An SMA at the advisor's existing custodian loads in their reporting system (e.g. Addepar) like any other client account. No reporting gap, back-and-forth emails, or awkward client experience from a pooled fund. Phil Advisors handles the SMA operations, so you won't hear an advisor say:"I don't want to have to divest assets and wire funds every time my clients want to make a grant."

Charitable giving is a great way to engage heirs in the Great Wealth Transfer and leads to deeper conversations when the assets are under the advisor's management. Advisors who manage the DAF have a natural reason to bring heirs into the relationship early around investment strategy, planned giving, and philanthropic values, increasing the likelihood of additional contributions and the continuation of the fund.

When assets flow into a pooled fund, advisors lose the ability to manage the investments and collect fees, which weakens their incentive to discuss the account. More than 30% of advisors would be less likely to recommend a DAF to a client if they were not able to be compensated for their services managing the invested assets, according to the survey.

The growth of advisor-friendly commercial sponsors like Fidelity Charitable, DAFgiving360, and National Philanthropic Trust reflects a simple truth: when advisors can manage the assets and keep the relationship, they recommend DAFs more, fund them more heavily, and stay closer to the client. SMAs help your foundation compete for that advisor attention.