To: Jes Stale Cc: Boris Nikolic From: Jeffrey Epstein Sent: Wed 7/27/2011 11:41:41 PM Subject: outline Erdoes, Mary E Private Foundation gates /jpm Valuation for charitable deduction: closely held stock s corp or c corp. or real estate„ ost Basis Fair Market Value Valuation of publicly traded securities Fair Market Value Fair Market Value Income tax deduction - percentage of AGI, with S year carry over 30% for cash, 0% for appreciated ssets 50% for cash, 30% for appreciated assets Excise tax on investment income 1-2% of income No excise tax Set up expense and operations takes money away from charity, le will pay setup. jpm operations IRS approval process ime consuming none Annual distribution requirement 5% None Investment options need to hire , or use someone elses worlds best managers, silos. Preparation of tax returns, IRS compliance, accounting, grants management, fiduciary oversight, legal and audit , trustees , estate planning Donor must arrange or these services Provided by jpm world s most respected bank Confidentiality *None - All information is ublicly available via orm 990-PF Donor has flexible options: Full recognition, or partial, or full anonymity *Private foundations provide little confidentiality. . Today, anyone can access Guidestar (www.guidestar.orq) to gain information on any private foundation, including a scanned version of Its 990-PF. Available information includes balance sheet detail (including investment holdings, a listing of directors (including contact information), every grant that is made (organization name and amount), and detail of administrative and investment management expenses. EFTA_R1_00261950 EFTA01861426