for impact accounts and Designated IMpact Accounts
An Impact Account is a donor advised fund sponsored by Impact Foundation. It is your streamlined way to invest charitable assets in venture funds, private equity and private companies with positive social and Kingdom gain alongside financial return.
These Impact Account Program Guidelines form a legal document between you, the Donor, and Impact Foundation, which is considered executed when you open a fund online or suggest an investment for your Account via an Investment Recommendation Letter.
Impact Foundation’s Story
Our legal name is Impact Investing Charitable Foundation, Inc. d/b/a Impact Foundation, and we’re a Georgia nonprofit 501(c)(3) corporation (the “Sponsoring Organization” or “Foundation” or “we”). Founded in 2015, Impact Foundation has its roots in the generosity movement. Our founding team met while working with the National Christian Foundation helping givers simplify and maximize their charitable gifts.
We have a few key beliefs: First, God doesn't need our money, but in His kindness He allows us to participate in His work in the world. The means of our participation is generosity, simply another word for surrender. When we surrender ourselves--our finances, skills and talents, reputation, connections, indeed our very lives--to God for His work, He infuses them with His grace and accomplishes through us immeasurably more than all we could ask think or imagine. It's a thrill and a gift. That's why we can confidently say 'it's better to give than to receive.'
Second, we want to advance good around the world, i.e.; the hungry are fed, the orphan housed, justice carried out, etc for the glory of God. That means we are called to be smart in how we deploy our capital to accomplish good in the world. We need to research, measure, pray, learn what works and what doesn't, shift our methodologies, and pray some more.
The search for better ways to accomplish good in the world and our belief that business + charity can accomplish so much more led us to create Impact Foundation.
The Foundation is organized for, and operates exclusively for, exempt purposes within the meaning of Internal Revenue Code (“IRC”) § 501(c)(3). We will own and operate each charitable Impact Account, which is a donor advised fund as defined by IRC § 4966(d)(2), according to all federal and state regulations.
Your Account will be named and numbered and represented as such on the Foundation’s books and records, and is held at the Foundation’s financial institutions or invested according to the Foundation’s Investment Policy Statement.
The Foundation’s mission is investing charitable capital for economic, social, & spiritual transformation.
We will provide you with non-binding, advisory privileges concerning (a) grants and (b) investments of your Account in one or more approved Investment opportunities.
You may contribute to your Account immediately upon the acceptance of this Agreement and those contributions may be eligible for a tax deduction. If you grant from a donor advised fund at another foundation to your Account you will not receive a new charitable tax deduction. Your contributions will then irrevocably become part of the Account’s Assets (the “Account Assets”). After each Donor contribution is processed, you will receive a receipt at the very latest on or before January 31 of the following year. To the extent that you will itemize charitable deductions, since the Internal Revenue Service requires taxpayers to substantiate charitable deductions they claim, you should keep such confirmations with tax records for the year in which contributions are made.
Investment of Assets and Waiver of Claims Related Thereto (including UPMIFA Waiver)
Accepting these Program Guidelines means that you expressly acknowledge and agree that Account Assets may be invested in companies or other projects that may lose money, even to the point of losing all of the Account’s value. Foundation will be heavily invested in companies and projects that have a special relationship or a special value to its charitable purposes, and very rarely will an Account be diversified. AS SUCH, DONOR WAIVES ANY AND ALL CLAIMS REGARDING EITHER A FAILURE TO DIVERSIFY OR THE LOSS OF FUND ASSETS OR THE INVESTMENT ALLOCATION OF THE FUND. Such waiver includes, without limitation, any and all claims under the Uniform Prudent Management of Institutional Accounts Act (O.C.G.A. §§ 44-15-1 et seq.), the Uniform Prudent Investor Act (O.C.G.A. §§ 53-12-340 et seq.), and similar statutes, should private causes of action ever arise thereunder.
You may recommend grants from your Account by email or through the link on the website. As a donor advised fund sponsor, Impact Foundation is required to exert full legal control over all Account Assets to ensure that grants are only made to organizations exempt under IRC § 501(c)(3) that are organized and operated exclusively for exempt purposes within the meaning of IRC § 170(c)(2)(B). It is our practice to follow donor recommendations of grants to charities that advance our charitable mission. However, the Foundation may not grant to private foundations, individuals, nor disqualified supporting organizations. You will not personally be entitled, at any time, to any Grants from the Account, including income, interest, or principal.
(a) Recommendation Privileges. You may make non-binding and non-compulsory recommendations regarding investment of Account Assets within one or more pre-approved investment opportunities that are deemed by the Foundation to be program-related or mission-related investments that further its exempt purposes (“Investments”). We ordinarily try to honor recommendations regarding Grants to eligible public charities if the Account Assets are liquid or may be liquidated easily, unless it has reason to believe that such recommendations, if followed, might be contrary to IRS regulations or other applicable law. In addition, you may recommend that an investment be transferred to an eligible public charity in kind, subject to the investment company restrictions, if the grantee accepts receipt of the illiquid assets.
With regard to Investments, we attempt to vet and approve Investments in companies or projects that align with or further our purposes, and recommendations regarding participation in such Investments will ordinarily be approved, provided that liquid Account Assets exist. Donor acknowledges and agrees that, once Investments are made, recommendations to divest the Investment may be difficult or impossible. In any event, Foundation is entitled to disregard any recommendation made by Donor, to retain all or some of such funds rather than approving a Grant, to maintain the Account’s position within any or all of its Investments, and/or to distribute all or some of the Account to a different charitable organization than the one that Donor recommends. Donor understands that, in accordance with IRS requirements, any recommendation shall be advisory only, shall not be binding upon the Foundation, and shall not be the sole criteria used by Foundation in determining whether or not to make a Grant or an investment. In addition, Donor understands that the Foundation will not make Grants or investments in organizations or projects which it deems, in its sole discretion, to be antithetical to the cause of Christ or to Christian principles.
(b) Method of Recommendation. If you wish to recommend a Grant or Investment, you do so through email or any alternate means provided by Foundation.
(c) Evaluating Recommendations. The Foundation is entitled to evaluate your recommendations according to the interests of the Foundation in fulfilling its IRC § 501(c)(3) purposes. This includes, but is not limited to, ensuring that the charities, companies, or projects have purpose(s) provided by IRC § 170(c)(2)(B), that any Grant or Investment complies with Foundation’s policies and guidelines relating to the operation of its Account, and that the charity is in compliance with the IRC and other applicable laws.
(a) Establishing an Account. The Foundation will provide you with an Account when you agree to these terms and provide the information requested in order to establish the Account.
(b) Maintenance of the Account. In order to assure that the Foundation maintains the Account, you must continue to either make contributions to the Account, maintain Investments within the Account, or recommend Grants of amounts at or below the total value of the Account. If two years pass without such activity, then the Foundation ordinarily will close the Account, after notifying the giver, and distribute any remaining funds, either to other charities or to itself to cover administrative costs or other expenses. When an Account is closed, this Agreement is automatically terminated and the Donor no longer will have any right to access Account information, and no privileges with respect to recommendations involving such Account.
(c) Administrative Fees. Foundation may assess your Account an administrative fee, currently up to 1.5% annually of amounts invested. We will assess fees monthly (at one twelfth of the yearly fee) on the highest daily balance at any time in that month. We may also assess your Account for costs directly incurred in connection with our service to your Account. Those costs may include credit card processing fees or legal fees related to making an investment on behalf of your Account. Furthermore, please note that the Account Assets held in cash or ordinary money market accounts will not be credited with any interest or investment returns, and that administrative fees may change to the extent required to maintain the viability of the program.
Your Account, Control, and Income
Donor wishes to establish the Account, with the full knowledge that funds provided to Foundation shall be under Foundation’s sole legal ownership and control. When used in this document, any reference to “your Account” or “Donor’s Account” is merely for identification purposes regarding its creation and recommendation privileges, and it does not indicate any ownership over the Account by the Donor. Foundation owns and controls the Account and all Account Assets. The Foundation has all power and authority necessary to invest, reinvest, and manage the Account Assets in accordance with the purposes of the Account. All appreciation, interest or income earned from the investment of Account Assets will be the property of the Foundation, over which it has legal control, but such appreciation, interest, or income will accrue to Donor’s Account reduced by any applicable standard fees of the Foundation to support its operations.
Special provisions for designated accounts
A designated account is similar to a donor advised fund except that you select a single charity to benefit when establishing the account. Then, you can advise on investments and the timing or amount of distributions to the selected charity. We cannot change the charity beneficiary unless that charity ceases to exist or substantially changes its activities or purpose. Reasons for selecting a designated account may differ but often include: (1) love of a particular charity, (2) the desire to contribute from an IRA, or (3) uses that do not fit donor advised fund regulations.
This Agreement will be in effect until or unless terminated by either you or the Foundation pursuant to this Section. The Foundation may terminate this Agreement, with or without cause, at any time upon written notice to Donor. Donor may terminate this Agreement by closing its Account at any time and making a final Grant recommendation or forfeiting such privilege.
No Personal Use for Donors, Foundation, and Related Parties
No Grants or Investments from the Account may be used to discharge or satisfy a binding charitable pledge or obligation of any person, or to pay for goods or services of value received by Donor, by any spouse or relative of Donor, or by other individuals related to Foundation.
You represents and warrant that: (a) You are not establishing the Account nor contributing to the Account with any personal profit motive; (b) you do not expect any Grant of interest, income or principal from the Account; (c) you have read, and understand and accepted the terms and conditions of this Agreement; and (e) you will abide by all applicable federal and state laws, rules, and regulations, licenses or procedures pertaining to the subject matter of this Agreement, including but not limited to any tax reporting, compliance and disclosure rules, regulations and law.
Donor will indemnify and hold Foundation harmless relating to any claims, causes of action, suits, losses, damages, costs and expenses (including without any limitation, all reasonable attorney fees) caused by or in connection with Donor’s (1) breach of this agreement; or (2) gross negligence or willful misconduct.
Limitation of Liability
IN NO EVENT SHALL FOUNDATION BE LIABLE for any amount of incidental, consequential or other indirect damages, whether based on lost revenue or otherwise relating to the subject matter of this Agreement.
General Waiver of Claims
Donor hereby irrevocably waives any claim he, she, or it may have against the Foundation, its officers, directors, employees or agents based on any use, management, INVESTMENT or Grant of donor contributions and Account Assets, which assets donor understands no longer belongs to DONOR ONCE A CONTRIBUTION HAS BEEN COMPLETED.
If any part of this Agreement shall be deemed invalid, such provision shall be deemed severed from this Agreement, and the remainder of this Agreement shall otherwise remain in full force and effect.
The Foundation has the right to freely delegate duties and assign rights under this Agreement, including but not limited to reorganizing under a different charitable entity exempt under IRC § 501(c)(3); however, Donor has no right of delegation or assignment under this Agreement.
No failure or delay by either Party in exercising any right, power or remedy shall operate as a waiver of such right, power or remedy.
Compliance with IRC and Amendment
This Agreement is intended to comply with all aspects of the IRC and accompanying regulations concerning donor advised funds. Any provision of this Agreement not in compliance with such law shall be deemed invalid. Foundation is entitled to unilaterally amend this Agreement to comply with the IRC and accompanying regulations, or for any other reason it deems appropriate. Since Donors are bound by those revisions, Donor should review this Agreement each time it makes a contribution to your Account.
This Agreement should be deemed to have been executed and delivered in the State of Georgia, and all rights and obligations hereunder, including matters of construction, validity and performance, shall be governed by and construed in accordance with the laws of the State of Georgia.
Arbitration and Confidentiality
Any claim or dispute between the parties concerning questions of law or fact or both arising out of or relating to this Agreement, its interpretation or performance, or its alleged breach, which is not disposed of by agreement of the parties, will be resolved by binding arbitration by and under the rules of Peacemaker Ministries (or its successor) except as such rules are modified herein. Those rules are currently published at www.peacemaker.net. The parties covenant to keep such questions and arbitration proceedings confidential except as necessary to effectuate and/or enforce arbitration. The parties covenant and agree that they will not sue or otherwise bring actions against each other in any courts, that arbitration is their sole and binding remedy, that they waive their rights to sue or to appeal or to other remedies (except to the extent necessary to enforce the final award or finding), and that if this covenant not to sue and waiver are not legally effective then such arbitration is a prerequisite to any other remedy. The parties promise to abide and fulfill the final award or finding concerning such questions without recourse to any other court or tribunal, except to the extent necessary to enforce said final award or finding. Except as may be required by law, neither a Party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of both Parties.