Professional Wealth Management Charitable Gift Program Helping you

Professional Wealth Management Charitable Gift Program Helping you create a lasting legacy Introducing RBC Dominion Securities

Professional Wealth Management Agenda § Overview § What Sets Us Apart? § Role of the Client § Contributing To A CGF Account § Investment Solutions § Donation Receipts and Tax Benefits § Applicable Fees § Grants and Disbursements § 5 Features Of the CGP You Must Know § Benefits Introducing RBC Dominion Securities

Professional Wealth Management “We make a living by what we get, but we make a life by what we give. ” Winston Churchill If your considering how to give an enduring gift to a cause important to you, you have many choices…. Introducing RBC Dominion Securities

Professional Wealth Management Traditional Charitable Giving Structures § One-time Gift § Private Foundation § Public Foundation Convenient Alternative: RBC DS Charitable Gift Fund Introducing RBC Dominion Securities

Professional Wealth Management What is a Charitable Gift Fund? ¢ An investment structure that allows you to create a foundation without the set up costs of a private foundation ¢ Easy, convenient way to support charitable causes you care about today and in the future, while receiving important tax benefits Introducing RBC Dominion Securities

Professional Wealth Management The Charitable Gift Funds Canada Foundation ¢ Administrator of the RBC Dominion Securities Charitable Gift Program. ¢ Established in 2003 ¢ An independent, non-profit charitable organization registered with the Canada Revenue Agency (CRA) as a public foundation. ¢ Entrusted with the responsibility of managing and administering your charitable gift fund. Introducing RBC Dominion Securities

Professional Wealth Management The CGFCF is able to offer you: 1) Transaction processing and disbursement of contributions and grants. 2) Complete accounting and reconciliation procedures for all funds, using state-of-the-art technology. 3) Preparation and filing of federal and provincial regulatory documents. Introducing RBC Dominion Securities

Professional Wealth Management Why Work with the CGFCF? ¢ Build ¢ Buy ¢ Rent Introducing RBC Dominion Securities

Professional Wealth Management What Sets Us Apart? §much less initial capital; $25, 000 minimum. §no start up costs §comparable annual expenses without the hassle of doing any of the administrative work. Introducing RBC Dominion Securities

Professional Wealth Management Role of the Client Step 1 Step 2 Open Account with Irrevocable Donation is Invested and Managed by DS Cash Investment Options Securities (19) Insurance Donation Receipt Current Year Tax Credits Introducing RBC Dominion Securities Step 3 Grants Recommended to Registered Charity(s) Grant Recommendations

Professional Wealth Management Enduring Family Legacy ¢ Like a private foundation, you can also give your fund a unique name that reflects your family’s legacy, such as The Smith Family Fund for the Arts. ¢ You can also name grant advisors and successors to your fund so your family’s legacy continues. ¢ If no surviving successors after you pass away, CGFCF will continue legacy by awarding grants to eligible charities consistent with your original intent. , or a charitable remainder trust. Introducing RBC Dominion Securities

Professional Wealth Management Contributing to CGF ¢ Minimum contribution required to create and maintain a fund is only $25, 000. ¢ You may contribute cash, appreciated publicly listed securities or other assets to the fund. ¢ You can name your CGF as the beneficiary of a charitable bequest, a life insurance policy, a qualified RRSP, or a charitable remainder trust. Introducing RBC Dominion Securities

Professional Wealth Management Investment Solutions v You can recommend an investment strategy for your gift contributions, choosing from a wide range of options professionally managed by RBC Dominion Securities. Introducing RBC Dominion Securities

Professional Wealth Management Preferential Tax Treatment What Does This Mean? The donation receipt issued for the full market value of the assets results in a generous tax credit and a reduction of tax payable on other income. You may be able to effectively give more! Introducing RBC Dominion Securities

Professional Wealth Management Applicable Fees Applies to # 1 Each CGF account is subject to: 1) A charitable administration fee paid to the Charitable Gift Funds Canada Foundation 2) Investment Management Fee - Dependent upon the selected option Introducing RBC Dominion Securities Average Daily Account Balance CGFCF Fee Schedule (Per Annum) First $2. 5 M . 75% From $2. 5 M to $5 M . 65% Above $5 M Negotiable

Professional Wealth Management Grants and Disbursements ¢ Annual disbursement = % amount of the account made available for granting in any one given year. ¢ You can make recommendations on how account earnings are distributed to your favorite charities throughout your lifetime and, if desired, in perpetuity. ¢ Annual disbursement policy of the CGFCF is currently 4. 0% minimum. However, the percentage of investment earnings disbursed each year is subject to the discretion of the CGFCF. ¢ The Foundation will only approve grants to qualified charitable organizations registered with the CRA. Introducing RBC Dominion Securities

Professional Wealth Management Reporting ¢ Donors will receive a quarterly report from the CGFCF, detailing contributions made and describing the growth of their CGP account at DS. ¢ DS monthly statements are sent to CGFCF, as they are the client of record with Dominion Securities. Introducing RBC Dominion Securities

Professional Wealth Management 5 Features Of The CGP You Must Know ¢ Contributions to a RBC DS CGF are irrevocable ¢ The CGF is a 10 Year Locked In account ¢ Control Recommendations ¢ Granting Limits are set by the CGFCF ¢ Requirements are the same for all public foundations. Introducing RBC Dominion Securities

Professional Wealth Management Benefits 1) A Flexible Charitable Giving Instrument Today and Forever A single contribution to a CGF account today allows your client to recommend grants to multiple charities - each year, every year – forever 2) Attractive Tax Credits 3) Preferred Tax Treatment on Appreciated Securities 4) Potential to Give More Over Time Potential for tax-free growth in your client’s CGP account, preserving the purchasing power of the assets under management, and increasing your client’s ability to give more to charities over time. 5) Allows Client to Solicit Donations from 3 rd Party’s to Make a Lasting Legacy (memorialize a loved one, create a community image) Introducing RBC Dominion Securities

Professional Wealth Management Cont…Benefits 6) Create a Legacy of Giving Clients can name successor advisors to their CGP account to continue the tradition of giving beyond their lifetime 7) Separation of Tax Planning and Charitable Gift Planning Decisions Attractive tax advantages can be realized through generous giving today, while grant recommendations in support of qualifying charities can be thoughtfully considered for implementation tomorrow. 8) Simplified Foundation Administration & Record Keeping 9) Confidentiality Maintained (Grants) recommended by your clients can be made anonymously Introducing RBC Dominion Securities

Professional Wealth Management Support v Search DS Online for charity database; includes categories, charity descriptions, registrations numbers etc. Introducing RBC Dominion Securities

Professional Wealth Management If you want a convenient way to create an enduring legacy while enjoying important tax benefits, the RBC Dominion Securities Charitable Gift Program may be a good choice for you. Please contact your Investment Advisor for more information. Introducing RBC Dominion Securities

Professional Wealth Management The strategies, advice and technical content in this presentation are provided for the general guidance and benefit of our clients, based on information that we believe to be accurate, but we cannot guarantee its accuracy or completeness. This presentation is not intended as nor does it constitute legal or tax advice. Clients should consult their own lawyer, accountant or other professional advisor when planning to implement a strategy. This will ensure that their own circumstances have been considered properly and that action is taken on the latest available information. Interest rates, market conditions, tax rules, and other investment factors are subject to change. This presentation has been prepared for use by RBC Dominion Securities Inc. * and RBC DS Financial Services Inc. (collectively, the “Companies). The Companies and Royal Bank of Canada are separate corporate entities which are affiliated. In Quebec, financial planning services are provided by RBC DS Financial Services Inc. which is licensed as a financial services firm in that province. In the rest of Canada, financial planning services are available through RBC Dominion Securities Inc. , and RBC DS Financial Services Inc. Insurance products are only offered through RBC DS Financial Services Inc. , a subsidiary of RBC Dominion Securities Inc. Unless otherwise indicated, securities purchased from or through RBC Dominion Securities Inc. are not insured by a government deposit insurer or guaranteed by Royal Bank of Canada and may fluctuate in value. RBC Dominion Securities Inc. * and Royal Bank of Canada are separate corporate entities which are affiliated. *Member CIPF. ® Registered Trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. Introducing RBC Dominion Securities ©Copyright 2005 Royal Bank of Canada. All rights reserved.