The Foundation Source Relationship

A description of the relationship between Foundation Source Philanthropic Services, Inc. and Charityvest, Inc.

The Charityvest venture is powered by an innovative social enterprise partnership.

Foundation Source Philanthropic Services Inc. ("Foundation Source") is a philanthropy technology company, creating innovative new giving products.

Foundation Source partners with Charityvest, Inc. (“Charityvest”), a 501(c)(3) public charity and DAF-sponsoring organization, to power its donor-advised funds. Charityvest is an independent public charity, governed by its own independent charitable board. The two organizations share rights for the brand "Charityvest.”

This innovative for-profit / nonprofit partnership enables modern technology to be seamlessly integrated with an efficient tax-deductible giving vehicle, empowering greater giving.

An overview of the relationship between the two organizations.

Foundation Source, as a technology and services vendor, has no claim to any funds held by Charityvest.

A DAF sponsoring organization’s directors and officers have both statutory and common law duties to safeguard and assure that the assets continue to be used for charitable purposes.

Charityvest is an independent, 501(c)(3) public charity with a donor advised fund program. It is managed by its own independent Board of Directors with fiduciary duties with respect to its charitable assets. These duties include a legal responsibility to ensure that all DAF assets are used only for charitable purposes and that the DAF program is otherwise operated in compliance with applicable tax law.

Like many other donor-advised fund sponsoring organizations, Charityvest has contracted with a third-party service provider (Foundation Source) to provide comprehensive software and administrative services to its DAF platform for a fee. As a third-party service provider, Foundation Source has no claim, in either contract or law, to Charityvest’s DAF assets.

Also, Charityvest’s Board of Directors retains fiduciary oversight in connection with any arrangements with Foundation Source and/or other service providers. This oversight includes ongoing monitoring of Foundation Source’s performance and exercising the requisite standard of care to determine whether such arrangement continues to be in the best interests of Charityvest. These duties also include ensuring that Foundation Source (or any other third party service provider of the charity) has no claim by contract or otherwise to the charitable assets of Charityvest and that any fees paid to Foundation Source in consideration of these services do not exceed fair market value.