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      E.    Private Family Foundation (PFF)

1.    Primary Features -
    i)provides tax-leveraged philanthropy with maximum control/flexibility
    ii)allows time-shifting distributions to charities with current gifting
    iii)promotes personal family values in asset management and philanthropy
    iv)can create a potentially long-term family legacy in perpetuity
    v)allows up to a $100,000 compensation package for a donor/manager

2.    Asset Transfers -
    i)almost any family asset may qualify for transfer - but no self-dealing
    ii)limited to 20% of any business interests - private or public
    iii)inbound transfers allowed both during lifetime and as a stand-by
    iv)individual outbound grants allowed if objective and non-discriminatory
    v)a minimum of 5% of asset value must be distributed annually to charity

3.    Taxable Events / Benefits -
    i)value of transfer(s) reduces taxable estate, dollar for dollar
    ii)internal sale of appreciated asset(s) does not incur capital gains tax
    iii)transfers of appreciated stock qualify for FMV deductions, (but...)
    iv)appreciated real estate & family business interests limited to cost basis
    v)subject to annual 1% or 2% excise tax on net investment income

4.    Management Structures -
    i)should be sitused/administered in user-friendly state
    ii)may utilize only one director or an entire family
    iii)must stay in compliance with / governed by (exempted) charitable intent
    iv)provides multi-generational family directives over endowments
    v)cannot make speculative investments - only core-investment strategies

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