Client Success Resource Guide
Updated 10/10/2023 (with FSR review)
DAF Parameters:
Minimum initial contribution: $5,000
Minimum additional contributions: $250
Minimum disbursement amount: $250
Minimum DAF balance: $2,000
Complex assets ARE accepted
Fee Schedule
Commonwealth fee schedule is a tiered structure based on 60 bps for the first $500k. Minimum annual fee of $150.
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 and be licensed in the state of Indiana.
Account Opening
Send in DAF application and Commonwealth forms (Standing Payment Instructions, application Plan Entity form, Corporate Resolution) to cfndaf@reninc.com for signature from RCF President Greg Baker
Receive signed forms back and send to Commonwealth for processing
Open investment account
Fund investment account
Once investment account is funded, we finalize the account at Renaissance (pending accounts are checked weekly on Investor360 for funding)
Welcome email/login credentials for https://cfndaf.donorfirstx.com are sent out automatically in the nightly process
Contribution:
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.
Disbursements:
Disbursements are processed daily. 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 Commonwealth Cashiering team to be processed. Once funds are received, RCF 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 disbursement recommendation requires additional due diligence review.
Any DAF with no disbursement (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 disbursements to qualified charities.
No successor: If no successor disbursement advisor or charity is designated by the last surviving disbursement advisor, then RCF will authorize disbursements to qualified charities.
Disbursements can be set up to be recurring in the system. Clients can select either a month, quarterly, bi-annual, or annual recurring disbursement. They can specify an end date or have the disbursement continue in perpetuity.
FAQs
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 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 disbursement 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.
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 contribute 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 contribute 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 or 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 have the ability to initiate disbursements on behalf of the client without a signature from the client.