Pershing clients have the option to create their own, private-label fund through an alliance with Crown Philanthropic Solutions, a provider of donor-advised fund technology.
For advisors at independent broker-dealers and RIAs, the new relationship is complementary to the existing arrangement Pershing has with American Endowment Foundation (AEF), a national, independent sponsor of donor-advised funds.
The collaboration with Crown Philanthropic Solutions and AEF benefits advisors by allowing clients charitable contributions to stay with their advisor, increasing the advisors assets under management, says Pershing.
In addition, advisors can focus on managing the assets rather than regulatory and legal matters. Crown Philanthropic Solutions provides training and educational resources for advisors that choose to set up a donor-advised fund program.
According to Pershing, this offering will help enhance the advisor's relationship with clients and their younger family members by enabling them to establish a legacy of charitable giving that perpetuates their family name and values.
Clients that decide to open their own fund can do so without the startup and ongoing administrative costs of a private foundation, providing advisors and clients a less costly alternative for charitable giving. Account minimums start at $10,000, significantly lower than typical minimum contributions required to open theses types of vehicles, says Pershing.