Estate Planning

Endowment Management Account (EMA Account)

WHAT IS THE EMA ACCOUNT?

The EMA® account integrates cash management, financing and investing for 501(c)(3) nonprofit organizations. Efficient cash management helps ensure that idle cash is invested to generate income so that funds are available when you need them.

WHEN SHOULD YOU CONSIDER AN EMA ACCOUNT?

If you are a 501(c)(3) nonprofit organization looking to maximize the impact of your organization's financial resources consider the EMA account. You will spend less time managing your organization's cash and operating funds while helping to ensure that you are getting the optimum benefit from those assets. You also have the option of a convenient, cost-effective source of credit.1

WHAT ARE THE BENEFITS OF AN EMA ACCOUNT?

Your EMA service allows you to maximize your cash balance returns and to make the most of your assets and investment income.

EMA Account

Automatically invests funds

It keeps your organization's money working for you by automatically investing all funds that enter the account.

Check deposits, electronic fund transfers, dividends, interest, securities sale proceeds, and any other idle cash in your EMA account is automatically swept into deposit accounts established under the Merrill Lynch Bank Deposit Program.2 Interest will accrue on account balances from the day they are remitted to the bank and will be compounded daily and credited monthly.

Access to Merrill Lynch investment options

Through the EMA service, you will have access to Merrill Lynch's full range of short-, intermediate-, and long-term investment options. Your Financial Advisor can help you determine the right balance of liquidity and investment of your operating funds to help you take advantage of higher-yielding instruments. If you are investing endowment funds, your Financial Advisor can help you allocate these assets among the right mix of stocks, bonds and cash to meet your investment objectives. The right investment strategy can help you achieve the financial returns to support your organization's mission.

Short-term investments may include:

  • Money Account
    • — The Merrill Lynch Bank Deposit Program
  • Money Market Deposit Account
    • — Insured Savings AccountSM
  • Money Market Funds3
    • — BIF® Money Fund
    • — Merrill Lynch Institutional Fund
    • — Merrill Lynch Government Securities Fund
    • — Merrill Lynch Treasury Fund
  • Treasury Bills
  • Commercial Paper
  • Certificates of Deposit
  • Bankers' Acceptances (Repurchase Agreement)
  • FlexiCash Program (Repurchase Agreement)

Intermediate-/Long-Term Investments may include:

  • Zero-coupon Bonds
  • Certificates of Deposit
  • Treasury Notes/Bonds
  • Medium-term Notes
  • Corporate Bonds
  • Floating-rate Notes
  • Equities
  • Mutual Funds
  • Professionally Managed Accounts

Offers a variety of asset management tools

Merrill Lynch's EMA service offers a variety of asset-management tools to track the performance of your investments.

  • The Merrill Lynch Statement Link Service
    If you have more than one Merrill Lynch EMA account, the Merrill Lynch Statement Link service will give you a comprehensive look at the performance of your assets in one package. Among the information will be the net portfolio value, account income, assets, liabilities, cash flow, credits and debits, asset allocation, income summary and gain/loss summary.
  • EMA SubAccountSM Capabilities
    The EMA Master Financial Service® can help you allocate assets effectively by objective, use or ownership over multiple accounts. EMA SubAccountsSM linked to a master EMA account allow your organization to segregate assets and facilitate reconciliation of funds.
  • Comprehensive Monthly Statement
    The monthly statement included with your EMA service allow you to view your account from the first through the last day of each month. Details on money accounts and investment positions, securities activity, dividends and interest earned, funds received, electronic fund transfers, checking and Visa® card transactions make it easy to reconcile your account and make adjustments to your portfolio.
  • Fiscal Year-End Summary
    You will also receive a fiscal year-end summary designed to help you review the performance of your investments and the structure of your portfolio income to facilitate effective investment planning.

Provides flexibility and efficiency through services

Your EMA account offers a number of optional services that may provide additional flexibility and efficiency to your fund management as your organization's needs evolve.

  • EMA II
    For those organizations that do not need the Funds Transfer Service, or the benefits of the EMA Signature Rewards® Visa card, EMA II provides a streamlined alternative to the full-service EMA account.
  • EMA Visa® Card Options
    The EMA service provides you with two options: a standard EMA Visa card or an EMA Signature Rewards Visa card. Both options provide cash access and Visa debit privileges. Through the Signature Rewards program, your organization can earn points redeemable towards travel, gift cards or merchandise awards. It also provides benefits such as additional insurance coverage.
  • Financing and Credit Options
    Merrill Lynch also gives your organization an easy way to efficiently employ financial resources to meet borrowing needs through an optional secured credit arrangement.4 You have a quick, convenient source of liquidity for future contingencies. Your portfolio assets remain productively invested — eliminating the need to sell securities because of a need for funds. You pay a competitive rate of interest on the amount borrowed and enjoy flexible repayment terms.
  • Electronic Funds Transfer Service
    The Funds Transfer Service allows you to easily move funds electronically between your EMA account and other accounts. You can move funds in the exact amount or on the exact day you wish, without the inconvenience of writing checks.
    You can transfer funds through a simple, toll-free phone call or via the Merrill Lynch OnLine® service, available 24 hours a day, seven days a week.
  • Merrill Lynch OnLine®
    An internet-based service, Merrill Lynch OnLine allows you to use technology, communicate with your Financial Advisor and manage your EMA account. Through the service, your organization can:
    • — Communicate via e-mail with your Financial Advisor.
    • — Access your EMA Account Information
    • — Obtain stock quotes and daily mutual fund prices.
    • — View Merrill Lynch research opinions and comments.
    • — Pay bills electronically (for an additional monthly fee).
    • — Initiate electronic funds transfers.
  • Merchant Card Service
    Benefit from being able to process credit card donations or to accept program memberships via mail, telephone, Internet or in person.5
  • Payroll Processing
    Benefit from using an affordable and comprehensive payroll solution.5
  • Lockbox
    Benefit from using an automated deposit processing service, accelerating collection and automatically depositing funds into the EMA account.5

WHAT ELSE SHOULD I KNOW ABOUT THE MERRILL LYNCH CENTER FOR PHILANTHROPY & NONPROFIT MANAGEMENT?

The Merrill Lynch Center for Philanthropy & Nonprofit Management ("the Center") is one of the nation's leading resources for strategic philanthropic planning. It is uniquely positioned to understand and serve the needs of both individual philanthropists and nonprofit institutions.

For nonprofits, the Center's value is strongly defined by our understanding of their specific management needs and challenges from fundraising to day-to-day operations. Finally, the Center strives to strengthen the impact of giving in communities across the country by bringing together philanthropists and nonprofit institutions. Against the backdrop of Merrill Lynch's global resources, investment expertise and financial solutions, we offer our clients the personalized service essential to translating their good intentions into strategic, impactful philanthropy.

HOW CAN YOUR ORGANIZATION GET STARTED WITH AN EMA ACCOUNT?

Merrill Lynch has the resources and expertise to address the unique financial needs of nonprofit organizations. Through an EMA account, we offer a wide range of services that help ensure that your assets are efficiently and effectively managed. To learn more about the EMA service and other strategies for nonprofit organizations, contact your Financial Advisor, or call (800) MERRILL (637-7455).

FEES

Listed below are the fees associated with EMA, EMA SubAccount service and EMA II. Fees are subject to change.

  EMA SubAccount Service EMA II
Annual Fee $150.00 $50.00 per account $80.00
Checking No transaction charge on the first 200 checks processed per month; each check after 200 is $0.15 Not available $0.15 check charge on each check processed
Deposits No transaction charge on the first 100 check deposits; each check deposit after 100 is $0.25 No transaction charge on the first 100 check deposits; each check deposit after 100 is $0.25 No transaction charge on the first 100 check deposits; each check deposit after 100 is $0.25
EMA Visa Card No annual fee (maximum 99 cards) Not available No annual fee (maximum 99 cards)
EMA Signature Rewards Visa Card $75 per account annually (maximum 99 cards) Not available Not available
Merrill Lynch OnLine Service No charge No charge (must be linked to a master account) No charge
Funds Transfer Service No charge No charge Not available
Fedwire® Transfers $30.00 (outgoing) $30.00 (outgoing) $30.00 (outgoing)
Check Printing Initial order of basic checks is free; fees vary for specialty checks Not available Initial order of basic checks is free; fees vary for specialty checks
ATM Transaction Fee No transaction charge on the first 100 per year6 Not available No transaction charge on the first 100 per year6
Visa Cash Advance 0.25% (with a minimum charge of $2.50) Not available 0.25% (with a minimum charge of $2.50)

1 Credit is provided by an affiliated company and requires a separate application subject to approval.

2 With the Merrill Lynch Bank Deposit Program, Merrill Lynch opens deposit accounts on your behalf at two affiliated FDIC-insured institutions. Merrill Lynch, Pierce, Fenner & Smith, Inc. is not a bank and is separate from these affiliates. Interest rates are tiered based on your eligible assets held at Merrill Lynch. For more information, please refer to the Merrill Lynch Bank Deposit Program Fact Sheet.

3 Investments in these and other Merrill Lynch money market funds are not insured or guaranteed by the FDIC or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. For more complete information on the money accounts referenced herein, including management fees and other charges and expenses, please ask your Financial Advisor for a prospectus. The prospectus should be read carefully before you invest or send money.

4 Securities-based loans are not appropriate for all investors. Eligible securities must be pledged as collateral. Securities must maintain a specified minimum value. A decrease in market value of the pledged securities may require the deposit of additional funds or securities or the selling of all or some of the pledged securities.

5 These services are provided by third parties and additional fees apply.

6 Some ATM owners may limit accessibility or impose limits on withdrawal amounts and frequency. ATM fees, for EMA clients, are waived at Bank of America. (Applies to ATM surcharges only. Foreign exchange and cash advance fees may still apply.) Merrill Lynch transaction fees may apply for transactions at ATM owners or operators other than Bank of America.