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 It allows AEF’s quarterly administrative fees to be withdrawn without investment disruption.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.
- Annually, AEF will send out a Letter of Authorization (LOA) withdrawal request for liquidity replenishment for all Funds.
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.
If you have specific questions about your Liquidity Account, please contact us or call 1-844-235-2331.
