Fidelity Charitable

DAF Direct

What is a donor-advised fund?

A donor-advised fund (DAF) is a type of giving program that allows you to combine the most favorable tax benefits with the flexibility to easily support your favorite charities. An increasingly popular charitable vehicle, DAFs are an excellent way to both simplify your charitable giving and facilitate your strategic philanthropic goals.

How does it work?

    • Establish your DAF by making an irrevocable, tax-deductible donation to a public charity that sponsors a DAF program
    • Advise the investment allocation of the donated assets (any investment growth is tax-free)
    • Recommend grants to qualified public charities of your choice

What are the main advantages of a donor-advised fund?

  • Simplicity – The DAF sponsor handles all record-keeping, disbursements, and tax receipts. Flexibility – Timing of your tax deduction can be separate from your charitable decision making.
  • Tax-efficiency – Contributions are tax-deductible and any investment growth in the DAF is tax-free. It is also easy to donate long term appreciated securities, eliminating capital gains taxes and allowing you to support multiple charities from one block of stock.
  • Family legacy – A DAF is a powerful way to build or continue a tradition of family philanthropy. No start-up costs – There is no cost to establish a donor-advised fund. However, there are often
  • minimum initial charitable contributions to establish the DAF (typically $5,000 or more).**
  • No transaction fees – Once approved, 100% of your recommended grant goes to your qualified public charity of choice.**
  • Privacy if desired – Donors may choose to remain anonymous to the grant recipient.

** Sponsoring organizations generally assess an administrative fee on the assets in a DAF. These fees vary by sponsoring organization.

 

About Fidelity Charitable

Fidelity Charitable is an independent, 501©(3) public charity. We sponsor the largest donor-advised fund program in the country. Our donor-advised fund is called Giving Account. Last year, our donors recommended more than $7.3 billion in grants to support more than 155,000 charitable organizations in every state and around the globe.

A donor-advised fund, or DAF, is a charitable giving vehicle sponsored by a public charity, called a “DAF sponsor” or “sponsoring organization”. Donors make a contribution to the DAF sponsor, become eligible for a tax deduction, and then recommended grants to any IRS-qualified 501©(3) public charity.  This may be done all at once, or over time. Donors also have the opportunity to recommend how their contribution is invested, to potentially grow tax-free, which may ultimately provide more dollars for charity.

Since 1991, Fidelity Charitable has been a leader in charitable planning and giving solutions, helping donors support their favorite charities in smart ways. From world-class services to expertise in handling donations of non-publicly traded assets, we have donors’ needs covered.

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