How client fees work

Charityvest for Advisors offers a modern DAF capability with low client fees.

With Charityvest for Advisors, you can choose between two DAF account types for each of your clients:

1. Invested (default): The balance of this donor-advised fund account is invested in your choice of your firm's custom portfolios with the option for you to assess a customary advisory fee (as determined by your firm). A standard admin fee (up to 60bps depending on balance) also applies on this account type.

2. Cash: The balance of this donor-advised fund account is held in cash, but is free to use. This is recommended for low balance accounts.

You do not need to select an account for a client. The default state of a new client DAF account is Invested. Once you follow these written and video instructions to activate client investing, your client will automatically be enrolled in a Invested account. You can switch their account to Cash at any time.

When to consider an Invested account

The Invested account is the default option for your firm's clients, because it offers a more robust experience for clients and advisors. The benefits include:

• Donate now, decide later approach to philanthropy, so clients can enjoy tax-smart giving practices, such as the bunching strategy and appreciated asset contributions.

• Tax-free growth on client giving account balances, to enable them to give more over time.

• Aligning clients with your investment philosophy via a curated selection of your firm's custom portfolios.

• Option to assess a customary advisory fee on client DAF assets or not, at your discretion.

Client fee overview

Here is a breakdown of the fee structure for each account type:

	Invested (default)	Cash
Investment status	Invested in your firm's custom portfolios	None
Total fees assessed	Varies according to your advisory fee	None
Fee types assessed	Your advisory fee (determined by your firm)* Admin fee (up to 60bps)	None
Account opening fee	$0	$0
Account maintenance fee	$0	$0
Contribution fee (via linked bank account)	$0	$0
Contribution fee (via all other modalities)	Varies	Varies
Grant fee	$0	$0
Minimum initial contribution	$0	$0
Minimum balance requirement	$0	$0
Minimum contribution, grant, or gift amount	$15	$15

Here is an example of Invested account fees at various balance levels:

Average balance	Annual admin fee (up to 60bps)**
$2,500	$100
$10,000	$100
$100,000	$600
$250,000	$1,500
$500,000	$3,000
$1,000,000	$3,000

*You have the option to assess your firm's advisory fee on Invested accounts.

**The admin fee starts at 60bps (with a minimum fee of $100/year) and blends down at higher balances.

What is the advisory fee?

With the Invested account type for a client, you have the option to assess an advisory fee on their donor-advised fund account, automatically deducted from their DAF balance on a monthly basis and distributed to your firm.

This is possible, as per IRS regulation of donor-advised funds, an advisory fee may be assessed on the DAF as due compensation for guiding the investment strategy of the assets within the DAF.

For all Invested DAF accounts, the advisory fee is selected by your firm.

If you wish, you can waive this advisory fee for individual clients on a case-by-case basis.

Follow these written instructions to manage advisory fees on your client DAFs.

Advisory fee timing

Fees accrue daily based on your client's DAF daily ending balance and the fee schedule applied. They are deducted from the account balance on the first business day of the month. Here are some key terms to understand:

• Last fee charged is the fee amount assessed on the account during the specified period.

• Average daily balance is the sum of each day's ending balance divided by the number of days in the period.

• Blended fee rate is calculated as the annualized fee for the period divided by the average daily balance.

What is the admin fee?

If you select the Invested account type for a client, their account will be subject to a admin fee, automatically assessed monthly and deducted from their DAF balance.

This fee is paid to the DAF sponsor (Charityvest, Inc. EIN: 81-2771871) to provide and service the donor-advised fund.

Charityvest admin fees are industry standard, starting at 60bps and blending down based on fund balance. Here is a breakdown of the annualized admin fee at each balance level:

Invested account DAF balance	Annualized admin fee
First $500,000 of fund balance	0.60%
Next $500,000 of fund balance	0.30%
From $1M to $2.5M of fund balance	0.20%
From $2.5M to $5M of fund balance	0.15%
From $5M to $10M of fund balance	0.10%
Above $10M of Fund Balance	Custom pricing available
Minimum annual Invested account fee	$100/year

Admin fee timing

Fees accrue daily based on your client's DAF daily ending balance and the fee schedule applied. They are deducted from the account balance on the first business day of the month. Here are some key terms to understand:

• Last fee charged is the fee amount assessed on the account during the specified period.

• Average daily balance is the sum of each day's ending balance divided by the number of days in the period.

• Blended fee rate is calculated as the annualized fee for the period divided by the average daily balance.

Curious to learn more about your firm's custom DAF program? Contact your firm's program manager for program-related matters or Charityvest ([e-mail]) for platform-related matters.