Donor Advised Funds

Demand is growing for investment professionals who can help investors meet philanthropic as well as financial goals. – The Wall Street Journal

Charitable giving by individuals, corporations, and foundations to the 400 biggest charities in the United States grew 13% last year to $62.7 billion.2 Thousands of charitable-minded investors have discovered donor-advised funds as an alternative to direct giving or the creation of private foundations.3 Enhance your client relationships by playing an active role in helping them establish donor-advised funds.

What Are Donor-Advised Funds?

A donor-advised fund is a charitable-giving vehicle set up under the tax umbrella of a sponsoring public charity. Donor-advised funds position you to help investors manage their philanthropic activities. This altruistic instrument is growing in popularity among high-net-worth and mainstream investors, alike, as shown by the rise in donor-advised assets from $12.7 billion in 2004 to $15.5 billion in 2005.4

Donor-Advised Funds Leader

Through an arrangement with American Endowment Foundation (AEF), Pershing now makes donor-advised funds available to you and your clients. Established as a public charity in 1993, AEF is the nation’s leading independent sponsor of donor-advised funds, with 479 funds representing over $116 million in contributions today. The foundation acts as a neutral platform for donor-advised fund solutions, enabling you to help clients design and conduct their charitable activities as effectively and efficiently as possible. AEF provides all recordkeeping and administration for each donor-advised fund, including fiduciary oversight, fund accounting, statement preparation, tax reporting, independent audit, and compliance with the Internal Revenue Service.

What Are the Benefits?

Donor-advised funds through American Endowment Foundation (AEF) enable you to:

  • Manage assets in donor-advised funds and custody these assets on your brokerage platform
  • Consolidate a higher percentage of client assets
  • Interact more frequently with your clients
  • Enhance client relationships and help clients achieve philanthropic goals
  • Establish new relationships with family members involved in grant applications

At the same time, your clients:

  • Appreciate the ease and low cost of setting up and administrating a donor-advised fund
  • Receive an immediate tax deduction regardless of when they make grant recommendations
  • Involve family members in recommending grants
  • Receive an annual contribution summary for tax purposes
  • Establish a legacy that perpetuates a family name and supports worthy causes or institutions

Program Flexibility

Clients with a minimum of just $10,000 to contribute can establish a donor-advised fund through AEF. There is also great flexibility—clients can contribute a wide variety of asset types, recommend a trusted investment professional to manage the investments, and support the charities of their choice. AEF is the only donor-advised fund program to offer this high level of independence and personalization.

Broad Product Offering

Enhance your client relationships and grow your business by adding donor-advised funds to your suite of wealth and cash management offerings.

1 Victoria Knight, “Investors’ Giving Goals Take Focus,” The Wall Street Journal®, October 24, 2006.

2 Chronicle of Philanthropy

3 Jilian Mincer, “Donor-Advised Funds Gain Assets, Popularity,”
The Wall Street Journal, August 1, 2006.

4 Chronicle of Philanthropy

The information contained in these materials is believed accurate at the time of writing but is not guaranteed. Delta accepts no responsibility for its use whether in whole or part.