Client Success Resource Guide
Updated 06/06/2024
DAF Parameters:
Minimum initial contribution: $20,000
Minimum additional contributions: $1,000
Minimum grant amount: $250
Minimum DAF balance: $2,000
Complex Assets: Yes
Crypto: Yes
Fee Schedule
Fee schedule is a tiered structure based on 60 bps for the first $500k. $200 minimum annual fee.
Balances up to $500,000 = 0.60% or $200 whichever is greater
Next $500,000 (balances $500,001-$1,000,000) = 0.30%
Next $1,500,000 (balances $1,000,001 - $2,500,000) = 0.20%
Next $2,500,000 (balances $2,500,001-$5,000,000) = 0.15%
Next $45,000,000 (balances $5,000,001-$50,000,000) = 0.10%
Additional assets over $50,000,000 (balances over $50,000,000) = 0.05%
Note for comparison: Fidelity fees below are based on published documents showing retail fee structures. Investment flexibility is not apples to apples. Fidelity has a minimum of $100K for SMA, and NPT has a minimum of $500K. UBS advisors can also manage DAFs on other platforms (AEF, Community Foundations, etc., but those non-partner DAFs receive zero centralized support and the advisor cannot solicit those offerings).
Fee Schedule | RCF for UBS | Fidelity | NPT |
Minimum Fee | $200 | $100 | $0 |
First $500,000 | 0.60% | 0.60% | 0.70%* |
Next $500,000 (balances $500,001-$1,000,000) | 0.30% | 0.30% | 0.60% |
Next $1,500,000 (balances $1,000,001 - $2,500,000) | 0.20% | 0.20% | 0.40%* |
Next $2,500,000 (balances $2,500,001-$5,000,000) | 0.15% | 0.15% | 0.15%* |
Next $45,000,000 (balances $5,000,001-$50,000,000) | 0.10% | 0.15% | 0.10%* |
Add'l assets over $50,000,000 (balances over $50,000,000) | 0.05% | 0.15% | 0.10%* |
Color scale for each row/breakpoint: green = lowest fee, yellow = mid, red = highest fee *Negotiated discount for UBS program vs. NPT retail fee schedule |
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UBS DAF Options / Competitive Advantage
UBS FAs can open DAFs through RCF or Fidelity or NPT, so comparison is a common question.
Pro RCF talking points:
Accts > $1mil allowed to hold alternate investments (priv. equity, reits, etc)
Up to two Alts per $1m in acct. Minimum $250k each, and must also maintain 20% in liquid investments available in the account (for fees, grants, etc)
RCF accepts complex assets without charging an upfront review fee
Willingness to hold complex assets for more than 1 year
No put option required on a complex asset holding
Trust established to receive donations of S-Corp stock (favorable tax state of Dakota)
Better process + turnaround on complex assets
Lower fees on larger accts via the tiered fee schedule
Simplicity + ease of use DFX portal
Active grant advisors can appoint their FAs to submit grants on their behalf
Fidelity minimum for SMA is $250k
UBS intranet link for all DAF information is goto/daf
Investments:
SMA
Can be brokerage or advisory (any UBS Investment platform, including:)
AAP (Advisor Allocation Program: FA sets target allocation and selects from MFs, ETFs and SMA strategies managed by affiliated and non-affiliated investment managers.)
ACCESS (Advisory program in which affiliated and non-affiliated investment advisors manage client accounts on a discretionary basis)
PMP (Portfolio Management Program: FA has discretion to buy and sell in advisory account)
Option to hold contributed assets in kind
Please see note on multiple sub-accounts under account opening section.
Account Opening
IMPORTANT NOTE for FAs wishing to open their own DAF as of 6/5/24:
“[Maggie] just got off a call with Isaac from UBS. He advised that FAs ARE allowed to open their DAF and Ren is the only provider that allows to do that. They just ask that the advisor either puts a friendly FA as the advisor of record or send an email to Isaac that they won’t receive compensation from it. As long as they don’t receive compensation from their own DAF they are good.”
Link to share with advisors for DAF Opening process:
https://www.reninc.com/ubsdafsteps/
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Below is the DAF account opening process and steps to follow to establish the UBS investment account.
RCF DAF Site: https://ubscloud.sharepoint.com/sites/int-adviced-platforms/SitePages/renaissance.aspx
RCF Client ID 8400011600
Thank you for allowing Renaissance Charitable Foundation to sponsor Donor advised fund.
Please find the program circular and DAF Application attached. Visit the UBS RCF DAF Page for more informant and the UBS BGAP site for step-by-step instruction s on opening the investment account.
I have included the DAF New account process below for reference.
DAF application submitted to Renaissance for entry and is placed in pending status
Advisor will setup the investment account with UBS under the Renaissance client ID, 8400011600 EIN 35-2129262
Once funding appears in the UBS account, the advisor will send initial funding details to ubs@reninc.com.
Please include the following information when you send proof of funding.
Account code
Donor Name
Investment Account number
# of shares/or cash amount
Asset Name
Date of initial funding
Funding is controlled by the advisor. Timing varies. This step is necessary to move the process forward and match the account on the data feed.
Renaissance will place the account under administration and welcome emails will be sent for online registration.
For questions or assistance, you may reach us by phone (800.811.4428) or email (ubs@reninc.com) Monday through Friday from 8am to 5pm Eastern.
Note: many UBS FAs use multiple sub-accounts for their DAFs. It is their responsibility to notify Ren so that it becomes part of the data feed. If they add an account they should email ubs@reninc.com and let us know a subaccount has been added, and the investment account #. Also, we need to know which account they want fees/grants to come out of as well. They also need to notify UBS to add it to the advent feed (instructions are on their portal). It's same process for them on the initial, they just need to ensure add'l ones are being added to it as well.
Contribution:
This process is initiated by UBS.
For questions regarding contributions by check, please contact the RCF team.
Grants:
Grants are reviewed for approval daily. All recommendations received will go through a Vetting and Due Diligence stage, this process generally takes 24-72 business hours. Grants are approved daily, and invoices are sent to the UBS Centralized Grant Team to be processed twice a week (Tuesdays and Thursdays). 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 UBS investment account or if cash needs to be raised. The processing time may be extended if a grant recommendation requires additional due diligence review.
Add’l notes on Centralized Grant Team process:
When a grant is submitted via the donor portal, the FA receives a systematic email advising the grant is submitted and to advise the FA to confirm sufficient cash is available in the UBS investment account. The RCF team notifies the UBS centralized grant team of funds needed. If/when there's cash available (either it's readily available or FA places trades), the centralized grant team moves cash from the UBS investment account to RCF’s receipt account for processing.
If no cash and no trades placed, the UBS centralized grant team notifies the FA of record via a second notice. The UBS centralized grant team will review the cash availability a third time, if cash is still unavailable, the grant is canceled.
Any DAF with no grant out of (or contribution into) the DAF 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 grant advisor or charitable beneficiary(ies): If no successor grant advisor or charitable beneficiary(ies) is/are designated by the last surviving grant advisor, then RCF will authorize grants to qualified charities.
Administration fees are calculated by RCF and the RCF team will conduct a review of UBS investment accounts to confirm sufficient cash. If sufficient cash is not available in the UBS investment account to satisfy the quarterly administrative fee, RCF will email the FA of record to advise liquidity should be created.
UBS Intranet Resources
Includes how to open a DAF account at UBS and what investment accounts are approved for the DAF program:
Now all instructions are posted in our bgap (Branch guidelines): Donor-Advised Funds (ubs.net)
Please review our Renaissance DAF page: Renaissance Philanthropic Donor Advised Fund (ubs.net)
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 either name their children or heirs to serve as the successor grant advisors to take over making grant recommendations or list charitable beneficiary(ies) to receive funds when they pass. If the charitable beneficiary option is chosen, donors can choose to grant all the funds to one more charity(ies) immediately or creating a recurring grant until the funds are depleted from the DAF.
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
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 DAF account is established within RCF’s system within 1-2 business days. Timing on funding (and the changing of the DAF to a grant ready (under admin) status) is controlled by the advisor. Overall account opening is 2-5 business days.
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. Donating to the DAF does not grant additional donors access to the DFX portal.
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 in a certain recurring time frame. We just need to understand those instructions. The grant advisor would complete the Designated Fund Agreement (DFA) application, and we (RCF) would draft a Designated Fund for both the grant advisor and RCF to sign. The DFA can be amended at a later date via the submission of an updated DFA application.
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 grant advisors can access https://charities.rengiving.com/ to review different organizations either by searching a specific mission/are to gain more information on the charity. Also, if a client knows of a charity but does not see it on our list, they can recommend a new charity via the online grant form for RCF’s review. 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 501c3 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?
Active grant advisors 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 client’s 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 three years or more without activity then we will contact the last known active grant advisor or FA to ensure that the listed donors/grant advisors are 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 or charitable beneficiary(ies) are going to be. Future Funding Status
Non-Qualified Annuities to a DAF? Currently 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 CPAs 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/active grant advisor. If no living donor/active grant advisor remains on the DAF and there were no successor grant advisors or charitable beneficiary(ies) named, the RCF board will make a decision as to where the remaining funds will be sent. The decision is based on a combination of the primary charitable purpose provided at the DAF establishment and/or the granting history on the account. Furthermore, if a DFA is in place on the DAF and a charity fails to qualify at any point, RCF will determine whether to remove that charity from the DFA agreement altogether or replace it with another, similar, qualifying charity .