 Fifth Third Bank | All Rights Reserved | For Internal Use Only The State of Charitable Giving: The Profession, Politics, and Their Impact on the Charitable World Fifth Third Bank

2  Fifth Third Bank | All Rights Reserved | For Internal Use Only Goals for the Presentation Washington Update Highlight Four Key Areas of Conversation and Concern – Status and Impact —Estate Tax —Charitable IRA Rollover —Charitable Tax Deduction —Economic Downturn Other Areas of Concern to Watch in 2011

3  Fifth Third Bank | All Rights Reserved | For Internal Use Only Washington Update Foundations on the Hill – March 8-9,2011 Representatives from 250 Private, Family and Corporate Foundations Tax Reform on Top of Everyone’s Minds Not for Profit Fight Ahead What’s Next?

4  Fifth Third Bank | All Rights Reserved | For Internal Use Only The State of Charitable Giving Temporary Estate, Gift, and GST Tax Provisions – 2010 Tax Relief Act Applicable exclusion amount is defined as $5M and then adjusted for inflation for any decedent dying after December 31, Estate, gift, and GST tax rate is capped at 35% after a $5M individual exclusion Special election for 2010 for decedent dying in 2010, the executor may elect to use either no estate tax and modified carry-over basis or these new provisions

5  Fifth Third Bank | All Rights Reserved | For Internal Use Only The State of Charitable Giving Charitable IRA Rollover Act —Expired at End of 2009 —Extended Until December 31, 2011 —What we Have: – 70 ½ years of Age – $100,000 Maximum/No Deduction – Other Restrictions

6  Fifth Third Bank | All Rights Reserved | For Internal Use Only The State of Charitable Giving What Would We Really Like? —Public Good IRA Act – SB557 – Remove $100,000 Limitation – Giving Options Starting at 59 ½ – Include Distributions to Supporting Organizations, Donor Advised Funds and Private Foundations Will It Happen?

7  Fifth Third Bank | All Rights Reserved | For Internal Use Only The State of Charitable Giving Limitation on Tax Rate for Itemized Deductions —Cap at 28% for families making more than $250,000. —Charitable Deduction has always been attached to the tax rates. —Decoupling has been proposed in the past but has never happened. —Started as Part of the Discussion on How we Fund Healthcare Reform —Will it Happen?

8  Fifth Third Bank | All Rights Reserved | For Internal Use Only The State of Charitable Giving Economic Downturn and Its Impact on Donors —Less Dollars to Give —Many Donors have Narrowed Their Focus —Estate Tax Uncertainty has created Donor Uncertainty —Volunteerism Up —Increase of Non Cash Assets

9  Fifth Third Bank | All Rights Reserved | For Internal Use Only The State of Charitable Giving Economic Downturn and Its Impact on Not for Profits —Less Dollars/Higher Demand on Programs —More Collaborations —More Mergers —Staff Reductions —The New Norm

10  Fifth Third Bank | All Rights Reserved | For Internal Use Only The State of Charitable Giving Areas of Concern to Watch: —Overall Tax Reform —Minimum Payout Requirements for Endowments, Donor Advised Funds, and Supporting Orgs —IRS Inquiries into Endowment Spending, Executive Salaries and Unrelated Business Income Tax —Paying for Healthcare Reform —Budget Cuts to Critical Social Service Programs —The Idea that Private Funds Can Replace Government Funds

11  Fifth Third Bank | All Rights Reserved | For Internal Use Only Questions & Answers

12  Fifth Third Bank | All Rights Reserved | For Internal Use Only Contact Information Heidi B. Jark, Esq. Vice President & Manager The Foundation Office at Fifth Third Bank 38 Fountain Square Plaza MD1090CA Cincinnati, OH P: (800) ext. 4397/(513) F: (513) E: