Philanthropic Investing FAQ

A Donor Advised Fund (DAF) is a fund or account established at a Section 501(c)(3) public charity sponsoring organization to help people efficiently coordinate donations to charitable causes. As soon as an individual transfers money to a DAF, they surrender legal ownership over the funds and are eligible to receive the tax benefits of a charitable donation.  The donor is then able to advise on how the contributions are deployed for charitable use.

DAFs have exploded in popularity in the US over the past decade as they provide individuals with a convenient and efficient way to donate to charities while simultaneously de-linking the task of deciding how much you want to donate from the task of deciding to whom the funds should be granted.  

The unintended consequence of delinking these steps, however, is that individuals are often slow to allocate funds to a final recipient. In fact, over $328B currently sits unallocated in DAFs in the US.

DAF funds can be invested for tax-free growth, making available even more money for giving. Several sponsoring organizations have traditional means of investing and growing charitable dollars. Inspire Access allows DAF funds to grow while strategically investing in underrepresented founders of innovative, high potential companies.

If you thought money sitting in your Donor Advised Fund (DAF) could only be used to grant to 501(c)(3) organizations, you are not alone. This myth exists because on the largest DAF platforms it’s true. Perhaps surprisingly, this restriction is not due to IRS regulations but instead imposed by the DAFs themselves as the easiest way to prove their activities support a charitable purpose. Per applicable regulations, funds contributed to DAFs are required to be used for charitable purposes, but they are not limited to supporting only nonprofit organizations. 

Innovators in the field recognize that often the most effective path to significant charitable impact involves working with both nonprofit & for-profit organizations.  These innovators are structuring their DAF platforms and processes to enable funds to be invested in for-profit organizations so long as that investment is furthering the DAF’s charitable goals.

Yes. Most DAFs house your funds in traditional investment vehicles such as an index or money market fund. Inspire Access introduces a new option for you to play a more direct role in deciding how those funds are invested by enabling you to invest directly into companies run by underrepresented founders. This allows you to grow your charitable dollars while also investing in people and companies that align with your values.

Inspire Access wants to ensure that participating in our platform is accessible to everyone. If you don't have a Donor Advised Fund (DAF) or a private foundation, that's absolutely fine; you can still engage with us by investing personal funds and making a tax deductible donation.

If you are interested in learning more about how you can use tax-advantaged funds to invest in underrepresented founders, please reach out to us here.

Yes, there is a nominal fee to process the transaction. In an effort to make transactions as seamless as possible, there is an initiation fee of 1% at the time the donation is received. Inspire Access also retains 1% of investment returns. Note that this is the total proceeds (initial capital plus any gains) returned from an investment. This allows us to recycle 98% of the total value back into new impact opportunities or your charitable goals. There are no AUM, annual, or maintenance fees.

Inspire Access wants to make it clear that we cannot guarantee specific returns on your investment through our platform. However, we are dedicated to ensuring that any returns generated are directed towards the charitable entity of your choice, when participating in our Recoverable Grants Program. Our commitment is to empower you to make a positive impact through your investments, contributing to bridging the racial and gender investment gap.

You can recommend an investment by visiting our Investment Inquiry Form on our website. Simply complete the form by providing your name, email, and phone number, and specify if there's a particular company you'd like Inspire Access to invest in, please list it on the form. Use the message section to convey any additional details or preferences. Once the form is submitted, our team will promptly review your recommendation. You can expect someone from Inspire Access to contact you for further discussion and clarification. We appreciate your proactive engagement in shaping our investment portfolio and look forward to assisting you in the investment process.