Full Fee Structure Comparison

Here is the modified schedule of charges for the Foundation’s Increase Funds, Designated Funds, and split-interest trust trustee fees, followed by a comparison with other DAF providers.  Note that “bps” is short for “basis points,” each basis point constituting 1/100^th of one percent (.001).

Revised Schedule of Charges

On fund balance between	Annual charge is
$1 – $250,000	75 bps (.0075)
$250,001 – $750,000	50 bps (.0050)
$750,001 – $1,500,000	33 bps (.0033)
$1,500,001 – $5,000,000	20 bps (.0020)

Comparison with Fees of other DAF Sponsors. Note: Fees of other DAF sponsors published, or estimated on the basis of information provided, on sponsors’ websites in November, 2023. Please review current websites, and consult with other sponsors’ representatives directly, to determine current, actual fee arrangements. PCAF data is as of January 2023.

Tier	PCAF	NCF*	Signatry**	Fidelity	Vanguard	Schwab
$1 – $250,000	75 bps	1%	35-75 bps	60 bps	60 bps	60 bps
$250,001 – $500,000	50 bps	1%	35-75 bps	60 bps	60 bps	60 bps
$500,001 – $750,000	50 bps	1%	35-75 bps	30 bps	30 bps	30 bps
$750,001 – $1,000,000	33 bps	1%	35-75 bps	30 bps	30 bps	30 bps
$1,000,001 – $1,500,000	33 bps	85 bps	35-75 bps	20 bps	12 bps	20 bps
$1,500,001 – $2,000,000	20 bps	85 bps	35-75 bps	20 bps	12 bps	20 bps
$2,000,001 – $2,500,000	20 bps	75 bps	35-75 bps	20 bps	12 bps	20 bps
$2,500,001 – $3,000,000	20 bps	75 bps	35-75 bps	15 bps	12 bps	15 bps
$3,000,001 – $5,000,000	20 bps	50 bps	35-75 bps	15 bps	12 bps	15 bps
$5,000,001 – $10,000,001	STDA	STDA	35-75 bps	STDA	10 bps	13 bps
$10,000,001 – $15,000,000	STDA	STDA	35-75 bps	STDA	10 bps	12 bps
$15,000,001 – $30,000,000	STDA	STDA	35-75 bps	STDA	8 bps	10 bps
$30,000,001 – $100M	STDA	STDA	35-75 bps	STDA	5 bps	10 bps
Above $100M	STDA	STDA	35-75 bps	STDA	STDA	10 bps

*National Christian Foundation (NCF) also offers a special fund called a “Cornerstone Fund,” recommended for balances $2,500,000 and above, that starts at 44 basis points, with a monthly minimum of $950.  Based on conversations with NCF representatives, NCF also typically seeks a transactional fee, called a “ministry grant,” on gifts of non-cash assets other than marketable securities.  Such ministry grants are some percentage of the value of the gift.  In contrast, PCAF neither charges nor requests a ministry grant or other transactional fee, but does pass through to the fund legal and other gift and sale transaction costs paid to third party service providers.  NCF charges and/or passes through to the fund investment management fees.
 
**According to its website, Signatry charges no administrative fees, but it does charge an investment management fee ranging from 35% to 75% depending on investment pool, and the donor should press Signatry to determine exactly what charges his or her fund will bear, whether as a fee, a deduction, an investment management or oversight fee, an investment fund expense ratio, a rebate, or a fee paid by Signatry to an affiliated service provider.  Signatry reports administrative expenses that are comparable to or higher than its peers, and significantly higher than PCAF’s.  The money to pay those has to come from somewhere, but note that Signatry may be subsidized by one or more wealthy donor families or associated businesses.  Signatry also keeps a portion of earnings on funds invested in its money market pool, charges an investment management fee on complex assets, and passes through to the fund 80 basis points on the amount of ACH contributions (capped at $5.00).
  

PCAF’s charges against its Increase Funds are comparable to the commercial gift funds’ scheduled fees (Fidelity, Vanguard, and Schwab), somewhat lower at one fund balance level, equal at a few others, and somewhat higher at several levels.  This is because the sponsors of the commercial gift funds subsidize those funds, both in cash and in-kind services; essentially, those subsidies are a marketing cost of the commercial sponsors, to keep assets under management since the gift funds invest most of their assets in mutual and other funds provided by the sponsors.  In contrast, PCAF receives no revenue from investment management either directly or indirectly.

Investment management fees for PCAF are strictly a cost paid to an unaffiliated investment manager, Synovus Trust Company, and are currently about 40 basis points.  PCAF itself charges no investment management fee.