The Source Foundation, a provider of cloud-based philanthropy technology, has acquired Vennfi, another philanthropy provider that empowers Donor-advised fund sponsor Charityvest.
While the deal has closed, terms of the transaction were not disclosed.
The source of the foundation, founded in 1999, has long provided software for private foundations and planned giving and has a suite of software related to charitable giving. In 2023, it was acquired by Chicago-based private equity firm GTCR, which also owns Captrust and Allspring Global Investments.
The acquisition of Vennfi will expand the Source Foundation's offerings and help accelerate the development and deployment of technology in the wealth management industry.
This will include a turnkey private label platform that will make it easier for independent RIAs and broker/dealers to create and manage their own donor-advised funds. The acquisition also included a workplace program for employers that helps develop corporate and employee efforts.
“As financial advisors and wealth management firms look for ways to differentiate themselves beyond traditional investment advisory expertise, a full set of philanthropic skills is essential for holistic client engagement,” said Joseph Mrak III, CEO of The Source Foundation.
Prior to his current role, Mrak served as head of wealth management for Refinitiv. He also served as chairman and CEO of FolioDynamix, a wealth management platform he founded in 2007. which was later acquired by Envestnet in 2018. Prior to that, he was a co-founder of Placemark Investments, which was acquired by Envestnet in 2014.
This acquisition makes The Source Foundation an end-to-end provider for private foundations, planned and donor-advised funds, the release said.
The Charityvest DAF program was launched to the public in December 2019 as a partnership between Vennfi and Charityvest Inc., a 501(c)(3) public charity and donor-advised fund sponsoring organization. The latter will continue to operate as a separate, independent entity, albeit powered by the same technology.
Vennfi CEO and co-founder Stephen Kumpco-founder Ashby Foltz and the leadership team have joined the Source Foundation as leaders.
The Source Foundation acquired planned software and services provider PG Calc earlier this year. Mark Casady, founder of venture capital firm Vestigo Ventures and former chairman and CEO of LPL Financial, joined the board of directors at the Source Foundation in March (Vestigo was an investor in PG Calc).