Legacy External Advisor Program
At Legacy Foundation we are committed to providing strategic leadership and impactful philanthropic support that strengthens our local communities.
We now offer donors the flexibility to recommend their own trusted Investment Advisor when opening an endowed fund, through our Legacy External Advisor Program (LEAP). This custom approach allows donors to benefit from the philanthropic expertise of the community foundation, while keeping charitable assets with a valued advisor.
Benefits to the Donor
- Keep charitable assets under the management of the current investment advisor, subject to Legacy’s approval.
- Gain from Legacy’s valuable community relationships, grantmaking experience, due diligence and administrative services.
- Give to any U.S. based charity in or outside of Lake County.
- Make grants anonymously if desired.
- Maximum tax advantages over creating a private foundation.
How It Works
The donor establishes an endowed fund of at least $250,000* with Legacy Foundation and recommends a registered Investment Advisor to manage the donor’s assets. Legacy’s Investment Committee reviews the recommended advisor’s credentials and application.
The donor signs a fund agreement with Legacy Foundation outlining the charitable purpose of the fund. The Investment Advisor, if approved, develops a portfolio aligned with Legacy’s Investment Policy Statement, with the goal of growing those assets to meet Legacy’s and the donor’s grantmaking goals.
All donors receive online access to view fund activity, gifts, grants, and balance. Donors can add to the fund at any time and with a variety of assets (cash, stocks, real property, etc.)
*A gift of a lesser amount may be considered for external management, if the Donor is requesting to retain an already approved advisor.
Legacy Foundation Funds
Legacy Foundation holds over 350 funds established by individuals, families, and organizations to support the charitable causes they care about. Generous donors and prudent stewardship have grown the Foundation’s assets to approximately $80 million. Annually, grant awards total over $3 million and scholarship awards total over $1 million.
What Types of Funds Can the Donor Establish?
Agency Fund
To provide perpetual annual income for a nonprofit. Agency Funds are typically established at the request of a charitable organization for its own exempt purposes.
Designated Fund
To support a specific named organization
Donor Advised Fund
To provide flexible and streamlined giving for those who want to be actively involved
Field of Interest Fund
To support a broad interest area
Scholarship Fund
To assist students in a particular field of study, high school, university or from a geographic area
Unrestricted Fund
Supports Legacy Foundation’s local community grantmaking and key programs and initiatives in Lake County. (Currently qualifies for a $2-for-$1 match!)
Frequently Asked Questions
Generally, funds established at Legacy Foundation have been invested with the Foundation’s main asset manager. LEAP is a custom investment approach that allows a donor to recommend a specific financial advisor to which the Foundation’s Investment Committee and Board of Directors may delegate the responsibility for investment of the fund’s specific assets.
Yes. The minimum dollar amount required to establish a new fund with an External Advisor is $250,000. A gift of a lesser amount may be considered for external management, if the donor is requesting to retain an already approved advisor.
There is no set-up fee to open a fund at Legacy Foundation. Legacy’s administrative fees range from 1%-3% and are considered a gift to Legacy’s Operational Fund and sustain our efforts to provide effective services to nonprofits and donors. The fee schedule is available upon request. Fees charged by the Investment Advisor will be in addition to Legacy’s administrative fee.
Assets are managed in an account owned and titled in the name of Legacy Foundation. While the donor may identify the purpose of the fund, the donor exercises no control over the account.
To provide maximum flexibility and convenience for our donors, the External Advisor Program is open to Investment Advisors at any firm that can open a custodian account in Legacy’s name, which should include most platforms. Eligible financial institutions must be SEC Registered Investment Advisors (RIA); financial institutions regulated by the FDIC or financial advisors/brokers supervised by FINRA.
Once Legacy Foundation has reviewed and approved the advisor’s application, the advisor will be expected to maintain compliance with LEAP’s reporting requirements. Provide monthly statements quarterly performance review against Legacy’s benchmarks, and report any material changes to the firm or portfolio management process.
