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More than 123,000 charities benefited
BOSTON, July 14, 2021 – In the first half of 2021, charities received record support from Fidelity Charitable, an independent public charity and the nation’s largest grantmaker. Its donors recommended a record $4.3 billion in grants this year as of June 30, 2021, 27 percent more dollars than in the same period in 2020. Altogether, more than 123,000 charities benefited from these donor-recommended grants. The increase in the first half of 2021 follows a record-setting $9.1 billion granted in 2020—a 24 percent increase from the previous year as donors responded to the pandemic, social justice and needs in their communities.
“These incredible results suggest that our donors could surpass the record granting in 2020, showing us that people continue to prioritize generosity as we define the ‘new normal’,” said Kristen Robinson, chief operating officer at Fidelity Charitable. “It’s very heartening to see much-needed support going to nonprofits as they continue to face challenges.”
Among the 270,000 donors who use a Fidelity Charitable Giving Account, donor James Liu is an example of how the advantages of giving with a donor-advised fund have enabled donors to provide increased support to nonprofits last year and this year. Liu, a doctor, increased support in particular to nonprofits focused on racial equity, including large organizations like the NAACP Legal Defense Fund—but also smaller, local charities, including many with a focus on Asian communities.
Due to growth over time in his donor-advised fund, Liu calculates that he was able to grant ten times as much money to charities over the five years since he started the account. “It’s my mother’s legacy that I’m using to support these organizations,” Liu said. “These are donations that I would be making even without a Giving Account, but the Giving Account helps me give on a much larger scale than before.”
A donor-advised fund is a charitable account sponsored by a public charity that donors use to support their charitable giving. A donor-advised fund, called a Giving Account at Fidelity Charitable, makes it easier for donors to plan their giving and be more strategic, maximizing their generosity. Donors can contribute many types of assets, advise how those assets are invested for growth and provide even more support to charities over time.
A donor can give cash, stocks or non-publicly traded assets to Fidelity Charitable or another public charity that sponsors a donor-advised fund program. The charity establishes a donor-advised fund in the donor’s name, and the donor can make additional contributions at any time.
While donors decide which charities to support, their donations can potentially grow based on how they recommend them to be invested. At Fidelity Charitable, donors can recommend an investment strategy that aligns with their goals and time horizons for giving through investment pools or investment advisor-managed accounts.
Donors can support IRS-qualified public charities with the money in a donor-advised fund. Before making a grant, Fidelity Charitable conducts due diligence on recommended charitable organizations to ensure the funds will be used for charitable purposes.
About Fidelity Charitable
Fidelity Charitable is an independent public charity that has helped donors support more than 328,000 nonprofit organizations with $51 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.