The SWAN Donor Advised Fund allows you to support the impact companies funded by SWAN making a philanthropic contribution. You receive a charitable contribution in the current tax year, and the DAF will invest in companies supported by the SWAN Impact Network. Charitable contributions can be made by anyone, including those who are not SWAN members, and you do not need to be an accredited investor. The minimum contribution amount is $250.
For more information, please contact Heather Gilker at firstname.lastname@example.org.
What is a DAF?
A Donor Advised Fund is a giving account established at a public charity. It allows donors to make a charitable contribution, and receive an immediate tax deduction. Funds not yet granted as a donation are invested in various types of securities.
In the case of a personal DAF, the donor recommends (advises) which grants are to be made.
Donations to a DAF work like any other charitable gift that you may make. Your financial benefit is your ability to declare a charitable donation on your tax return. Investment returns earned by the DAF remain in the DAF until used for a charitable purpose.
How does the SWAN DAF work?
The chartable asset management firm, Impact Assets, has established the SWAN DAF. The SWAN DAF is receiving charitable donations from multiple donors. That pool of funds will be used to invest in impact startups which successfully pass through SWAN Impact Network’s due diligence process. The SWAN DAF can also make charitable grants to non-profits, and will make grants to the SWAN Impact Network, a 501c3, to cover the costs that SWAN incurs in managing the DAF.
If you donate at least $50,000 to the SWAN DAF from your personal DAF, you have the option to advise which SWAN investments your grant is to be used for, and to request that SWAN DAF earnings from those specific investments be transferred back to your personal DAF.
Who does what?
SWAN is responsible for recruiting donors, communicating with the donors, and recommending impact investments. Impact Assets holds the DAF funds, ensures that SWAN’s investment recommendations comply with DAF regulations, tracks investment results, and generates financial reports.
Why Impact Assets?
First, SWAN is using an outside DAF administrator instead of becoming a DAF administrator itself because SWAN does not want to master the complex DAF regulations. Second, Impact Assets’ only mission is to support impact and is the only major DAF administrator that allows funds to be invested in private, impact companies. Furthermore, Impact Assets is highly credible, with over $1B under management. By way of contrast, other DAF managers, such as Fidelity Charitable, support investment options only in public companies.