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A Donor Managed Investment (DMI) Account is a new charitable giving vehicle that provides donors the ability to manage the investment of contributed assets after they have been gifted to a qualifying nonprofit organization.

A DMI Account differs in the investment control permitted for the donor, overall flexibility, and the cost to establish and operate. Contributors to a commercial donor advised fund make contributions to a nonprofit organization that administers funds and makes decisions regarding fund investments. Investment choices for donors are substantially limited in a donor advised fund. A DMI Account offers donors a wide-ranging selection of investment choices, including stocks, bonds, mutual funds, index funds, and alternative investments, with none of the administrative costs or reporting requirements, including IRS filings open to the public, associated with foundations.

A private foundation offers more investment flexibility for the donor than donor advised funds, but the costs of establishing and maintaining a foundation are substantial. Foundations also carry requirements for accounting and reporting that often require additional staff to administer.

The DMI Account Program is well-suited for the donor who:

• Has identified the nonprofit they wish to contribute to
• Wants a current year tax deduction for their donation
• Wants funds to be invested tax-free
• Wants to manage the funds for a period of time

The DMI Account Program is designed to accomodate investment-oriented donors making gifts of $250,000 and above, who are seeking a greater voice in the investment management of their contribution.

Donor advised funds may be more appropriate for the donor who has not interested in managing donated funds beyond choosing from a small selection of investment alternatives or agreeing to a pre-determined investment style.

DMI Accounts can provide numerous benefits to investment-oriented donors (as well as their families, corporations, and certain trusts) that includes:

• The ability to choose from a wide variety of investment alternatives including stocks, bonds, mutual funds, index funds, and other alternatives
• Permitted use of donor's own investment managers to direct asset allocation, reflecting the donor's own investment philosophy
• A greater sense of participation, effectiveness, and significance in active philanthropic support " A tax deduction at the time the gift is made

A DMI Account provides nonprofit organizations with an ability to attract incremental contributions from proactive donors seeking to retain investment influence over their gifts. Nonprofits can also accelerate the receipt of "intended" contributions earlier than they might otherwise under a traditional planned giving arrangement. Other benefits include:

• Building stronger and longer-lasting relationships with key donors and their families
• Offering donors a "top-off" mechanism to add to their gift should their investment performance not meet expectations
• Contributing to the overall effectiveness and satisfaction level of their key philanthropic supporters

By managing funds in their client's DMI Account, investment managers and FSPs are able to retain assets under management that would otherwise leave their oversight, securing their position as a donor’s Primary Advisor. Firms also have the ability to regain management responsible for funds that have been gifted previously but are recaptured for investment management by the donor. Other benefits to managers and institutions include:

• Filling a current product gap for donor controlled charitable giving vehicles
• Deepening the relationship with valued High Net Worth clients
• Offering an opportunity to develop new relationship with nonprofit organizations supported by their clients

Contributions that are made through a DMI Account are irrevocable and become the property of the nonprofit organization at the time they are gifted. Neither the initial donation nor any accrued interest earned from it can be accessed by the donor following contribution.

Investment activity is subject to market conditions, and may encounter disappointing performance during any given time period. Each participating nonprofit organization can establish investment guidelines and target performance criteria that can serve as a performance benchmark for DMI Account activity. Donors may be offered the option to "top-off" their contributions by adding to their gift at the conclusion of the investment management period if their expectations for performance have not been met.

Funds in a DMI Account belong to the nonprofit organization, and are treated the same as any other of their investments. This includes the nonprofit having the ability to borrow against funds that are invested longer-term in attractive vehicles such as government bonds or marketable securities. Terms specified in the Funding Agreement between donor and nonprofit provide assurances to both parties that funds will be employed for mutually-agreed purposes.

Responsibility for investing the donated assets reverts back to the nonprofit organization at the conclusion of the investment management period. At that time, proceeds may be applied to the agreed-upon use as set out in the initial terms of the Funding Agreement.

Winklevoss Consultants can handle the administrative needs associated with the DMI Account, including tracking the investment portfolio performance of donors and preparing consolidating reports for each nonprofit organization, and monitoring compliance with the agreed investment guidelines. Donors continue to receive regular (monthly) statements from their preferred investment manager. Nonprofits can also choose to have access to sophisticated analytical tools enabling them to evaluate portfolio allocation and benchmark performance against industry standards.

As program administrator, Winklevoss Consultants charges each participating nonprofit organization a licensing and administration fee based on a percentage of total assets under management. There are no initial charges or set-up fees for the nonprofit organization to establish a DMI Account, and there are no fees for the donor. Fee levels are tiered and decrease as the level of DMI Account assets under management increase.