Introduction

At Providence, we believe in creating sustainable, long-term value that aligns with kingdom principles. We understand the unique challenges non-profits face in securing consistent funding while fulfilling their mission. This white paper outlines how partnering with Providence can provide non-profits with a revolutionary approach to fundraising through Donor Advised Funds (DAFs), enabling them to achieve greater financial stability and impact.

The Challenge for Non-Profits

Non-profits traditionally rely on donations, grants, and seasonal fundraising efforts. These methods often lead to unpredictable cash flows, creating challenges in budget planning and program execution. Additionally, the time and resources spent on fundraising activities can divert attention from the non-profit’s core mission.

Our Solution: Impact Investing through DAFs

What is a Donor Advised Fund (DAF)?

Our investment strategy focuses on acquiring well-established, cash-flowing businesses. These businesses A Donor Advised Fund is a philanthropic vehicle that allows donors to make charitable contributions, receive immediate tax benefits, and recommend grants from the fund over time. By leveraging DAFs, non-profits can engage their donors in impact investing, which combines financial returns with social and human impact, provides a reliable income stream and possesses strong growth potential. Here’s how our investment structure benefits our investors:

How Providence’s DAF Works

1. One-Time Donation
   • Non-profits assist us in reaching out to their donors for a one-time donation into a DAF managed by Providence.
2. Impact Investment
   • The DAF makes an impact investment into Providence‘s fund, which focuses on creating jobs and promoting kingdom principles in growing businesses.
3. Distribution of Profits
   • Non-profits and investors will receive disbursements of available disbursements pro rata.
     > If an investor, profits will be disbursed to an account of your choosing.
     > If a DAF, CRT, charity, or nonprofit, earnings will be distributed back to the Impact Fund (DAF.) Once in the DAF, the original contributor may choose where to send those values; they may choose to reinvest back into the impact portfolio for further impact and growth, keep them in the Impact Fund (DAF), or distribute them out of the Impact Fund DAF to another qualified charity, non-profit, or DAF of their choosing.

Benefits to Non-Profits

1. Quarterly Disbursement Schedules
   • Partnering with Providence provides non-profits with a quarterly disbursement schedule, reducing reliance on seasonal fundraising and allowing for better financial planning throughout the year when those companies are profitable, creating disbursements.
2. Reduced Fundraising Efforts
   • By engaging donors in a one-time donation that can generate ongoing returns, non-profits can significantly reduce the time and effort spent on continuous fundraising activities. This allows them to focus more on their mission and program delivery.
3. Sustainability
   • The scheduled quarterly distributions help non-profits have level forms of funding year-round. This long-term financial stability enables them to plan and execute their initiatives with confidence.
4. Enhanced Donor Engagement
   • Donors are increasingly interested in making a social impact with their contributions. Through a DAF, donors can see their funds not only support the non-profit’s mission but also drive positive change in the broader economy by creating jobs and promoting impact values.

Why Providence?

1. Proven Track Record
   • Providence has a proven track record of raising, funding, growing, and selling organizations across various sectors. Our expertise in business growth and investment ensures that the funds entrusted to us are managed effectively and yield substantial returns.
2. Impact-Driven Approach
   • Our investments are guided by impact principles, ensuring that the businesses we grow are aligned with values that resonate with our non-profit partners and their donors.
3. Transparent and Accountable
   • We maintain the highest standards of transparency and accountability, providing regular updates and detailed reports to our partners. This ensures that non-profits and their donors can trust in the integrity of their investment.

Conclusion

By partnering with Providence, non-profits can transform their fundraising strategy, securing sustainable, predictable funding while furthering their mission. Our innovative use of Donor Advised Funds for impact investing offers a unique opportunity for non-profits to engage their donors in a meaningful and impactful way. Together, we can create jobs, promote kingdom principles, and drive lasting positive change in the communities we serve.

For more information on how to partner with Providence, visit providence.fund or contact us directly at support@providence.fund