FINANCIAL PARTNER REQUIREMENTS
Financial Partners Program
Thank you for your interest in becoming a Financial Partner with the Coral Gables Community Foundation (CGCF). We look forward to working with you to assist your clients in meeting their philanthropic goals.
Please complete the attached Financial Partner Application to begin the vetting process. Once completed, your responses will be reviewed by our team who may contact you with additional questions. When the necessary information has been received, the application will be forwarded to CGCF’s Investment Committee for review and approval.
Minimum Firm/Advisor Requirements
- Investment Advisor must be in business for at least five years.
- Advisory firm must have at least $500 million in assets under management.
- Accounts must maintain a balance of $250,000 or more from one or more donors.
- No issues with federal or state regulators in the last five years.
- Investment management and custody fees must be reasonable by industry standards.
- Assets must be custodied at a recognized regional or national financial institution.
As a Financial Partner, you must agree to the following:
- Follow the Foundation’s separately managed account investment advisor agreement as drafted by CGCF’s Investment Committee and approved by the Board of Directors.
- Provide monthly investment statements and trade data, as requested, to CGCF.
- Provide quarterly investment performance compared to benchmarks designated by the CGCF’s Investment Committee within 30 days of quarter end.
- Provide quarterly snapshot of the investment portfolio’s asset allocation within 30 days of quarter end. Investment allocations must be reported using the following asset and sub-asset classes: domestic equities (small, mid and large cap), international equities (developed and emerging markets), fixed income (ultra-short, short, short-intermediate, intermediate and long term), commodities, real estate, hedge funds, private equity, and cash.
- Provide full fee disclosures for investment and custody fees.
- Present, at least annually, to the CGCF’s Investment Committee. Presentations typically include the following: asset allocation review, investment strategy discussion and other topics that are specific to CGCF’s holdings, review of major changes to the portfolio and investment strategy made in the last year or planned noting if the strategy is outside the separately managed account investment advisor agreement, investment performance for one, three and five years (as applicable) vs. benchmarks designated by the CGCF’s Investment Committee.
FINANCIAL PARTNER PROGRAM
Overview
Working with donors and their professional advisors, the Coral Gables Community Foundation (CGCF) pursues its mission through the administration of charitable funds, grantmaking, collaboration and community leadership. To this end, we are committed to providing the highest level of service to donors enabling them to connect their passions to purpose.
Through the Financial Partner Program, advisors maintain investment management of assets when a donor establishes a charitable fund with the CGCF. With a client or collection of clients totaling $250,000 or more, advisors are able to continue their investment relationship with the donor while the CGCF continues to do what it does best – administer the charitable side of the fund.
Why partner with the Community Foundation?
Maintain assets under management. You have long-standing and valued relationships with your clients as their financial advisor. Your clients may want you to have a hand in managing all of their investments, from accounts designed for their retirement to assets they have identified that will be used to support philanthropic plan. This program allows your clients to create a charitable fund, maximize their potential income tax deduction and benefit from our extensive grantmaking experience while keeping investment under your management.
We’re a trusted connector and convener. Our donors value our deep community and philanthropic knowledge, as well as the opportunities we provide to connect people to what they care about – locally, nationally or internationally. Partnering with us can help your clients achieve their giving aspirations.
We provide oversight. The CGCF has a record of accomplishment as a reliable steward of philanthropic dollars. We ensure the organizations your client supports achieve high impact while demonstrating good governance and financial controls.
How it works
- Review Financial Partner Requirements to ensure advisor and firm are eligible.
- Submit Financial Partner Application to CGCF for approval.
- Become a financial partner of the CGCF by opening a pooled account with a minimum of $250,000 subject to approval of the CGCF’s Investment Committee and Board of Directors.
- Once the pool/account is established, the investment advisor develops an investment portfolio aligned with the CGCF’s separately managed account investment advisor agreement.
- Additional charitable clients can be added to this pool at any time.
- Advisor maintains investment management of the funds so long as they continue their relationship with the donor and continue to satisfy the stipulations outlined in the CGCF’s separately managed account investment advisor agreement.
Benefits to the Advisor
The Financial Partner Program is a win-win for you and your clients. With a client or collection of clients totaling $250,000 or more, advisors can:
- Maintain a lifetime relationship with clients by retaining investment management of their charitable assets, subject to the CGCF’s approval and adhering to the rules outlined in the CGCF’s separately managed account investment advisor agreement.
- Convert non-managed client assets – such as real estate, closely held interests in business. and personal property – into charitable assets that you can manage.
- Avoid the burden of establishing and managing a private foundation and/or charitable trust
- Avoid the need to establish individual accounts for each of your clients.
- Manage one investment pool while the CGCF manages charitable fund accounting for each of your clients.
- Integrate estate planning, legacy planning and business succession planning with your clients.
- Offer your clients a value-add service by connecting them with the Community Foundation, which has deep-rooted knowledge of community needs and nonprofit capacity.
Benefits to the Client
The CGCF’s offers your clients enhanced service – a powerful combination of your investment and financial management expertise and the Foundation’s more than 32 years of philanthropy, community knowledge and network of resources.
- Access to all services provided by the CGCF’s, such as philanthropic and community expertise, charitable planning, and grant administration.
- Access to CGCF’s knowledge, resources and events, including donor briefings on community needs and important philanthropic issues.
- Opportunities to network with like-minded philanthropists.
- Ability to grant locally, nationally and beyond.
- Ability to designate a future charitable purpose for their fund, including specific organizations or broad fields of interest.
- Ability to name successor advisors for their fund.
- Streamlining charitable donations and lessening administrative burden.
- Online grantmaking and access to online fund information for Donor Advised Funds.
- Less startup costs and maintenance than a Private Foundation
(click here for Donor Advised Fund vs. Private Foundation comparison). - Benefit of the CGCF’s oversight and request for evaluations.
FREQUENTLY ASKED QUESTIONS
What is a financial partnership?
A relationship between the CGCF, donors and investment advisors that allows the donor to retain the investment advisor of their choice while working with the CGCF to realize their charitable goals.
What is the minimum amount required?
The minimum amount required to establish a financial partnership with the CGCF is $250,000 in charitable assets from one or more clients.
What are the fees?
The CGCF’s fee for administrative services is taken directly from the fund on a monthly basis. The Foundation shall receive a 1.5% administrative fee based on the average monthly balance of Funds with assets under $1 million. For Funds with assets greater than $1 million, a 1% fee will be assessed. The Foundation receives this fee for reasonable and proper compensation for services and expenses rendered to and incurred through the administration of the Fund. Fees may change as determined by the Board.
Who owns the fund?
The Fund is owned by the Coral Gables Community Foundation under the EIN 65-0208290. The pooled account opened by the investment advisor will be titled in the CGCF’s name.
What investment firms and advisors can participate in the program?
Provided the advisor and their firm meets the minimum requirements to establish a financial partnership, the program is open to any Investment Advisor who satisfies the stipulations outlined in the CGCF’s separately managed account investment advisor agreement.
What reporting requirements are expected of the investment advisor?
After the investment advisor is approved by the CGCF’s Investment Committee and Board of Directors, the advisor is expected to provide monthly paperless statements with CGCF cost basis, quarterly investment reports including asset allocation and one, three and five year returns as applicable, integration with a data aggregation service as necessary and an annual review of investment performance. Additional oversight requirements may be requested.
We’re here to help you help your clients make informed decisions about charitable giving. For more information, contact Katherine Caskey, Director of Philanthropy at katherine@gablesfoundation.org or phone 305-446-9670.
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