<h1>Frustrated by the tax headaches<br />of your private family foundation?</h1>

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You can take steps now to secure the tax advantages of a <a href="http://www.waterstone.org/?/solutions/donor_advised_funds" title="Donor Advised Fund (DAF)">Donor Advised Fund (DAF)</a> at WaterStone. Depending upon your needs, you may simply enhance your family foundation with the addition of a Donor Advised Fund, or completely dissolve your family foundation into a Donor Advised Fund. WaterStone has the experience to assist you with either approach. Consider the following tax comparison.

<table width="98%" border="1" cellspacing="0" cellpadding="0" bordercolor="#0000CC"  bgcolor="#eeeeee" align="center"><tr style="background: #cccccc;"><td><b>Tax Issue</b></td><td><b>Your Private Foundation</b></td><td><b>A WaterStone Donor Advised Fund</b></td></tr><tr><td style="font-weight: bold;">Tax deduction limit for gifts of cash</td><td>30% of Adjusted Gross Income (AGI)</td><td>50% of Adjusted Gross Income (AGI)</td></tr><tr style="background: white;"><td style="font-weight: bold;">Tax deduction limit for gifts of publicly traded securities</td><td>20% of AGI</td><td>30% of AGI</td></tr><tr><td style="font-weight: bold;">Tax deduction limit for gifts of non-publicly traded securities</td><td>Cost basis</td><td>Full current market value</td></tr><tr style="background: white;"><td style="font-weight: bold;">Tax issues with complicated asset gifts *</td><td>Self-dealing</td><td>N/A</td></tr><tr style="background: white;"><td style="font-weight: bold;">&nbsp;</td><td>Jeopardizing investments</td><td>N/A</td></tr><tr style="background: white;"><td style="font-weight: bold;">&nbsp;</td><td>Excess business holdings</td><td>N/A</td></tr><tr><td style="font-weight: bold;">Excise tax on investment income</td><td>2%</td><td>None</td></tr><tr style="background: white;"><td style="font-weight: bold;">Results</td><td>Headaches <span style="font-family: Helvetica;">&</span> disadvantages</td><td>More for your favorite charities<br>Expert assistance</td></tr></table> 

*In the existing economy, many donors are holding on to their cash and appreciated publicly traded stock, making charitable contributions of illiquid assets the ideal source for increased charitable funding. However, this type of gift can be complicated and subject to "self-dealing," "jeopardizing investments" and "excess business holdings" rules if given to a private foundation. If given through a Donor Advised Fund at WaterStone, the donor may avoid these IRS complications and potential capital gains exposure from a private sale, while receiving a full current market value tax deduction.

<b>This more effective and tax-efficient method of giving can be your opportunity to expand your giving potential to your favorite charities.</b>

<em>Note: The information provided herein is for informational purposes only and should not be interpreted to constitute legal and/or tax advice. Donors should consult their legal and tax advisors regarding their specific situations.</em>