pathways to

BETTER GIVING

BETTER GIVING

SERVICES

EDUCATION, ASSESSMENT & EXECUTION

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Education

Gain a deeper understanding of Donor-Advised Funds (DAFs), and the potential associated with giving illiquid assets

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Assessment

Review your readiness to start a “white label” DAF program of your own, and gauge your tolerance and capacity to manage donations of complex gifts

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Execution

Project manage all or part of your new private label DAF, and partner with us to manage complex gifts of appreciated assets

Education

The most important step to accessing new funds held at DAFs is to know your donors. Building your understanding about DAFs increases your appreciation for why your donor’s give there and ultimately how you can play off that decision they’ve made to use a DAF. Likewise, engaging in a conversation about gifts of appreciated non-cash assets requires a knowledge of those key words and concepts.

Conversations about Donor-Advised Funds

Is your fund-raising team trying to understand the nature and popularity of Donor Advised Funds (DAFs)? Or maybe you’re feeling threatened that DAF contributions by your loyal donors are eating away at your fund-raising results? We can help you make sense of what DAFs are, how they work (or don’t), how you might raise more money from existing DAFs, and their benefits, and become familiar with unique rules about their acceptable uses, as well as some of the dissenting commentary about them in the industry and in Washington.

Potential and Risk of Illiquid Assets

The easiest asset to gift to a charity may not result in the optimal tax benefit for your donors given the effect of current tax laws on their individual circumstances. Donating appreciated assets such as business interests in S-Corps, C-Corps, hedge funds, LLCs, along with donations of real estate interests, cryptocurrency, personal collections, intellectual property, and more, can result in large gifts and be hugely beneficial. But these opportunities need to be kept in perspective. Our goal is to ensure you and your donors get the most out of these large gifts by minimizing the risk, mitigating the liability, and maximizing the value of each.

Education

The first step to building stronger conversations with donors about their commitment to your mission through their Donor-Advised Fund accounts is to be smarter about DAFs and why donors choose to give money there. Likewise, engaging in a conversation about gifts of appreciated non-cash assets requires a knowledge of the words and concepts.

Conversations about Donor-Advised Funds

Is your fund-raising team trying to understand the nature and popularity of Donor Advised Funds (DAFs)? Or maybe you’re feeling threatened that DAF contributions by your loyal donors are eating away at your fund-raising results? We can help you make sense of what DAFs are, how they work (or don’t), how you might raise more money from existing DAFs, and their benefits, and become familiar with unique rules about their acceptable uses, as well as some of the dissenting commentary about them in the industry and in Washington.

Potential and Risk of Illiquid Assets

The easiest asset to gift to a charity may not result in the optimal tax benefit for your donors given the effect of current tax laws on their individual circumstances. Donating appreciated assets such as business interests in S-Corps, C-Corps, hedge funds, LLCs, along with donations of real estate interests, cryptocurrency, personal collections, intellectual property, and more, can result in large gifts and be hugely beneficial. But these opportunities need to be kept in perspective. Our goal is to ensure you and your donors get the most out of these large gifts by minimizing the risk, mitigating the liability, and maximizing the value of each.

Assessment

Assessing your Donor Advised Fund – How can a charity start a DAF?
Is your existing DAF delivering what you planned for when you created it? Does it effectively represent your brand and value proposition? Is it competing effectively in the marketplace? Is it being managed efficiently? Are your donors delighted by your DAF offering?

Or, maybe you’re considering opening a new DAF as a way of supplementing the dollars you already raise. Many organizations have done that – over 1,000 according to the 2018 National Philanthropic Report on Donor Advised Funds. But should you leverage a white label outsourced DAF solution or one you fully manage in-house?

It’s not just organizations like the “national” firms who host successful DAFs. Community Foundations actually started the concept of donor advised accounts back in the 1930s. And with 10% of all individual gifts now going to DAFs and a contribution growth rate of 16% over 2017, universities, colleges, and single mission organizations have moved to create funds to accept DAF accounts too. So – should your organization jump on the bandwagon?

We bring almost 30 years of knowledge and first hand experience in managing a large donor-advised. If starting a new donor-advised fund is part of your business plan or upgrading an existing program, we can help you get started on the path with the right foot forward.

Donor Advised Fund Assessment

In our Assessment offering, we will meet with you and the stakeholders of your institution and pull together the elements that should be considered for creating a competitive, differentiated, and well branded donor-advised fund. We know the elements that drive revenue and the burdens that increase costs. We’ll help you understand the best in class DAF models, the regulations, the processes, the potential return on the effort and the payback time-frame, and other options so you can make an informed decision on how to upgrade your DAF or start a new one.

Aligning your Gift Acceptance Policy for Illiquid Asset Gifts with your practices
Understanding the words around the many types of non-cash assets is only the beginning of the effort to accept complex assets. The tax consequences to both donors and charities alike need to be understood, the nuances of ownership transfer, the known – and hidden – liabilities for accepting such gifts, all should be part of your organization’s plan for managing non-cash gifts. We’ll help review your gift acceptance policy(ies) to ensure your internal practices are effective, efficient, and consistent.

Gift Policy Review for Illiquid Asset Gifts

We can review your Gift Acceptance Policy as it relates to donations of non-cash assets and help your organization craft a policy that doesn’t have you walking away from these gifts, or probably worse, choosing to accept the donation while anxious about the risks and liabilities you have taken on. If you are risk averse to these situations, or simply choose not to invest in the internal skills to handle this donation types because you see them so infrequently, we can work with you to design the right policy so you don’t have to turn away from an obviously generous gift consideration by an interested and loyal donor.

Execution

Embarking on some of these changes can be daunting. You may not have the internal skills or the capacity to take on this work, especially if its going to be a discrete project with a definite end date. Our team and resources can help make this important work a reality for your organization.

Updating or Starting a Donor Advised Fund

Once you’ve committed to a new course of action for your donor advised fund, we can help manage your efforts to build a viable, scalable, and attractive offer. Reworking existing programs require good planning, communication, and execution so existing donors aren’t disenfranchised, and constructing a new donor-advised fund program requires a broad project plan integrating IRS regulations, investment offerings, gift acceptance policies and procedures, and granting rules and practices.

Complex Gifts of Appreciated Assets

We know the benefits and proceeds of illiquid asset gifts can be large, but so too are the complexity, risk, and expense of accepting these gifts without complete knowledge and experience. Our services are designed to augment your gift acceptance policy. We will bring our skilled partners together to work with you and your donor to make sure the gift meets the expectations of both you and your donor for a successful and meaningful donation.

Execution

Embarking on some of these changes can be daunting. You may not have the internal skills or the capacity to take on this work, especially if its going to be a discrete project with a definite end date. Our team and resources can help make this important work a reality for your organization.

Updating or Starting a Donor Advised Fund

Once you’ve committed to a new course of action for your donor advised fund, we can help manage your efforts to build a viable, scalable, and attractive offer. Reworking existing programs require good planning, communication, and execution so existing donors aren’t disenfranchised, and constructing a new donor-advised fund program requires a broad project plan integrating IRS regulations, investment offerings, gift acceptance policies and procedures, and granting rules and practices.

Complex Gifts of Appreciated Assets

We know the benefits and proceeds of illiquid asset gifts can be large, but so too are the complexity, risk, and expense of accepting these gifts without complete knowledge and experience. Our services are designed to augment your gift acceptance policy. We will bring our skilled partners together to work with you and your donor to make sure the gift meets the expectations of both you and your donor for a successful and meaningful donation.

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