Financial Advisors Program
The Financial Advisors Program allows donors to recommend a financial advisor or firm to invest charitable funds created at the Central New York Community Foundation. The investments for these charitable funds are managed by financial advisors or firms outside of our primary investment pools.
This program offers a number of benefits for financial advisors and donors:
Asset Retention: Advisors can retain and manage client charitable assets at their financial institution on an ongoing basis on behalf of the Community Foundation.
Non-managed Assets: Non-managed client assets, such as real estate, closely held business interests, personal property and art can be converted into charitable funds that are managed through the program.
Philanthropic Services: Financial advisors can offer philanthropic consulting services to their clients by connecting them to the Community Foundation – adding value to their investment services and client relationships. With more than 80 years of experience, we are able to bring significant community knowledge to bear in crafting creative approaches to clients’ charitable goals and objectives.
Program Policies and Criteria
The Community Foundation’s Board of Directors has approved a policy statement for the Financial Advisors Program. Program highlights include:
Fund Minimum: This program is open to funds with minimum balances of $500,000. Funds with balances less than $500,000 may be invested in one of several other investment options we maintain listed on page 2.
Investment Allocations Strategies: We have adopted four model investment allocation strategies reflecting a variety of risk tolerances, time durations and philanthropic purposes. These include: Short Duration Fixed Income, Core Fixed Income, Balanced and Growth strategies.
Reporting and Benchmarking: Our Finance Committee and investment consultant will periodically review investment performance of funds managed through the program against applicable benchmarks.
Identifying Clients Who Qualify
Some typical examples of clients appropriate for this program include those who:
- Are planning to sell a private company or have high capital gains tax exposure
- Are contemplating life transitions—whether they are retired, have no children or are making estate planning decisions
- Want a charitable tax deduction now with the flexibility to make grants over time
- Want to grow charitable contributions tax-free over time
- Desire to create endowments benefitting multiple nonprofit organizations
- Desire to give something back to Central New York communities
- Are involved in multiple charities, civic causes or issues
- Want to engage their children or family members in philanthropy
Bequests and Planned Gifts
Clients can name a fund to benefit from a percentage of their estates, as the remainder beneficiary after other gifts are made or utilize other gift options.
Charitable Trusts: Clients can establish a Charitable Remainder Trust or Charitable Lead Trust and name the Community Foundation as the beneficiary to create any type of charitable fund and purpose.
Private Foundation Termination: A client might consider terminating an existing Private Foundation in order to simplify their giving or address succession planning issues.
Retirement Plans: Naming the Community Foundation through a retirement plan beneficiary designation can be a very tax-efficient way to make a charitable gift.
Other Investment Options
We maintain several investment pools and options.
CNYCF Permanent Investment Pool: The permanent investment pool is our primary investment vehicle, representing more than $100 million in commingled invested assets for most of our 500 component charitable funds. This pool’s current allocation is: 55% equities, 22% fixed income and 23% alternatives.
CNYCF Short Term Liquidity Pool: This investment pool is appropriate for funds with short-term horizons for grantmaking purposes or donors desiring no market exposure for their funds.
American Funds Mutual Funds: For funds with balances of less than $500,000, donors may request an allocation to a portfolio of American Funds mutual funds. A donor’s financial advisor is listed as the referral source of record with American Funds.
Socially Responsible Investments: For donors desiring particular social screens or investment approaches outside these options above, we can craft personalized investment structures reflecting their goals.