When wealth management firms think of digitalisation, philanthropy might not appear high on their priority lists. However, Foundation Source CEO Joseph Mrak III believes it is a genuine growth engine that can help firms build lasting relationships between generations.
Foundation Source was launched in 2000 as a provider of foundation administration solutions for private philanthropists. After private equity firm GTCR acquired Foundation Source in 2023, Joseph Mrak III was appointed CEO to lead the company’s next phase of growth. Mrak’s vision was to evolve beyond an administration services provider into a scalable, technology-led platform that embeds within wealth management ecosystems.
Having spent over two decades working on building enterprise wealth infrastructure platforms, he identified that philanthropy was not fully integrated into advisor technology stacks. His strategy with Foundation Source was to focus on embedding charitable capabilities directly into institutional workflows, rather than positioning them as standalone services. He saw “PhilTech” as a way to solve the infrastructure gap and as one of the last major modernisation opportunities within wealth management.He said, “Philanthropy has been kind of this misunderstood part of the industry, and nobody really had a solid solution for it.”
He added, “It’s one of those things that has flown under the radar, but it’s becoming important in an increasingly competitive advisory market. By integrating charitable planning into core wealth strategy, advisors move from managing assets to advising on total capital — deepening relevance, increasing wallet share and embedding themselves more fully in the client’s financial life.”
As part of its broader mission, Foundation Source has completed four acquisitions since 2023. These companies, PG Calc, Vennfi, Giving Place and Pacific Foundation Services, have grown Foundation Source’s capabilities to establish it as a unified platform that administers a wide range of tax-efficient charitable vehicles including private foundations, donor-advised funds and planned gifts while complemented by specialized services that support nonprofit and tax-exempt organizations.
When Mrak started as CEO, Foundation Source was administering around 2,000 foundations and $20bn in assets. Since 2023, assets under administration have more than doubled and annual grants and planned gifts have also expanded significantly. It now supports more than 5,600 private foundations, 20,000 donor-advised fund accounts, 1,700 nonprofits, $55bn in assets and facilitates $4bn in charitable aid annually.
Part of that success comes from Foundation Source’s white-label approach that can simply become a part of an advisor’s daily desktop. Donors, nonprofits, professional advisors and financial institutions can access a configurable suite of solutions that cover the entire stages of donations, removing any form of friction.
Mrak said, “The key thing we’ve found is to integrate it into the broader platform, which is what drives better adoption and enables institutions to offer philanthropy at scale without operational strain.”
One of the biggest areas of adoption Foundation Source has seen is with large banks with private client services. When firms have ultra-high net worth clients, philanthropy tends to become an important area, but many firms only recognise this when a major client raises it. “Philanthropy isn’t seen as urgent – until suddenly it is, triggered by moments like liquidity events, succession or when an estate plan is activated.”
A growing market
Philanthropy within wealth management is a rising opportunity. A recent report from Barclays Private Bank and Wealth Management found that 98% of HNWIs in the UK are giving. It also found that 81% of donors want their advisers to raise philanthropy proactively, but only a third state this actually happens.
One of the big drivers of the growing popularity of philanthropy, according to Mrak, is surprisingly coming from the great wealth transfer. Over the coming years, it is estimated by the World Economic Forum that $80tn of wealth will be transferred to new hands. However, Mrak noted that many ultra wealthy individuals are not simply passing on their wealth but are also establishing foundations, supporting charitable causes, and building a legacy of giving for future generations.
At the same time, younger generations inheriting wealth tend to be more philanthropic and motivated to support causes. Empowering advisors to engage clients on charitable giving strategies allows them to capture this growing opportunity. “Last year, we had our strongest year on record, and those demographic shifts to NextGen are fuelling a growing part of the business.”
A growth engine and differentiator
HNW and UHNW households represent the most influential segments in the wealth market — and their expectations of advisory firms are rapidly evolving. Rising client demand is not the sole reason firms should invest in philanthropy. Mrak believes these services can serve as an important growth engine and differentiator. Starting with the growth driver, structured charitable vehicles can create recurring engagement cycles, support multigenerational participation and reinforce long-term advisory relationships.
One of the unique aspects of Foundation Source is it helps foundations to retain greater involvement in how assets are administered and aligned with broader wealth strategies. Through Foundation Source, family offices and advisors can remain more closely involved in overseeing how philanthropic assets are integrated within the overall client relationship.
As an example, registered investment advisor Callan Family Office teamed up with Foundation Source to access a private label philanthropic platform. This allows them to streamline and improve the overall management of clients’ charitable activities in lockstep with its core investment and planning services. Mrak said, “That’s where we’ve created this unique value proposition and it’s resonated very well with a lot of financial advisors.”
Not only does philanthropy serve as a growth engine, but it can also be a valuable differentiator in a time where people are happy to switch to providers that fully meet their demands.
Mrak noted that there is a long list of things financial advisors should do for their clients and philanthropy is just one of them. If they want to be a full-service provider for a client, then philanthropy is integral. He said, “This is just one more piece of that puzzle. It’s a very real way to get to know your client, to interact, create value and make them sticky.”
By engaging clients and understanding their goals with philanthropy, it helps build a greater character profile for a client that can influence across all their portfolio. Charitable planning often introduces new conversations that go beyond portfolio performance, such as governance, family values, legacy intent and long-term capital allocation.
Philanthropy conversations also help advisors get to know the next generation better. By involving the whole family in philanthropic events, firms can build relationships deeper into the family and increase the chance for client retention when wealth passes down.
Major financial institutions are noticing the importance of philanthropy. Foundation Source recently expanded its footprint through partnerships with major financial institutions and universities, including Northern Trust, Callan Family Office, Envestnet and Temple University. These relationships show a growing incorporation of philanthropy within established players. Mrak said, “The investments in this area say a lot about how important it is to have philanthropic capabilities.”
Looking ahead
Mrak believes there is huge growth potential for the PhilTech space and its growth depends on the ability to put it front and centre in an advisor’s daily routine. This means building tools that feature philanthropy in the advisor’s desktop and part of the overall estate planning process.
“I think the opportunity over the next 5 to 10 years in PhilTech is really making that so seamlessly actionable for the advisor. That’s where we will continue to invest our time.”
Since its acquisition in 2023, Foundation Source has had incredible growth momentum, and it is not planning to slow down. Over the coming years, the team will continue its pursuit of creating an “easy button” for philanthropy.
On a final note, Mrak said, “This has been the most interesting and fun job I’ve ever had. We’re really helping people make an impact every day and we take great pride in that.
Foundation Source was recently named in this year’s WealthTech100, which identifies the companies that every leader in the wealth and asset management industries needs to know about in 2026. The full WealthTech100, including profiles on each company, can be found here.
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