Giving Your Clients the Best of Both Worlds
January 29, 2026
Advisors play a central role in helping clients think through meaningful charitable giving. When a client is considering a large charitable gift or a transition from a private foundation to a donor advised fund, that role can become even more important — and sometimes more complicated.
Clients may want the giving expertise, administrative ease and community knowledge of Madison Community Foundation, while also retaining your expertise in managing the assets they contribute. MCF’s new Third-Party Asset Management program is designed to make that possible.
The program gives donors access to MCF’s charitable services while allowing their investment advisor to continue managing the gifted assets, within MCF’s investment framework.
How the program works
Through the Third-Party Asset Management program, a donor establishes a donor advised fund at MCF and recommends their existing advisor to manage the fund’s investments.
Here’s how responsibilities are shared:
- MCF handles charitable oversight, grantmaking administration, compliance and reporting.
- The donor recommends distributions in line with MCF’s policies and procedures.
- The advisor continues to manage the portfolio assets.
Once an advisor is approved to participate in the program, MCF will open an investment account at the advisor’s firm to receive the donor’s irrevocable contribution of assets. The advisor retains discretionary authority regarding investment of the assets, following MCF policies and the strategy outlined in the Investment Policy Statement and subject to the terms of the Investment Management Agreement.
”Third-Party Asset Management lets clients tap into MCF’s charitable expertise while retaining the expertise of their trusted investment advisor.
Who the program is designed for
The program is intended for donors opening a new fund at MCF with an initial contribution of at least $2 million. It is often a good fit for:
- Clients who want to establish a donor advised fund supporting one or more organizations over time.
- Clients who are interested in transitioning from a private or family foundation to a donor advised fund.
- Clients who want to achieve their charitable goals and are most comfortable trusting their advisor to manage their gifted assets.
Donors interested in participating in the program simply need to complete an Investment Advisor Recommendation Form asking that their advisor continue to manage the funds they are transferring to MCF. The advisor then completes an application so MCF can do the due diligence required to confirm their eligibility to participate in the program.
Advisor participation requirements
To ensure consistency and strong oversight, investment adviser firms must meet several requirements, including, but not limited to, the following:
- They must be:
- Registered as an investment adviser with the SEC and operated by one or more investment adviser representatives registered as such with applicable state regulators,
- A bank or trust company regulated under federal or state law, or
- Another type of organization authorized under applicable law or regulation to manage investment assets.
- Their client base must include clients who reside or operate a business in Dane County.
- They must be able to construct an investment portfolio that is aligned with one of MCF’s third-party asset management investment strategies (Growth, Balanced or Capital Preservation).
Once approved for participation in the program, advisors will confirm continued compliance with these eligibility requirements annually.
Learn more
If your client is interested in establishing a donor advised fund or considering the transition from a private foundation to a donor advised fund, and you are interested in learning more about MCF’s Third-Party Asset Management program, our Donor Engagement team would be happy to speak with you! Please contact us at 608-232-1763 or email us at legacy@madisongives.org for more information. You can also learn more by visiting our ‘Working with MCF’ page.
