Philanthropists are putting aside money during the good times so they can give consistently in a volatile market, says Ken Nopar, senior philanthropic advisor to the American Endowment Foundation (AEF), an independent donor-advised fund.
That is part of the reason AEF has grown substantially in the last three years, he says.
As donor-advised funds, and AEF in particular, have become better known, AEF has grown from assets of $325 million to $1 billion in the past three years, Nopar says. He spends much of his time meeting with financial advisors to prompt them to start the charitable giving conversation with their clients.
Ninety-five percent of the accounts started by AEF originate through references from advisors and AEF now has 3,200 donors, making it one of the largest independent donor-advised funds, he says.
Nopar says that unlike most other sponsors of donor-advised funds, AEF is wholly independent. "We offer a neutral platform for investment flexibility and grant making," he notes.
AEF was founded in 1993 and is based in Hudson, Ohio, but has donors from across the nation. The company says it receives no income from brokerage services or product sales, does not charge commissions or finder fees, and does not sell proprietary financial products or services.