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Comerica Legacy Foundation Charitable Gift Annuity Program

Comerica Legacy Foundation Charitable Gift Annuity Program. MICHAEL HARDY, CFP ® , CIMA ® Senior Vice President - Investments Advisory & Brokerage Services Wealth Advisor UBS FINANCIAL SERVICES INC.  1610 Arden Way, Suite 200 | Sacramento , CA | 95815

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Comerica Legacy Foundation Charitable Gift Annuity Program

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  1. Comerica Legacy Foundation Charitable Gift Annuity Program MICHAEL HARDY, CFP®, CIMA®Senior Vice President - Investments Advisory & Brokerage Services Wealth Advisor UBS FINANCIAL SERVICES INC. 1610 Arden Way, Suite 200 | Sacramento , CA | 95815 Office:  (916) 648-7244  (916) 648-7244 | Mobile:  (916) 801-8700  (916) 801-8700   Fax: (916) 922-7259 | michael.e.hardy@ubs.com

  2. Charitable Gift Annuity Program • Summary • Through UBS Financial Services' alliance with Comerica Bank and the Comerica Legacy Foundation, your donors can have access to a Charitable Gift Annuity program that offers full ACGA Rates to help them support your charity. • Since the Charitable Gift Annuity is between the donor and the Comerica Legacy Foundation, the local charity is not subject to state licensing or reserve requirements. • Upon death of the donor, the Comerica Legacy Foundation distributes 100% of the remainder value of the gift to the charity of the donor’s choice. Michael Hardy, CFP CIMA

  3. ACGA – Suggested Annuity Rates – Single Life Michael Hardy, CFP CIMA Rates effective 7/1/11

  4. Charitable Gift Annuities - FAQs • What is the Comerica Legacy Foundation? • Comerica Legacy Foundation (CLF) is a 501(c)3 public charity with a simple purpose – to help organizations build their endowment funds, and to assist individuals in giving their accumulated wealth to charity. The major program activity of Comerica Legacy Foundation is its charitable gift annuity program. • How does the Charitable Gift Annuity Program through CLF work? • A charitable gift annuity is a simple contract between an individual and a charitable organization. The individual transfers cash or other assets to the foundation, and the foundation then becomes obligated to pay an annuity to the individual based upon the terms of the contract. Because Comerica Legacy Foundation is a public charity, the process works exactly the same for the donor as a contract with any other qualified nonprofit organization. Michael Hardy, CFP CIMA

  5. Charitable Gift Annuities – FAQs cont. • When should an individual consider a charitable gift annuity through the Comerica Legacy Foundation? • First, a charitable gift annuity can be a simple alternative to a more complex charitable remainder annuity trust. For gifts of less than $500,000, and for individuals older than 65, it can be a perfect solution. • Second, some individuals desire the eventual gift to go to an organization which might be too small to issue a contract on its own. • Third, a charitable gift annuity through CLF can remain anonymous. • Fourth, some donors might question the financial stability of their favorite charities. A contract through CLF grants assurance that they will continue to receive their annuity check regardless of the financial standing of their favorite organization. Michael Hardy, CFP CIMA

  6. Charitable Gift Annuities – FAQs cont. • When should an organization consider using the Charitable Gift Annuity program through the Comerica Legacy Foundation? • Whenever possible, we encourage organizations to create their own program where the Comerica Charitable Services Group can help them prudently manage the individual contracts and UBS can prudently invest the assets. This is for two reasons: we recognize that donors want a relationship with their organization, and the annuity then becomes an asset on the books of your organization. • Yet we also recognize that this is not always possible. Even when the desire to offer charitable gift annuities to your donors is strong, it is sometimes wiser to utilize the program offered through the Comerica Legacy Foundation. • In general, the program is primarily designed to support organizations with one of the following three characteristics: • An organization that has donors throughout the United States, and is hesitant to invest the time and energy to get licensed in every state. • A more local organization, but located in a State with very cumbersome licensing requirements. • An organization just starting out in their planned giving efforts with a very small program in place. Comerica Legacy Foundation • Is licensed in 48 states • More than 100 current annuitants from across the United States • More than $24 million in assets backing each contract UBS and the Comerica Charitable Services Group • Together, the UBS/Comerica team can be the first step in your overall endowment building strategy • Managing more than 100 gift annuity programs across the country • Administering nearly 6,000 individual contracts • Managing more than 9,000 individual charitable relationships Michael Hardy, CFP CIMA

  7. Charitable Gift Annuities – FAQs cont. • When the Charitable Gift Annuity contract matures, or when the annuitant dies, what happens to the remainder value of the contract? • 100% of it goes directly to the charity of the donor’s choice – such as your organization. • If 100% of the proceeds go to other organizations, how can the Comerica Legacy Foundation afford to do this? • Formally, the Comerica Legacy Foundation is a valuable charitable client of Comerica Bank and other investment firms. The investment fees to manage the assets, and the fees to administer the contracts, become income for these investment firms. Consequently, it only makes sense to distribute the money to our partner charities to help them grow their endowment assets. Michael Hardy, CFP CIMA

  8. Charitable Gift Annuities – FAQs cont. • What are the fees for each contract? • Because of the current size of the account, the total pool of managed annuities is currently charged a blended fee of under 100bps. This includes both investment and management fees, and is below the projected fees assumed by the American Council on Gift Annuities. • Are there any restrictions on the charitable gift annuity contracts? • The minimum gift size is $10,000, and we offer rates published by the American Council on Gift Annuities. Contracts can be for one or two lives and can be paid monthly, quarterly, or annually. The minimum age for an annuitant is 60 years, and can be deferred for younger donors where the first payment will occur after the age of 60. • How do I find out more information? • Contact Michael Hardy CFP® CIMA®, Sr. Vice President at UBS Financial Services, at (916) 648-7244 or michael.e.hardy@ubs.com for more details on how this strategy can benefit your organization. Michael Hardy, CFP CIMA

  9. Additional Services/Support • While a CGA may end up being the ultimate vehicle for the donor, it is important to know UBS/Comerica Charitable Services is available to assist in a number of other solutions, including: • A professional staff of charitable experts to help strategize the most effective solution for the donor and charity • Alphabet Soup • CRATs, CRUTs, DAFs, CLATs, CLUTs, ILITs, etc. • We can help advise, manage and/or be a custodian for any of the above strategies. • Foundation/Endowment Investments • We can, of course, also offer advise and assistance on the broader foundation or endowment's investments. Michael Hardy, CFP CIMA

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