Unique Donor Investment Options: Concentrated Positions and Direct PE/Real Estate Investments in DAFs, SOs and LLCs

A few years ago, we began getting approached by donors, advisors, and other charities with an unusual question - if a donor gave us cash, could we use that to invest in a private investment opportunity?  Or, how would we handle a concentrated public stock position? 

This question came up more and more often, and after much discussion, we decided to consider this sort of direct or alternative investment which now represents about $600 million in our Dechomai Foundation/Asset Trust assets.  Should other charities look at the possibility of making direct investments based on donor advice and what were all of our considerations?

This session will examine the advantages and possible stumbling blocks of these investments: 

• Different types of investment (startup, venture capital, real estate investment)
• Funding mechanisms and logistics
• Investment due diligence and onboarding
• Monitoring the investment and getting a return
• Fiduciary oversight and diversification
• Aggregated charitable payout considerations
• Charitable Vehicle Overview:  DAFs vs. Designated Funds vs. Supporting Organizations vs. LLCs

Many high and ultra high net worth donors have access, acumen and interest in doing higher expected return investments – they tend to be very charitable dealmakers and want that gift to inure to maximize charitable impact as well.  Many aren’t especially excited about having their charitable assets invested in a Balanced Index Fund when they grew their wealth by making private investments in the first place.  This session will provide attendees with insights into this unique type of donor and what alternative solutions may work best.

Please join Bryan Clontz, Ph.D., CFP®, AEP®, CAP® and Ryan Raffin, JD, CAP®