PROVIDENCE – Clients of Fidelity Charitable – Boston-based Fidelity Investments Inc.’s donor-advised fund manager – recommended a record $5.2 billion in grants in 2018, the company reported.
Last year’s total surpassed 2017’s total by $700 million and was the most since Fidelity Charitable was created in 1991.
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A donor-advised fund allows donors to make charitable contributions and receive an immediate tax deduction, then recommend grants from the fund over time. Donors can contribute to the fund – branded a Giving Account by Fidelity – as frequently as they like, then recommend grants whenever it makes sense for them.
More than 60 percent of contributions to Fidelity Charitable last year were made in the form of strategic noncash assets, including publicly traded securities such as stocks, bonds and mutual funds, and non-publicly traded assets such as private stock, restricted stock, limited partnership interests and bitcoin, the company said.
Fidelity Charitable said donor-advised funds continue to be the fastest-growing vehicle for giving in the nation. Through Fidelity Charitable, donors gave nearly 1.3 million grants to more than 140,000 charities in the U.S. and around the world.
Meanwhile, the company said, investment growth in Giving Account assets has generated an additional $5 billion available for grants since Fidelity Charitable started 28 year ago.
“Last year we witnessed the enduring generosity of our donors who demonstrated their commitment to philanthropy and used their donor-advised funds to recommend more grants than ever to support thousands of charities despite the uncertainty around tax reform and extreme market volatility during giving season,” said Fidelity Charitable President Pamela Norley.
Donors have been more actively recommending gifts to charities, with the average Giving Account recommending more than 10 grants a year, nearly twice the average 10 years ago. On average, most donors distribute the money and assets in their Giving Accounts within five years, according to Fidelity.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
