The Pride Fund can now receive Donor Advised Fund (DAF) dollars through Inspire Access, a 501(c)(3) nonprofit organization. This partnership allows donors to leverage their DAFs to invest in companies led by underrepresented founders, specifically women and people of color. Here’s how it works and why it’s significant:
How It Works:
- Activate Your DAF: Donors can contribute from their personal funds, DAFs, or private foundations to Inspire Access. These funds are then strategically invested in companies led by women and people of color through various financial instruments, including working capital loans, direct equity investments, and limited partnership positions in private equity funds.
- Investment and Returns: Inspire Access ensures these charitable dollars are put to work in impactful ventures. Any returns generated from these investments are directed back to the donor’s DAF or reinvested, fostering a cycle of ongoing impact and growth.
- Minimal Fees: Inspire Access charges a nominal fee of 1% when the investment is received and a 1% per year fee on any returns, making it a cost-effective solution compared to traditional DAF administrative fees.
Why This Matters:
- Closing the Investment Gap: This partnership aims to address the significant disparity in investment capital allocation, where less than 3% goes to women, people of color, and the LGBTQI+ community. By directing DAF dollars to these underrepresented groups, we are working to bridge an investment gap.
- Strategic Philanthropy: Utilizing DAFs in this manner aligns financial returns with social impact, allowing donors to maximize the effectiveness of their philanthropic efforts while benefiting from tax-free growth of their charitable funds.
- Empowering Diverse Entrepreneurs: Supporting entrepreneurs from diverse backgrounds brings innovative solutions and perspectives to the forefront, contributing to economic growth and fostering a more inclusive venture capital landscape.
This initiative represents a significant milestone for Pride Fund and our ongoing commitment to empowering LGBTQI+ entrepreneurs. By partnering with Inspire Access, we are leveraging the power of DAFs to drive meaningful change and create opportunities for those historically excluded from traditional funding avenues.
We invite you to join us in this groundbreaking effort. Learn more about how you can make an impact by visiting the Inspire Access website.
