Altruist, a custodian, has added donor-advised funds to its platform, allowing advisors to manage these charitable vehicles for clients in minutes. This addition enables advisors to open, fund, invest, and manage donor-advised funds without needing a separate system.
Advisors can transfer an existing fund in two steps: contribute cash or appreciated securities and see the fund appear alongside other holdings in the household view. Jason Wenk, founder and CEO of Altruist, said, “Giving is one of the most personal things a client does with their advisor.”
According to Altruist, assets in the new donor-advised fund can be invested in any model in the marketplace, including custom portfolios and personalized indexing strategies. This flexibility differs from most donor-advised fund platforms, which restrict investment choices to a fixed menu.
The platform has no account-opening, balance, or grant minimums, and fees start at 50 basis points annually. This is below the typical range of 60 to 65 basis points among other donor-advised fund sponsors. Clients can recommend grants directly from their Altruist account or mobile app, choosing from over 1.8 million eligible charities.
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Donor-advised fund accounts created on the Altruist platform will be sponsored by Endaoment, a 501(c)(3) public charity. Endaoment is the legal owner of DAF assets and the customer of record on the account. This development comes after a busy few months for Altruist, including its agreement to be acquired by Vanguard for $4.6 billion.
Altruist has also announced new features for its Hazel AI platform, including a financial planning agent, in recent months. The company’s efforts to expand its services and capabilities are likely to impact its position in the market, particularly for advisors working with clients on charitable giving.
By making these funds simple to access and use, Altruist provides a valuable service to those looking to give back. As Altruist continues to evolve and expand its offerings, it will be important to see how these developments affect its users and the broader market. The company’s goal is to make charitable giving easier and more efficient for advisors and their clients.