Tony Martignetti quoted in the September issue of Accredited Investor:
Donor Managed Investment Accounts: The Gift You Grow Yourself
By Jacob Bunge, Financial Correspondent
The following 3 paragraphs are an excerpt featuring Tony’s comments
The DMI account is the best fit when the board or development officer is financially sophisticated, said Tony Martignetti of nonprofit consultancy Martignetti Planned Giving Advisors. Mr. Martignetti is working with a senior executive of a financial institution to set up a ten-figure DMI account for a public college in New York City, and while he sees “terrific” potential for giving through DMI accounts, the donor’s free reign over the funds could prove problematic if the donor’s money management acumen isn’t up to snuff.
“We’re talking about ego… we’re talking about a donor who is wealthy and may have a high profile in the financial world or may be a member of the board,” Mr. Martignetti said. If returns are falling, “I think the nonprofit, though it has the right to revoke the money management privilege at any time, may be loathe to do so. I can see the donor asking, ‘give me another quarter, two quarters, I can turn it around.'”
And if the privilege is revoked, Mr. Martignetti said, feelings could be hurt—which could lead to a donor relations problem for the institution, or even public relations issues. “I’m not sure if some nonprofits are thinking about that possibility.”
For the complete text of the article, please see the Lipper HedgeWorld website. Membership is required, but the Accredited Investor is free and available online for members.