Introducing Target Allocations: Personalized Portfolio Management for Your DAF
By Endaoment
Target Allocations allow you to personalize your giving strategy by setting desired percentage distributions across Endaoment's diverse range of portfolio options.
Tailored Investing Made Easy
We're excited to announce a new feature that gives you more control over how your donated funds are invested and distributed. With Target Allocations, you can quickly specify the ideal mix of portfolio allocations within your donor-advised fund (DAF) to align with your philanthropic goals and preferences.
Whether you want to allocate more towards impact investments, or balance your fund with a mix of traditional and crypto assets, the choice is yours.
You can set up to five target allocations for your fund, with each allocation requiring a minimum of 5% of your total fund value. If the total of your allocations is less than 100%, the remainder is automatically considered grantable, ready to be donated to the causes you care about.
Flexible Control at Your Fingertips
We've designed the Target Allocations feature to be intuitive and user-friendly. You'll find a dedicated "Target Allocation" section on your fund page, complete with clear graphical representations of your current allocations.
You have the flexibility to change your target allocations at any time, allowing you to adapt to market conditions or shifts in your giving priorities. Whether you're setting up allocations for the first time or fine-tuning your existing strategy, the process is streamlined and straightforward.
Seamless Integration with Your Giving Workflow
Target Allocations integrate seamlessly into your donation process. When making a contribution to your fund, you'll have the option to automatically distribute it according to your set allocations. This ensures your giving strategy remains consistent and aligned with your intentions, without requiring extra steps.
Our system intelligently determines when to present this option, taking into account factors such as the donation size and your existing allocations to manage your contributions efficiently and effectively.
Keeping Your DAF in Balance
As you make contributions and grants from your fund, your actual portfolio allocations may drift away from your set targets. To keep your fund aligned with your desired distribution, you can easily rebalance your holdings with a single click.
On your fund page, you'll see a "Balance Positions" button next to your current allocations. Clicking this button initiates a rebalancing transaction, which adjusts your fund's assets to match your target allocations.
To ensure rebalancing transactions are impactful and efficient, certain criteria must be met. For traditional portfolios, a minimum movement of $500 is required, while for all other portfolios, the minimum movement is set at $100. Additionally, the offset from the target allocation must be at least 5%.
These thresholds strike a balance between maintaining your desired allocations and minimizing unnecessary transactions. By setting a higher minimum for traditional portfolios, we account for the associated transaction costs and ensure that rebalancing is cost-effective.
While the current implementation allows you to initiate rebalancing transactions yourself, giving you hands-on control, we're already working on automating this process. This will provide a seamless, hands-off experience while ensuring your fund always aligns with your specified distribution ratios.
Empowering Your Philanthropic Journey
Our mission is to empower you to make the most of your charitable giving. The introduction of Target Allocations is a significant step towards providing you with the tools and flexibility to personalize your giving strategy and maximize your impact.
We believe that by offering features on par with leading traditional DAF providers, combined with the unique advantages of blockchain technology, we can revolutionize the way people approach philanthropy. Target Allocations bring us closer to that vision, giving you even more control in managing your charitable assets.
We're excited for you to start using Target Allocations and experience the benefits firsthand. As always, we value your feedback and suggestions as we continue to enhance the Endaoment platform.
If you have any questions or need assistance setting up your target allocations, our team is here to help. Reach out to us via Discord, Twitter, or email at partnersh@endaoment.org.
