Fidelis Care

Fidelity Charitable Overview

Fidelity Charitable, the brand name for the Fidelity Investments Charitable Gift Fund, stands as a prominent independent public charity and the nation's largest grantmaker. Established in 1991, it operates a highly regarded donor-advised fund (DAF) program, known as the Giving Account, designed to streamline and maximize charitable contributions for both individual and corporate donors. For over three decades, Fidelity Charitable has helped hundreds of thousands of donors efficiently support their chosen charities, solidifying its position as a leader in charitable planning and giving solutions. In 2023 alone, it distributed an astounding $11.8 billion to charities across the country. This impressive scale and long-standing reputation underscore Fidelity Charitable’s significant impact on the philanthropic landscape.

Overview

Year of Establishment and Background Story

Fidelity Charitable's journey began in 1991, emerging as a response to the growing need for efficient and effective charitable giving mechanisms. Its inception marked a pivotal moment, introducing a sophisticated approach to philanthropy that leveraged the expertise of a leading financial institution to enhance the donor experience and maximize the impact of charitable contributions.

Key Milestones in the Company’s History and Growth

Fidelity Charitable’s consistent growth is a testament to its innovative approach and commitment to excellence. Key milestones include:

• Over 30 years of experience, demonstrating a long-term commitment to the charitable sector and establishing a strong track record.
• A vast network of over 250,000 donors, highlighting the wide appeal and trust placed in the organization.
• The remarkable distribution of $11.8 billion to charities in 2023, showcasing the substantial impact of Fidelity Charitable on various philanthropic endeavors.

Regulatory Compliance and Licenses

Fidelity Charitable operates as an independent 501(c)(3) public charity, ensuring compliance with all relevant tax laws and regulations. This status provides donors with significant tax advantages and adds another layer of assurance to the legitimacy and trustworthiness of the organization.

Donor-Advised Fund Services

Main Donor-Advised Fund Services

Types of Donations Accepted

Fidelity Charitable accepts a diverse range of donation types, making it exceptionally versatile for donors with varying asset portfolios. These include:

• Cash: A straightforward and convenient method for contributing.
• Stocks: Donating appreciated securities can offer significant tax advantages compared to selling them and donating the proceeds.
• Non-publicly traded assets: This includes private business interests and cryptocurrency, offering donors a flexible way to contribute assets that may not be easily liquidated.

Coverage Options and Policy Details

The core of Fidelity Charitable's services lies in its donor-advised fund (DAF) which operates as follows:

• Tax-Free Growth: Contributions to the Giving Account can grow tax-free, allowing for enhanced investment returns that are directly channeled to charitable causes.
• Grant Recommendations: Donors can recommend grants to any eligible IRS-qualified public charity, providing extensive flexibility in supporting the causes they care about most.

Additional Services

Other Services Provided

Beyond its core DAF services, Fidelity Charitable provides a range of additional resources and support to enhance the donor experience:

• Fidelity Philanthropic Consulting: Offers personalized philanthropic guidance to help donors develop and implement comprehensive giving strategies.
• Integrated Financial Planning: Facilitates collaboration with financial advisors to seamlessly integrate philanthropy into overall financial goals, creating a holistic approach to wealth management.
• Expert Support for Non-Publicly Traded Assets: Provides specialized assistance in handling complex donations, simplifying the process and ensuring compliance.

Donor-Advised Fund Fees

Pricing Structure

Overview of Fees

Fidelity Charitable's fee structure is transparent and competitive. Key aspects include:

• No Minimum to Open: Donors can open a Giving Account with no minimum contribution, making it accessible to a wider range of donors.
• Annual Administrative Fee: A modest annual administrative fee of 0.60% or $100 (whichever is greater) is charged, covering the administrative costs of managing the fund.
• Investment Fees: Investment fees vary depending on the investment options chosen, ranging from 0.015% to 0.91%.

Discounts and Special Offers

Available Discounts

While Fidelity Charitable doesn't advertise specific discounts, its fees are often more competitive than using a credit card for charitable giving, offering a cost-effective solution for donors.

Promotional Deals and Limited-Time Offers

No specific promotional deals or limited-time offers are regularly announced.

Customer Service and Support

Contact Methods

Available Customer Service Channels

Fidelity Charitable provides convenient access to support and information through various channels:

• Online Tools and Services: A comprehensive suite of online tools enables donors to manage their accounts, track contributions, and generate tax reports effortlessly.
• Mobile Capability: A mobile-friendly interface allows for convenient grant recommendations on the go, increasing accessibility and streamlining the donation process.

Availability of 24/7 Support and Multilingual Assistance

While Fidelity Charitable offers robust online support, specific details about 24/7 support or multilingual assistance are not readily available on their public website. It is advisable to contact them directly for information on this matter.

Pros and Cons of Fidelity Charitable Donor-Advised Fund

Pros

Advantages of Choosing This Donor-Advised Fund

Fidelity Charitable’s DAF offers several compelling advantages:

• Capital Gains Tax Minimization: Donating appreciated assets can significantly reduce capital gains tax liabilities, maximizing the after-tax value of charitable contributions.
• Expert Support for Non-Publicly Traded Assets: The organization provides specialized guidance in handling complex assets, alleviating the burden on donors.
• Integrated Financial Planning: Facilitates the seamless integration of philanthropy into overall financial planning, creating a cohesive and well-rounded approach to wealth management.
• Simplified Administration: Donors avoid hefty legal fees and complex administrative tasks typically associated with setting up and managing a private foundation.

Cons

Potential Drawbacks or Areas for Improvement

Despite the numerous advantages, potential drawbacks should be considered:

• Grant Review Process: Successor charities chosen by donors may be subject to a review and approval process by the Fidelity Charitable board of trustees, which might lead to slight delays in grant distributions.
• Grant Approval: All grant recommendations are subject to review and approval by the Board of Trustees, adding a layer of oversight which ensures ethical grant making but might delay immediate disbursement.

Conclusion

Summary of the Main Points Covered in the Review

Fidelity Charitable is a leading independent public charity offering a user-friendly and efficient donor-advised fund (DAF) platform. Its key features include the acceptance of a broad range of asset classes, seamless integration with financial planning, expert support for complex assets, and a transparent fee structure. Its reputation as the nation's largest grantmaker underscores the trust and confidence placed in its services by a vast network of donors.

Recommendations on Who Would Benefit Most from the Company’s Insurance Offerings

Fidelity Charitable's donor-advised fund is particularly well-suited for:

• High-Income Earners: Individuals in higher tax brackets can benefit significantly from the tax advantages associated with donating appreciated assets.
• Long-Term Philanthropists: Those looking to establish a charitable legacy that extends across generations will find the DAF's structure highly beneficial.

Frequently Asked Questions about Fidelity Charitable Donor-Advised Fund

Answers to Common Questions about the Company’s Policies, Claims Process, and More

What is a donor-advised fund?

A donor-advised fund (DAF) is a charitable investment account that allows individuals to make tax-deductible contributions and recommend grants to qualified charities over time. It combines the immediate tax benefits of a charitable contribution with the flexibility to manage and distribute funds strategically.

How do I donate to Fidelity Charitable?

Donating to Fidelity Charitable is a straightforward process. You can contribute cash, securities (stocks, bonds), or other eligible assets through their online platform or by working directly with a Fidelity representative. You'll receive an immediate tax deduction for the fair market value of your contribution.

How do I recommend grants to charities?

Once you've established a Giving Account, you can easily recommend grants to any eligible IRS-qualified public charity using Fidelity Charitable's online tools. You can specify the amount and the charity you wish to support, and Fidelity Charitable will process the grant disbursement.

References

[1] https://www.fidelity.com/building-savings/charity-and-philanthropy

[2] https://www.fidelitycharitable.org/guidance/philanthropy/what-is-a-donor-advised-fund.html

[3] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Fidelity_Charitable.pdf

[4] https://www.fidelity.com/building-savings/charitable-giving

[5] https://www.fidelitycharitable.org/giving-account-guide.html