Pershing to provide access to donor advised funds

FWR Staff

16 November 2006

BoNY unit enters into distribution deal with American Endowment Foundation. Pershing has linked up with the American Endowment Foundation (AEF) to make donor-advised funds part of a product platform aimed at independent broker-dealers and independent registered investment advisors (RIAs).

"Donor-advised funds are a low cost and strategic way for families and individuals to fulfill their philanthropic objectives," says Phil Tobin, president of the Hudson, Ohio-based AEF. "We are excited about the opportunity to work closely with Pershing and look forward to providing its customers and the clients they serve with flexible and efficient options to manage their charitable activities."

Grantmaking

A donor-advised fund is an alternative to giving directly or establishing a charitable foundation.

The deal means that AEF, a donor-advised fund sponsor, can recommend indie brokerages and RIAs connected with Pershing as donor-advised fund-asset managers. Pershing will act as custodian of the assets.

Pershing says adding donor-advised funds to its product roster expands an already "extensive suite of wealth and cash-management offerings."

Ron Fiske, managing director of Pershing's product development group, adds that the move to provide access to donor-advised funds is a response to the demand for "products and services that help their clients address philanthropic and charitable giving needs."

Jersey City, N.J.-based Pershing provides clearing and financial-service outsourcing to over 1,100 brokerages and investment advisories that have a total investor base of over six million. It's a subsidiary of the Bank of New York. -FWR