By default, the balance of a Foundation Source donor-advised fund account is held in cash, and is free to use. This is ideal for short-term grantmaking. For private foundation clients looking to use a DAF as a complementary grantmaking tool, a Cash account is likely the best fit.

If your client is looking to invest, you will need to edit your client's investment allocation, which will automatically enroll them in a paid account.

Once your client claims their invitation to the Foundation Source DAF program, it is possible for you to update their Invested account portfolio.

To edit a Foundation Source DAF investment portfolio on behalf of a client:

• Log in to your PCA admin account Dashboard.

• Click on your client's name to expand their profile.

• Under the Portfolio section, you will see their account is in Cash.

• Click the Modify button if you wish to edit their investment portfolio.

• Under the Investment portfolio module, select from the drop down menu and click on your preferred Charityvest investment portfolio.

• To finalize the change, click the “Change investment” button.

• You will see your client's new portfolio selection reflected on their profile.

Your client may express interest in leveraging their donor-advised fund balance to:

• Invest in / make loans to for-profit social ventures.

• Make recoverable grants or loans to charities loans.

As their PCA, you can request to partner with Impact Foundation to offer impact investing to your client via the Foundation Source DAF giving program.

Impact Foundation is a 501(c)(3) public charity that allows clients to recommend custom investments in their Impact Accounts (a donor-advised fund). Through January 2024, their donors/investors have deployed more than $525 Million for impact.

Request impact investing services on behalf of a client

If you are interested in partnering to offer impact investing to your client:

• Log in to your PCA admin account Dashboard.

• Select the Philanthropic Services tab on the left-hand menu bar.

• Select the I’m interested button under the Impact investing section.

• Complete the form details to initiate an introduction to our impact investing partners. You will need to select your client from the dropdown list and answer the following questions:

  • How much charitable capital does your client plan to invest over the next 2 years?

  • Which of the following describe your client's interest in impact investing?

    • Your client would like to choose from pre-screened impact investments.

    • Your client has already identified an investment opportunity.

  • Do you have a preference of who your client would prefer to work with?

    • Impact Foundation

    • Other - describe below

  • Additional information or questions.

• Click Message us to submit. You and your client will receive a summary of responses for reference.

• Charityvest will follow up directly to help you get started.

Partner fees

Impact Foundation assesses fees on invested assets on an annual basis, which are deducted from your client's Impact Foundation donor-advised fund balance. Their minimum opening balance is $25,000.

Additionally, they charge a one-time 3% origination fee on the total value of each new investment (with a minimum origination fee of $1,000).

By default, the balance of a Foundation Source donor-advised fund account is held in cash, and is free to use. This is ideal for pass-through grantmaking. For private foundation clients looking to use a DAF as a complementary grantmaking tool, a Cash account is likely the best fit.

If your client is looking to invest their DAF balance, currently, you will need to edit your client's investment allocation, which will automatically enroll them in a paid account.

As a PCA, you can choose from prepopulated Charityvest investment portfolio options for your client's DAF account balance.

Charityvest portfolio recommendations

The main considerations for a DAF investment portfolio are:

1. Portfolio type: whether your clients are interested in optimizing their DAF investments for cost or values-alignment.

2. Risk level & time horizon: how their investments are allocated across bonds or equities, in accordance with their grantmaking schedule.

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.

Portfolio type

The Foundation Source DAF program offers two investment portfolio options:

1. Standard Portfolio: built using Vanguard Select ETFs. These ETFs are selected by Vanguard’s Portfolio Review Department as ideal choices for portfolio building blocks because of their broad exposure to the indices they track, low expense ratios, and high daily liquidity. Learn more about Vanguard Select ETFs here.

2. Filtered Portfolio: offers similar diversification as the Standard portfolio, but provides an opportunity for donors to avoid exposure to companies who participate in what may be deemed objectionable or controversial industries, such as alcohol, gambling, adult entertainment, and predatory lending. The Filtered Portfolio includes ETFs from the BlackRock iShares Advanced ESG suite and broader Sustainable Spectrum product line, which offers comparable underlying indices as the Standard Portfolio, at a very modest expense ratio premium.

Here are the assets which make up each of the portfolio types, with expense ratios as of Feb 15, 2024 in parenthesis:

Risk level & time horizon

The Foundation Source DAF program offers three possible allocations for each of the portfolio types:

1. Conservative: A bonds-focused allocation, appropriate for clients who plan to grant contributions to charity within a year or two.

2. Balanced: An allocation balanced between stocks and bonds, appropriate for clients who plan to grant contributions to charity within 5 years.

3. Growth: An equities-focused allocation, appropriate for clients who plan to grant contributions to charity over an extended period (more than 5 years).

View portfolios

To view all available Charityvest portfolios via the Portfolios tab from your PCA admin Dashboard:

• Log in to your PCA admin account Dashboard.

• Click the Portfolios tab on the left-hand menu bar. You will see a list of available portfolios, along with the sum of your clients' DAF assets invested in each portfolio, and # of clients invested in each portfolio.

• Click on a specific portfolio name to view a breakdown of asset allocation and names of clients invested with the chosen portfolio.

With the Foundation Source DAF platform, client donor-advised fund investment portfolios are automatically rebalanced in two instances:

This means, as their PCA, you do not need to worry about actively monitoring the individual assets in a client's donor-advised fund account portfolio. You also do not need to manually raise cash to fund client grantmaking efforts.

Instead, you can focus on what matters - , selecting the that best serves your clients giving strategy, , and more.

Rebalancing when client activity occurs

Every time an action occurs on a client account, their account balance will automatically rebalance to ensure sufficient cash is available and their target allocation is met. This includes:

• When a contribution is made or : when additional balance is added to a client's Invested account, the new funds will be used to purchase stocks that are underweight relative to the target allocation, bringing the portfolio more in line to target.

• When you or your client : when you or your client requests one or more grant(s) to charity, investments are liquidated automatically to fund the grant(s) and ensure target allocation is maintained. The priority is to sell stocks that are overweight relative to target, so that each grant brings the fund closer toward its target allocation. If liquidation is in progress for one grant and your client makes an additional grant request, the rebalance activity will be adjusted to avoid unnecessary buy/sell transactions.

• When are sent: when a client sends a portion of their balance via a virtual gift card, investments are liquidated automatically to fund the gift card amount and ensure target allocation is maintained. The priority is to sell stocks that are overweight relative to target.

Rebalancing for alignment with target allocation

If no activity has occurred over a period of 30 days on a client's account, there is still a chance that fluctuations in stock values have migrated your client's portfolio away from target. To accommodate this scenario, the account will automatically rebalance to bring it back in alignment with your desired allocations.