Why Trusted Advisors Choose AEF
For over 20 years, American Endowment Foundation (AEF) has worked very closely with wealth, tax, and legal advisors. AEF is unique as it encourages and allows advisors to remain in control of asset management for their clients' donor advised funds, regardless if the account size is $10,000 or $10,000,000. We currently serve donors and their advisors in all 50 states. We have Development staff situated across the country who are able to visit advisory teams and educate them on donor advised funds and the AEF difference.
The many reasons that AEF is the donor advised fund choice of advisors:
- Advisors can manage the assets on their preferred platforms at any amount. Some other plans only allow administration to occur at certain levels, such as accounts above $250,000 or $1,000,000.
- Advisors can select the investments as they wish and do not have to choose from a very limited number of pooled funds that they normally would not select. They are able to provide their clients with the consistent investment advice they expect.
- AEF is very flexible in accepting and holding a wide variety of assets, from cash and publicly traded securities to complex assets including privately-held C-corp and S-corp stock, real estate, life insurance, interests in LLCs and LPs, etc.
- Clients can make grants during their lifetime or over successive generations.
- AEF is the leading independent donor advised fund in the country and is not a charitable branch of a financial company.
- AEF is a preferred DAF of Pershing, TDA, LPL, and other custodians as well as hundreds of wealth management firms and banks.
- AEF does not require lengthy contracts or charge annual fees. Its fees are substantially less than many other donor advised funds.
- Because 95% of new DAF accounts at AEF are referred by advisors, AEF provides a Thought Leadership library with useful content and training to help advisors in their work with clients.
- AEF has the experience in tailoring the use of donor advised funds to enhance other charitable strategies.
- Though AEF has grown significantly over the past few years to over 3200 donor advised fund accounts with over $1 billion in assets, AEF does not use a call center. Advisors and their clients still work directly with designated individuals at AEF. Our commitment to concierge service remains unchanged.
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Top 10 Questions: When to Consider
an AEF Donor Advised Fund
Comparison: Private Foundations
vs. AEF DAF
As an advisor, can I manage or custody the assets in my client’s donor advised fund?
Do I have a choice in where fund assets are held?
Is AEF approved by my platform?
How is AEF different from other donor advised fund programs?
We are a full-service donor advised fund company and provide concierge-level services. Please note: AEF does not offer investment management services, nor sell investment products. Donors can recommend that their trusted advisors manage the investment of their Donor Advised Fund assets. This is unique from most other donor advised fund programs, which typically require DAF assets to be held in a limited menu of pooled investments, proprietary mutual funds, and managed by the institution. AEF does not cross-sell other products. Our sole focus is donor advised fund administration.
What types of assets are eligible for contribution to a donor advised fund?
Another donor advised program I saw required that contributed assets be immediately sold . Does AEF have such a requirement?
Can I transfer an existing donor advised fund to AEF?
Can a donor advised fund be opened through a bequest?
How do you determine the fair market value of a contribution?
What are AEF’s administrative fees?
How much cash should be held in a liquidity account?
What are the contribution and balance requirements?
How is AEF legally organized?
AEF was organized in 1993 as an Ohio nonprofit corporation. The IRS recognizes AEF as a tax-exempt public charity, under Section 501(c)(3). AEF’s employer identification number (Tax ID) is 34-1747398 .
AEF is registered to solicit and accept contributions in every state that has registration requirements.
Though rarely a concern, since AEF is technically the client, and is headquartered in Ohio, any Registered Representatives (stockbrokers) who have investment accounts with AEF need to be registered with the State of Ohio. Your brokerage firm’s compliance department can help with this.
Does AEF compete with advisors?
Will AEF employees speak personally with my clients?
How do advisors get compensated for their work?
Can I recommend investments?
How do you charge for your services?
Do you sponsor a pooled income fund or gift annuity?
What criteria are used to determine the investment policy for the investment in a fund?
The donor’s input is also important. Additionally, as the legal owner and fiduciary, AEF will have recommendations based on our experience as a fiduciary and our understanding of the donor’s intent. Relevant factors include the fund’s time horizon, liquidity concerns, grant making considerations, and legal constraints. The investment policy statement is a collective statement, agreed on by all parties, as to how the investment manager will select investments.
Can a donor advised fund be named as a partial beneficiary of a life insurance policy?
Call us at 1-888-440-4233 or use our contact form to learn more.