Program Features One of the Lowest Fees Among National Donor-Advised Funds
BALTIMORE, Sept. 5 /PRNewswire/ -- The T. Rowe Price Program for
Charitable Giving(SM), a national donor-advised fund, announced that it has
reduced its annual administrative fee, effective September 1, 2006. With
the new fee schedule, the Program continues to have one of the lowest
administrative fees among national donor-advised funds founded by major
financial institutions.
Total assets of the nation's largest donor-advised funds increased to
$15.5 billion in 2005, up from $12.7 billion in 2004, according to The
Chronicle of Philanthropy.
"We have been pleased with the growing acceptance of donor-advised
funds among those with charitable interests, and of The T. Rowe Price
Program for Charitable Giving in particular. The growth of our Program and
the economies associated with larger accounts, have made it possible for us
to lower fees on individual accounts over $500,000," said Ann Boyce,
President of The T. Rowe Price Program for Charitable Giving. "Ultimately,
this will mean more support for charities recommended by our donors."
Under the new fee schedule, the annual administrative fee is reduced by
varying amounts on asset balances exceeding $500,000. For example, the fee
is cut by more than half -- from 0.40% to 0.18% -- on asset balances of $1
million to $2.5 million. For accounts with a $2 million balance, for
example, the annual fee for the Program for Charitable Giving would be
$6,250, less than the administrative fee charged for comparable sized
accounts in other national donor-advised funds such as the Vanguard
Charitable Endowment Program, the Fidelity Charitable Gift Fund, or the
Schwab Fund for Charitable Giving, as seen in the tables below.
Individual T. Rowe Price Vanguard Fidelity Schwab Fund
Account Program for Charitable Charitable for Charitable
Assets Charitable Endowment Gift Fund Giving
Giving Program
< $500,000 0.50% 0.57% 0.60% 0.60%
$500,000 - 0.39% 0.57% 0.30% 0.30%
$999,999
$1 million - 0.18% 0.25% 0.20% 0.20%
$2,499,999
$2.5 million - 0.12% 0.25% 0.15% 0.15%
$4,999,999
$5 million - 0.10% 0.15% see below 0.15%
$14,999,999
$15 million - 0.09% 0.10% see below 0.10%
$49,999,999
$5-10 million 0.19%
flat fee
$10-20 million 0.17%
flat fee
Individual T. Rowe Price Vanguard Fidelity Schwab Fund
Account Program for Charitable Charitable for Charitable
Assets Charitable Endowment Gift Fund Giving
Giving Program
$ - $ - $ - $ - $ -
$ 500,000 $ 2,500 $ 2,850 $ 3,000 $ 3,000
$ 1,000,000 $ 4,450 $ 5,700 $ 4,500 $ 4,500
$ 2,000,000 $ 6,250 $ 8,200 $ 6,500 $ 6,500
$ 3,000,000 $ 7,750 $ 10,700 $ 8,250 $ 8,250
$ 4,000,000 $ 8,950 $ 13,200 $ 9,750 $ 9,750
$ 5,000,000 $ 10,150 $ 15,700 $ 9,500 $ 11,250
$ 6,000,000 $ 11,150 $ 17,200 $ 11,400 $ 12,750
$ 7,000,000 $ 12,150 $ 18,700 $ 13,300 $ 14,250
$ 8,000,000 $ 13,150 $ 20,200 $ 15,200 $ 15,750
$ 9,000,000 $ 14,150 $ 21,700 $ 17,100 $ 17,250
$ 10,000,000 $ 15,150 $ 23,200 $ 17,000 $ 18,750
$ 15,000,000 $ 20,150 $ 30,700 $ 25,500 $ 26,250
$ 20,000,000 $ 24,650 $ 35,700 $ 34,000 $ 31,250
The T. Rowe Price Program for Charitable Giving offers individuals a
convenient, cost-effective way to realize the personal, social, and
financial benefits of charitable giving. The Program may also serve as a
practical alternative for those who are considering the establishment of
their own private family foundation.
The Program also allows individuals to contribute cash ($10,000 minimum
initial investment) or publicly traded securities. Accounts are established
in the donor's name, and donors submit recommendations for grants to
qualified charitable organizations and causes. Donors receive a charitable
income tax deduction for assets contributed to the Program, available for
the tax year the contributions are made (within IRS limitations), but
actual grants can be requested at any time. Donors can recommend that their
contributions be invested in various investment options comprised of T.
Rowe Price mutual funds. These assets may grow in value over time,
potentially increasing the amount of subsequent grants. All grants to
charities are recognized in the donor's name unless anonymity is requested.
The T. Rowe Price Program for Charitable Giving accepts donations of
long-term appreciated marketable individual securities and mutual fund
shares, and invests proceeds from the subsequent sale of securities in the
donor's account. Since the Program is the actual "seller" of the
securities, the donor avoids any capital gains tax that might have been
realized on the sale of the securities.
"Donor-advised funds are increasing in popularity for several reasons,"
Ms. Boyce says. "Donors benefit from an immediate charitable income tax
deduction, and they can avoid paying capital gains taxes on gifts of
long-term appreciated securities. They also gain the flexibility of
receiving these tax benefits now without having to decide immediately on
the charitable organization that they would like to support. Donors also
have the potential to see the value of their contributions grow over time,
enabling them to make potentially larger gifts in the future. And these
funds provide a convenient and efficient way to implement a charitable
giving program."
For more information, individuals can contact The T. Rowe Price Program
for Charitable Giving at 1-877-325-2682 or visit
http://www.ProgramForGiving.org.
The T. Rowe Price Program for Charitable Giving is an independent
non-profit corporation founded by T. Rowe Price to assist individuals with
planning and managing their charitable giving. The Program has contracted
with various T. Rowe Price companies to provide operational, record-keeping
and investment management services to the Program.
SOURCE T. Rowe Price Group, Inc.
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Related links:
http://www.troweprice.com
http://www.ProgramForGiving.org
CONTACT:
Steve Norwitz, +1-410-345-2124, or Brian
Lewbart, +1-410-345-2242, both of T. Rowe Price Group, Inc.
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