Fidelity Charitable Giving Account Guide

Individuals may open a Giving Account at Fidelity Charitable online. Trusts, estates, and for-profit business entities may open a Giving Account by completing an Organizational Giving Account application.

Existing donors who would like to open an additional Giving Account must complete a donor application, rather than opening the second account online.

During Giving Account setup, donors provide basic information and choose a Giving Account name. The name may be related to a family (e.g., Smith Family Charitable Fund) or a charitable giving purpose (e.g., Clean Water Fund). Fidelity Charitable reserves the rights to modify or decline proposed Giving Account names.

The individual who establishes the Giving Account is the Primary Account Holder and may add up to three additional Account Holders. Account Holders have equal advisory privileges on the Giving Account.

Giving Account types

• Individual Giving Account: Designed for individuals and their families who want to start a tradition of tax-smart grantmaking
• Organizational Giving Account: Designed for trusts and limited business entities
• Corporate Giving Account: Designed for companies that would like to facilitate corporate philanthropy

Fidelity Charitable accepts a wide range of financial assets to fund a Giving Account, including:

• Cash via check, electronic funds transfer (EFT), wire transfer, or a brokerage account
• Stocks and other securities, such as publicly traded stocks, mutual fund shares, or bonds
• Privately held business interests
• Other non-publicly traded assets, such as restricted stock, life insurance, or cryptocurrency

All contributions are subject to review and approval by Fidelity Charitable. Learn more about the types of assets Fidelity Charitable can accept.

Minimum contribution

*Please note that there is no minimum for subsequent contributions on any Giving Account.

Contribution confirmations and tax forms

Fidelity Charitable sends a confirmation of each contribution to the contributing party as required by law. Contribution confirmations serve as a donor’s tax receipt and should be reviewed carefully. It is the donor’s responsibility to report any errors to Fidelity Charitable. While Fidelity Charitable may provide a fair market value computation as a courtesy, donors are responsible for the value they claim as a deduction on their taxes. Please consult a tax advisor before claiming any deduction.

Note: As a courtesy, Fidelity Charitable also provides a summary of information needed for filing an IRS Form 8283 to donors who contributed publicly traded securities valued at $500 or more. 

Contribution processing

Processing times vary for different asset types. From late November until the last business day of each calendar year, special guidelines may apply in order to ensure delivery and acceptance of securities before the December 31 tax deadline for claiming a charitable tax deduction. Account Holders may need to initiate contributions early. Read the Fidelity Charitable year-end contribution guidelines for additional guidance.

Charitable deduction

Donors are generally eligible to take an itemized deduction once the charitable contribution to Fidelity Charitable is made. The value of the deduction will likely depend on the type of asset contributed. While this guide only addresses federal taxes, please consult a tax advisor as there may be additional rules and regulations at the state level or depending on your specific circumstances.

Fidelity Charitable provides different investment approaches to match Account Holders’ charitable giving objectives:

Investment pools

Fidelity Charitable offers a wide range of investment options with unique objectives and strategies to help our donors meet their philanthropic goals. The investment pools aggregate, or pool, donations from many Giving Account balances and invest those assets in an underlying investment(s). The investment pools typically invest in mutual funds, which are professionally managed and diversified across many different holdings.

• Simplified investment strategies: Asset allocation pools offer diversification among multiple asset classes in a single investment pool, with the added benefit of professionally managed target allocation.
• Customizable investment strategies: Single asset class pools (index and active) allow Account Holders to create a customized strategy by combining pools to reach specific investment objectives.
• Sustainable and impact investing strategies: Sustainable and impact investing pools offer strategies that consider social and environmental factors, while also emphasizing financial returns.
• Charitable Legacy Pool: The Charitable Legacy Pool is an “all-weather” asset allocation pool, with exposure to both traditional and non-traditional asset classes, for Account Holders seeking to consistently support charities through regular grantmaking.

Charitable Investment Advisor Program

The Charitable Investment Advisor Program allows Account Holders with a qualified minimum balance in a Giving Account to be eligible to nominate their investment advisor to manage assets contributed to Fidelity Charitable.

Charitable DonorFlex Program

The Charitable DonorFlex Program^SM is for Account Holders with more than $5 million in a Giving Account who desire flexibility beyond what investment pools offer. Account Holders have the privilege of recommending specific investments for their Giving Account.
 

Learn more about the various investment options available for the Giving Account.

Pool allocations process

Allocation of units

Fidelity Charitable seeks to sell contributed property promptly and allocate the net proceeds of the sale to the Giving Account once they are received.

Net proceeds are defined as gross proceeds less any costs incurred by Fidelity Charitable, including brokerage commissions, federal or state unrelated business income tax, legal due diligence, accounting, tax calculation fees, or valuation costs.

Once net proceeds are allocated to the Giving Account, Fidelity Charitable will purchase the appropriate number of investment pool units. Investment pool units are issued at the next-determined value on the business day that Fidelity Charitable receives the proceeds from the sale of contributed property. The value of a unit at the end of each business day is determined by dividing the value of each Fidelity Charitable pool by the number of units outstanding from that pool. The unit value for each pool for the prior business day is available by logging in to the Giving Account.

Allocation process by asset type

• Cash equivalents (by check or wire): The number of investment pool units equal in value to the cash-equivalent contribution, less any expenses incurred by Fidelity Charitable
• Securities: The number of investment pool units equal in value to the net proceeds from the sale of the contributed securities
• Other property: The number of investment pool units equal in value to the net proceeds received by Fidelity Charitable from the sale of the contributed asset(s)

Important: The value of the donor’s charitable contribution deduction is determined under separate rules and, therefore, the net proceeds and the corresponding value of units allocated to the Giving Account may differ from the charitable deduction allowed or taken.

Allocation of a Giving Account income and value

Income earned by Fidelity Charitable includes interest, dividends, and other investment income, including capital gains distributions from investments in mutual funds, in excess of the operating expenses of Fidelity Charitable. Each pool will be allocated its pro rata share of daily income realized by Fidelity Charitable, which will be reflected in the unit value of that pool. The value of each Giving Account will be the number of units of each attributable pool multiplied by the unit’s current value. The value of a unit for each pool will include realized and unrealized capital gains or losses on the pool’s portfolio investments, as well as undistributed income attributable to that pool.

Pool exchanges

Account Holders and certain authorized advisors or third-party individuals may recommend changes to pool allocations five times per calendar month. Recommendations made after market close, if approved, will generally be performed the following business day.

Because the Giving Account is a donor-advised fund, Fidelity Charitable accepts grant recommendations from Account Holders to support their philanthropic goals. Account Holders may recommend grants online, on the Fidelity Charitable app, or by phone. 

Grant recommendations are subject to review to ensure that funds meet the Fidelity Charitable grant guidelines. If the grant recommendation is not approved, Fidelity Charitable will notify authorized individuals or contacts on a Giving Account.

Eligible grant recipients

Eligible grant recipients include qualified charitable organizations under section 501(c)(3) of the Internal Revenue Code, as well as select private operating foundations or units of government as identified by the Code.

Ineligible grant recipients

• Non-charitable organizations
• Individuals
• Private non-operating foundations
• Type III supporting organizations that are not “functionally integrated”
• Governmental instrumentalities

Ineligible grant purposes

• Testing for public safety organizations
• Political contributions, including campaigns or lobbying
• Improper purposes, such as membership fees, charitable auctions, or other goods and services
• Charitable event tickets
• Benefits in connection with an athletic fund
  

Supporting causes outside the United States: Fidelity Charitable generally does not make grants to charitable organizations not formed under the laws of the United States and its territories. Donors may, however, recommend grants to eligible U.S. intermediary public charities that carry on or provide funding for charitable activities outside the United States. Such grants, if approved by Fidelity Charitable, are subject to the policies of the recipient U.S. public charity, including any additional fees and grant minimums that may apply.

Learn more about eligible grant recipients.

Allocating grants from investment pools

An Account Holder may recommend the investment pool(s) from which a grant should be disbursed (in whole dollars). If the Account Holder does not recommend a pool(s) from which a grant should be disbursed, Fidelity Charitable will disburse the grant from the Money Market Pool first and then proportionately from all remaining pools with a balance.

Special purpose designation

An Account Holder may recommend that a grant be used by the charitable organization for a “special purpose,” such as a building fund, research project, or in honor of a person. 

Donor acknowledgement

When recommending a grant, an Account Holder may request:

• To be identified by name, address, and Giving Account name (e.g., Smith Family Charitable Fund) to the recipient charity;
• To be identified only by the Giving Account name; or
• To remain anonymous

Fidelity Charitable may in its judgment choose to limit anonymity. However, Fidelity Charitable will not release the Account Holder’s name and contact information to any recipient charity without the Account Holder’s explicit consent.

Grant distribution

Once a grant is approved, Fidelity Charitable will make the grant typically within 10 business days. However, additional due diligence may be required if the grant recommendation is to a charity not previously reviewed and verified by Fidelity Charitable. Pool unit values may fluctuate between the time of the recommendation and the grant’s actual distribution.

Fidelity Charitable grants are accompanied by a letter, or detailed spreadsheet, recognizing the Giving Account name, unless anonymity is requested. After each grant is processed, the Primary Account Holder will receive a confirmation from Fidelity Charitable. Account Holders may alternatively request that their name and address be included along with the Giving Account name, in which case they may also receive direct acknowledgments from recipient charities, if they choose to send them.

However, Account Holders are not eligible for additional charitable deductions for these grants, because the grant is made by Fidelity Charitable, and the Account Holder’s charitable deduction opportunity was at the time of the contribution to Fidelity Charitable.

Donor privacy: If an Account Holder requests anonymity, the Giving Account name will be omitted from the confirmation letter, and they can choose to not receive acknowledgments from recipient charities.

Minimum granting

Fidelity Charitable allows unlimited grants from a Giving Account. Fidelity Charitable considers grant recommendations of $50 or more, or the balance of the Giving Account, whichever is less.

Active grantmaking is required for every Giving Account. If no grants are cleared from a Giving Account after one year, Fidelity Charitable will make every effort to contact the Account Holder to encourage grant recommendations. If no grants are cleared from a Giving Account after two years, Fidelity Charitable will grant 5% of the Giving Account balance to IRS-qualified public charities approved by the Trustees. For Giving Accounts with a grant history, Fidelity Charitable will make every effort to grant to charities the donor has previously supported.

Gift4Giving^® Program — An eGift

The Gift4Giving^® Program gives Account Holders the opportunity to dedicate a portion of their Giving Account so that individuals designated by them may recommend grants to the eligible charitable organization of their choice. An Account Holder may designate a minimum of $50, and up to the maximum of $10,000 to a Gift4Giving eGift. Learn more about Gift4Giving.

Fidelity Charitable offers three distinct successor options to allow Account Holders to continue their charitable legacies beyond their lifetime. Account Holders can elect one successor option, or a combination of the three.

General operating expenses