Now Reading
Merrill Lynch to Launch First-of-Its-Kind Community Charitable Fund
Merrill Lynch to Launch First-of-Its-Kind Community Charitable Fund
Published 02-25-03
Submitted by Merrill Lynch & Co., Inc.
The service will allow clients, with the advice and guidance of a Merrill Lynch Financial Advisor as well as the skill and due diligence of a leading community foundation, to best match the client's philanthropic goals with the charitable needs of the community.
With the Merrill Lynch Community Charitable Fund, clients can donate cash, stock, or other financial assets to the host community foundation and recommend how those assets are distributed over time, including the geographic destination. The service also includes a sophisticated investment management component, in which Financial Advisors will work with clients to help them choose and manage investments from a selection of internationally recognized managers.
"Merrill Lynch has changed the industry blueprint of the donor-advised fund market," said H. King McGlaughon, Director of Merrill Lynch's Center for Philanthropy & Nonprofit Management. "By bridging the gap between philanthropists and community foundations, the Community Charitable Fund helps clients meet their philanthropic goals in a customized and collaborative way."
Donor-advised funds are one of the fastest growing vehicles for charitable giving in the nation. According to a May 2002 report in the Chronicle of Philanthropy, assets at many of the nation's largest donor advised funds grew over 20% to $12.3 billion in 2001. The number of individuals who set up donor advised funds increased 25.9% in 2001. That trend is expected to continue, as charitable giving remains particularly important to families with significant wealth. According to the Independent Sector, 97% of families with a net worth in excess of $5 million give to charitable organizations annually. In addition, researchers at the Boston College Social Welfare Institute have noted that, of the estimated $41 trillion of wealth transfer over the next 50 years, $6 trillion will transfer to charities.
"We created the Merrill Lynch Community Charitable Fund because the needs of donors have changed," Mr. McGlaughon said. "Giving back to one's community used to be a relatively straightforward transaction. Today, however, there is a sophisticated financial management component to philanthropy as well as the likelihood that donors want to impact multiple communities -- perhaps where they grew up, studied or have worked."
Benefits of the Merrill Lynch Community Charitable Fund include:
-- Potential Income-tax Charitable Deductions
-- Excluded from Estate and Gift Tax
-- Additional Donations at Any Time
-- Tax-free Growth of Assets
-- Choice of Investment Styles from Internationally Recognized Managers
-- Recognition or Anonymity for Charitable Gifts
-- Ability to Name Co-advisors or Successor Advisors
-- May be Strategically Aligned with other Philanthropic Strategies
"Merrill Lynch clearly understands the necessary interplay between philanthropists and community foundations," said Alicia Philipp, President of The Community Foundation for Greater Atlanta, Inc. "The creation of the Community Charitable Fund acknowledges that only with the open dialogue, informed counsel and fiduciary due diligence that community foundations provide, will a client's philanthropic experience be truly positive and valuable. We view this partnership with Merrill Lynch as a win-win situation."
Merrill Lynch has long been a leader in philanthropic innovation through the Merrill Lynch Trust Company. Through its Center for Philanthropy & Nonprofit Management, the firm is uniquely positioned to understand and serve the needs of both individual philanthropists and nonprofit institutions. Merrill Lynch supports 2,500 family foundations, more than 6,000 charitable trusts and manages the assets of 30,000 public charities - a total of almost $24 billion in assets.
Merrill Lynch is one of the world's leading financial management and advisory companies, with offices in 36 countries and total client assets of approximately $1.3 trillion. As an investment bank, it is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. For more information on Merrill Lynch, please visit www.ml.com.
