The deal means that Foundation Source can now offer a donor-advised fund platform with an efficient user experience, the organization said.

Foundation Source, which provides cloud-based solutions for private foundations, has bought Vennfi, a fintech that powers Charityvest, a sponsor of donor-advised funds. 

As a result of the deal, the financial terms of which were not disclosed, the management team of Vennfi will join Foundation Source.

"With this acquisition, Foundation Source can now offer a DAF platform with an intuitive and frictionless user experience that sets a new industry standard for technology innovation," Joseph Mrak (pictured), CEO of Foundation Source, said. 

The deal will broaden Foundation Source's suite of offerings and accelerate the delivery of giving solutions across the wealth management industry through a turnkey private label platform, it said.

These are busy times for Foundation Source. Chicago-headquartered private equity firm GTCR acquired Foundation Source last September, paving the way for taking the group's activities up another level. This news service spoke to Mrak in May about its strategy. 

The acquisition also includes a workplace program that allows employers to streamline 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," Mrak said.

The Charityvest DAF program was launched to the public in December 2019 as a partnership between Vennfi, a financial technology company, and Charityvest, a 501(c)(3) public charity and donor-advised fund sponsoring organization. 

Following Foundation Source's acquisition of Vennfi, Charityvest will continue to operate as a separate, independent entity, managed by its own board of directors. Foundation Source technology will power the Charityvest DAF program, the turnkey DAF platform, and the workplace giving program.