At Wealthfront, we believe everyone deserves sophisticated financial advice. We have made it our mission to provide high-quality advice and investment management without the outsized account minimums and costs typical of existing financial institutions and wealth managers. The mission has resonated and Wealthfront has grown the assets we manage by more than 250% so far in 2013 to over $350 million. Corporations don’t exist in a vacuum, and one of the most difficult questions companies face when defining their culture is how they can best sustainably contribute to their communities in a way that is compatible with their long term mission and differentiated skills. We’ve decided that the time has come for this company to take its first step in giving back to the broader community.
Today we are announcing our first initiative to help support social good: wealthfront.org
Wealthfront Gives Back
Wealthfront.org extends our platform to help support the nonprofit community. Beginning today, any registered 501(c) organization can open an account with Wealthfront and receive free investment management for its first $1 million. Long-term assets will be placed in an appropriate asset allocation based on our diversified, tax-free investment mix, and automatically rebalanced.
Smaller nonprofit organizations with endowments face many of the same problems that individuals have in finding high-quality, low-cost investment management. Even when such advice is available fees often exceed 1% annually. This can add up to a serious drain on resources that could be better spent on an organization’s core mission or programs.
Charles Ellis, a member of Wealthfront’s investment team and the chairman of the Whitehead Institute for Biomedical Research, is no stranger to the issues involved in nonprofit management:
“Most nonprofit organizations, and smaller nonprofits in particular, don’t have access to good investing solutions to manage their long term funds that won’t charge them an arm and a leg.“
Mr. Ellis is also the former chair of the Yale University endowment, and former chair of the investment committee for one of the biggest nonprofits in the country, the Robert Wood Johnson Foundation.
Wealthfront is proud to have already begun working with a variety of nonprofits including The Wildlife Conservation Network:
“Every dollar saved in management fees is another dollar for us to help advance the work of our conservation partners like Save the Elephants. We’re excited to participate in Wealthfront’s new program for nonprofits.”– Charles Knowles, Cofounder & Executive Director, The Wildlife Conservation Network
Supporting Your Mission with Ours
We believe that by creating a social initiative at Wealthfront that aligns with our commercial mission, we’ll be able to ensure a program that stands the test of time. We would like to thank All Stars Helping Kids, Champion Charities, and the Wildlife Conservation Network for helping us define, pilot and launch this program for the broader nonprofit community. Kamba Tshionyi, Executive Director for All Stars Helping Kids , says
”We look forward to working with Wealthfront. We feel Wealthfront is extremely well-positioned to support our work in helping to break the cycle of poverty for Bay Area youth.”
He added, “In addition to working with All Stars Helping Kids, two affiliated athletes – Marcus Allen and Justin Tuck (Tuck’s RUSH for Literacy) – will also be using wealthfront.org to manage part of their charitable investments.”
Wealthfront is just getting started. Join us on the journey.