Sponsoring Charity: Renaissance Charitable Foundation
Client Growth Resource Guide – Internal Use Only – Updated 09/13/2023
DAF Parameters:
Minimum initial contribution: $5,000
Minimum additional contributions: $250
Minimum disbursement amount: $250
Minimum DAF balance: $2,000
Fee Schedule
Cambridge fee schedule is a tiered structure based on 70 bps for the first $500k. Minimum annual fee of $250. This fee is prorated and charged against each fund’s account at the beginning of each quarter, based upon the fund balance on the first day of the quarter.
Investments:
Investments are considered SMAs or separately managed accounts. Each advisor needs to setup 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.
Account Opening
Return signed DAF application and Investment Policy Statement (Schedule A Acknowledgement) to CCGF@reninc.com
Send the pre-filled investment application to Gregory Baker for DocuSign (GregBaker@rcgf.org). Once signed, returned to Cambridge to open the account
Once the account is opened, initiate the transfer of the initial contribution to the account
Provide proof of the transaction to Renaissance via a screenshot of the account that includes the following:
- account number
- current value
- date and detail of the initial contribution (how much cash or number of shares and ticker/asset name)
Renaissance will finalize the account and send user credentials to the financial partner and donors
Contributions
Best practice is for the financial advisor to initiate the transfer of cash or securities (in-kind) from the client’s personal investment account to the newly established investment account established for the DAF account.
Additional contributions must be accompanied by a completed Additional Contribution Form found on the Forms tab of the donor portal. Minimum additional contribution is $250.
Complex or hard-to-value assets require the foundation to conduct additional due diligence before the donor transfers ownership. For information on contributions of non-liquid assets, please call one of the Cambridge Charitable Gift Fund’s Charitable Giving Consultants at 844-757-3521 to discuss or reach our complex assets team at consulting@reninc.com.
Grants
Grants can be recommended through the portal by the donor/grant advisor or Financial Advisor. All recommendations received will go through a Vetting and Due Diligence stage, this process generally takes 24-48 business hours. Disbursements are approved daily, and invoices are sent to the Financial Advisor of the account to send funds from the Investment account to Renaissance. Once funds are received, RCF will mail the check to the desired charity. Processing times can take 10-12 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 disbursement recommendation requires additional due diligence review.
Can I make a disbursement to my church? A church is considered a qualified public charity by default. If the church is not already listed in the database, then Ren will reach out to the church to obtain the necessary documentation to be compliant with IRS regulations.
Are there any restrictions regarding the types of charities? The only restriction is the disbursement must be made to a qualified 501(c)(3) public charity and provide no personal benefit 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 disbursement 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. These charities and percentages should be listed on the DAF application, updated with an account information change form or designated fund agreement drafted by our legal team.
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.
Can I contribution Complex Assets to my DAF? Yes, complex assets may be an ideal option to make a contribution to a DAF account. Please note that each asset will require a specific due diligence review prior to acceptance. Any additional questions should be directed to Kim Ledger (or the consulting@reninc.com email) if they are interested in moving forward with the due diligence process.
When is it too late to make a contribution to a DAF for the current year? All contributions must be received by 12/31 each year. Please see the Year-End Deadlines document on the Forms tab of the donor portal.
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 disbursement check sent to my home address so I can deliver to the charity? No, the check must be sent directly to the charity’s address on record. However, the disbursement advisor can specify any specific use restrictions in the Purpose when submitting the disbursement to ensure it is used in the correct manner.
Are there any statements for the DAF account? Yes, statements will be generated on a quarterly basis and uploaded to donor portal Statements tab for access.
Will the Financial Advisor also receive user credentials to DFX? Yes, user credentials are sent to the donors and financial advisors associated with the account. The advisor can see the same information as the donors and they have the ability to enter grants on behalf of the client without a signature from the client.