Foundation Source, a provider of cloud-based philanthropy technology, has acquired Vennfi, another philtech provider, which powers donor-advised fund sponsor Charityvest.
While the deal has closed, the terms of the transaction were not disclosed.
Foundation Source, founded in 1999, has long provided software for private foundations and planned giving and has a suite of charitable giving-related software. 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 broaden Foundation Source’s offerings and help accelerate the development and delivery of technology to 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 administer their own donor-advised funds. The acquisition also included a workplace program for employers that helps roll out corporate and employee-giving efforts.
“As financial advisors and wealth management firms look for ways to differentiate themselves beyond traditional investment advisory expertise, a full set of philanthropic capabilities is essential for holistic client engagement,” said Joseph Mrak III, CEO of Foundation Source.
Prior to his current role, Mrak served as the 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 Foundation Source an end-to-end provider for private foundations, planned giving and donor-advised funds, the announcement 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, though powered by the same technology.
Vennfi CEO and co-founder Stephen Kump, fellow co-founder Ashby Foltz and the management team have joined Foundation Source as executives.
Foundation Source acquired the planned giving 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 Foundation Source in March (Vestigo was an investor in PG Calc).