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.

U.S. stocks rose in the second quarter of 2014, adding to first-quarter gains and lifting large-cap indexes to new all-time highs in June. Equities climbed amid signs that the U.S. economy was recovering from a weather-driven contraction in the first quarter and hopes that new stimulus measures in Europe would boost eurozone economies. Corporate merger activity was supportive, and signs of a de-escalation of the crisis in Ukraine—whose eastern region is experiencing violent separatism—were encouraging. Investors were undeterred by the Federal Reserve’s continued tapering of its asset purchases or by rising oil prices late in the quarter in response to a sharp increase in sectarian violence in Iraq.

Large-cap shares outperformed their smaller peers. As measured by various Russell indexes, value stocks surpassed growth stocks among small- and mid-cap names, whereas large-cap growth and value stocks fared about the same.

Domestic bonds produced moderate gains in the second quarter as longer-term Treasury yields declined—despite signs of an uptick in inflation.

Developed non-U.S. equity markets narrowly lagged large-cap U.S. shares in the second quarter. Among developed Asian markets, Hong Kong performed best. Japanese stocks rose even though the economy is expected to slow in the second quarter following a sales tax increase. In Europe, low eurozone inflation prompted the European Central Bank (ECB) to reduce interest rates and establish a program offering very cheap four-year loans to banks at its June monetary policy meeting.

Equities in developing markets fared better than their peers in developed markets. Emerging European markets rebounded strongly, and Russian stocks rose amid hopes that geopolitical tensions over Ukraine would subside. Developing Asian markets did well, led by India, Taiwan, and the Philippines. Most major Latin American markets rose strongly.

Bonds in developed non-U.S. markets produced good returns in the second quarter. European issues fared best amid signs of low inflation in the eurozone and in anticipation of additional ECB stimulus measures. Emerging markets bonds outpaced their peers in developed markets, as low interest rates in the developed world prompted investors to seek attractive yields from higher-risk securities.

In this environment, each portfolio produced positive results.

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 — June 30, 2014

The Gift Preservation Pool returned 0.36%, compared with 0.01% for its benchmark. The Short-Term Bond Fund posted a gain, as Treasury yields declined despite a tapering of Fed asset purchases. Summit Cash Reserves Fund had flat results.

GIFT PRESERVATION POOL
PERFORMANCE AS OF June 30, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Gift Preservation Pool1 0.36% 0.79% 1.31% 2.23%
Underlying Funds Weight 0.60% 1.72% 2.42% 3.17%
Short-Term Bond Fund 75.00%
Summit Cash Reserves Fund 25.00% 0.00% 0.01% 0.02% 1.61%
WBGPP Benchmark2 0.01% 0.04% 0.08% 1.58%


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 — June 30, 2014

The Diversified Income Pool returned 3.36%, versus 3.03% for its weighted benchmark. All the underlying funds posted solid gains. Spectrum Income Fund, the portfolio’s largest allocation, benefited from its exposure to its diversifying sectors of high yield and emerging market bonds.

DIVERSIFIED INCOME POOL
PERFORMANCE AS OF June 30, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Diversified Income Pool1 3.36% 12.76% 10.98% 6.52%
Underlying Funds Weight 2.87% 9.03% 8.69% 6.48%
Spectrum Income Fund 60.00%
Equity Income Fund 19.00% 4.46% 20.66% 18.06% 7.72%
Balanced Fund 19.00% 3.89% 18.76% 13.71% 7.58%
Real Assets Fund 2.00% 8.47% 24.04% N/A N/A
WBDEP Weighted Benchmark2 3.03% 10.55% 9.39% 6.12%


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 — June 30, 2014

The Balanced Index Pool had a return of 3.56%, compared with 3.63% for its weighted benchmark. In keeping with its index approach, the portfolio’s performance was reflective of market activity minus expenses. Returns for the U.S. Bond Enhanced Index Fund, the portfolio’s largest allocation, were positive as domestic bonds posted moderate gains.

BALANCED INDEX POOL
PERFORMANCE AS OF June 30, 2014
Total Return4
Three Months One Year Five Years3
Since Inception3
(8/31/04)
T. Rowe Price Balanced Index Pool1 3.56% 15.52% 11.81% 6.70%
Underlying Funds Weight 2.01% 4.34% 4.77% 4.65%
U.S. Bond Enhanced Index Fund 40.00%
Equity Index 500 Fund 29.90% 5.15% 24.25% 18.51% 7.98%
Extended Equity Market Index Fund 10.00% 3.47% 26.94% 21.91% 11.15%
International Equity Index Fund 17.10% 4.11% 22.87% 11.57% 7.35%
Real Assets Fund 3.00% 8.47% 24.04% N/A N/A
WBBAX Weighted Benchmark2 3.63% 16.39% 12.76% 7.38%


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 — June 30, 2014

The Moderate Growth Pool posted a return of 3.97%, while its weighted benchmark gained 4.11%. Returns in the portfolio’s underlying equity funds were positive, as stocks rose during the quarter. The portfolio’s allocation to the Growth Stock Fund detracted, as did its smaller allocation to the Small-Cap Stock Fund, as small-cap stocks underperformed their mid- and large-cap peers.

MODERATE GROWTH POOL
PERFORMANCE AS OF June 30, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Moderate Growth Pool1 3.97% 18.81% 14.30% 7.35%
Underlying Funds Weight 2.87% 9.03% 8.69% 6.48%
Spectrum Income Fund 30.00%
Equity Index 500 Fund 5.45% 5.15% 24.25% 18.51% 7.51%
Growth Stock Fund 15.20% 4.03% 28.68% 19.63% 8.91%
Equity Income Fund 15.20% 4.46% 20.66% 18.06% 7.72%
Mid-Cap Growth Fund 2.85% 3.35% 26.58% 21.23% 11.30%
Mid-Cap Value Fund 2.85% 5.74% 27.23% 19.72% 10.34%
Small-Cap Stock Fund 5.00% 2.15% 24.02% 23.16% 10.67%
International Stock Fund 8.55% 5.05% 21.27% 12.60% 7.22%
International Growth & Income Fund 8.55% 3.98% 25.00% 12.78% 7.72%
Emerging Markets Stock Fund 2.85% 8.00% 12.61% 9.27% 11.15%
Real Assets Fund 3.50% 8.47% 24.04% N/A N/A
WBMPP Weighted Benchmark2 4.11% 18.68% 13.91% 7.30%


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. 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 — June 30, 2014

The Growth Pool returned 4.57%, lagging the 5.00% gain of its weighted benchmark. The portfolio had smaller allocations to funds that turned in the strongest performances for the quarter, including emerging markets stocks and mid-cap value stocks. Additionally, the portfolio’s largest allocations, the Growth Stock Fund and Equity Income Fund, detracted from relative performance.

GROWTH POOL
PERFORMANCE AS OF June 30, 2014
Total Return4
3 Months 1 Year 5 Years3 10 Years3
T. Rowe Price Growth Pool1 4.57% 23.41% 16.85% 7.56%
Underlying Funds Weight 5.15% 24.25% 18.51% 7.51%
Equity Index 500 Fund 10.20%
Growth Stock Fund 20.45% 4.03% 28.68% 19.63% 8.91%
Equity Income Fund 20.45% 4.46% 20.66% 18.06% 7.72%
Mid-Cap Growth Fund 4.05% 3.35% 26.58% 21.23% 11.30%
Mid-Cap Value Fund 4.05% 5.74% 27.23% 19.72% 10.34%
Small-Cap Stock Fund 7.35% 2.15% 24.02% 23.16% 10.67%
International Stock Fund 12.10% 5.05% 21.27% 12.60% 7.22%
International Growth & Income Fund 12.10% 3.98% 25.00% 12.78% 7.72%
Emerging Markets Stock Fund 4.25% 8.00% 12.61% 9.27% 11.15%
Real Assets Fund 5.00% 8.47% 24.04% N/A N/A
WBGRP Weighted Benchmark2 5.00% 25.17% 17.61% 7.82%


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 — June 30, 2014

The Global Equity Pool returned 4.78%, compared with a 5.23% return for its weighted benchmark. The portfolio’s largest allocation, the Global Stock Fund, detracted from relative results, as did the portfolio’s significant allocation to the International Growth & Income Fund. Developed overseas equity markets lagged U.S. equities for the quarter, though both produced gains.

GLOBAL EQUITY POOL
PERFORMANCE AS OF June 30, 2014
Total Return3
Three Months One Year 5 Years2
Since Inception2
(6/30/08)
T. Rowe Price Global Equity Pool1 4.78% 24.34% 14.52% 5.25%
Underlying Funds Weight 4.02% 30.82% 14.77% 3.24%
Global Stock Fund 22.30%
International Growth & Income Fund 12.35% 3.98% 25.00% 12.78% 3.79%
International Equity Index Fund 16.60% 4.11% 22.87% 11.57% 3.12%
Emerging Markets Stock Fund 9.95% 8.00% 12.61% 9.27% 0.09%
Equity Index 500 Fund 14.50% 5.15% 24.25% 18.51% 9.52%
Value Fund 11.15% 5.37% 27.44% 20.51% 11.16%
Mid-Cap Growth Fund 2.40% 3.35% 26.58% 21.23% 11.97%
Mid-Cap Value Fund 2.40% 5.74% 27.23% 19.72% 12.23%
Small-Cap Stock Fund 3.35% 2.15% 24.02% 23.16% 14.89%
Real Assets Fund 5.00% 8.47% 24.04% N/A N/A
MSCI All Country World Index 5.23% 23.58% 14.88% 6.06%


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.