American Funds now offers a special benefit to financial professionals (licensed to sell mutual funds) who refer clients to The Rhode Island Foundation.

If your client chooses to establish an endowment here but have the Foundation invest the donated assets in American Funds, American Funds will pay you both an upfront “broker” fee and trailing (12(b)-1) fees for as long as the Foundation continues to invest those assets with American Funds.

How it works:

• Any financial professional (licensed Series 7 or 6) who uses American Funds may refer a client to The Rhode Island Foundation (RIF) to set up a permanent endowment.   
• The client gifts tax deductible assets to RIF to establish the fund.  
• RIF owns the assets but contracts with American Funds Group (AFG) to manage them in accordance with the Foundation’s investment policies and asset allocation model.

Benefits to the financial advisor:

• Advisor adds charitable planning to his/her repertoire of services.
• Up-front “broker” fee (paid by AFG)
  --1% on the first $4 million held by the Foundation;
  --50 basis points on the next $6m held by the Foundation;
  --25 basis points thereafter.
• Trailing fees (12(b)-1 fees). 
  --25 basis points each year for AF shares held by the Foundation over one year
• Advisor retains trailing fees even if the donor switches advisors.
• You help your client convert non-performing assets to fee-generating charitable use.
• Generate fees through estate planning.
• Multi-generational planning opportunities.

Benefits to Your Clients:

• Tax benefits of charitable planning.
• Expert counsel in charitable giving.
• Access to all of the Foundation charitable products and services.
• The joy of “giving something back” to the community.