Fidelity Charitable® Donors Recommend a Record $5.2 Billion in Grants in 2018, a 17% Increase Over 2017

Number of Giving Accounts at Fidelity Charitable® has grown 150
percent in the last decade, with 15,000 new Giving Accounts established
in 2018

Nearly 1.3 million grants benefitted over 140,000 charitable
organizations last year

BOSTON–(BUSINESS WIRE)–Fidelity
Charitable
saw another all-time high in grantmaking in 2018 as its
donors recommended a record $5.2 billion from their donor-advised funds
(DAFs), according to a report
released today by the charity. Last year’s unprecedented grantmaking
activity – $700 million more than in 2017 – underscores the value of
DAFs, which continue to be the fastest-growing vehicle for giving in the
U.S. In a year of uncertainty related to tax reform and market
volatility, Fidelity Charitable enabled donors to increase their
charitable impact, with nearly 1.3 million grants that benefitted over
140,000 charitable organizations in the U.S. and around the world. The
2019 Giving Report provides key insights into Fidelity Charitable donor
activities.


“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 Pamela Norley,
president of Fidelity Charitable. “One of the inherent strengths of
donor-advised funds is that they enable sustained philanthropy
regardless of the market environment.”

Donors’ Grant-Related Activity Continues to Accelerate and Fuels New
Granting Records

Donors who contribute to DAFs irrevocably commit those funds to
philanthropy. This makes their ability to support charities — year in
and year out — less sensitive to market fluctuation and provides a
source of ongoing support to thousands of charities nationwide and
around the world.

The report highlights that donors are recommending grants to charities
with the average Giving Account recommending more than 10 grants
annually, nearly twice the average 10 years ago; in addition, three
quarters of contribution dollars are distributed within five years.

Donor-advised funds continue to be the fastest-growing vehicle for
giving in the U.S., and the continued increase in new Giving Accounts at
Fidelity Charitable reflects this upward trend, with the number of
Giving Accounts having more than doubled in the past 10 years and the
Fidelity Charitable community toping 200,000.

Making a difference in the world of philanthropy

  • Donor generosity makes ripples across the nonprofit sector – In 2018,
    Fidelity Charitable donors supported more than 140,000 charitable
    organizations in every state and across the world. These nonprofits
    represent a diverse set of charitable causes, ranging from local
    interests to international relief and development.
  • The growth in grants from DAFs, including Fidelity Charitable, has
    greatly benefitted organizations such as Habitat for Humanity,
    allowing the organization to serve more people–in particular because
    of the high rate grants for “where it’s needed most.”

    “Sophisticated
    donors–such as the donors who use donor-advised funds–are interested
    in more efficient and impactful ways to donate. They are more likely
    to understand the value of unrestricted giving, and how it gives the
    charitable organization the ability to run towards opportunity,” said
    Jeremy Kraut-Ordover, vice president of individual giving at Habitat
    for Humanity.

    In response to the growing use of DAFs,
    Kraut-Ordover noted that Habitat for Humanity has stepped up its
    stewardship efforts, such as thank you notes, directed to DAF donors.
    It’s also added messaging in their website, magazine and other
    communications reminding donors that they can use a donor-advised fund
    to support Habitat.

  • The growth of impact investing shows donors embracing new
    strategies
    to maximize the impact of their charitable dollars.
    More popular with younger donors—Millennials and Gen Xers—these
    investments consider social and environmental impacts, while also
    seeking to maximize financial returns. The increasing popularity of
    these investments signals that impact investing is moving from a trend
    to a widely-accepted strategy among donor-investors at all levels.

    • Giving to impact investing nonprofits has nearly doubled since
      2013, totaling $22 million last year. These charities raise funds
      to support their investments in socially minded organizations and
      projects.
    • The charitable dollars in Fidelity Charitable Giving Accounts
      allocated to impact investments increased by 16% last year to
      nearly $1 billion. Fidelity Charitable launched three new impact
      investment pools in 2018.

Additional highlights include:

  • Non-publicly traded assets, such as restricted stock, limited
    partnership interests and other assets, top $1 billion milestone in
    gifts to Fidelity Charitable in 2018.
  • Since inception, Fidelity Charitable has converted more than $6
    billion in non-publicly traded assets into dollars for charity.
  • More than 60 percent of contributions to Fidelity Charitable in 2018
    were made in the form of more strategic non-cash assets, including
    publicly traded securities (stocks, bonds and mutual funds) and
    non-publicly traded assets (private stock, restricted stock, limited
    partnership interests and bitcoin).
  • Investment growth of Giving Account® assets has generated
    an additional $5 billion available for grants since inception.
  • Since inception, Fidelity Charitable has supported more than 278,000
    charities with nearly $35 billion in donor-recommended grants.

For the complete Fidelity Charitable 2019 Giving Report, visit: https://www.fidelitycharitable.org/giving-report/2019/overview.shtml

About Fidelity Charitable

Fidelity Charitable is an independent public charity that has helped
donors support more than 278,000 nonprofit organizations with nearly $35
billion in grants. Established in 1991, Fidelity Charitable launched the
first national donor-advised fund program. The mission of the
organization is to grow the American tradition of philanthropy by
providing programs that make charitable giving accessible, simple and
effective. For more information about Fidelity Charitable, visit https://www.fidelitycharitable.org.

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Contacts

Corporate Communications
(617) 563-5800
fidelitycorporateaffairs@fmr.com
Follow
us on Twitter @FidelityChrtbl

Sophie Launay
(617) 563-9171
sophie.launay@fmr.com

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