Donor-advisors associated with a T. Rowe Price Program for Charitable Giving account with a balance of $3 million or above may request separate portfolio management for their fund account. This service offers an opportunity to recommend the account be invested in individual securities, bonds, and mutual funds.

With this service, donor-advisors benefit from the simplicity, convenience, and cost-effectiveness of a donor-advised fund — and the personal attention, customized investment selection, and investment flexibility associated with private asset management.

The benefits of a donor-advised fund
For philanthropists, donor-advised funds have become a welcome alternative to foundations for several reasons. Contributions to a donor-advised fund are tax-deductible, as they are with foundations (donations are deductible at market value in the tax year they are made; donations of long-term appreciated marketable securities can eliminate capital gain taxes). Donor-advised funds offer the additional benefit of enabling you to deduct a higher percentage of your adjusted gross income.

In addition, a donor-advised fund is exempt from IRS foundation requirements such as filing an annual Form 990 PF, paying excise tax on the net investment income, and distributing 5% of assets annually. Thus, a donor-advised fund eliminates the need for ongoing administration, costs for independent tax reporting, and accounting and legal expenses. As is true in a foundation, your donations have the potential to grow over time, and donor-advisors may recommend grants to be awarded to a wide range of charitable organizations.

The advantages of private portfolio management
Many philanthropists believe a portfolio that includes individual securities offers desirable investment opportunities and would like the portfolio to take into account socially conscious security selection. Separate portfolio management through The T. Rowe Price Program for Charitable Giving lets you achieve either or both investment objectives.

The management of your account begins with an initial consultation with the Program president and the assigned portfolio manager to discuss investment objectives, return expectations, risk tolerance, time horizon, and other factors specific to your situation. You may recommend that companies doing business in particular industries be excluded from the account portfolio. Such exclusions might include military defense contracting, tobacco or alcohol production, and gambling.

Once the portfolio strategy has been established by the Program, you will be able to recommend changes to the account's investment strategy on a periodic basis. You will also receive quarterly investment reports in addition to account statements from the Program for Charitable Giving.

T. Rowe Price portfolio management expertise
T. Rowe Price was established in 1937 to offer private asset management services for a select group of affluent individuals and institutional clients. The firm's Private Asset Management group today provides personalized investment counseling and discretionary portfolio management for assets in separate portfolios totaling over $4 billion.

The group believes superior, long-term performance can be achieved through comprehensive, long-term planning and attentive, day-to-day portfolio management. Rigorous fundamental research is the cornerstone of the investment process. Leveraging the T. Rowe Price global research capability and in-house staff of more than 250 investment professionals, the Private Asset Management group offers expertise in multiple asset classes and styles. A proven investment philosophy — to preserve and enhance wealth without assuming unnecessary risk — drives every investment decision private portfolio managers make.

Learn more about private portfolio management
If you are involved in or considering philanthropic giving and would like to explore the benefits offered by The T. Rowe Price Program for Charitable Giving, you are invited to speak with Ann Boyce, president, at 1-877-325-7992 Monday through Friday between 9 a.m. and 5 p.m. eastern time.