Two more companies have started donor-advised funds.
The first, OppenheimerFunds Inc., opened its first donor-advised fund to investors last Monday.
The second, J.P. Morgan & Co., opened its first donor-advised fund to investors last week.
The OppenheimerFunds Legacy Program lets donors set up an account with an irrevocable minimum initial donation of $10,000 in cash or stock. The funds are invested in one of two mutual fund pools growth or income until disbursed to IRS-registered charities.
A third, a money-market pool, is to accept exchanges from the growth and income pools, the company said. The donor gets an immediate tax benefit.
Oppenheimer said it will distribute the fund through financial advisers and broker-dealers.
Product manager Raquel Granahan said the donor-advised fund is part of Oppenheimers strategy to target affluent investors, many of whom work with financial advisers. Oppenheimer is planning a pooled income fund, she said, similar to a charitable remainder trust, which should appear around the middle of next year.
The Morgan Charitable Giving Fund invests clients money in one of eight J.P. Morgan mutual funds. Clients can set up their own portfolios and make contribution decisions or put their money into one or more of four pools that contribute to charities in a specific area: the arts, the environment, youth, or international causes.
The minimum investment is $25,000 in the donor-advised fund and $100,000 in the field of interest funds, with a minimum of $5,000 required to invest in any given field.
Its a way of providing yet one more service, said Hildy J. Simmons, a managing director and head of community relations and philanthropic services at J.P. Morgan. Were already managing money for them. Obviously it helps if we can manage [charitable] assets, too.
Charitable gift funds have proven popular with customers of other investment companies, such as Charles Schwab & Co. in San Francisco, Fidelity Investments in Boston, and Vanguard Group in Valley Forge, Pa. Schwab said Thursday that its Fund for Charitable Giving had gotten more than $100 million of donations after 14 months of operation.