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  • 1.  ETF as a non-profit funding source

    Posted 11-07-2025 10:29 AM

    Good morning! I've been asked a question about the concept of an ETF as a non-profit funding source, and I'm having trouble wrapping my head around the question, let alone answering it. Our university houses the Rosenberg Franchise Index that takes publicly-traded franchises and tracks their financial performance. Their board would like to create a fund that investors can invest in, like the S&P 500, but specifically for the top performing franchises. Then the profits would be utilized to fund the center.

     

    IF I'm even using the correct terminology and/or framing the question correctly, are there any problems with this? Is anything about it charitable, since it is helping to fund the center? Apparently, Dana Farber has an ETF, and the YWCA (WOMN – Impact Shares YWCA Women's Empowerment ETF), which is where the idea came from.

     

    Any guidance you can provide would be greatly appreciated.

     

    Thank you,

    Laura

     

    Laura Martin '98G

    (she/her)

    Director of Stewardship and Gift Compliance

    Advancement, University of New Hampshire



  • 2.  RE: ETF as a non-profit funding source

    Posted 11-07-2025 10:50 AM
    An ETF, or Exchange-Trade Fund, is an investment that operates similarly to a mutual fund.

    But as the Rosenberg Franchise Index is an investment fund, as would be an ETF, I don't see where there would be any charitable gift component here.

    But you mention the proceeds would benefit a "center." I gather you mean YOUR Rosenberg International Franchise Center. If so, then what I imagine you could do is establish the "RIFC Endowment," which could be invested in the ETF with income used for general operating expenses of RIFC (sort of like a History Department Unrestricted Endowment). Then gifts to that endowment should be deductible (but I'm not certain).

    I think you should engage with your CFO and Counsel to determine what structure would work best for you.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


  • 3.  RE: ETF as a non-profit funding source

    Posted 11-07-2025 11:09 AM

    Thank you very much, John! And yes, the center to which I referred is our Rosenberg International Franchise Center.

     

    I appreciate your help and will take this to our CFO and Counsel.

     

    Best,

    Laura

     

    Laura Martin '98G

    (she/her)

    Director of Stewardship and Gift Compliance

    Advancement

    University of New Hampshire

     




    Original Message


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