Grants
This tutorial guides you in recommending a grant on behalf of your client through our advisor platform, GivingCentral. If you have not already done so, you’ll need to register on GivingCentral.
1. Initiate the grant
From the Action menu, select grant recommendation. If you do not see this option, you will need to request transactional access from your client.
A list of Giving Accounts for which you have transactional access will appear. Select the Giving Account your client intends to use to fund this grant recommendation.
Search for the nonprofit
You can recommend a grant to virtually any IRS-qualified 501(c)(3) public charity or private operating foundation on behalf of your client.
1. Find the organization your client wants to support
You can search for charities by name or using their federal tax ID or EIN.
2. Narrow your search results
You can narrow your search by state if your client is looking for a local chapter of a large national organization. You also have the ability to refine by sector if your client knows the mission type he/she would like to support, but not the name of a specific organization. If the organization is not listed in the search results, you have the option to enter it manually.
3. Once the correct organization is found, select recommend
Tip: Use the research tool to review GuideStar data on any organization.
Verify the organization’s information
The default information that appears is provided by the IRS.
1. Verify the nonprofit’s information
Review the organization’s legal name and mailing address.
2. You may add additional contact information, if necessary
If desired, add a contact name and/or phone number for the organization. Note, this information is not required and is used for routing purposes only. Payments are made to the order of the organization, never an individual.
Tip: Make changes only if you are confident the legal mailing address has changed. Entering a new address for the organization requires additional due diligence and may delay processing of the grant recommendation.
Indicate the purpose of the grant
The designation informs the organization how the funding is to be used.
1. Adding a grant designation
Select the appropriate designation. The default is “Where it’s needed most” which allows the organization to determine their most pressing need.
Tip: Ensure the purpose of the grant is permissible.
While you can customize a designation or create your own, do know this requires additional due diligence and may delay processing of the grant recommendation.
Specify timing
You have the option to submit a one-time grant as soon as possible or schedule a grant – either on a future date or reoccurring for a specific amount of time. This allows the grant to be recommended without needing to log in again.
1. Schedule your grant recommendation
Select when your client would like funds to be distributed. The default selection is a one-time grant issued “as soon as possible”.
Tip: Typical grant processing time is 2-10 business days. Be sure to plan accordingly if additional due diligence may be required.
Processing time can be reduced by encouraging the nonprofit to enroll in Electronic Funds Transfer (EFT). Once approved, funds are transferred directly into the nonprofit’s bank account rather than mailing a paper check.
The grant minimum is $50. Grants initiated through GivingCentral must be recommended in increments of $5 or $18.
1. Choose the grant amount
Identify the amount to be granted and the recommended pool allocation – either proportionately or from specific positions.
IMPORTANT: Grants cannot be recommended for the full Giving Account balance via GivingCentral. Please contact our Fidelity Charitable team for assistance.
Tip: Unfortunately, odd dollar grants cannot be made from GivingCentral. If you would like to make a grant on your client’s behalf that is not an increment of $5 or $18, please contact our Fidelity Charitable team for assistance.
Along with an EFT or check, the organization receives information regarding the source of the grant, if disclosed. Your client has several options for acknowledgement – name and address, Giving Account name only, or remain anonymous.
1. Indicate desired acknowledgment
Here you can add the donor’s name or grant anonymously. The default selection is “Name and Address”. A sample communication is provided for each option.
Confirm and submit the grant recommendation
This is your final opportunity to make edits to the recommendation.
1. Review all the details
Review the information you entered in the steps prior.
2. Add your certification
Once you’ve proceeded to the next step, you will be asked to agree to several certifications. If you agree, submit the grant recommendation.
Tip: Check the status of a grant recommendation anytime via GivingCentral.
For Advisors
What are the things to keep in mind when recommending a grant?
What is the best way to recommend a grant on behalf of my client?
Where can I find the status of my client’s grant?
How can I recommend an odd dollar grant from my client's Giving Account?
What do you mean by "due diligence process"?
What are the things to keep in mind when recommending a grant?
You can recommend a grant to virtually any IRS-qualified 501(c)(3) public charity or private operating foundations on behalf of your client, although the client may not receive a "more than incidental benefit" in return (such as tickets to a charitable event).
The minimum grant is $50. In addition to the amount of a grant, you can also specify your client's desired use for the funds and how they would like to be acknowledged. These details will be sent to the charity along with the grant.
To make a grant on behalf of your client through GivingCentral, you must have transactional access on the Giving Account. Account access can be requested during the account opening process or from the GivingCentral dashboard at any time once the Giving Account is established. Once access is approved by your client, use this tutorial to walk through recommending a grant step-by-step.
You can check the status by logging into GivingCentral and then clicking on your client’s Giving Account Name. Then click the “Recent Grants” tab and the third column will list the status of the donor’s five most recent Grant recommendations. To view more, click on “Grant History”.
Your client can check on the status by logging into the Donor portal, going to History and then Grants. From there they will see all of the grant requests for the account. Click on the Grant ID on the left side and it will pull up all of the details for that grant, including status.
Donors can make a grant that is not an increment of $5 or $18, on FidelityCharitable.org through their giving account. Unfortunately, only grants in increments of $5 or $18 can be made through GivingCentral. If you would like to make a grant that is not an increment of $5 or $18, this will need to be done by contacting our Fidelity Charitable team.
IMPORTANT NOTE: Grants cannot be recommended for the full Giving Account balance online for the donor or transactional advisor, please contact our Fidelity Charitable team.
To protect the integrity of the program, and to ensure that we are following the rules outlined by the IRS for registered 501(c)(3) programs, we not only go through a process of verifying the charity but also the type of Grant being made to ensure that it qualifies. More information can be found here.
No. Bifurcated or "split" gifts cannot be made from the donor-advised fund. For example, grants intended to pay all or a portion of the cost of tickets to attend a charitable event will not be made. This includes grants for the charitable, or tax-deductible, portion of the ticket price. The FULL ticket price (the tax deductible AND non-tax deductible portions) must be paid out of pocket and separate from any Fidelity Charitable grants.
What about recommending a grant for a sponsorship?
Here’s an example: Rebecca would like to attend the Annual Gala at her favorite charity. The charity offers individual tickets priced at $500 ($250 tax-deductible) or a Patron Sponsorship for $10,000 that comes with 10 tickets for seats at a premium table ($7,500 tax-deductible). Rebecca would like to use all 10 seats so her friends and family can attend the gala with her. For Rebecca to be within Fidelity Charitable policy, she would have to pay the full minimum ticket price of $500 for each attendee, totaling $5,000.
She can recommend a grant for the remaining $5,000 from her Giving Account at Fidelity Charitable as long as this amount is considered fully tax-deductible with no goods or services being provided in connection to the grant.
Fidelity Charitable’s policies are in compliance with the Pension Protection Act of 2006 (PPA) which enacted certain laws applicable to donor-advised funds, including excise taxes on prohibited benefits under IRC section 4967.
In December 2017, the IRS released Notice 2017-73 that requested comments on potential regulations the IRS is considering with respect to donor-advised funds. The rules proposed in the Notice are largely consistent with Fidelity Charitable’s policies and procedures.
What does the term “more than incidental benefit” mean?
Grants must be recommended exclusively for charitable purposes with no more than incidental benefits to an Account Holder or related third party. A “more than incidental” benefit generally includes items with financial value, such as includes tickets to attend an event, raffle tickets, auction items, or the provision of any other goods or services. Certain items of minimal value are considered an “incidental benefit” such as logo-bearing keychains, coffee mugs, or calendars.