WHERE SHOULD YOUR CAPITAL BE DEPOSITED UNTIL ITS DEPLOYED?
Unlike most donor-advised fund sponsors, LOHAS encourages its donors to use socially impactful depository institutions as the repository for DAF and fiscal sponsor program funds until they’re invested or donated. We welcome suggestions, but as a default, LOHAS recommends using the cash management services of Impact Deposits Corp.
To our knowledge, Impact Deposits is the only mission-driven cash deposit management company offering full FDIC insurance on all funds, next-day liquidity (for quick fund deployment), and market-rate interest payments, with all deposits under their management supporting a host of nonprofit programs and socially impactful enterprises nationally.
Not only does LOHAS use Impact Deposits as our default for housing DAF and FSP funds, but we also highly recommend Impact Deposits as a cash management solution for the liquid assets in your portfolio. If you would like to start using Impact Deposits, ask us how!
Looking for insight on how to use impact investing to build a bridge between family generations or how to use donor-advised funds to become your own impact venture capitalist? Check out these LOHAS articles:
WHEN IT COMES TO DIVERGENT GENERATIONAL PERSPECTIVES, CAN COMPROMISE DRIVE PROFITS?
Many families face an ongoing tension between the decision-maker “Patriarch” perspective and the younger “NextGen” perspective on how to approach investing and whether alpha should have primacy in investment decisions — with social, educational, justice, environmental, and other impact goals being served predominantly philanthropically — or if the two should always be approached as an integrated whole, regardless of asset class.
Whether you are a family member or a wealth manager attempting to align disparate client priorities, I’m here to tell you: integrating the two perspectives is easier than you realized and probably a better strategy for both alpha and impact than either generation is creating with their tunnel-vision approach. READ MORE.
BECOME AN IMPACT VENTURE CAPITALIST USING DONOR-ADVISED FUNDS
Donor-Advised Funds (“DAFs”) are quite the hot topic in the world of philanthropy and impact investing. Seems everyone has a perspective on how DAFs could be better utilized or why they’re underleveraged. Most of the news stories (correctly) center on the topic of DAFs growing in size, but funds often remaining stuck without ever reaching the parties who need this capital the most. Many of these same articles discuss various DAF-related legislative changes that, if implemented, could change the “set it and forget it” DAF dynamic. At LOHAS Advisors, while we applaud the attention being brought to this topic, we think that one path to unleashing the power of DAFs is through impact venture capital, which closes the loop on the impact investing return spectrum as illustrated below.
For those unaware, DAFs are philanthropic and social impact investment tools that allow donors (which could be individuals, families, corporations, etc.) to fund special accounts through DAF “sponsor” organizations. Donors receive immediate U.S. income tax deductions and maintain allocation privileges over the funds’ ultimate distribution. READ MORE
Set up your DAF today!
Ready to explore impact investment opportunities or looking for support as you craft your DAF-enabled impact investing strategy, let us help!