A Donor Advised Fund -
The flexibility it gives you for your investment

Prism the Gift Fund

June 2019

Kitty Harris, Relationship Development Manager at Prism the Gift Fund, explains what a Donor Advised Fund (DAF) is and why a DAF is the future of philanthropy for donors wanting to give to good causes around the world.

“Set up your own Foundation with the Charity Commission” is the answer many individuals receive when they decide they want to donate large gifts and grants to charities close to their hearts. This advice may have come from their lawyer, wealth advisor, family or friend; and in the majority of cases is given due to lack of knowledge of other giving vehicles.

In truth, setting up a Foundation is legally onerous, expensive and time consuming; with a whole host of responsibilities and due diligence placed upon your trustees. In order to avoid the cost, time and complexity of this, an alternative is to set up a Donor Advised Fund (DAF).

A DAF is a named, ring-fenced charitable account administered by a public charity, the funds of which can be distributed according to the wishes of the account holder/s. Prism the Gift Fund (‘Prism’) is a UK registered charity and an individual can have their DAF operated under Prism’s regulatory roof whilst granting out to charities around the world with the peace of mind they are being complaint with UK charity law. Prism provides the administration, compliance and governance while clients can create an “Own Name Foundation” – an account at Prism. Gifts can also be made to charities anonymously.

Professionalising Philanthropy in the UK has been developing considerably over the last 20 years; DAFs in the US are commonplace and have been since the 1990s. High Net Worth individuals may have lawyers for their legal needs, asset managers for their wealth and understandably want to have their philanthropy managed professionally too.

Prism aims to educate and increase awareness of DAFs so we can increase the flow of funds to the charitable sector. In June 2018, Prism’s year end, there was income of over £40 million and Prism distributed £32 million to charities all over the world; there is currently £90 million of assets being held in a number of different structures, from traditional asset managers to hedge funds and bonds. Donors with an account at Prism can make a gift of cash, shares and property to their DAF. Donors can request to have the assets in their charitable account invested.

Prism’s investment strategy is diversified and allows donors to look at a mix of strategies. Some have chosen Israel Bonds as a desirable investment, and these donors have asked Prism to buy Israel Bonds from their DAF. Any return is then allocated back into their DAF for either future investment or to donate to charities all over the world. In this way, donors are also supporting Israel and have a portion of their DAF at Prism in a sound and prudent investment.

Prism’s CEO and Co-founder, Anna Josse, believes we can reshape how people enjoy philanthropy in this country. She said “although we’ve never really invested in marketing, we do now believe it’s our duty to spread the word about how easy it is to have a DAF. Prism’s objective is to encourage giving, to educate people and to enable them to swiftly, efficiently and effectively give all over the world – that’s our vision and that’s where we’re heading.”

As a charity, Prism does not give advice. Prism wants to encourage conversations around philanthropy and DAFs; making it easier and simpler to get donations out all over the world

For more information please email Kitty Harris: kitty@prismthegiftfund.co.uk

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This article reflects the financial views of “Prism the Gift Fund.” Development Company for Israel (International) Limited/Israel Bonds has not investigated these views and makes no endorsement of the information provided. As with any part of your financial plan, you should always consult with your financial advisor to ensure the plan is suitable for your situation and meets with the rules and regulations in applicable to you.