Client Success Resource Guide
Updated 06/01/2024
DAF Parameters:
Minimum initial contribution: $10,000
Minimum additional contributions: $1,000
Minimum grant amount: $250
Unique assets: YES (business interests, TPP), minimum: $500k
Fee Schedule
Low Value | High Value | Administrator Fee** | Program Fee | Total Fees* |
First $500,000 | $500,000 | 0.60% | 0.70% | 1.30% |
Next $500,000 | $1,000,000 | 0.35% | 0.70% | 1.05% |
Next $1,000,000 | $2,500,000 | 0.25% | 0.70% | 0.95% |
Next $2,500,000 ($2,500,001 - $5,000,000) | $5,000,000 | 0.20% | 0.70% | 0.90% |
Next $5,000,000 ($5,000,001 - $10,000,000) | $10,000,000 | 0.15% | 0.70% | 0.85% |
Next $40,000,000 ($10,000,001 - $50,000,000) | $50,000,000 | 0.10% | 0.70% | 0.80% |
Next $50,000,000 ($50,000,001 - $100,000,000) | $100,000,000 | 0.05% | 0.70% | 0.75% |
*Total fees do not include internal fund expenses |
|
|
|
|
Investments:
Portfolio Objectives and Descriptions:
Preservation of Principal – This portfolio objective is designed to preserve the original amount invested with little or no opportunity for growth. This portfolio objective is reserved for special circumstances because it contains cash and short-term income securities only and may provide some current income, which can fluctuate.
Income Focus – This portfolio objective emphasizes current interest income with little long-term growth and rising dividend potential. Over the long-term, it should have lower risk than portfolios with a more growth-oriented objective.
Balanced Toward Income – This portfolio objective emphasizes current interest income while providing modest long-term growth and rising dividend potential. Over the long term, it should have lower to moderate risk.
Balanced Growth & Income – This portfolio objective has a balanced emphasis between current interest income and long-term growth with rising dividend potential. Over the long term, it should have moderate risk.
Balanced Toward Growth – This portfolio objective emphasizes higher long-term growth and rising dividend potential, with a secondary goal of current interest income. Over the long-term, it should have moderate to higher risk.
Growth Focus – This portfolio objective emphasizes higher long-term growth and rising dividend potential, while providing modest current interest income. Over the long term, it should have higher risk than portfolios with a more income-oriented objective.
All-equity Focus – This portfolio objective offers the highest long-term growth and rising dividend potential. It focuses on long-term capital appreciation and provides very little to no current interest income. It also has the highest level of risk, as it contains only equity investments.
Account Opening
Go to Edwardjones.donorfirstx.com through the link in your F2 Menu after completing your training. You will receive a SO4 error saying you are not registered
This will begin the application process:
Creating the fund name and online access for the Financial Advisor
Adding your clients to the new fund
Entering the contribution to open the account and selecting the investment strategy
Choosing who will receive statement copies and if anyone would like a physical copy
(unlisted) Review/Edit the application
(unlisted) Print a copy/Exit
Enter the information of the Financial Advisor of the account.
Complete the fund information and select Continue to Step 2.
Here you will add your client information into roles on the DAF. Select Add Role. Definitions will show up on the pop-up screen
When finished adding roles, Select Continue to Step 3. If you need to make any changes, there is a review section at the end of the application to make edits
Select Add Asset to enter intended account opening gift. The total of all contributions entered here need to equal the minimum of $10,000 to move to the next step.
Enter the information about the expected account opening gifts. This does not initiate the transfer. Should the amount or asset type change after entering this information and completing the asset transfer, you may update the contribution or enter a new one on the portal
If the donor is not the client, select Add Contributor to input that information and click Add Contributor. This ensures the tax receipt will produce for the person or entity funding the account (if not your clients directly).
Choose up to 2 pools to invest. Strategies can be changed after the application is completed through the reallocation portion of the portal. When finished with both contribution and investment selection, select Continue to Step 4
Choose which roles will receive statements. Each role has the option of mail and paperless. When complete, select Continue to Review
Review all previously entered information and verify. You may navigate back using the edit buttons to make changes. When done, select Finish at the bottom right of the page.
On the summary page you can print a copy to PDF for your records. A copy will also be available on the portal to download at any time.
After application is submitted, you may initiate the funding at any time.
Your client entered as Donor/Grant Advisor will receive a summary email (if an email address was provided) at the point of submission as well.
Credentials will issue to any Donor/Grant Advisor with an email address overnight.
To add BOAs to the account, please do the following:
Email edjonesdaf@reninc.com with the financial advisor for the DAF copied on the email including:
The name of the newly submitted fund
The name of the financial advisor on the fund
The last name of the donor
The BOA’s
Name
EJ Office Address
EJ Email Address
EJ Office Phone Number
Contribution:
This process is initiated by Edward Jones.
Checks: Renaissance Charitable Foundation FBO "EJ DAF Fund Name & Acct #"
8910 Purdue Rd., Suite 555
Indianapolis, IN 46268
EIN# 35-2129262
Please note for existing Edward Jones DAF Accounts, the only funding methods that are acceptable is either a DAF to DAF transfer (if the client is moving a DAF from another financial institution to Edward Jones DAF) or by TASC transfer through an Edward Jones Select account.
**Contribution statements are received as individual letters- no consolidated contribution statement is provided. **
Grants:
Grants are processed daily. All recommendations received will go through a Vetting and Due Diligence stage, this process generally takes 24-48 business hours. Grants are approved daily, and invoices are sent to the Edward Jones to be processed. Once funds are received, we will mail the check to the desired charity. Processing times can take 7-10 business days depending on if cash is available in the account or if cash needs to be raised. The processing time may be extended if a grant recommendation requires additional due diligence review
Any DAF with no grant (or contribution) activity for three years may be considered a dormant fund. RCF will reach out to representatives to encourage a grant. If no representatives can be reached, then RCF may authorize grants to qualified charities.
No successor: If no successor grant advisor or charity is designated by the last surviving grant advisor, then RCF will authorize grants to qualified charities.
EJ Intranet: Jones Link
The below table highlights key topics to help our FAs with any questions related to the Edward Jones Charitable Gift Fund.
JonesLink is our intranet system and each webpage has a unique 'WEBID' in which our branch teams can search by.
Best practice would be to reference the WEBID to point the branch team to.
Topic | JonesLink WEBID | Notes / Key Words |
Main Page for Edward Jones Charitable Gift Fund
| WEB5168755 | Main page to drive FAs to information related to the Edward Jones Charitable Gift Fund. Includes main topics:
|
Get Started | WEB5179607 | Step-by-step instructions to complete required training and get access to the system.
|
Donor Portal Link | WEB5168755 | Button on the main page to launch to the Ren portal. |
Required Training | WEB6006494 | Button to launch the required training to learn about DAF in detail, and get the required system access. |
User Guides | WEB6006553 | Initial & subsequent account opening guides, donor user guide, recommend a grant user guide, online portal – account summary user guide, and transfer instructions |
Marketing Materials | WEB6006553 |
|
Unique Assets | WEB6009284 |
|
JONES LINK – Available Documents
Contribution
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 Unique Assets to my DAF? Yes, the minimum contribution amount is $500,000. The types of allowable contributions include closely-held, operating (non-real estate) business interests (C-corps, LLCs, LPs), art, and collectibles.
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 the Edward Jones Charitable Gift 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? It is 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. There are some clients that do not want to go online and if that happens, they always call the FA office, or their BOA (branch office administrators) and they can enter it on clients behalf.
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.
What if the relationship between Ren and Edward Jones goes bad? Then Ren would transfer the assets to another DAF that Edward Jones decides on…Let Chris answer this.
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.
It is simple to have different objectives/models? Yes, you can have 2 different models within a DAF that coincides with 2 different objectives, for example short and long.
Can a business open a DAF? Yes – any person or entity, including individuals, corporations, partnerships or trusts can be a Donor.
How often can I change the investments? You can reallocate up to 4 times per year, and they must be 30d apart from each reallocation.
Donating Unique Assets Using the Edward Jones Charitable Gift Fund