Impact Investing Brochure

Impact Investment Donor Advised Funds

When it comes to philanthropic investments, focusi for the greater good of our communities, the environment means we have to choose between “doing well” and “do well and do good and understand that profit and purpose tomorrow. What is an Impact Investment? An impact investment is a direct contribution to a company, organization or fund that is intended to generate a positive, measurable social or environmental impact as well as a financial return. This includes contributions to private funds that have an investment thesis focused on improving the local communities and beyond. Recoverable grants, private equity and venture philanthropy funds are also impact investment strategies that donors may recommend for their donor advised fund assets. What is a Donor Advised Fund? A donor advised fund (DAF) through Investors Philanthropic (IP), a nonprofit 501(c)(3) organization, is a simple and efficient way to have your philanthropic assets managed without the time and effort required to manage the charitable assets yourself. Investors Philanthropic performs all the administrative work, [qualifies grant recipients and issues grants. BECOME AN IMPACT INVESTOR TODAY  Simply complete an application, available at www.InvestorsPhilanthropic.org, or call Valentina at (714) 478-3494.  Make a minimum initial contribution of $100,000, and Investors Philanthropic will do the rest.  You can name your own fund or remain anonymous.  You are welcome to bring your own Investment Advisors.

ing on both profit and purpose allows capital to be invested and the world. Focusing on investing for financial gain alone oing good.” Today’s investors want their contributions to do e must be pursued together if we are to truly create a better Benefits of Your DAF  Market Value Tax Deductions: Contributions to your DAF are tax-deductible in the year of contribution at fair market value and are set by a percentage of your Adjusted Gross Income (AGI) depending on the type of contribution you make. Plus, any unused tax deductions can be carried forward for up to five years. •  Tax deductions up to 60% of AGI for cash contributions. •  Tax deductions up to 30% of AGI for securities and other appreciated assets.  Tax-free Growth: Your IP DAF investments can appreciate tax-free.  Lowest Fees: IP DAFs have the lowest fees compared to foundations and other charitable investment services.  No Capital Gains Tax: Gifts of appreciated assets such as securities, real estate, illiquid hedge funds & other assets are not subject to capital gains tax.  No Estate Tax: Your DAF is not subject to estate tax.  Alternative Minimum Tax (AMT): If you are subject to AMT, your DAF contribution will reduce your AMT impact. We Formulate Custom Investment Strategies to Meet Investor Goals Once you apply and open your DAF account with your minimum initial contribution of $100,000, our team will meet with you and your investment advisors to learn about your charitable interests and will help formulate a custom investment strategy that includes private investments to best meet your philanthropic goals. For instance, if you are interested in using your DAF to support specific causes, you may wish to recommend your DAF assets be invested in social, environmental, or governance indexes, or cause-specific investments (e.g., renewable energy solutions in North America), thereby making a positive impact before you have even recommended your first grant. When you are ready to recommend grants, we connect your grants with qualified recipients and issue grants on your behalf and on your timeline. The purpose of an impact investment is to generate a positive social or environmental return as well as a financial return. If DAF assets are invested in impact investments, in most cases, any financial returns are tax-free and can be reinvested or used to make additional charitable grants.

Types of DAF Investments Prudent, Non-impact Investments: Investments bound by the state prudent investor laws, without consideration of impact. Prudent Impact Investments: Investments bound by the state prudent investor laws, intended to generate impact. Charitable Impact Investments: Investments that meet IRS charitable requirements, intended to generate impact. Charitable Non-investments: Gifts or grant distributions (charitable grants) intended to generate impact but not financial returns. Investors Philanthropic will determine, on a case-by-case basis, which type of investment is appropriate for each investment recommendation. A number of factors are considered, including expectations of financial return, direct or indirect impact, liquidity, risk, and whether the underlying company or project might have a difficult time raising money from non-philanthropic sources. Questions & Answers  Donor’s Ability to Advise Impact Investments: Does Investors Philanthropic allow donors to bring forward impact investing opportunities? Yes.  Availability of Impact Investing Options: Does Investors Philanthropic provide pre-vetted impact investing options to its donors? Yes.  Extensiveness of Impact Investing Options Across Asset Classes: What does Investors Philanthropic offer today, and what can we expect to see in the future? Collaborative and extensive alliance with Rev Hub OC for more impact investment opportunities.  Ability to Recommend Additional Managers: Does Investors Philanthropic allow donors to recommend additional fund managers? Yes.  Minimum Fund Size: Is there a minimum fund size, and if so, what is it? Yes, the minimum initial contribution is $100,000 to open a DAF account. Contact Valentina: 714.478.3494 [email protected] www.InvestorsPhilanthropic.org