Charitable Giving

The Franklin Charitable Giving Program is a donor-advised fund1 that provides clients a simple and flexible way to give to their favorite charity. Contributions are irrevocable, immediately tax-deductible, and can be invested to grow tax-free. When they’re ready, your clients can make grant recommendations to causes that are important to them. Families can even establish multi-generational charitable giving.

Since 2005, Franklin Charitable Giving Program has been serviced by Renaissance Charitable Foundation, an industry leader in philantrhopic charities. The Franklin Charitable Giving Program has helped Donors grant almost $700 million to charities over the last 18 years.2

Five Reasons Clients Like the Franklin Charitable Giving Program

  1. Simplicity. A single contribution allows clients to make grants to multiple charitable organizations.
  2. Tax Benefits. Donations are fully deductible in the tax year they're made. Individuals can also donate appreciated securities and realize their full fair market value as a charitable contribution deduction without incurring capital gains taxes.
  3. Growth Potential. Contributions are invested and have the ability to grow tax-free, enabling individuals to potentially give more over time.
  4. Legacy. Multiple successors can be named to the account, to carry forward the legacy of charitable giving.
  5. Anonymity. If desired, clients can choose to keep all grant information confidential.

Five Reasons Advisors Like the Franklin Charitable Giving Program

  1. Stronger Relationships. Deepens relationships with high net-worth clients by providing an effective tax and estate-planning tool to help them achieve their financial and philanthropic goals.
  2. Family Ties. Build relationships across generations to retain assets when wealth passes from current clients to family members.
  3. Ongoing Revenue. Financial advisors receive a recurring trail of 100 basis points annually for equity funds and 65 basis points annually for fixed income funds on assets in Franklin Charitable Giving Program. Financial advisors are paid quarterly.
  4. Asset Acquisition. Attract new assets from your existing client base and from other institutions with similar products.
  5. Asset Retention. Keep assets that might otherwise be liquidated and redirected to other financial institutions or donated directly to charity.

HOW THE PROGRAM WORKS

Give

Opening an account is simple. Clients make an irrevocable donation of personal assets (cash or securities) to Renaissance Charitable Foundation, Inc. (RCF).

Minimum donation = $5,000

Subsequent donation minimums =$1,000.

Get

In addition to the satisfaction that giving to a charity can bring, your clients can also take an immediate tax deduction for the contribution in the year it is made.

 

Grow

Each time a donation is made, clients choose from one of four pre-defined investment strategies or create their own investment strategy or default into the Franklin Growth and Income Strategy.

Grant

Clients can recommend grants to qualified charitable organizations of their choice and on their own schedule.

  • Submit an online grant recommendation ($50.00 minimum)
  • RCF approves the recommendation.
  • RCF sends the grant to the approved charity.

 

To open an account, visit ft.donorfirstx.com or call Renaissance at (800) 843-7997.

Investment Options

Franklin Corefolio® Strategy

Invests in four equity funds. Offers the potential for long-term growth and significant diversification across multiple industries.

Franklin Growth Opportunities Fund (25.0%)

Franklin Growth Fund (25.0%)

Templeton Growth Fund (25.0%)

Franklin Mutual Shares Fund (25.0%)

Franklin Growth and Income Strategy

Invests in equal allocations (33 1/3%) in three funds. Seeks both capital appreciation and potential current income by investing primarily in income-producing equity securities.

Franklin Equity Income Fund (33.3%)

Franklin Rising Dividends Fund (33.3%)

Franklin Mutual Shares Fund (33.3%)

Franklin Founding Funds Strategy

Invests in equal allocations (33 1/3%) in three value-oriented funds—each a flagship fund with a 50-year track record. Offers diversification across multiple asset classes and a record of relatively lower volatility with the potential for attractive long-term results.

Franklin Income Fund (33.3%)

Templeton Growth Fund (33.3%)

Franklin Mutual Shares Fund (33.3%)

 

 

Franklin Fixed Income Strategy

Invests in equal allocations (50%) in two income funds. Seeks current income by investing in a variety of debt and income-producing securities.

Franklin Total Return Fund (50.0%)

Franklin U.S. Government Securities Fund (50.0%)

Create Your Own Strategy

Donors can create their own personal giving strategy by allocating their contribution among the following funds (total must equal 100%).

Global

Blend

Growth

Income

Value

Hybrid

For more information, contact Renaissance at (800) 843-7997.

Important Legal Information

This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. As a financial professional, only you can provide your customers with personalized advice and investment recommendations tailored to their specific goals, individual situation, and risk tolerance.

Franklin Templeton does not provide legal or tax advice. Federal and state laws and regulations are complex and subject to change, which can materially impact results. FTDI cannot guarantee that such information is accurate, complete or timely; and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information.

All investments involve risks including possible loss of principal. Additional information about these underlying mutual funds used in the Franklin Charitable Giving Program’s investment pools, including fees and expenses, is available in each underlying fund’s prospectus.

RCF will invest the donor’s contribution as soon as administratively possible. The date of the purchase may be delayed by market deadlines and trade settlements. The value of each investment strategy will be determined at the end of each business day, based on the prices of the underlying mutual fund shares. This value will include any realized or unrealized gains or losses and undistributed net investment income attributable to the strategies (if applicable).

Donors will have the ability to change their investment strategy composition once every three months. If a donor does not select an investment strategy, the contributions will be automatically invested in the Franklin Growth and Income strategy. The program’s Board of Directors has the sole responsibility and authority for investing the program’s assets and may adjust the composition of its investment strategies from time to time. Please remember, there is no assurance that any strategy (or underlying mutual fund) will achieve its objective. Share prices and investment returns will fluctuate with changes in the market.

Footnotes

  1. A donor advised fund is a separately identified account that is maintained and operated by a section 501( c)(3) organization, and is not a registered investment company.
  2. Totals grants as of 06/30/2020 as reported by Renaissance Inc.
  3. Contributions to Franklin Charitable Giving Program are irrevocable contributions made to Renaissance Charitable Foundation, Inc., a public charity. Individuals considering a contribution to Franklin Charitable Giving Program should consult their legal and tax advisors regarding deductions, based on their personal considerations

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Franklin Distributors, LLC. Member FINRA/SIPC. Prior to July 7, 2021, Franklin Templeton Distributors, Inc., and Legg Mason Investor Services, LLC served as mutual fund distributors for Franklin Templeton.