What Is It?
The Liquidity Account represents a small portion of assets held at ÍõÖÐÍõÁùºÏ²Ê×ÊÁÏ. It allows ÍõÖÐÍõÁùºÏ²Ê×ÊÁÏ’s quarterly administrative fees to be withdrawn without investment disruption. It is replenished annually.
How Does It Work?
When a Donor Advised Fund is established, ÍõÖÐÍõÁùºÏ²Ê×ÊÁÏ will typically request an initial contribution to the Liquidity Account of 1% of the donors’ Fund balance. The remaining assets stay in the Investment Account.
- Quarterly, ÍõÖÐÍõÁùºÏ²Ê×ÊÁÏ will assess its administrative fee from the Liquidity Account.
- Annually, ÍõÖÐÍõÁùºÏ²Ê×ÊÁÏ will send out a Letter of Authorization (LOA) withdrawal request for liquidity replenishment for all Funds.
Where Is It Held?
Liquidity Accounts for each ÍõÖÐÍõÁùºÏ²Ê×ÊÁÏ DAF are held in cash equivalents such as money market funds and short-term U.S. Treasuries. Earnings are credited to each Donor Advised Fund monthly.
If you have specific questions about your Liquidity Account, please us or call 1-844-235-2331.
