Liquidity Account Explanation
What Is It?
The Liquidity Account represents a small portion of assets held at AEF. It allows AEF’s quarterly administrative fees to be withdrawn without investment disruption. It is replenished annually.
How Does It Work?
When a Donor Advised Fund is established, AEF will typically request an initial contribution to the Liquidity Account of 1% of the donors’ Fund balance. The remaining assets stay in the Investment Account.
- Quarterly, AEF will assess its administrative fee from the Liquidity Account.
- Depending on the first letter of the Fund ID, each quarter AEF will send out a letter of authorization (LOA) withdrawal request for annual liquidity replenishment. The request schedule looks as follows: Q1 (A-E), Q2 (F-L), Q3 (M-R), Q4(S-Z)
Where Is It Held?
Liquidity Accounts for each AEF DAF are held in cash equivalents such as money market funds and short-term U.S. Treasuries. Earnings are credited to each Donor Advised Fund monthly.
Where Can I See the Balance of my Liquidity Account?
Liquidity Account balances can be viewed online via DonorCentral using your Fund login information. This information is emailed once a new Fund is opened. Both donors and their financial advisors have the ability to view the Fund balances on DonorCentral.
If you have specific questions about your Liquidity Account, please contact us or call 1-888-440-4233.