Investors should carefully consider a funds investment goals

Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) 818 -4030 ext. 77000 or visit franklintempleton. com. Please carefully read a prospectus before you invest or send money. Not FDIC Insured • May Lose Value • No Bank Guarantee

1 Disclosures This material is being provided for educational and informational purposes only and is not intended to provide tax advice. You should consult with your personal tax advisor for advice on these consequences before making any decisions.

Franklin Templeton Charitable Giving Fund

3 In 2011, $298. 42 billion was donated to charity. * *Source: Giving USA: The Annual Report on Philanthropy for the year 2011 (2012). Chicago: Giving USA Foundation.

4 Donor-Advised Fund Overview A donor-advised fund provides an attractive way to give to your favorite charity. 1] What is a donor-advised fund (DAF)? A donor-advised fund is a charitable giving vehicle, that allows an individual or family to make an irrevocable contribution of personal assets to a public charity, and at any time afterward to recommend grants to charitable organizations. 2] How are donor-advised funds administered? Through a public charity that pools donors’ contributions, invests them and makes grants to charitable organizations upon the recommendations of donors.

5 Donor-Advised Fund Overview Benefits of a donor-advised fund • Immediate tax benefits • Elimination of capital gains tax on contributions of appreciated assets • Separation of tax planning and charitable giving • Enhanced giving power • Simplified administration • Creates a charitable legacy

6 Donor-Advised Fund Overview Is a Donor-Advised Fund Right for Me? May appeal to donors who: May not appeal to donors who: • Want the highest possible tax • Want total control over investments deduction • Need an immediate tax deduction and flexibility in making charitable contributions • Wish to maintain anonymity • Have appreciated securities or receive an influx of cash • Want to create a family legacy of giving and grant-making • Need an income stream

7 Franklin Templeton Charitable Giving Fund: Facts at a Glance Franklin Templeton Charitable Giving Fund is a donor-advised fund offered in partnership with Renaissance Charitable Foundation, Inc. —an independent public charity dedicated to helping individuals effectively reach their philanthropic goals while maximizing the impact of their gifts. Minimum initial contribution $5, 000 Minimum subsequent contribution $1, 000 Contributions accepted Cash, publicly traded securities, restricted and closelyheld stocks, bonds, mutual funds, real estate, art and other collectibles Tax deduction Immediate Minimum grant amount $250 Number of grants allowed annually Unlimited Qualifying organizations Any 501(c)(3) charitable organization, 509(a) public charities, private operating foundations and most religious organizations and educational institutions Designate successors/advisors Yes

8 Franklin Templeton Charitable Giving Fund: Tax Advantages 1] Immediate Tax Deduction for Contribution • Cash contributions – Federal income tax deduction of up to 50% of your adjusted gross income (AGI) in the tax year in which the contribution is made. • Publicly traded securities – You may generally deduct up to 30% of your AGI for contributions of appreciated securities held more than one year. For securities held for one year or less, the deduction is based on either your cost basis or fair market value, whichever is lower. 2] Contributions are not subject to estate taxes 3] No capital gains tax for contributions of appreciated assets Individuals should always consult their legal and tax advisors to discuss the personal circumstances regarding their income and estate taxes.

9 How a Donor-Advised Fund Works Irrevocable contribution of at least $5, 000 in cash or marketable securities Donor Renaissance Charitable Gift Foundation, Inc. Grants (RCF)* (Recommended Tax Deduction Grants to Qualified Charities) Public Charity • Religious • Educational • Human Services Franklin Templeton (Investment Management) *Contributions to RCF are irrevocable, and RCF has final approval over all donor grant recommendations.

10 Establishing a Donor-Advised Fund • Open an account. – Make an irrevocable contribution of personal assets (cash, stocks, bonds and mutual funds). – Name your program. – Designate additional and successor advisors. • Take an immediate tax deduction for the contribution. • Recommend an investment strategy. • Recommend charitable grants. • Create a legacy of giving.

11 Compare Charitable Giving Options The chart below provides a comparison of some of the more popular charitable giving options currently available. It’s easy to distinguish the relative ease, as well as benefits, of a donor-advised fund. * FRANKLIN TEMPLETON CHARITABLE GIVING FUND Annual filings provided by Renaissance Charitable Foundation DIRECT DONATION TO CHARITY Not applicable; no filing required FEES & EXPENSES No start-up costs; pre-defined fees and expenses** Not applicable; no start-up costs, fees or expenses Legal, accounting and operational set-up and maintenance fees may be substantial POTENTIAL FOR GROWTH Contributed assets may grow over time Not applicable; donations immediately go to charity Contributed assets may grow over time ANONYMOUS GIVING Can donate anonymously • Grant activity made public in TAX FILINGS AND RETURNS PRIVATE FOUNDATION Private foundation must file tax return with required supporting schedules annual filings • Foundation must post annual notices regarding public availability in general circulation newspaper *This chart summarizes tax implications related to donations to charities, private foundations and donor-advised funds, and should not be considered a complete analysis. Please consult your legal and tax advisors for more information about charitable giving and determining which charitable giving option is best suited for you. **There are expenses associated with the funds that Franklin Templeton Charitable Giving Fund invests in.

12 Compare Charitable Giving Options (Cont’d) The chart below provides a comparison of some of the more popular charitable giving options currently available. It’s easy to distinguish the relative ease, as well as benefits, of a donor-advised fund. * FRANKLIN TEMPLETON CHARITABLE GIVING FUND Can establish a legacy of giving by naming successors DIRECT DONATION TO CHARITY Not applicable; donations immediately go to charity CONTRIBUTION FLEXIBILITY Can accept cash as well as appreciated securities (stocks, bonds, mutual funds), real estate, art and collectibles Charity may not be able to accept non-cash donations Can accept any appreciated asset DONOR CONTROL Donors make grant recommendations that Renaissance Charitable Foundation’s directors work to execute Not applicable Directors control charitable distributions but must distribute at least 5% of assets annually ESTABLISH LEGACY PRIVATE FOUNDATION Can establish a legacy of giving by naming Board of Directors *This chart summarizes tax implications related to donations to charities, private foundations and donor-advised funds, and should not be considered a complete analysis. Please consult your legal and tax advisors for more information about charitable giving and determining which charitable giving option is best suited for you.

13 Investment Options: Predefined Investment Strategies Corefolio® Strategy Invests in four equity funds. Offers the potential for long-term growth and significant diversification across multiple industries. Founding Funds Strategy Invests in equal allocations (33⅓%) in three value-oriented funds—each a cornerstone fund with a 50 -year track record. Offers diversification across multiple asset classes and a record of low relative volatility with the potential for attractive long-term results. Franklin Flex Cap Growth Fund 25% Franklin Growth Fund 25% Templeton Growth Fund 25% Mutual Shares Fund 25% Franklin Income Fund 33⅓% Templeton Growth Fund 33⅓% Mutual Shares Fund 33⅓% Investors should carefully consider a fund’s investment goals, risks, charges and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) 632 -2350 ext. 77000 or visit franklintempleton. com. Please carefully read a prospectus before you invest or send money.

14 Investment Options: Predefined Investment Strategies (Cont’d) Growth and Income Strategy Invests in equal allocations (33⅓%) in three funds. Seeks to realize both capital appreciation and current income by investing primarily in income-producing equity securities. Fixed Income Strategy Invests in equal allocations (50%) in two income funds. Seeks current income by investing in a variety of debt and incomeproducing securities. Franklin Equity Income Fund 33⅓% Franklin Rising Dividends Fund 33⅓% Mutual Shares Fund 33⅓% Franklin Total Return Fund 50% Franklin U. S. Government Securities Fund 50%

15 Investment Options: Create Your Own Giving Strategy Choose from the following funds to create your own personal giving strategy. The total allocation of your contributions among the funds must equal 100%. Global Hybrid • Templeton Growth Fund • Franklin Equity Income Fund • Franklin Income Fund Growth • Franklin Flex Cap Growth Fund • Franklin Small-Mid Cap Growth Fund Value • Mutual Shares Fund Blend • Franklin Rising Dividends Fund Income • Franklin Templeton Money Fund • Franklin Total Return Fund • Franklin U. S. Government Securities Fund

16 Reporting and Access Program information is provided in simple, secure and easy to understand formats. Reporting • Quarterly statements sent to the donor • Welcome letter sent to the donor • Tax receipt letter sent to the donor • Grant distribution letter(s) sent to the grant recipient Online access • Grant requests and investment balance may be reviewed online • Access to fund balance, status of grants, contribution activity and grant recommendation initiation are all available • Your financial advisor will have the ability to access online information and assist in program administration

17 Case Study: Funding a Scholarship Program through a Donor-Advised Fund Situation: Ken Arthur recently retired from Central High after a long and distinguished teaching career. As a way of “giving back” to the students of Central High, Mr. Arthur wants to fund a college scholarship program to assist financially needy Central High graduates. He explored creating a scholarship fund directly through a local state university, but his involvement in the selection process would be minimal and the students chosen would not be able to use this scholarship to attend other colleges. Mr. Arthur is unhappy with these restrictions.

18 Case Study: Funding a Scholarship Program through a Donor-Advised Fund Solution: Mr. Arthur consults his financial planner who proposes funding a scholarship in conjunction with the Central High Scholarship Committee. To increase Mr. Arthur’s involvement, it is recommended that Mr. Arthur create a donor-advised fund that will provide annual funding for the scholarship(s). This plan is a flexible solution to meet Mr. Arthur’s goals. And, because the scholarship and the donor-advised fund carry Mr. Arthur’s name, his legacy as an educator is ensured. This example is hypothetical and for educational use only. The situations, tax rates or return numbers do not represent any actual clients or investments. There is no assurance that the rates depicted can or will be achieved. Actual results will vary. Please consult with legal and tax counsel about the suitability of this plan before proceeding.

19 Get Started 1] Contact your financial advisor to review your current financial plan and develop a personal giving plan 2] Compare charitable giving options 3] Open and fund a Franklin Templeton Charitable Giving Fund, if appropriate

Franklin Templeton Distributors, Inc. One Franklin Parkway San Mateo, California 94403 -1906 (800) 818 -4030 franklintempleton. com © 2012 Franklin Templeton Investments. All rights reserved. CGF SEM 12/12