FAQs
Answers to questions you may have as you get started with the Foundation Source DAF program.
As you get set up on the Foundation Source DAF platform, you may have questions about the program and/or the platform. We invite you to direct any questions to [email protected].
Here are some common questions we thought might be valuable to address, organized in accordance with the overall structure of this guide:
Getting Started
PCA Instructions
Client Experience
Getting Started
How can I help my client understand the differences between a donor-advised fund and a private foundation?
Share the 3-pager. Leverage this 3-pager as needed to help your client distinguish between a donor-advised fund and a private foundation. There are some key differences, but the simplest way to explain it is that a private foundation is a highly customizable philanthropic entity while a donor-advised fund is a tax-deductible financial account for giving sponsored by a 501(c)(3) public charity. Both are valuable and serve as complementary giving vehicles.
To learn more about how donor-advised funds can serve your private foundation clients, review this detailed information on DAFs.
When should my client use a donor-advised fund instead of their private foundation?
They can use both, depending on their philanthropic requirements. When combined with a private foundation, DAFs can bring new capabilities to manage philanthropy most efficiently. Here are some scenarios where your client should consider a donor-advised fund in addition to their private foundation:
Your client's private foundation needs to meet their distribution requirement. DAF contributions can count toward a private foundation’s distribution requirement.
Your client is looking to maximize their income tax efficiency. DAFs have higher Annual Gross Income deduction limits on their taxes.
Your client wishes to simplify grantmaking. Clients can leverage built-in DAF grantmaking for small and international grants.
Your client wishes to grant anonymously. Grants from a DAF can be as private or public as desired.
Your client wishes to collaborate with other funders. Clients can combine funds with other grantmakers or invite the public to give alongside them in community DAFs.
Your client aims to preserve the public support test of nonprofit grantees. A grant from a DAF may be a more favorable way for small charities to receive larger gifts.
Your client wishes to assign grantmaking rights on specific funds to others, including children or grandchildren. Your client can set up a DAF for someone else so that they can grant in their name.
To learn more about how donor-advised funds can serve your private foundation clients, review this detailed information on DAFs.
Where are DAF assets custodied?
Charityvest brokerage partners. As the donor-advised fund sponsoring organization for the Foundation Source DAF giving program, Charityvest has partnered with digital-first broker Alpaca Securities LLC to custody and provide an operationally efficient, no-hassle DAF solution. For mutual funds, Charityvest partners with Atomic via BNY Mellon Pershing.
To learn more about Charityvest, review this detailed information covering legal structure and compliance matters.
What fees apply to Foundation Source donor-advised funds?
Admin and investment fees. With the Foundation Source DAF platform, you can choose between two DAF account types for each of your clients:
Cash (default): The balance of this donor-advised fund account is held in cash, but is free to use. This is recommended for low balance accounts.
Invested: The balance of this donor-advised fund account is invested in your choice of available Charityvest DAF portfolio options, each of which have affiliated investment fees built-in. A standard admin fee also applies on this account type.
The default state of a new client DAF account is Cash. For private foundation clients looking to use a DAF as a complementary grantmaking tool, this is likely the best fit.
If your client is looking to invest their balance, you are able to edit your client's investment allocation, which will automatically enroll them in an Invested account. With Invested accounts, the most your client would pay is the sum of their investment fees (which are built into the investments) along with a maximum of 60bps allocated to the admin fee, depending on balance.
To learn more about how client fees work with your firm's custom giving program, review this detailed information on pricing.
How PCAs use the Foundation Source DAF
What forms will PCAs or clients need to sign?
None. With the Foundation Source DAF program, there are no forms. Here is why your clients are able to experience the joy of giving, form-free:
No client agreement. When you open a donor-advised fund on behalf of your client, your client becomes a client of Charityvest. Both you and your client are donor-advisors to funds contributed irrevocably to Charityvest.
With the Foundation Source DAF program, opening a client account is seamless. If you are ready to invite your first client, follow these written and video instructions to open a client DAF account.
How can I create an account for my client?
Use your PCA admin account to initiate a client invitation. With the Foundation Source donor-advised fund program, opening a client account is seamless.
If you are ready to invite your first client, follow these written and video instructions to open a client DAF account.
What should I do differently if my client wants to make an account for their private foundation or organization?
If your client is looking to create a DAF account for their private foundation or another organization they lead, follow these written and video instructions to open a client DAF account, with the following differences:
In the First Name/Last Name fields, enter the name of the main point of contact for the private foundation or organization.
In the Email field, enter the primary email address of your client's private foundation or organization (for example, info@[private foundation name].org). This email must be distinct from your client's personal Foundation Source DAF account email.
Email [email protected] once your client claims this account and request to convert this DAF to an organizational account:
Email subject line: Private Foundation Account Conversion Request
Email body:
Client's private foundation or organization DAF account email.
Private foundation or organization legal name.
Invite your client to update the Fund Name field of their Foundation Source DAF account to the name of their private foundation or organization by visiting their profile settings on their client Dashboard.
The account conversion will be processed in 1-2 business days. In the meantime, your client can still use their Foundation Source DAF account on behalf of their private foundation or organization.
If you are ready to invite a client to an organizational DAF account, follow these written instructions to open a client DAF account for a private foundation or organization.
What do I do if my client already has a Charityvest account?
Invite them to the Foundation Source DAF platform. It is possible that your client has an existing Charityvest donor-advised fund account. If so, you can invite them to move their account to the Foundation Source program, instantly.
Since they already have a Charityvest account, you can invite them to the Foundation Source DAF program by using the email associated with their Charityvest account.
They will receive an email request to approve you as their PCA. Once they accept this request, you will be able to view and manage their profile from your PCA admin account.
If you are ready to invite a client to a Foundation Source-branded DAF account, follow these written instructions to open a client DAF account.
Sending an invitation to a client with an existing Charityvest account? Be sure to use the email address that is associated with their existing Charityvest account, otherwise you will create a second account in their name.
What actions can I take on the Foundation Source DAF platform?
You can help your clients make the most of their Foundation Source DAF. As a PCA, you can:
Open client DAF accounts for individuals or private foundations/organizations.
Help a client make a contribution in collaboration with their financial advisors.
Edit client investment allocations, by selecting from a pre-populated list of available Charityvest DAF portfolios.
Grant on behalf of your client to any of the more than 1.4 million available charities.
Retrieve client tax statements on an annual basis.
Leverage philanthropic services to assist your clients with complex giving needs.
As a trusted stakeholder in their giving, your client may lean on your for some or all of these activities.
How can I help my client with a DAF transfer?
It's easy to move a client DAF to the Foundation Source DAF giving platform. You likely have one or more clients with existing donor-advised funds at other sponsoring organizations. We encourage you to share the benefits of moving their existing DAF to the Foundation Source DAF platform. We also recommend that you open any new client donor-advised funds via the Foundation Source DAF program.
Here are several reasons why clients love the Foundation Source DAF program including a modern, technology-driven client interface hosted by a brand they trust in giving.
With the Foundation Source DAF program, asset transfers from other donor-advised fund sponsoring organizations are as easy as requesting a grant. If you wish to help your client move their existing DAF to the Foundation Source DAF platform, follow these written and video instructions to help facilitate a DAF transfer on behalf of a client.
Does the Foundation Source DAF platform support complex asset donations such as real estate or business interests?
Yes, via a best-in-class partner. For specialized donations, Charityvest partners with a purpose-built complex gift acceptance firm to receive, report, custody, liquidate, and distribute proceeds for such assets. The partner firm, Charitable Solutions, has nearly two decades of experience and has processed nearly $4.5 billion in non-cash gifts from individual donors into their donor-advised funds at various sponsors.
To learn more about how complex asset donations work for the Foundation Source DAF platform, review this more detailed information on our partnership with Charitable Solutions.
Interested in facilitating a contribution of a complex asset on behalf of a client?
If you are looking to help your client make a complex asset gift, follow these written and video instructions to request an introduction to Charitable Solutions.
Does the Foundation Source DAF platform support qualified charitable distributions from a client IRA?
No. As per IRS regulation, it is not possible for a donor-advised fund to receive qualified charitable distributions (QCDs).
Since client accounts on the Foundation Source DAF giving platform are legally designated as donor-advised funds, clients will not be able to leverage their DAF accounts for their IRA distributions.
We recommend you still encourage clients to make the most of QCDs through giving to qualified 501(c)3 charities.
Your client is still welcome to make a contribution to their donor-advised fund account via IRA, though their distribution would count towards their annual income for tax purposes.
To learn more about why the Foundation Source DAF platform cannot support QCDs, review this detailed information covering IRAs.
What is the minimum for a client to invest their Foundation Source DAF?
$0. There are no minimums on Cash or Invested account types through the Foundation Source DAF giving program.
As a PCA, you can select from a pre-populated selection of Charityvest DAF investments for any client, down to $0 in DAF balance.
To learn more about account minimums with the Foundation Source DAF program, review this detailed information on client fee structure.
What are my client's investment options?
Any of the prepopulated Charityvest DAF portfolios. You can review and select from portfolios curated by Charityvest.
The main considerations for a DAF investment portfolio are:
Portfolio type: whether your clients are interested in optimizing their DAF investments for cost or values-alignment.
Risk level & time horizon: how their investments are allocated across bonds or equities, in accordance with their grantmaking schedule.
Is your client planning to grant a significant portion of their DAF balance to charity within 1 year?
If yes, a Cash account may be the preferred option.
The following six Charityvest portfolios are available for Foundation Source DAF clients. As a PCA, you can select an appropriate option on behalf of your client in accordance with their giving priorities.
Charityvest Conservative Portfolio
Standard
Relatively low risk
1-2 year grantmaking time horizon
Charityvest Balanced Portfolio
Standard
Medium risk
5 year grantmaking time horizon
Charityvest Growth Portfolio
Standard
Relatively higher risk
More than 5 year grantmaking time horizon
Charityvest Conservative Portfolio (Filtered)
Filtered (avoids exposure to companies in controversial industries).
Relatively low risk
1-2 year grantmaking time horizon
Charityvest Balanced Portfolio (Filtered)
Filtered (avoids exposure to companies in controversial industries).
Medium risk
5 year grantmaking time horizon
Charityvest Growth Portfolio (Filtered)
Filtered (avoids exposure to companies in controversial industries).
Relatively higher risk
More than 5 year grantmaking time horizon
To learn more about portfolio options with the Foundation Source DAF program, review this detailed information on DAF investment options.
How can I help my client make a grant?
Make a grant on their behalf via the PCA admin Dashboard. As a trusted stakeholder in your client's financial life, they may lean on you for guidance when looking to make a grant from their DAF account. As a PCA, you are able to make grants to charity on behalf of a client.
Once you have requested a grant on behalf of a client, you can follow its progress by tracking your client's grant status. We send grants to charities daily via PayPal and weekly via check, after we review each grant for compliance with IRS Code.
How can I help my client make an international grant?
Leverage the TrustBridge Global partnership to facilitate international grants. If your client wishes to support a charity that operates outside of the U.S., there are several ways to do so with their giving account through the Foundation Source DAF giving platform:
If the charity has a U.S.-based entity or fiscal sponsor, your client can recommend a grant from their giving account to that organization and designate the gift for the international branch.
If the charity does not have a tax-deductible U.S. donation process, Charityvest has partnered with TrustBridge Global to facilitate international grantmaking for a fee.
As a PCA, you can support your clients who are looking to make international grants by requesting to partner with Charityvest's international grantmaking partner, TrustBridge Global.
TrustBridge Global is a foundation with collaborative relationships around the world, enabling them to professionally manage and deploy charitable giving internationally. With TrustBridge Global, your clients can feel confident knowing that their gift will be delivered safely and efficiently.
If you wish to help your client with an international grant via their Foundation Source DAF, follow these written and video instructions to request an introduction to TrustBridge Global.
How can I set up a collaborative fund for my client?
Invite them to fill out this request form. With the Foundation Source DAF platform, your clients can collaborate in philanthropy via a tool called Community Funds.
Community Funds, or "social DAFs", are collective giving tools available on the Foundation Source DAF platform to enable clients to pool charitable capital for greater impact via a custom-branded webpage.
Your client can contribute to existing Community Funds or create their own Community Fund as a fund manager.
If your client wishes to start a Community Fund, they are encouraged to review this detailed information on client Community Funds.
How can I help my client seed their children’s DAF?
Invite them to send a virtual charity gift card. If your client wishes to share the gift of generosity with their children or grandchildren, they can seed a Foundation Source donor-advised fund by leveraging the virtual charity gift card feature.
To learn more about virtual charity gift cards with the Foundation Source DAF program, review this detailed information on client virtual charity gift cards.
How clients use the Foundation Source DAF
What will my client see when I invite them to the Foundation Source DAF platform?
A beautiful interface for giving. The account view you have as a PCA slightly differs from what a client sees when they receive an invitation to the Foundation Source DAF giving platform.
For clients, the Foundation Source DAF unlocks an easy-to-use giving platform to make contributions or grants, support and lead collaborative giving opportunities, send virtual gift cards, designate beneficiaries, and retrieve annual tax statements.
To learn more about your client's experience, review this detailed information on how clients use their Foundation Source DAF.
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