Donor advised fund - The T. Rowe Price Program for Charitable Giving

One of the main advantages of investing in a donor-advised fund is the potential opportunity for your account assets to grow tax-free over time. So it's important to take a close look at your pool's investment performance to be sure the returns are competitive.

Despite increased volatility, U.S. stocks produced strong gains in the fourth quarter to cap a sixth consecutive year of positive returns. The market was supported by steady U.S. economic growth and new stimulus efforts in the eurozone and Japan. At the same time, plummeting oil prices boosted Americans’ discretionary spending. Overall, small-cap stocks outperformed large- and mid-caps. As measured by various Russell indexes, value stocks narrowly outpaced growth in the large- and mid-cap universes, while the reverse was true among small-caps.

Domestic bond returns were mixed as investors anticipated the onset of Federal Reserve rate hikes. Since an initial rise in interest rates would negatively affect the prices of shorter-term debt more than longer-maturity bonds, shorter-term Treasury yields rose during the quarter. On the other hand, the yield on the 30-year Treasury bond decreased to its lowest levels in over 12 months.

High-yield, noninvestment-grade bonds lost ground as a result of the selling pressure on debt from energy-related issuers. Initially the selling pressure was highest on lower-quality securities, but even higher-quality energy-related bonds declined after OPEC’s November decision not to cut oil production. Investment-grade bonds, which have less exposure to the energy industry, generated a healthy gain. Municipal bonds extended their streak of monthly gains to cover the entire year.

In the developed world the struggling eurozone saw its long-term government bond yields driven to record lows on comments from European Central Bank officials suggesting expansion of their asset purchase program. The Bank of Japan expanded its monetary easing measures, driving down the yield on the Japanese 10-year government bond.

Emerging markets experienced considerable volatility followed by broad selling pressure in December, with Brazilian bonds particularly erratic following that country’s general election. The general malaise in global economic growth and the rapid decline in oil prices contributed to the selling pressure in many countries.

In this environment, all portfolios except the Gift Preservation Pool produced positive results for the quarter.

Current performance may be higher or lower than the quoted past performance, which cannot guarantee future results. Share price, principal value, and return will vary, and you may have a gain or loss when you grant your shares. To request a prospectus or summary prospectus for any of the funds in which the pools invest, call 1-800-564-1597. Each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing.

T. Rowe Price Gift Preservation Pool Performance — December 31, 2014

The Gift Preservation Pool returned -0.21%, compared with 0.00% for its benchmark. While cash-equivalent securities, including the Summit Cash Reserves Fund, had flat results, the pool’s performance was negatively impacted by its holding of the Short Term Bond Fund. Returns on short-term bonds fell in expectation of a future rate increase.

GIFT PRESERVATION POOL
PERFORMANCE AS OF December 31, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Gift Preservation Pool1 -0.21% -0.07% 0.74% 2.12%
Underlying Funds Weight -0.09% 0.60% 1.66% 2.99%
Short-Term Bond Fund 75.00%
Summit Cash Reserves Fund 25.00% 0.00% 0.01% 0.01% 1.54%
WBGPP Benchmark2 0.00% 0.03% 0.07% 1.49%


1 The current weights of the underlying funds became effective on June 28, 2010; also on this date, the Short-Term Bond Fund and Summit Cash Reserves Fund replaced the Short-Term Income Fund. Performance prior to June 28, 2010, is based on the previously applied allocations of the underlying funds.

2 The benchmark reflects the performance of a combined portfolio consisting of 80% Citigroup 3-Month Treasury Bill Index and 20% Barclays 1–3 Year Government/Credit Index through June 30, 2008, and the performance of the Citigroup 3-Month Treasury Bill Index from July 1, 2008, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

T. Rowe Price Diversified Income Pool Performance — December 31, 2014

The Diversified Income Pool returned 0.75%, versus 2.56% for its weighted benchmark. While many underlying equity holdings in the pool had positive returns, the Real Assets Fund, which is exposed to energy and commodities industries hard-hit by falling oil prices, posted a negative return. Spectrum Income Fund, the largest component of the pool, barely broke into positive territory as its fixed income investments did not fare as well as equities during the quarter.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF December 31, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Diversified Income Pool1 0.75% 4.43% 7.82% 5.70%
Underlying Funds Weight 0.02% 3.88% 6.13% 5.60%
Spectrum Income Fund 60.00%
Equity Income Fund 19.00% 3.02% 7.49% 13.33% 6.83%
Balanced Fund 19.00% 1.75% 5.97% 10.33% 6.80%
Real Assets Fund 2.00% -3.61% 1.55% N/A N/A
WBDEP Weighted Benchmark2 2.56% 7.91% 7.91% 5.81%


1 The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013 when the pool’s current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds. The Balanced Fund was added to the pool on August 31, 2004.

2 The benchmark reflects the performance of a combined portfolio consisting of 60% Barclays U.S. Aggregate Bond Index, 19% Russell 1000 Value Index, 19% Balanced Fund Blended Benchmark (45.5% S&P 500 Index, 35% Barclays U.S. Aggregate Bond Index, and 19.5% MSCI EAFE Index), and 2% in a blended benchmark (70% Russell 3000 Index and 30% MSCI EAFE Index) through December 31, 2013, and the performance of a combined portfolio consisting of 60% Barclays U.S. Aggregate Bond Index, 19% Russell 1000 Value Index, 19% Balanced Fund Blended Benchmark (45.5% S&P 500 Index, 35% Barclays U.S. Aggregate Bond Index, and 19.5% MSCI EAFE Index), and 2% MSCI All Country World Index from January 1, 2014, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

T. Rowe Price Balanced Index Pool Performance — December 31, 2014

The Balanced Index Pool had a return of 1.83%, compared with 2.20% for its weighted benchmark. The Fund’s holdings in largely U.S. equities reflected broader market gains while the International Equity Index Fund lost ground against the backdrop of anemic global economic growth. The U.S. Bond Index Fund, the pool’s largest single holding, showed muted returns.

BALANCED INDEX POOL
PERFORMANCE AS OF December 31, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Balanced Index Pool1 1.83% 5.68% 8.84% 5.79%
Underlying Funds Weight 1.70% 6.12% 4.36% 4.66%
U.S. Bond Enhanced Index Fund 40.00%
Equity Index 500 Fund 29.90% 4.88% 13.40% 15.14% 7.41%
Extended Equity Market Index Fund 10.00% 6.59% 7.59% 16.82% 9.25%
International Equity Index Fund 17.10% -4.39% -5.95% 5.04% 4.37%
Real Assets Fund 3.00% -3.61% 1.55% N/A N/A
WBBAX Weighted Benchmark2 2.20% 6.55% 9.82% 6.49%


1 The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013, when the pool’s current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds.

2 The benchmark reflects the performance of a combined portfolio consisting of 40% Barclays U.S. Aggregate Bond Index, 29.9% S&P 500 Index, 10% S&P Completion Index, 17.1% FTSE All World Developed ex North America Index, and 3% in a blended benchmark (70% Russell 3000 Index and 30% MSCI EAFE Index) through December 31, 2013, and the performance of a combined portfolio consisting of 40% Barclays U.S. Aggregate Bond Index, 29.9% S&P 500 Index, 10% S&P Completion Index, 17.1% FTSE All World Developed ex North America Index, and 3% MSCI All Country World Index from January 1, 2014, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

T. Rowe Price Moderate Growth Pool Performance — December 31, 2014

The Moderate Growth Pool posted a return of 1.37%, while its weighted benchmark returned 2.20%. Underlying stock funds focused on small- and mid-cap stocks generated strong returns, while holdings concentrated in international and emerging market stocks posted losses. Because of its diversification among equities, fixed income and other types of investments, Spectrum Income Fund did not keep pace with equity-only funds.

MODERATE GROWTH POOL
PERFORMANCE AS OF December 31, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Moderate Growth Pool1 1.37% 4.52% 9.95% 6.36%
Underlying Funds Weight 0.02% 3.88% 6.13% 5.60%
Spectrum Income Fund 30.00%
Equity Index 500 Fund 5.45% 4.88% 13.40% 15.14% 7.41%
Growth Stock Fund 15.20% 4.30% 8.83% 15.84% 8.75%
Equity Income Fund 15.20% 3.02% 7.49% 13.33% 6.83%
Mid-Cap Growth Fund 2.85% 8.60% 13.16% 17.42% 10.94%
Mid-Cap Value Fund 2.85% 3.60% 10.60% 14.04% 9.21%
Small-Cap Stock Fund 5.00% 9.18% 6.90% 18.12% 9.81%
International Stock Fund 8.55% -1.43% -0.82% 6.19% 5.33%
International Growth & Income Fund 8.55% -4.71% -5.32% 5.77% 4.83%
Emerging Markets Stock Fund 2.85% -2.84% 1.41% 2.26% 7.89%
Real Assets Fund 3.50% -3.61% 1.55% N/A N/A
WBMPP Weighted Benchmark2 2.20% 7.05% 10.63% 6.59%


1 The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013, when the pool's current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds. The Emerging Markets Stock Fund was added to the pool on June 30, 2008.

2 The benchmark reflects the performance of a combined portfolio consisting of 30% Barclays U.S. Aggregate Bond Index, 49% Russell 3000 Index, and 21% MSCI EAFE Index through December 31, 2013 and the performance of a combined portfolio consisting of 30% Barclays U.S. Aggregate Bond Index, 46.55% Russell 3000 Index, 19.95% MSCI All Country World Index ex-U.S., and 3.5% MSCI All Country World Index from January 1, 2014, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

T. Rowe Price Growth Pool Performance — December 31, 2014

The Growth Pool returned 1.94%, against the 2.38% return of its weighted benchmark. The pool’s largest holdings, the Growth Stock Fund and the Equity Income Fund, posted positive returns but did not match the performance of its mid- and small-cap holdings. Performance was negative for underlying funds invested in international stocks and for the energy-industry-exposed Real Assets Fund.

GROWTH POOL
PERFORMANCE AS OF December 31, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Growth Pool1 1.94% 5.08% 11.71% 6.59%
Underlying Funds Weight 4.88% 13.40% 15.14% 7.41%
Equity Index 500 Fund 10.20%
Growth Stock Fund 20.45% 4.30% 8.83% 15.84% 8.75%
Equity Income Fund 20.45% 3.02% 7.49% 13.33% 6.83%
Mid-Cap Growth Fund 4.05% 8.60% 13.16% 17.42% 10.94%
Mid-Cap Value Fund 4.05% 3.60% 10.60% 14.04% 9.21%
Small-Cap Stock Fund 7.35% 9.18% 6.90% 18.12% 9.81%
International Stock Fund 12.10% -1.43% -0.82% 6.19% 5.33%
International Growth & Income Fund 12.10% -4.71% -5.32% 5.77% 4.83%
Emerging Markets Stock Fund 4.25% -2.84% 1.41% 2.26% 7.89%
Real Assets Fund 5.00% -3.61% 1.55% N/A N/A
WBGRP Weighted Benchmark2 2.38% 7.43% 13.01% 7.00%


1The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013, when the pool's current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds. The Emerging Markets Stock Fund was added to the pool on June 30, 2008.

2 The benchmark reflects the performance of a combined portfolio consisting of 70.05% Russell 3000 Index and 29.95% MSCI EAFE Index through December 31, 2013 and the performance of a combined portfolio consisting of 66.55% Russell 3000 Index, 28.45% MSCI All Country World Index ex-U.S., and 5% MSCI All Country World Index from January 1, 2014, forward.

3 These figures are annualized.

4 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

T. Rowe Price Global Equity Pool Performance — December 31, 2014

The Global Equity Pool returned 0.23%, compared with a 0.52% return for its weighted benchmark. In a challenging quarter for non-U.S. stocks, the positions in the International Growth and Income Fund and the International Equity Index Fund both negatively impacted the pool’s performance. But U.S. equity, value, and small- and mid-cap holdings somewhat mitigated these losses.

GLOBAL EQUITY POOL
PERFORMANCE AS OF December 31, 2014
Total Return3
3 Months
1 Year
5 Years2
Since Inception2
(6/30/08)
T. Rowe Price Global Equity Pool1  0.23% 3.61% 9.13% 4.39%
Underlying Funds Weight 1.49% 6.40% 10.30% 3.06%
Global Stock Fund 22.30%
International Growth & Income Fund 12.35% -4.71% -5.32% 5.77% 1.76%
International Equity Index Fund 16.60% -4.39% -5.95% 5.04% 1.19%
Emerging Markets Stock Fund 9.95% -2.84% 1.41% 2.26% -0.78%
Equity Index 500 Fund 14.50% 4.88% 13.40% 15.14% 9.73%
Value Fund 11.15% 4.66% 13.37% 16.14% 10.89%
Mid-Cap Growth Fund 2.40% 8.60% 13.16% 17.42% 12.07%
Mid-Cap Value Fund 2.40% 3.60% 10.60% 14.04% 11.37%
Small-Cap Stock Fund 3.35% 9.18% 6.90% 18.12% 14.10%
Real Assets Fund 5.00% -3.61% 1.55% N/A N/A
MSCI All Country World Index  0.52% 4.71% 9.74% 5.30%


1 The current weights of the underlying funds became effective on February 28, 2013. Beginning in October 2012, the pool began incrementally adding the Real Assets Fund to its portfolio until February 2013, when the pool's current allocation to the fund was reached. Performance prior to September 30, 2012, is based on the previously applied allocations of the underlying funds.

2 These figures are annualized.

3 Returns are based on net asset value per share and reflect changes in principal value, reinvested dividends, and capital gain distributions, if any. The pool returns are net of underlying expenses for the mutual funds and Program administrative fees.

Benchmark Information
Barclays 1–3 Year Government/Credit Index is a total return index that incorporates all bonds in the Treasury Bond Index and the Agency Bond Index, as well as U.S. corporate and some foreign debentures and secured notes, with maturities of one to three years.
Barclays U.S. Aggregate Bond Index is an unmanaged index that tracks domestic investment-grade bonds, including corporate, government, and mortgage-backed securities.
Citigroup 3-Month Treasury Bill Index is an unmanaged index that tracks short-term U.S. government debt instruments.
FTSE All World Developed ex North America IndexTM is a broadly diversified stock market index based on the investable market capitalization of predominately larger companies. The index's major markets include the UK, Japan, and developed countries in Europe and the Pacific Rim.
MSCI EAFE Index tracks the performance of stocks of companies in Europe, Australasia, and the Far East (EAFE).
MSCI All Country World Index tracks the equity market performance of global developed and emerging markets.
MSCI All Country World Index ex-U.S. is a market capitalization-weighted index of stocks traded in world markets.
Russell 1000 Value Index tracks the performance of the 1,000 largest companies in the Russell 3000 Index. The Russell 3000 Index tracks the performance of the 3,000 largest U.S. companies, representing approximately 98% of the investable U.S. equity market.
S&P 500 Index tracks the stocks of 500 mostly large U.S. companies.
S&P Completion Index tracks the performance of the U.S. stocks not included in the S&P 500, which are primarily small- and mid-capitalization stocks.

"Standard & Poor's", "S&P®", "S&P 500®", "Standard & Poor's 500", "500", "S&P Completion Index", "S&P Total Market Index", and "S&P TMI" are marks/trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by T. Rowe Price. The product is not sponsored, endorsed, sold, or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of investing in the product.

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI.