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 benefited over 140,000 charitable organizations last year
BOSTON, MA, February 14, 2019 – 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 United States. 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 benefited over 140,000 charitable organizations in the United States 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 provide more support than ever for 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 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 actively recommending grants to charity with the average Giving Account recommending more than 10 grants annually, nearly twice the average 10 years ago; three quarters of contribution dollars are distributed by way of grants within five years.
Donor-advised funds continue to be the fastest-growing vehicle for giving in the United States, 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 topping 200,000.
The 10 Most Popular Charities at Fidelity Charitable in 2018
“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 has also added messaging on its website, in its magazine and in other communications reminding donors that they can use a donor-advised fund to support Habitat.
Visit 2019 Fidelity Charitable Giving Report for the complete report.
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.