CHARLOTTE – Fintech startup Amicus.io, which is aiming to disrupt the philanthropic sector, has closed on $8.7 million in new funding.
Amicus.io launched in 2017 and is a graduate of the Wells Fargo Startup Accelerator.
Its lead product is named DAF 2.0, which stands for “donor-advised funds,” a rising section for philanthropic investing.
Buyers embrace the Wells Fargo accelerator and FR Group.
Right here is the complete announcement, together with an in depth clarification of DAFs and the Amicus resolution:
Amicus.io raises $8.7M in new funding.
CHARLOTTE, N.C., Nov. 17, 2020 /PRNewswire/ — Amicus.io, the fintech firm behind the philanthropic platform for DAF 2.0, at this time introduced that it has raised $8.7M in sequence B funding from mission-driven traders in philanthropic and banking sectors hailing from the US and Canada. The spherical was led by The FR Group, a Vancouver-based household workplace. Wells Fargo Startup Accelerator additionally joined the spherical as a brand new investor. Along with funding, Amicus is launching its DAF 2.0 platform, a white label resolution designed for shopper banks, to the good thing about personal financial institution divisions, digital wealth administration, wealth managers and asset managers as effectively the complete philanthropic group.
Savvy philanthropists have been turning to donor-advised funds (DAFs) at an amazing fee, with an 86 % improve in contributions to DAFs within the final 5 years, totaling $37.12 B in 2018 – with $121.42B in belongings beneath administration, based on the 2019 Donor-Suggested Funds Report from the Nationwide Philanthropic Belief (NPT)1. Historically used for the large-scale philanthropic donations of household foundations and excessive internet value people, DAFs have been late to the digital transformation seen in mainstream funding choices like online-only inventory portfolio administration.
Rising demand for DAF flexibility, like decrease minimums and the power to make smaller grants to charities, has been pushed by sponsors of recent DAF accounts, which have jumped by greater than 50% within the final couple of years thanks partly to favorable regulatory modifications.1
Specialists anticipate a spike in demand for DAFs with the introduction of user-friendly on-line instruments that make it simpler to contribute to and grant donations from DAF accounts – placing DAF market projections at $1Trillion within the subsequent 10 years, based mostly on present progress charges and a transfer to satisfy demand for flexibility by modernizing the monetary instrument, which is greater than ninety years previous.1
DAF 2.0 Platform for the Shopper Banking Buyer
Circumstances are prime for the Amicus DAF 2.0 platform, which lets shopper banks improve belongings beneath administration with an enterprise-ready charitable giving resolution that integrates seamlessly inside their present on-line financial institution expertise.
Constructed on legacy techniques and depending on handbook processing, the traditional DAF has traditionally solely been accessible to excessive internet value people and establishments by way of personal banks and wealth administration companies.
Extra lately, the most important business DAF sponsors have provided extra versatile DAF choices – even lowering account minimums. The Amicus DAF 2.0 platform dramatically improves the economics of the DAF with a completely automated and built-in backend, making it value efficient for shopper banks to supply a self-directed DAF to clients for the primary time.
The white label DAF 2.0 platform lets establishments supply clients a superbly simple and gratifying self-directed strategy to philanthropic giving in a easy three part course of. All from inside the financial institution’s branded surroundings, the DAF 2.0 platform will permit clients to:
- Contribute: quite a lot of belongings, together with seamless switch of money, securities, with funds choices from nearly any account (money deposit accounts, bank cards, conventional DAFs)
- Make investments: in white-labeled funding swimming pools, together with institutional mutual funds, managed accounts, ETFs, choosing from a drop-down record and adjusting asset allocation with a single click on
- Grant: donate to greater than 1.8M US non-profits and philanthropic organizations, with the power to simply search by identify, location, class and the power to find new charities by sort of trigger (wildlife safety, for instance).
The DAF 2.0 platform will assist subtle asset administration and supply full transparency into the standing and circulation of belongings alongside every part of the funding, liquidation and grant-making course of. Prospects obtain routinely generated tax receipts for as much as the minute accuracy of documentation, a real-time view into internet asset worth and the power to simply add or change beneficiaries and successors.
In the end, Amicus plans to increase the DAF 2.0 to incorporate non-profit organizations, enabling them to share tales, and updates on the affect of donations again to clients who’ve made donations by way of the DAF 2.0 platform and even put up initiatives that want grant funding. An immersive giving expertise will deepen connections between donors and the charities they assist, making a virtuous cycle of suggestions to maintain clients engaged and impressed to proceed giving. Amicus might be rolling out the primary branded implementation of the DAF 2.0 platform in partnership with a number one international monetary establishment in This fall 2020.
“Amicus and the DAF 2.0 platform is our reply to creating the world a extra beneficiant place,” stated Walt Ruloff, founder and chairman of Amicus. “By decreasing the barrier to entry with a extremely value environment friendly consumer-oriented DAF, we set a ripple impact in movement that may affect the complete philanthropic group, paying dividends to every get together concerned. Shopper banks play a key function in democratizing entry to a modernized DAF, and can lastly get in on some of the trusted and confirmed instruments for philanthropic giving.”
“We perceive deeply that when individuals donate to a trigger, they wish to truly make a distinction. In the present day’s philanthropists anticipate transparency, whether or not they’re within the 1 % or the 99 %,” stated Cor Hoekstra, co-founder and CEO of Amicus.io. “The DAF 2.0 platform places shopper banks on the coronary heart of a strategic transfer to empower motivated donors at scale, to the good thing about all.”
Amicus.io was based by Walt Ruloff and Cor Hoekstra, provide chain innovators whose enterprise success within the early 2000s supplied the impetus to place critical consideration on philanthropic work. After an in depth and heart-wrenching exploration of the nonprofit ecosystem, the 2 had been decided to carry higher assets to the philanthropic group, together with enterprise-grade effectivity and digital infrastructure. Greater than twenty years of analysis and improvement later, they’re introducing the DAF 2.0 platform, to function a pivot level for a paradigm shift throughout philanthropy. The DAF 2.0 platform aligns the incentives of donors, monetary establishments and philanthropic organizations towards charitable giving at scale.
Amicus is a graduate of the Wells Fargo Startup Accelerator, a completely digital six-month program targeted on serving to early-stage startups be taught what it takes to interrupt into the Fortune 500 market and the monetary providers vertical market. Amicus additionally participated within the Charlotte-based QC Fintech Accelerator, which supplies member firms entry to world class mentors, capital and monetary service organizations. Amicus accomplished a profitable SOC II Sort II compliance audit in mid 2020 and introduced the addition of CTO, Raja Musunuru.
- “2019 Donor Advised Funds Report” Nationwide Philanthropic Belief