In mid-October, 2002 the Board of Trustees of Richland County Foundation approved a resolution authorizing the Foundation’s participation in the American Funds “Community Foundation Program.”
The American Funds Group is one of the nation's oldest mutual funds family, serving since 1931 and with more than $775 billion under management. They are distributed through financial advisers because of their belief in the value of professional advice.
The Program provides professional advisors with an opportunity to recommend philanthropic gifts without reducing the value of assets available for service fees.
Here’s how it works: You introduce your client to the charitable giving options offered by Richland County Foundation. The Foundation can facilitate gifts of cash, appreciated securities, real estate, and other marketable assets.
If, as a result of this introduction, your client decides to direct a charitable gift to the Foundation, the Foundation may invest that cash gift, or the proceeds from the sale of assets, in American Funds. If the Foundation invests in American Funds, you can earn commission on that investment. (See your American Funds Broker’s Guide for the commission schedule on sales at NAV.)
In addition, after assets are invested for twelve months, you will receive an annual trailing service fee of 25 basis points for as long as those assets are held by the Foundation and invested in American Funds.
Aside from the potential for commissions and service fees, the American Funds “Community Foundation Program” offers a number of other benefits.
Working with the Foundation can help you increase the value of your services to your clients. Helping to create a charitable giving plan that maximizes tax savings and satisfies your clients desire to leave a legacy for their family and their community can be an extremely valuable component of any financial planning practice. In fact, according to a recent TPI study, advisors who engage their clients in philanthropic planning typically manage a greater percentage of clients’ assets over a longer period of time than those advisors who do not raise “the philanthropic question” (Doing Well by Doing Good).
A relationship with Richland County Foundation may also help to raise the profile of your practice in the community. And, by encouraging your clients to work with the Foundation, you will be assisting the Foundation in its mission to improve the quality of life in Richland County.
To learn more about this program, please contact Vice President for Finance and Operations, Doug Freer at the Foundation at 419.525.3020. Email Doug. To learn more about American Funds products, and the opportunity to market them, please contact Bob Durbin, American Funds regional wholesaler by calling 800.421.4226.