Executive Summary – AI4NFP Integrated Structure

Executive Summary – AI4NFP Integrated Structure

Purpose: To deliver a scalable, compliant, and tax‑efficient giving infrastructure that blends trading income, payroll giving, and invested charitable funds to maximise impact for donors, grantees, and the wider sector.

Core Structure:

• CIO – Registered charity, owns CLG, sponsors CAF Donor Advised Fund (DAF).

• CLG – Trading arm (Payroll Giving Agency, online shop, consultancy), gifts profits to CIO.

• DAF (CAF) – Holds and invests funds in Newton Funds, disburses grants with trustee approval.

Funding & Income Streams:

• Payroll giving (pre‑tax, employer‑matched)

• Shop profits (Gift Aid eligible)

• Consultancy fees

• Corporate sponsorships

• Investment returns from Newton Funds

Investment Strategy:

• Choice of Newton Funds to match risk appetite and ethical priorities.

• CAF benchmarks show 5‑year median annualised returns:

  • High equity: 7.2%

  • Balanced: 5.1%

  • Low equity/SRI: 3.8%

• "Cupboard, fridge, freezer" model aligns liquidity with time horizons.

Costs & Resources:

• Staffing: £120k/year (4 FTE)

• Tech platforms: £12k/year

• CAF/DAF fees: 0.4–0.6% of assets

• Marketing & comms: £15k/year

• Governance & compliance: £5k/year

Potential Funding Sources:

• Trading surplus from CLG

• Corporate sponsorships

• Major donor contributions

• Grant funding (e.g., National Lottery, Garfield Weston, CAF Resilience Fund)

• Investment income

Benefits by Stakeholder:

• Donors: Pre‑tax giving, voting rights, impact reports

• Charities: Access to unrestricted/project‑specific grants

• Trustees: Diversified income, CAF oversight, clear governance

• Regulators (Charity Commission, FCA, HMRC, GDPR): Transparent, compliant, auditable structure

Strategic Advantage: Combines the agility of a trading arm with the stability of invested charitable funds, underpinned by CAF's investment expertise and sector benchmarks. Designed for growth, resilience, and measurable impact.