If you are involved in the world of philanthropy, you are well aware of the splash donor-advised funds (DAFs) have made for charitable giving programs. DAFs have been the fastest growing charitable gift vehicle since they were commercialized by asset managers in the early 1990’s. From 2016 to 2017, the number of DAF accounts grew more than 60% to a total of 463,622 nationally. That alone is enough to grab the attention of any nonprofit administrator; and it has. I am privileged to be employed by RenPSG, the largest philanthropic gift administrator in the country and, along with my colleagues, I speak with representatives from nonprofit organizations on a daily basis who want to know more about a branded DAF solution and whether it is right for their organization.
It’s no secret, if your business is not growing, it will soon be extinct. In a recent Forbes Magazine study of 803 financial advisors, 91% of them cited their number one concern as how to grow their asset base. It makes sense, we all know what happens to our client’s portfolios when they pass away, or when clients need cash flow at retirement, or one of the myriad reasons assets go out the door. What makes pursuing new assets more challenging is that 88% of those surveyed reported there is intense competition for wealthy clients. There is not only the efficiency of more assets per individual, but there are more options to generate revenue from non-investment solutions.