1. Philanthropic Trends & Corporate Engagement Erin Budde Head of Community Affairs Wells Fargo Advisors August 18, 2010

2. 11 By the Numbers: 501(c)3 Public Charities There are 876,000 registered and 311,000 reporting public charities in the U.S, out of more than 1.4 million registered nonprofit organizations. These agencies provide essential services from basic needs and health care to research, education and cultural engagement. If not for our public charities, many of the services they provide would need to be provided by government, which is why the U.S and many state governments incentivize donations through tax deductions.

3. 22 By the Numbers: Nonprofit Revenue Sources Public charities report annual revenues in excess of $1 trillion. These revenues come from many sources, the largest of which are fees for service (tuition, co- pays, tickets, etc.). The second largest source of funds are contracts or grants from federal, local or state government. Philanthropy makes up only 12% of revenues – but an important 12%.

4. 33 By the Numbers: Philanthropic Funding In 2009, total US philanthropic funding was estimated $303.75B, a reduction of just over 3% and the largest dollar decline in giving in the past 50 years – a direct result of the recession. In spite of economic challenges and reduced giving, philanthropy in the U.S. made up a total of 2.1% of the GDP. The vast majority of giving comes from individuals and families through direct gifts and bequests.

5. 44 By the Numbers: Philanthropic Funding 09 Corporate giving=$12.2 billion Giving increased by 5.5% Within 1% of pre recession levels 25% providing more support basic needs 16% donating more products and services 75K grantmaking foundations Cut giving by 8.4% or $3.9B Total giving $42.9B in 2009 Bequests = $24.3 billion down 23.9% Impact of recession on bequests still to be determined Individual giving flat in 2009 = $230B 75% of all giving from HH earning $80K +/yr $115B (50%) from HH earning $300K +/yr IndividualsBequests CorporationsFoundations

6. 55 Corporate Social Engagement Trends  Commitment - 70% of senior executives believe corporate citizenship is even more important in a recession  Reputation - 82% of large companies identify reputation as the top driver of corporate citizenship. 92% of consumers want corporations to communicate about their social responsibilities, but the majority of them are skeptical about the information corporations release.  Alignment - Consumers expect corporations to address issues that directly or indirectly touch their business through product/service development (89%) or charitable donations (83%)  Volunteerism - 80% of CEO’s feel volunteerism can help nonprofits address long-term goals and 91% feel employees bring valuable skills to nonprofits  The degree to which companies take leadership on an issue depends on:  Leaders’ belief that doing so is critical to their bottom line  Stakeholders demand engagement (shareholders, regulators, employees, community, nonprofits, customers)  Degree to which leaders feel the company can uniquely impact the issue

7. Process Overview Community Affairs ensures that the firm’s financial, human and social capital are invested in 501c3 organizations addressing targeted issues in our communities to meet business, engagement and community goals, while upholding the values of Wells Fargo. Investment Types Decision Makers Criteria FinancialFoundation GrantsExecutive Committee, Coordinating Council, Market Managers Focus Areas Education Civic Leadership Health/Human Svcs Arts & Culture Goals Business Objectives Emp Engagement Community Values Diversity Leadership People Ethics Customers First SponsorshipsExecutive Committee, Coordinating Council, Market Managers Matching and Campaign Gifts Team Members HumanVolunteerismCommunity Affairs & Wells Fargo Volunteers Technical AssistanceManagers SocialCivic LeadershipCommunity Affairs Board Service - CompanyCommunity Affairs Board Service – PersonalTeam Members 6

8. Criteria: 2010 Focus Areas and Target Issues We’ve identified specific focus areas and target issues in which to invest our financial, human and social capital. The percentages under each focus areas are benchmarks for the portion of total funding invested in each area. Education (20%) Achievement Gap Mentoring, Teacher Quality Finance Education Post Secondary Curriculum, Scholarships Financial Literacy Building Wealth as One Wells Fargo Civic Leadership (30%) Community Development Diversity, Nonprofit Capacity Environment Open Space, Water Quality, Sustainability Economic Development Workforce, Economic Initiatives Health and Human Services (35%) Basic Needs United Way, Investing in Our Communities Long Healthy Life AARP, 2 nd Half Champions Partnerships Arts & Culture (15%) Accessibility Free and Subsidized Admission 7

9. 2010 Goals, Strategies and Metrics In addition to Focus Areas and Target Issues, we use goals and specific strategies to help determine how to invest our financial, human and social capital. To ensure we are accountable for our decision, we’ve established metrics and anticipated outcomes (refer to dashboard) for each strategy. Advance Primary Business Objectives 1. All investments have client connection 2. All FA’s are supported through turnkey or local initiatives 3. All senior leaders demonstrate community commitment 1. # Clients Engaged 2. #/% Markets and FA’s engaged 3. % team member participation Attract and Retain the Most Talented Workforce 1. All team members have opportunity to be engaged with the community through volunteerism and giving campaigns 2. Identified leaders are trained and placed on targeted boards 3. Diversity initiatives are supported through community investments 1. # activities and % participating 2. % placed/trained 3. # investments Demonstrate Commitment to the Community 1. Limited number of high-leverage partnerships 2. Coordinate efforts of marketing, public relations and community affairs 1. % requests funded 2. # internal/ external impressions GoalsStrategiesMetrics 8

10. 2010 Community Affairs Dashboard Measurement Lens 2010 Strategic Initiative2010 Expected Outcome Financial Capital Client Involvement 25% of CA investments involve clients 50% of field investments involve clients Turn-key Initiatives Stock Market Game rolled out to all locations Hands on Banking rolled out to all locations 90% market participation in IIOC “One Wells Fargo” Major Market Initiative Successful roll out in 10 markets 25% increase in CA-related media coverage Diversity Council Initiatives Support $150K in investments to select women’s, African American and GLBT targeted initiatives Human Capital Volunteerism and Team Member Giving 25% of team members log volunteer hours 100K volunteer hours recorded 35% of team members give through campaign Social CapitalTargeted Board Placements 100% senior leaders placed on corporate boards 200 WFA team members trained for boards 9

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