THE U.S. TRUST STUDY OF THE PHILANTHROPIC CONVERSATION: Understanding Advisor Approaches & Client Expectations Conducted in partnership with The Philanthropic Initiative OCTOBER 2013

Disclosures 2 Institutional Investments & Philanthropic Solutions (Philanthropic Solutions) is part of U.S. Trust, Bank of America Private Wealth Management (U.S. Trust). U.S. Trust operates through Bank of America, N.A. and other subsidiaries of Bank of America Corporation (BAC). Bank of America, N.A., Member FDIC. Banking and fiduciary activities are performed by wholly owned banking affiliates of BAC, including Bank of America, N.A. Brokerage services may be performed by wholly owned brokerage affiliates of BAC, including Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”). Certain U.S. Trust associates are registered representatives with MLPF&S and may assist you with investment products and services provided through MLPF&S and other nonbank investment affiliates. MLPF&S is a registered broker-dealer, member SIPC and a wholly owned subsidiary of BAC. Investment products: Bank of America, N.A. makes available investment products sponsored, managed, distributed or provided by companies that are affiliates of BAC or in which BAC has a substantial economic interest, including BofA™ Global Capital Management. © 2014 Bank of America Corporation. All rights reserved. | ARxxxxx | 04/2014 Are Not FDIC InsuredAre Not Bank GuaranteedMay Lose Value

3 Objectives 3 The overall themes of this research project are to:  Broadly determine the level of advisor interest in actively promoting philanthropy and understand how advisors are talking to their high net worth (HNW) clients about philanthropy  Compare and contrast advisor perceptions and behaviors to the perspective of HNW consumers

4  A comprehensive quantitative online survey was conducted in July/August 2013 among a broad, random sample of professional advisors who advise HNW clients  The advisor sample is not company/firm specific  A total of 312 professional advisors completed the survey  Three categories of advisors were sampled: ‒Wealth/financial (104 completed the survey) ‒Trust/estate attorneys (102 completed the survey); and ‒Tax/accountants (106 completed the survey)  Simultaneously, an online survey was conducted among HNW consumers (have $3M+ in investable assets) who are actively engaged in philanthropy Please note: Significant differences between the advisor groups are noted throughout the report with letters (a, b, c, etc.) Methodology 4

Key findings 5  Engaging in philanthropic discussions with advisors is important to HNW consumers  They strengthen the advisor – HNW client relationship and can lead to more structured giving  In addition, these conversations substantively enhance business development  While conversations can be valuable, they often fall below their potential

6 6  Raise the topic of philanthropy with clients  Start talking about philanthropy early in the relationship  In addition to advising on technical aspects, regularly incorporate clients’ personal passions and reasons for giving in conversations  Discuss your own personal philanthropic experiences and passions  Engage clients’ partners, children and other extended family  Continue to increase knowledge of philanthropic advising to more effectively council clients and create a competitive advantage  Create a referral network Takeaways

7 7 For the full research report, go to: Points of contact