PROGRAM GUIDELINES FOR THE ASSETMARK DONOR ADVISED FUND (DAF) PROGRAM
I. INTRODUCTION TO THE ASSETMARK DAF PROGRAM
We are grateful you have chosen to facilitate your charitable giving through The AssetMark DAF Program and congratulate you on the impact you will be making in the world. These Program Guidelines set forth the policies and procedures for establishing a Donor Advised Fund (“DAF”) and the terms and provisions governing the administration of each DAF.
AssetMark has contracted with GiveClear Foundation (“GC” or “GiveClear”), to be the 501(c)(3) Donor Advised Fund Sponsor, and TIFIN WealthTech, LLC (“TIFIN Give”), to provide a digital DAF platform. GiveClear and TIFIN Give envision a new model of philanthropy - a transparent system at your fingertips connecting people to trusted non-profits at scale. GiveClear and TIFIN Give deliver an inspiring charitable giving experience through innovative technology, bringing additional accountability, transparency and effectiveness to philanthropy.
Contributions to your DAF are irrevocable when received and accepted by GiveClear, which retains exclusive legal control over contributions.
All activities of GiveClear and all participation by Donors are subject to these DAF Program Guidelines and the policies referenced within.
All prospective Donors should consult their legal, accounting, and/or tax advisors regarding any implications of participation in The AssetMark DAF Program.
GiveClear Foundation is a 501(c)(3) organization, EIN: 81-3222963.
· What is a DAF - A DAF is a charitable giving vehicle designed to invest, grow, and give assets to non-profits for meaningful and lasting impact. Once funds are contributed, they are
non-refundable, and the Donor receives an immediate tax receipt.
· Getting Started - A DAF can be opened quickly and easily. Interested clients should contact their Advisor to initiate the account opening process.
III. CONTRIBUTIONS & DAF MANAGEMENT
The minimum initial contribution and minimum balance are determined by the investment strategy selected for the DAF. Subsequent contributions must be at least $100. Contributions will be accepted from individuals, business entities, donor advised funds, trusts, estates, and other foundations.
1. Contribution Acknowledgement & Valuation - All accepted contributions will be acknowledged with a notification, and an official tax receipt will be available immediately, if applicable. All official tax receipts for contributions will comply with the IRS regulations. GiveClear will follow all IRS guidelines and standard practice guidelines for the industry in valuing all contributions.
2. Types of Contributions:
a. Cash (USD): GiveClear accepts contributions of monies in US dollars to a DAF. Donors receive credit into their DAF for each contribution effective the day the funds are received by GiveClear.
b. Publicly traded securities: GiveClear accepts contributions of publicly traded U.S. securities to a DAF. Donors receive credit into their DAF for each contribution effective the day the security is received by GiveClear.
c. DAF Transfers: GiveClear accepts incoming transfers of DAF assets held at external DAF Sponsors. Donors receive credit into their DAF effective the day the transfer is received by GiveClear.
GiveClear Foundation will not accept gifts that do not meet the above specifications. GiveClear also recommends that individuals seek Independent Legal Advice (ILA) prior to making any significant contributions, as there are IRS limits on the amounts of charitable contributions that can be deducted in any one year.
3. Contributions Conditions of Acceptance - All contributions are reviewed prior to acceptance. GiveClear reserves the right to decline any contributions, for example a contribution that does not comply with IRS regulations. TIFIN Give may obtain, record, and verify information that identifies each person who contributes to a donor-advised fund in accordance with their Know Your Client/Anti-Money Laundering procedures.
4. Timing of Contributions - Generally, the date of any contribution is the date on which the asset is received by GiveClear. Timing of receipt at year end can be critical. Please see the schedule below for cut off dates.
Contribution Type | Action Required | Timing for Year-End Contributions |
Cash | Donors and/or their Advisors must begin the process sufficiently in advance so that funds are received by the last business day of the year. | Funds must be received by GiveClear by close of business December 31st (or the last banking day of the year). |
Publicly traded securities | Donors and/or their Advisors must begin the process sufficiently in advance so that the security is received in the DAF by the last business day of the year. | Securities transfer can be a lengthy process and the transfer needs to be in complete custody of GiveClear by December 31st. Please discuss timelines with your advisor. |
DAF Transfer | Donors and/or their Advisors must initiate a grant recommendation from external DAF to GiveClear and must note the AssetMark DAF number on the grant. | A contribution from an external DAF to an AssetMark DAF is not tax-deductible by the Donor. It also should be reviewed carefully with your Advisor before initiation. |
5. Investment of DAF Balance – DAFs may be invested for tax free growth. The AssetMark DAF Program offers Donors the ability to invest DAF assets using the same professionally managed services they are accustomed to on the AssetMark platform subject to the AssetMark DAF Program Investment Policy Statement (“IPS”) . GiveClear enters into an advisory agreement with AssetMark or your Financial Advisor to open an individually managed account for benefit of each approved DAF.
Please consult with your Financial Advisor to propose and/or review the investment objectives for the individually managed account opened by GiveClear on your behalf.
6. Investment Expenses - All investment-related expenses are assessed from the DAF assets within each individually managed account; examples include investment management fees, sub-advisory fees, mutual fund or ETF expenses, withholding taxes on offshore income, and trading costs.
IV. DAF ROLES
1. Donor - the original owner of the asset(s) that have been donated to a DAF and client of Financial Advisor. Unless the Donor requests that grants be made anonymously, all grants to non-profits will include the Donor’s name and email address. A Donor must be an individual over 18 years of age or an approved legal entity and an approved client of AssetMark or the Financial Advisor.
2. Family Member – an individual nominated by Donor to submit grant recommendations from the DAF.
3. Financial Advisor – A financial professional who uses the AssetMark Platform to provide services to the Donor to perform various functions within the DAF on the Donor’s behalf, such as providing investment management and charitable planning services.
4. Successor - An individual who is nominated in the DAF succession plan to act as Donor when the current Donor is deceased or otherwise unable to act due to incapacity or disability.
5. Beneficiary – a charitable beneficiary designated by the Donor as the recommended recipient of any DAF balances when the current Donor is deceased or otherwise unable to act due to incapacity or disability and the Successor does not assume the role.
V. SUCCESSION PLANNING
In the event of your death or incapacity, you may wish to provide GiveClear Foundation with a digital "succession plan" for your DAF. There are two options to handle the remaining assets in the DAF, and you may allocate a percentage of the DAF to any one of these, or a combination of them.
A. Name a Successor – provide GiveClear and AssetMark with digital instructions of the name and contact
information for the Successor upon your death or incapacity. GiveClear and AssetMark will coordinate with the Successor to open a DAF and transfer the allocated amount.
B. Name a Beneficiary – provide GiveClear with digital instructions to recommend a final grant directly to Beneficiary for the DAF allocation upon your death or incapacity.
If no instructions are provided or instructions are no longer valid due to an inability to reach Successor or the loss of tax-exempt status by Beneficiary, GiveClear will make grants to the last 3 grantees made by the donor advised fund in proportion to the grants made by donor during their life. If no grants were made by the donor during their life, or
GiveClear determines that following such a policy creates an inappropriate outcome, the board of GiveClear will place the funds with one or more approved charities of its choosing.
VI. GIVING GUIDELINES
Grant Recommendations can be made to IRS approved 501(c)(3) public charities and private operating foundations, with a minimum of $100. Grants cannot be made to private non-operating foundations.
1. Grant Recommendation Fulfillment - Grants to a qualified charity are reviewed for approval within 2 business days of submission unless additional due diligence is required.
Grant payments are issued to non-profits by GiveClear within 3 days of grant approval, pending any liquidity needs from DAF investments. To keep administrative costs low, GiveClear makes every effort to transfer grant funds to non-profits electronically. Therefore, if a non-profit is part of the digital payment network used by GiveClear, funds should be received by the non-profit within 3 - 7 business days of grant approval.
For any non-profit that is not part of the digital payment network, a check will be sent within 3 – 7 business days of grant approval. Checks not cashed after 6 months of the issue date will be redeposited into the Donor’s DAF. Non-profits may have a $25 Administration Recovery Fee withheld from all grants issued via check for the third and subsequent check sent.
2. Grant Restrictions – All grants are under the exclusive legal control of GiveClear, which reserves the right to refuse a grant recommendation based on legal obligations, tax-exempt status, internal policies, or improper purposes.
In the event that funds granted are for an impermissible purpose, remedial action will be taken to have the grant funds returned. Remediation may require that the Donor make an additional contribution to reimburse GiveClear for any costs incurred as the direct result of the grant. GiveClear reserves the right to assess a DAF for extraordinary or unusual costs it incurs due to a Donor’s requests.
Grant recommendations are not permitted if the grant provides personal benefit to the Donor and/or Advisor or a related person to the Donor and/or Advisor.
The restrictions for recommended grants are as follows:
a. Private benefit for any individual(s)
b. Dues or membership fees
c. Tuition payments
d. Purchasing tickets to a benefit
e. Purchasing goods at a charitable auction
f. Funding a pre-existing, binding pledge which you are legally obligated to fulfill
g. Lobbying, political contributions, or political campaigns
NOTE: Please refer to IRS guidelines for the full explanation of charitable grant restrictions.
VII. DAF ADMINISTRATION FEE STRUCTURE
DAF Administration fees are used by GiveClear to pay for administrative and operating expenses incurred in the administration of the AssetMark DAF Program. DAF Administrative Fees are used by GiveClear to pay for the administrative and operating expenses incurred in the administration of the AssetMark DAF Program. DAF Administrative fees will be calculated daily based on the DAF balance and are drawn from the DAF quarterly. Fees are charged based on the declining fee structure as outlined below.
DAF Balance | Fee (%) |
$0-$1,000,000 | 0.60 |
Balances over $1,000,000 | 0.20 |
VIII. CHARITABLE OPERATING EXPENSE RECOVERY
If significant or unusual charitable operating expenses are incurred by GiveClear due to extraordinary contribution, investment, or grant requests of a DAF, GiveClear may allocate these expenses back directly to the DAF in order to recover these expenses.
*AssetMark, TIFIN Give and GiveClear Foundation reserve the right to modify the Donor Advised Fund (DAF) program and the Program Guidelines at any time.