrevocable charitable contribution to the Trust with no Donor right to income or principal. Contributions are not refundable and are subject to the exclusive legal control of the Trust, the Trustee and the Board of Directors. Testamentary Gifts and Gifts from Trusts. You may name the Trust as the beneficiary of a bequest of cash or securities, including mutual fund shares, individual retirement account ( IRA ) assets and annuities. In addition, you may name the Trust as the beneficiary of a charitable remainder trust, charitable lead trust or life insurance policy. The Trust is the beneficiary of the Pooled Income Funds maintained by the Trust. You may contact the Administrator for suggested language for gifts to the Trust through these vehicles. Your tax and legal advisors should be consulted in setting up any testamentary gift or trust. If a gift is coming from an estate, the Administrator will need: an original certified death certificate, a copy of the Donor s will, a power of attorney or testamentary letter and any other documentation the Administrator may reasonably request in order to establish that a person purporting to act on behalf of the estate has the authority to act on the estate s behalf. 6

10 Investment Funds At the time you make a contribution to the Trust, you may recommend that your contribution be allocated among the separate Investment Funds in which Trust assets are invested, each of which is professionally managed according to different investment objectives as described below. The Board of Directors has the authority to make all final allocation decisions. The Investment Funds are managed according to the following investment objectives: Growth Fund. The Growth Fund seeks long-term capital growth by investing primarily in common stocks, including U.S., developed international and emerging market equities. Growth & Income Fund. The Growth & Income Fund seeks total return by investing primarily in income-producing equity securities and investment grade 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 debt obligations. The Growth & Income Fund seeks to realize both capital appreciation and current income. Income Fund. The Income Fund 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. The Gift Preservation Fund invests primarily in debt securities with low interest-rate risk. The Gift Preservation Fund is not a money market fund and has principal risk. Cash Management Fund. The Cash Management Fund invests in institutional shares of BlackRock Treasury Trust Fund, an unaffiliated money market fund; however, the Cash Management Fund is not a money market fund and has principal risk. The rate of income for the Cash Management Fund will vary, generally reflecting prevailing short-term money market interest rates minus fund expenses. If expenses of the Cash Management Fund are greater than the interest earned, your Donor Account may lose principal. An investment in the Cash Management Fund is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation ( FDIC ) or any other government agency, and it is possible to lose money by investing in the Cash Management Fund. Calvert Responsible Investing Conservative Fund. The Calvert Responsible Investing Conservative Fund seeks to provide current income and capital preservation and, as a secondary objective, long-term capital appreciation. The Calvert Responsible Investing Conservative Fund invests in a diversified mix of Calvert investment companies, each of which generally implement the Calvert Principles for Responsible Investment that guide the investment research and decision-making process. Calvert Responsible Investing Moderate Fund. The Calvert Responsible Investing Moderate Fund seeks to provide current income and moderate long-term capital appreciation. The Calvert Responsible Investing Moderate Fund invests in a diversified mix of Calvert investment companies, each of which generally implement the Calvert Principles for Responsible Investment that guide the investment research and decision-making process. Calvert Responsible Investing Growth Fund. The Calvert Responsible Investing Growth Fund seeks to provide high long-term capital appreciation and, as a secondary objective, current income. The Calvert Responsible Investing Growth Fund invests in a diversified mix of Calvert investment companies, each of which generally implement the Calvert Principles for Responsible Investment that guide the investment research and decision-making process. You may recommend transfers in your Donor Account among the Investment Funds up to two times per calendar year, subject to the Board of Directors approval. Eaton Vance is the investment adviser of the Growth Fund, Growth & Income Fund, Income Fund, Gift Preservation Fund and Cash Management Fund (collectively, the Eaton Vance Investment Funds ). Each Eaton Vance Investment Fund will be invested in investment companies registered with the U.S. Securities and Exchange Commission ( SEC ) under the Investment Company Act of 1940, as amended ( 1940 Act ), that are managed by Eaton Vance and its affiliates and may invest in institutional shares of BlackRock Treasury Trust Fund, an unaffiliated money market fund. Eaton Vance has the discretion to allocate assets of each Eaton Vance Investment Fund among such investment companies and substitute new investment companies, subject to the oversight of the Board of Directors. Calvert is the investment adviser of the Calvert Responsible Investing Conservative Fund, Calvert Responsible Investing Moderate Fund and Calvert Responsible Investing Growth Fund (collectively, the Calvert Investment Funds ). Each Calvert Investment Fund will be invested in Calvert-sponsored investment companies registered with the SEC under the 1940 Act, and may invest in institutional shares of BlackRock Treasury Trust Fund, an unaffiliated money market fund. Calvert has the discretion to allocate assets of each Calvert Investment Fund among such investment companies and substitute new investment companies, subject to the oversight of the Board of Directors. Trust assets not allocated to one of the above Investment Funds will be held in a cash account until the Donor selects an investment allocation, or unless otherwise determined by the Board of Directors. 7

11 Trust and Investment Fund assets are held in the custody of the Trustee, while Eaton Vance and Calvert investment company assets are held by State Street Bank & Trust Company, One Lincoln Street, Boston, MA Timing of Investments. Subject to the authority of the Board of Directors, your contributions that are accepted by the Trust will be invested in accordance with the investment allocation in the Investment Funds you recommend. Units of the Investment Funds will be issued daily on a business day (a day the New York Stock Exchange is open for business) after the Trust receives cash or the proceeds from the sale of securities. The value of your contributions may differ from the amount available to purchase units. Valuation of Donor Account. Income earned by each Donor Account includes interest, dividends, and other investment income from investments in an Investment Fund in excess of all fees and expenses. The value of each Donor Account will be the number of units of an Investment Fund attributable to such Donor Account, multiplied by the unit s current value. The value of a unit is obtained by dividing the value of an Investment Fund by the then outstanding number of units of that Investment Fund. The value of a unit for an Investment Fund will include realized and unrealized capital gains or losses on the Investment Fund s portfolio investments, as well as undistributed income attributable to that Investment Fund. All Donor Accounts will be valued daily. As the Investment Funds are not public investment vehicles, unit prices are not available to the general public. 8

12 Naming Your Donor Account and the Role of the Donor, Donor Advisor and Financial Advisors Naming Your Donor Account. As a Donor, you may choose the name for your Donor Account, subject to the ultimate authority of the Board of Directors. For example, you may select a name to reflect your philanthropic intentions (e.g., The Jones Family Medical Research Philanthropic Fund ) or you may choose a name such as The Samuel J. Jones Donor Fund. The Board of Directors, however, reserves the right in its sole discretion not to approve any name for a Donor Account or to make changes to the name of a Donor Account. Rights of the Donor and Donor Advisors. In addition to making grant recommendations yourself as the Donor, you can add any other individuals that you would like as Donor Advisors (a joint account), including your spouse, children, other descendants or representatives. All Donors and Donor Advisors named for your Donor Account have the authority to recommend grants and exchanges. In the event of your death, the other Donor Advisors named for your Donor Account can continue to recommend grants and exchanges, and name Successor Donor Advisors. Successor Donor Advisors. When you open your Donor Account (or at a later date) you may name Successor Donor Advisors to continue the grant recommendation process after your death or incapacity, as described in detail below. The Successor Donor Advisors will have the same authority as you and your Donor Advisors. Role of the Financial Advisor. The role of the Financial Advisor is to provide ongoing support for the Donor and Donor Advisors. These services could include recommendations for allocation of assets within the Donor Account among the Investment Funds, changes to investment strategies, administrative assistance, counseling regarding the Donor s philanthropic and estate planning strategies and goals, and other services typically provided by a Financial Advisor. Successor Donor Advisor Election. If the Donor is an individual, the Donor may elect any person, including his or her spouse, child, other descendant, heir or representative to be assigned the rights associated with the Donor Account in the Trust upon the Donor s death, incapacity or other disqualification. If a Donor Account is maintained jointly, upon the death or incapacity of one Donor, the remaining Donor(s) succeeds to the rights to recommend grants and designate successors. Successor Donor Advisors are authorized to act only after the death or incapacity of all Donors and Donor Advisors named for the Donor Account. If the Donor is a trust, corporation, charity, or anything other than an individual, a corporate resolution or formal record of authority in a form acceptable to the Administrator must be provided. The Financial Advisor cannot hold the title of Successor Donor Advisor. The Successor Donor Advisor must provide written notification and sufficient proof, which may include a certified death certificate, to the Administrator of the Donor s or Donor Advisor s death or incapacity to succeed to all rights and duties of a Donor or Donor Advisor to the Trust, including the ability to recommend subsequent grants. Successor Donor Advisors must be of legal age and competent to serve. Successor Donor Advisors may, in turn, name successors effective upon the Successor Donor Advisor s death or incapacity. Instead of choosing a Successor Donor Advisor, you may choose to recommend one of the following: (i) that up to ten charitable organizations receive portions of the Donor Account after your death, (ii) that the general fund maintained by the Trust (the General Fund ) receive the balance of your Donor Account or (iii) that the balance of your Donor Account or any portion of it be preserved as an endowment account within the Trust for up to ten specified charities, in all cases upon receipt by the Administrator of notification of your death and subject to review and approval by the Board of Directors. If Successor Donor Advisors or charitable organizations eligible to receive remaining assets are not designated by the Donor or the Successor Donor Advisor, then upon notification of the Donor s or the Successor Donor Advisor s death or termination, the Administrator will redeem the remaining units and transfer the proceeds to the General Fund. Thereafter, grants may be made to one or more qualifying charitable organizations at the sole discretion of the Board of Directors. 9

13 Making Grants Recommendations. You may recommend charitable organizations to which grants will be made from your Donor Account by submitting a Grant Recommendation Form. Grant recommendations are subject to approval by the Board of Directors. The Board of Directors has adopted procedures and safeguards with respect to grantmaking to ensure that funds are used exclusively in furtherance of charitable purposes. If your recommendation is approved, the Administrator will redeem units, proportionately, when your Donor Account contains multiple pools, unless instructed otherwise (based upon the next-determined unit value after the grant is approved) and distribute the proceeds to the recommended organization. If the Trust does not accept a recommendation, or if a recommended organization does not qualify at the time the grant is to be made from the Trust, then the Trust will notify you and obtain your recommendation, if any, for a grant to an alternative charitable organization. Please note that the Board of Directors has the ultimate authority and responsibility to ensure that grants made from the Trust are made exclusively for charitable purposes to qualified charitable organizations. Repeated attempts to recommend grants outside the parameters outlined herein may result in the termination of advisory privileges of a particular individual or the termination of the Donor Account by the Board of Directors in its sole discretion. In the event that advisory privileges are terminated, such privileges will generally be granted to a Successor Donor Adviser. In the event that the Board of Directors terminates a Donor Account, the Board of Directors shall transfer the balance of the Donor Account to the General Fund, as of the Donor Account s termination date. If you do not wish to specify charities to which grants should be made, you may make a grant to the General Fund and either request (i) one or more categories of permitted charitable purposes (e.g., medical research, education) from which the Board of Directors will choose specific charities or (ii) that the Board of Directors choose the charitable purpose and specific charities. Please contact the Administrator for more information about these alternatives. Grant Checks and Grant Notices. Grants are paid by the Administrator. Checks are accompanied by a letter from the Trust recognizing your Donor Account name and your name and address, unless you request anonymity. You may request that the grant be made in the name of a third-party, which will also be written on the notice. Grant checks and the letter will be mailed via the U.S. Postal Service to the legal address of the charitable organization grantee. To serve as confirmation of the grant s distribution, a copy of the letter will be made available to the Donor s online account and, upon request, may be mailed to the Donor. If you are interested in obtaining online access, please contact the Administrator. Grants to U.S. Public Charities. Grants can be made only to U.S. charitable organizations that are tax-exempt under Code Section 501(c) (3) and that are also public charities under Code Section 170(b)(1)(a). Such entities may have foreign charitable activities, but the checks generally cannot be sent to a foreign country. Grants cannot be made to non-operating private foundations, Type III supporting organizations that are not functionally integrated with its supported organization, or to a Type I or II supporting organization where the Donor controls the organization or its supported organization. In addition, additional information may need to be provided before certain grants are made in order to permit the Trust to comply with federal law. Other Restrictions on Grants. Trust grants may not be used in whole or in part to discharge any pre-existing or enforceable pledge, or to provide any private benefit to Donors, Donor Advisors or individuals. Such benefits may include: dues, membership fees, goods bought at charitable auctions, or the cost to attend a charitable or other event, benefit, luncheon or dinner. Additionally, grants cannot be used for school tuition or scholarships to benefit individuals; such individuals cannot be recommended for a specified tuition payment or for a scholarship where the Donor(s) or related parties have sole or majority discretion over the recipient and have exclusive control over the selection of the scholarship recipient. Grants may not be used for lobbying, political contributions or to support political campaign activities. The Trust will reject grant recommendations for improper purposes and will, if it discovers that grants have been made for improper purposes, take remedial action, such as requiring the return of a grant from the charitable organization or requiring that Donors make an additional non-deductible contribution. Minimum Amount of Grants. The minimum grant size is $100. There is no limitation on the number of grants that may be made per year. Minimum Grant Activity. In order for the Trust to maintain its tax-exempt status, the Trust must operate exclusively for charitable purposes. For the Trust, that means it must make significant grants to qualified charities on an annual basis. Generally, the Trust intends to make aggregate grants of a minimum of 5% of the Trust s average net assets per year. If this benchmark is not met in a given year, the Trust may contact Donors, Donor Advisors and Successor Donor Advisors, if acting, whose Donor Accounts have not made grants of at least 5% of the Donor Account s net assets, and provide them with the opportunity to recommend grants of such amounts so that the Donor Account will have made grants totaling at least 5% of its value. If such Donors do not provide recommendations within 60 days after notice, then the Trust has the right to withdraw the requisite amounts from such Donor Accounts and transfer the assets to the General Fund. The Board of Directors will then make grants from the General Fund to fulfill the Trust s distribution amount. In the event the Board of Directors terminates the Trust, you or your Donor Advisor or Successor Donor Advisor, if acting, will be asked to make final grant recommendation(s). If no recommendation is made, the Donor Account will be redeemed and its value transferred to the General Fund, allowing the Board of Directors to make final grant decisions to liquidate the Trust. 10

14 Maintenance of Donor Accounts and Reporting Donor Accounts. The Administrator will set up your Donor Account to maintain an internal accounting of your contributions and the Trust s grants to qualified charitable organizations. The Donor Account is an asset of the Trust and you have no ownership interests in it. In the event the Trust is unable to locate a Donor, Donor Advisor or Successor Donor Advisor after reasonable attempts to do so, the Board of Directors may terminate the Donor Account and transfer the proceeds to the General Fund to be used for charitable purposes as the Board of Directors determines. Changes to Donor Accounts. As a Donor, you may change your Financial Advisor, amount and timing of grants, recommendation of Investment Fund allocation, Successor Donor Advisors, recommended charitable beneficiaries for the Donor Account, and Donor Account name or address of record by submitting a letter of instruction to the Administrator at any time. Your Financial Advisor can assist you with this process. Minimum Donor Account Size. If your Donor Account falls below the minimum grant size, the Administrator may request you or your Donor Advisor or Successor Donor Advisor, if acting, to make a final grant recommendation or additional contributions. If no action is taken within 60 days of the notification, your Donor Account will be terminated and the balance will be transferred to the General Fund. Acknowledgements. The Administrator will provide you with acknowledgements of your initial contribution, all your Donor Account grants and additional contributions, usually within five business days of completion. Contribution acknowledgements will be sent in accordance with IRS regulations. Such acknowledgements serve as your tax receipts, which are necessary to fulfill IRS substantiation requirements. You should maintain them with your tax records. Please note that the IRS requires Form 8283, Non-Cash Charitable Contributions, be completed by the Donor and filed with an individual s federal income tax return for contributions of property (including securities) valued at more than $500. The IRS requires that a Donor obtain an independent appraisal of property (other than marketable securities) having a fair market value of more than $5,000 (more than $10,000 in the case of securities that are not publicly traded). For contributions that require an appraisal, generally the appraiser and a representative of the Trust must sign Form For contributions greater than $500,000, the appraisal must be attached to the Donor s tax return. Finally, the Administrator will provide you with certain other financial reports or information required by applicable law, as well as quarterly Donor Account reports. 11

15 Donor Advised Fund Expenses Investment Funds are subject to certain expenses and fees at the fund level, which are paid to the Eaton Vance organization, as investment adviser and fundraiser, and to Renaissance Philanthropic Solutions Group, the Administrator. The fees are subject to review and change by the Board of Directors. The current fee schedules and estimated expenses are as follows: Traditional IV (%) Advisor IV (%) Institutional IV (%) Original account funding is less than $1 million with Financial Advisor Original account funding is greater than $1 million with Financial Advisor Original account funding with no Financial Advisor or the Financial Advisor is also the Donor Administrative Fee Fundraising and Servicing Fee Asset Management Fee Miscellaneous Expenses Total* *Excludes operating and management expenses of underlying mutual fund shares held by the Trust. These mutual funds are subject to varying operating and management expenses. The assets of the Donor Advised Funds are invested in shares of registered investment companies that are managed by Eaton Vance, Calvert and their affiliates and institutional shares of BlackRock Treasury Trust Fund, an unaffiliated money market fund. The Donor Advised Funds do not pay a sales load charge on the purchase such mutual fund shares. Administrative Fee. As of the date of this Gifting Booklet, the administrative fee is 0.43% of a Donor Account s average daily net assets per annum. The amount of the administrative fee is subject to change, depending on, among other factors, whether it meets the administrative expenses incurred by the Trust. Fundraising and Servicing Fee. Eaton Vance Distributors, Inc. ( EVD ) is a broker-dealer registered with the SEC, a member of the Financial Industry Regulatory Authority ( FINRA ) and an affiliate of Eaton Vance. EVD compensates Financial Advisors that assist in maintaining and servicing Donor Accounts on a quarterly basis. This compensation is up to 0.50% of average daily net assets per annum in a Traditional Donor Account and 0.25% of average daily net assets per annum in an Advisor Donor Account. For Donor Accounts with no Financial Advisor or the Financial Advisor also serves as the Donor Advisor, the Trust has established Institutional Donor Accounts for which no fundraising costs are incurred. Asset Management Fee. Each Investment Fund is subject to an annual asset management fee of 0.10%, which is applied to the average daily net assets. This fee compensates Eaton Vance and Calvert, as applicable, for asset management, which may include direct investment in securities and allocation decisions among investment companies in which an Investment Fund invests. Each Investment Fund bears indirectly the asset management fees and expenses of the mutual funds in which it invests. Miscellaneous Expenses. Each Investment Fund will also be assessed a pro rata share of the Trust s general operating expenses (such as auditing, Directors and registration fees). A reserve is kept for miscellaneous expenses at the rate of up to 0.10% of average daily net assets. For Donor Accounts created prior to November 15, 2010, please see Appendix 2 for fee schedules. 12

16 Board of Directors The Board of Directors, together with the Trustee, maintain ultimate control over all aspects of the operations of the Trust. A majority of the Directors are unaffiliated with Eaton Vance, the Trustee or the Administrator. Vacancies on the Board of Directors are filled by the remaining Board members. A majority of the independent Board members must concur on the appointment of a new independent Director. Donors do not have voting rights or the right to participate in the selection of Directors. The current Directors are as follows: Kathleen L. Ames, Director of Mary W. Harriman Foundation, Brookline Education Foundation, and the Ralph Lowell Society of WGBH. Life Trustee, Concord Academy, Concord, Massachusetts. Former chair, Brookline School Committee. Jeffrey P. Beale, Vice President and Chief Administrative Officer of Eaton Vance Corp. Trustee, Peabody Essex Museum. President of the Board of Directors, First Literacy Boston. Co-chair, Dana-Farber Leadership Council. E. Michael Brown, retired Managing Director of Scudder, Stevens & Clark, Ltd. Former Chairman of the Board of Directors of Newton Wellesley Hospital and Newell Health Care System. James B. Hawkes, retired Chairman, President and Chief Executive Officer of Eaton Vance Corp. Retired Trustee and/or officer of numerous Eaton Vance investment companies. Trustee, U.S.S. Constitution Museum. Trustee, Peabody Essex Museum. Kate Leness, Partner/Owner of Fund Liquidation Solutions. Chair, Quogue Field Club Junior Sports Camp. Board Member, Brookline Education Foundation. Treasurer, Runkle School PTO. Treasurer, Brookline Youth Lacrosse. Trustee, TBG Trust. James M. Storey, Former Trustee of various organizations and corporations, and a practicing attorney. Formerly, a Partner of the law firm of Dechert, LLC ( ). The Board of Directors appoints and oversees the performance and compensation of all service providers, approves grants, approves the investment guidelines for the Investment Funds, and takes actions to maintain the charitable status of the Trust under federal law. A Director serves until age 80 (unless waived by the Board annually), his or her death, resignation, removal, or adjudication of incompetency, whichever first occurs. Officers. In addition to delegating certain operating functions to Eaton Vance and the Administrator, the Board of Directors has appointed certain officers to take actions on behalf of the Trust. The officers, each of whom is an officer of Eaton Vance Management or Eaton Vance Distributors, Inc., are as follows: Jeffrey P. Beale, President; Stephanie Rosander, Secretary; Matthew Manning, Assistant Secretary; Peter Crowley, Vice President; Lawrence Fahey, Vice President; A. John Murphy, Vice President; James Kirchner, Treasurer; and Michael Shattuck, Assistant Treasurer. Limitation of Liability. The Directors will not have liability under the Declaration of Trust for their actions or omissions, nor for actions or omissions of the Trust s officers, employees or agents to whom administrative or investment authority may be delegated, except as may be caused by the Directors bad faith or reckless indifference in the performance of their duties. The Trust maintains insurance policies to protect the Trust, the Board and the officers. The Trust will indemnify the Directors against any liability to the fullest extent allowed by applicable law. The Trust may also indemnify and hold harmless certain service providers, their agents, and nominees from any claims, losses, liabilities, or expenses (including reasonable counsel fees and expenses), except as they may arise from bad faith or reckless indifference in the performance of their duties. Auditors. The Board of Directors has selected the firm of Deloitte & Touche LLP to serve as independent accountants of the Trust and its Pooled Income Funds. The Board of Directors has the right to change auditors in its sole discretion. Trustee. Eaton Vance Trust Company ( EVTC ) currently serves as Trustee of the Trust. Chartered in Maine in 2004, EVTC is a non-depository trust company with a principal place of business in Boston, Massachusetts that provides personal and investment trust services. It is a wholly-owned subsidiary of Eaton Vance Corp. The Trustee does not have any liability for its actions or omissions, except to the extent that such actions or inactions constitute bad faith or reckless indifference in the performance of its duties. 13