Client Growth Resource Guide
Updated 2/7/25
DAF Overview:
Minimum initial contribution: $200,000
Minimum additional contributions: $1,000
Minimum grant amount: $250
Minimum DAF Balance: $2,000
Complex Asset Minimum: $500,000
Ameriprise advisors also have access to USCGT and Impact Assets DAFs. The RCF DAF launched in Q4 2023 and is the lowest fee but highest minimum initial contribution option for Ameriprise.
Key Differentiators:
RCF is the ONLY option where the assets in the DAF are held at firm, so they count toward the Advisor’s AUM and can influence the advisor's revenue payout % each year.
The other DAF providers have a fixed 50bp trail, advisors are not compensated via advisory fees but commissions.
Advisors can use advisory solutions consistent with what is available to them in traditional advisory accounts using the same AMPF systems to select and implement the strategies.
The administrative pricing for RCF is advantageous compared to the other programs – see the comparison PDF accessible in the AMPF Client Shared Folder.
Fee Schedule
Fee schedule is a tiered structure based on 65 bps for the first $500k. $250 minimum annual fee.
Balances up to $500,000 = 0.65% or $250 whichever is greater
Next $500,000 (balances $500,001-$1,000,000) = 0.35%
Next $1,500,000 (balances $1,000,001 - $2,500,000) = 0.25%
Additional assets over $2,500,000 (balances over $2,500,000) = 0.20%
Advisor compensation is capped at 1%, but they have the flexibility to charge a fee consistent with the rest of that client’s portfolio, or discount due to size of relationship, etc.
Investments:
Investments are considered SMAs or separately managed accounts. Each advisor needs to set up an investment account with RCF as the owner, use the RCF tax ID, be licensed in the State of Indiana AND sign an Investment Policy Statement.
Select from the approved list of Ameriprise Advisory
investment solutions:
• Active Portfolios (66 choices including MF portfolios)
• Select ETF Portfolios
• Select Separate Account (higher minimums, HNW focused 50-100k+)
• Select Strategist UMA
• Vista Separate Account (Envestnet)
Advisors use a system called Asset Allocation Management Tool (AAMT) to help determine allocations based on time horizon and risk tolerance.
Account Opening
1. Online application is completed by the client or FA on DFX (ampf.donorfirstx.com). Entering the app online automatically creates a doc code in the system. Application needs to be signed.
Contribution:
Cash: can be wired, transferred from an existing account or mailed to RCF. All checks must be payable to “Renaissance Charitable Foundation Inc.”
Publicly traded stock, bonds and mutual funds: can be transferred from your personal account to the investment account owned by RCF and proof of contribution should be sent to the client service team via email or fax.
Complex asset types can include restricted, closely held or non-publicly traded securities, appreciated real estate, art or other collectibles, etc. Please contact Renaissance at consulting@reninc.com or (866)803-0389 for assistance in determining eligibility. Sharon Lewellen, Julie Tolliver, and Kim Ledger are the main POCs for complex assets questions. You can tag them in the case and ask them to contact the client.
Grants:
Timeline:
• Day 1: Grant is submitted online by the donor/financial advisor
• Day 3-5: Vetting and due diligence have generally been completed by RCF
• Day 6: System still shows grant as “Pending” but with a 'Date Approved'
• Day 7: An invoice is sent to the financial advisor requesting funds
• Day 7-9: Funds received at Renaissance and • Day 10-12: Funds applied and grant check issued
Per above, an invoice is sent to the advisor of record. They ensure cash is available to satisfy the grant amount and issue a transfer via ACH/wire/check to our receipt account ending in 1874. Cash Operations then applies funds to the invoice to generate the grant check.
FAQs
Can I make a grant to my church? A church is considered a qualified public charity by default. If the church is already not listed in the database, then Ren will reach out to the church to obtain the necessary documentation to be in compliance with IRS regulations.
Are there any restrictions regarding the types of charities? The only restriction is the grant must be made to a qualified public charity and provide no personal benefit (gala, golf tournament, etc.) to an individual. There are no restrictions regarding the type of mission of the public charity, just the qualification status with the IRS.
What happens when the donor passes away? The donors can name their children or heirs to serve as the successor grant advisors when they pass. If there are no successor grant advisors available or desired, then they can either have all the funds granted out to the charity(ies) of their choice or granted out over time to the charity(ies) of their choice.
Will a DAF qualify for the Qualified Charitable Distribution (IRA Rollover)? No, a DAF is not a qualified recipient of a QCD transaction. The QCD withdrawal must be transferred directly to a public charity for use in their mission. QCD’s only come from a traditional IRA.
Can I contribute Complex Assets to my DAF? Yes – see contribution section for details.
When is it too late to make a contribution for the current year? All contributions must be received by 12/31 each year. Please see the Year-End Deadlines document.
What is a 501(c)(3) status? A 501(c)(3) organization is any organization considered tax-exempt by IRS Code Section 501(c)(3). Basically, this includes charities and other groups working towards “charitable, religious, educational, scientific”, and similar purposes. For more information, visit https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-section-501c3-organizations
How long does it take to open a new account? New account paperwork is processed as it is received. Generally, the new account is established within 3 business days. Timing on funding is controlled by the advisor.
Can I have the grant check sent to my home address so I can deliver to the charity? No, the grant check must be sent directly to the charity’s address on record. However, the grant advisor can specify any specific use restrictions when submitting the grant to ensure it is used in the correct manner.
What does it look like when charity receives the check? It will say from an RCF Donor Advised Fund and there will be a cover letter with it saying if there are any restrictions and explains which fund it is making that grant from and donors information or if it wants the gift to be anonymous. Having it be anonymous is actually a benefit of a DAF because some donors don’t like releasing their information because they don’t want to be bothered for future donations.
Are there any statements for the DAF account? Yes, statements will be generated on a quarterly basis and uploaded to DFX for access.
Can a DAF be used for a CRT or a CLT? Yes, A DAF can be an income beneficiary of a CLT or a remainder beneficiary of a CRT.
If a DAF is set up say by my parents can the rest of the family make contributions to it? Yes and you/they would receive the same tax deduction, however the grant advisor remains the same.
Can you set up a DAF for years in the future? Yes, you can set up a restricted account that says I want a certain amount to be paid out and certain recurring time frame. We just need to understand those instructions. The grant advisor would send us those instructions, we (RCF) would draft a letter and then both the grant advisor and RCF sign.
Explain income tax deduction? It will work just like you gave to any charity, so if you gift $50,000 then you get a $50,000 deduction, if its cash that’s simple but if its securities it is based on the high and the low of the day it is received by Ren.
The other key point to that is the AGI limitations. For a cash contribution you can claim the deduction up to 60% of your AGI, but if its securities or any long-term asset it will be 30% of your AGI.
If you can’t claim all that deduction because of your AGI limitation, then you can carry it forward to the next tax year. You have 5 forward tax years, 6 years total.
Advisor story telling value of DAF… Advisor told story of client holding APPL and it had appreciated substantially. So, they transferred APPL to a DAF so they didn’t have to pay the capital gains and then they repurchased APPL with different funds in their brokerage account giving them an elevated basis.
What should you do if a client doesn’t surpass the standard deduction? Explain bunching strategy, where you frontload your charitable giving to get the deduction.
Does Ren have a resource to recommend charities? Ren won’t suggest a certain type of charity or a specific charity but on the platform, there is a search area where you can put in the type of charity you are looking for and it will pull up a list of charities in that area and more information on them. Also, if a client knows of a charity but does not see it on our list, they can send RCF the name and address of the charity and RCF will do the due diligence to verify. Keep in mind that if we have to do the due diligence in may increase the time frame on getting grant paid out.
How often is the 501c list refreshed? It is refreshed automatically because Ren has an integration with the IRS.
How are the distributions done? Does client call the branch or Ren?
They can go to the online platform and submit their grant requests. As of now, AMPF advisors cannot make grant recommendations on behalf of their clients.
Can a DAF be a beneficiary of an IRA? Yes. A DAF can be a beneficiary of an IRA.
Minimum time or number of grants? There is no minimum on number of grants that you recommend each year but if it has been a few years without activity then we will probably reach out to make sure that everyone is still alive and everything ok on account. There is no maximum number of grants.
Testamentary IRA? It is set up without funding it and with instructions it will be funded in the future. And it will list who the successor grant advisors are going to be. Future Funding Status
Non-Qualified Annuities to a DAF? At this time no. It is possible but it is not advantageous to the donor. Donor will be taxed on the gain in the annuity. It is better to liquidate the annuity contract or make the DAF the beneficiary.
Do CPA’s know about this? They should, but you may need to educate some of them on it.
Can Ren change where the money is going to go to? Only at the direction of the donor.