Give Interactive has launched an expanded investment management platform designed to help donor-advised fund sponsors and private foundations administer more sophisticated investment programs. The release introduces multi-layer net asset value infrastructure that allows charitable organizations to create and manage fund-of-funds structures directly within Give Interactive’s platform.
A donor-advised fund, commonly known as a DAF, allows donors to contribute assets, receive an immediate tax deduction and recommend charitable grants over time. As these accounts have grown in size and complexity, sponsors have increasingly sought investment capabilities similar to those available through institutional wealth management platforms.
Give Interactive’s new infrastructure allows organizations to create top-level funds that allocate capital across multiple underlying investment pools. Each layer can maintain its own net asset value calculation and unitized accounting while providing visibility into the assets held throughout the structure.
Net asset value represents the value of a fund’s assets after subtracting its liabilities. Multi-layer NAV capabilities are particularly important for fund-of-funds programs because each underlying pool must be valued before the value of the overall portfolio can be calculated.
Give Interactive said DAF sponsors and foundations have traditionally relied on outside investment managers and external vehicles when offering customized or multi-manager strategies. This approach can introduce additional fees, operational complexity and limited visibility across the investment structure.
The expanded platform allows sponsors to administer their own multi-layer investment products and act as the investment manager for those offerings. Give Interactive believes bringing these capabilities in-house can reduce fee layers and operating expenses while giving institutions greater control over product design.
The platform supports separately managed accounts across different custodians, allowing organizations to preserve existing investment and institutional relationships. It also supports single-layer unitized pools that calculate a daily NAV and assign units to participating accounts.
Its fund-of-funds functionality enables top-level portfolios to invest across underlying unitized pools with independent valuations at each layer. This structure can support multiple investment managers, sub-advisor diversification and tiered impact-investing programs.
Give Interactive also supports directly held investment portfolios, cash management strategies, private equity and other alternative assets. Its alternative investment capabilities include capital-call administration, percentage-based valuations and accounting for investments that are not structured as unitized funds.
The company developed the platform with input from major charitable organizations. Give Interactive said the new capabilities are the result of a multi-year effort to build institutional-grade investment, compliance and operational infrastructure for foundations and DAF sponsors.
The platform is also intended to support growing interest in impact investing, environmental, social and governance strategies, and mission-aligned portfolios. Its multi-layer architecture can be used to administer blended finance vehicles, multi-manager ESG strategies and investment programs organized around different levels of social impact.
Give Interactive believes investment flexibility will become an increasingly important competitive factor for charitable organizations seeking to attract donors, financial advisors and institutional relationships. The company expects more donors to view charitable assets as part of their broader investment and wealth-planning strategies rather than as simple grant-making accounts.
Give Interactive provides technology for charitable asset administration, fund accounting, donor portals, grant compliance and reporting. Its cloud-based, API-first platform supports billions of dollars in charitable transactions annually, according to the company.
KEY QUOTES:
“Over the next decade, we believe investment flexibility will become one of the defining competitive advantages for DAF and Foundation administrators. The organizations that can offer sophisticated investment options while maintaining operational excellence will be best positioned to attract donors, advisors, and institutional relationships.”
“We have spent years building the infrastructure to make that possible, and the fund of funds launch is our most recent and most advanced expression of that commitment.”
“Our goal is to remove the operational barriers that have historically limited innovation. When technology can support sophisticated investment strategies at scale, charitable organizations are free to focus on delivering better outcomes for donors and greater impact for the causes they serve.”
Lucas Cherry, CEO of Give Interactive
