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 The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to Lees acation@gmail.com, and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved EFTA_R1_00261951 EFTA01861427