What is an Advisor Managed Account (AMA) within a Donor-Advised Fund (DAF)?
AMAs within a DAF offers several key benefits for high-net-worth donors looking to maximize their philanthropic impact while maintaining investment flexibility and potential asset growth.
Customized Investment Management
With an AMA, clients work with their financial advisor to tailor investment strategies within the DAF, aligning with their risk tolerance, time horizon, and philanthropic goals.
Advisor Oversight
An AMA allows financial advisors to continue as the trusted advisor to their clients as they manage the account, ensuring alignment with broader wealth management strategies.
Strategic Grantmaking Flexibility
With an actively managed AMA, clients can implement timing strategies for grants, ensuring they distribute funds when most impactful while allowing investments to grow.
Enhanced Legacy Planning
AMA s within a DAF create a structured way to pass down philanthropic values, enabling future generations to manage and distribute grants based on a well-defined mission.
Why should I choose an AMA for my client?
Your advisor may choose to use strategies and/or holdings that are separate from the investment models offered on the Give platform. This decision often depends on the size of the DAF and the sophistication of the end client or investor.
Sizeable DAFs often correlate to a desire for more control over the investment decisions, so an AMA becomes the preferred option.
Investments in alternatives or other less liquid assets will need active management by an advisor via an AMA.
Active contributors to charities can still use AMAs by effectively maintaining the funds in their Cash Pool.
Other factors can impact the decision to invest in the pooled models or an Advisor Managed Accounts so best practice is to meet with each client to understand their goals and objectives relating to their DAF assets.
How does an Advisor Managed Accounts (AMA) account work within the TIFIN Give program?
An Advisor Managed Accounts (AMA) DAF is a discretionary management agreement whereby a client delegates the day-to-day investment management decisions and implementation of their DAF investment strategy to their advisor to manage outside of the TIFIN Give platform.
Clients can choose to leave cash managed by TIFIN Give for ease of granting purposes that sits in cash (USD) as noted in the U.S. Treasuries and Cash section in the screenshot above.
How do AMAs differ from commingled models available on TIFIN Give?
Unless a specific AMA account is opened with GiveClear™, DAF assets on TIFIN Give are placed into one of several commingled models managed by TIFIN Give as the RIA.
Advisors can earn a sub-advisory fee by selecting suitable commingled models for their client based upon the level of risk that a client wants to incur with their DAF assets.
To edit or adjust the sub-advisory fee charged to your client's DAF assets, navigate to the Contribute tab and click the pencil icon in the Sub-Advisory Fee box:
Advisors can set a sub-advisory fee up to 100 basis points.
Is there a minimum to open or switch a current TIFIN Give DAF account to an AMA structure?
TIFIN Give AMAs can be opened with a $50,000 minimum.
How are fees assessed for an AMA?
There is no sub-advisory fee component for AMAs, as the advisor has the option to charge Investment Management Fees outside of TIFIN Give; however, the DAF admin fee remains the same for AMAs as commingled pools:
60 bps (.60%) annual fee is assessed on held balances for the first $1,000,000.
For all amounts over $1,000,000, Give assesses fees equal to 20 bps (.20%).
For all amounts over $2,500,000, Give assesses fees equal to 10 bps (.10%)
TIFIN Give does not charge account minimum fees