Can people who do not have a Fidelity Charitable Giving Account make contributions for the benefit of another person's Giving Account?
Anyone can make tax deductible charitable contributions to Fidelity Charitable, which can be
allocated into a Giving Account. All contributions must meet the criteria outlined in the
Fidelity Charitable Policy Guidelines.
Third-party contributors — people other than the Account Holder on a particular Giving
Account — will have no privileges with respect to their contributions, such as
recommending investment allocations and grants. Like Account Holders, third-party
contributors also cannot receive anything in consideration of their contribution, under IRS
rules and Fidelity Charitable policies.
Account Holders cannot solicit third-party contributions on behalf of a specific charitable
organization or on behalf of Fidelity Charitable for their Giving Account, and cannot
guarantee to contributors that intended grant recommendations will be approved.
In regards to third party contributions, what does Fidelity Charitable consider a third party entity?
A third party is any person or entity that makes a contribution to Fidelity Charitable that is not an Account Holder® on the Giving Account. Third parties can include a trust, corporation, limited liability company, or partnership.
What is the difference between a notification sent to me, the Account Holder, and the Confirm sent to a third party for the third party’s contribution?
The Notification sent to an Account Holder serves as notice that a third party contributor made a contribution to Fidelity Charitable that was allocated to your Giving Account. The Confirm sent to the third party contributor serves as written acknowledgement for the donor’s use to substantiate their charitable deduction for tax purposes.
Why does Fidelity Charitable ask for additional information during third party contributions?
Fidelity Charitable is dedicated to providing the most accurate documentation to its donors for their contributions for tax reporting. Donors choose to make contributions to Fidelity Charitable on behalf of third party entities, and we understand that it is critical for the documentation for tax reporting to be accurate to ensure donors and donor-advisors can file their tax returns accurately.
For third party contributions, will a Notification still be delivered to the Account Holder?
Yes, the primary Account Holder will receive a Notification via his/her preferred delivery method if a contribution from a third party entity has been made to Fidelity Charitable, and has been allocated to his/her Giving Account.
What is the IRS Form 8283?
Individuals, partnerships, and corporations use IRS Form 8283 to report information to the IRS about noncash charitable contributions when the amount of their contribution for all noncash gifts is more than $500. As a courtesy, Fidelity Charitable provides donors with a Form 8283 when the donor's noncash charitable contributions to Fidelity Charitable in the previous year, meet this criteria. These forms are generally available online or by mail by the end of March.
How will third party contributions be reflected on my 8283 Tax Form for 2018?
The Form 8283 for contributions made from an entity’s brokerage account will now accurately reflect the name of the entity.
Does Fidelity Charitable require specific contribution amounts?
After your initial contribution, there is no minimum contribution amount.
The minimum contribution for individuals to set up a Giving Account is $5,000. For corporations the minimum is $25,000.
What happens when Fidelity Charitable receives my contribution?
When a contribution is received and accepted, Fidelity Charitable will allocate the proceeds
of the contribution to your Giving Account, and will purchase units of each investment pool
recommended for the Giving Account. Units will be purchased on the business day (each day
that the New York Stock Exchange is open for business) Fidelity Charitable receives cash or
the proceeds from the sale of the contributed assets.
Once Fidelity Charitable accepts a charitable contribution, it is irrevocable and is owned
and controlled by Fidelity Charitable's Board of Trustees, who are responsible for all
aspects of Fidelity Charitable's operations. Fidelity Charitable's service provider
typically trades assets in Fidelity Charitable's brokerage account(s) between 9:45am and
3:45pm ET, but not immediately after the market opens nor immediately before market close.
This is due to Fidelity Charitable's concerns about volatility at the open and close of the
market. Fidelity Charitable generally expects its service provider to place batch trades in
15 minute intervals, but does not require a guarantee from its service provider that every
contributed security will be sold within 15 minutes after it is received.
What does "immediate tax deduction" mean?
Fidelity Charitable donors may be eligible to take an itemized deduction valued on the date
their charitable contribution to Fidelity Charitable is made, subject to the general
limitations described in "What are the limitations on charitable deductions?", below. Your
deduction will depend, in part, on the type of asset that you contribute. Please check with
your tax advisor. Deduction amounts follow:
Check/wire/Electronic Funds Transfer: Your deduction is generally the amount of
your cash contribution.
Publicly traded securities: For publicly traded securities held for more than one
year, your deduction generally will be the fair market value of the securities on the
day of the contribution.
Securities that are not publicly traded: For securities not publicly traded that
have been held for more than one year, your deduction will be the fair market value
determined by you in a reasonable manner on the date the contribution is made. The IRS
will require you to obtain a qualified independent appraisal in certain circumstances
Real Estate: For contributions of real estate, your deduction will be the fair
market value determined by you in a reasonable manner on the date the contribution is
made. The IRS will require you to obtain a qualified independent appraisal in certain
The Fidelity Charitable Policy Guidelines are a good reference for tax
questions. This section addresses only federal taxes. Rules and regulations regarding tax
deductions for charitable giving vary at the state level. In addition, certain additional
rules or limitations may apply with respect to your tax treatment depending on your specific
circumstances. Please consult with your tax advisor.
What are the limitations on charitable deductions?
Under the Internal Revenue Code, deductions for charitable contributions are subject to
certain "percentage limitations" that limit the deductions that can be taken to a stated
percentage of adjusted gross income ("AGI") in the year the deduction is taken.
(Contributions in excess of these percentage limitations may be carried forward up to five
subsequent years.) Because Fidelity Charitable is a public charity, the percentage
limitations that apply are generally the most favorable charitable deductions available
under IRS rules.
- Deductions for contributions of long-term capital gain property (such as appreciated
securities held for more than one year) are limited to 30% of AGI.
- Deductions for all other contributions (including contributions of cash) are limited to
60% of AGI.
Your ability to take itemized deductions may be subject to certain other limitations. Please contact your tax advisor to determine your tax deductibility limits.
What types of assets can I contribute to Fidelity Charitable?
Cash equivalents, publicly traded stock, mutual fund shares, bonds, certain private or
restricted stock, bitcoin, and select real estate are eligible for contribution to Fidelity
Charitable. We will be glad to discuss proposed contributions with you. Please contact us at
800-262-6039 for assistance.
What types of bank accounts are eligible for Electronic Funds Transfer (EFT)?
For an individual Giving Account, Fidelity Charitable will accept contributions from your
personal savings or checking accounts with any U.S. bank. Your Social Security Number should
match the corresponding Social Security Number on your bank account.
For a Corporate Giving Account, Fidelity Charitable will accept contributions from a
corporate account with any U.S. bank. The corporate bank account must be an account for
which you are authorized to act on behalf of the corporate entity.
Is there a fee for EFT?
Fidelity Charitable does not charge a fee for using EFT; however, your bank may charge a fee.
Can I contribute privately held company stock to Fidelity Charitable?
Contributions of privately held company stock are reviewed and accepted on a case-by-case basis. Please contact us at 800-262-6039 for assistance.
Can I contribute real estate to Fidelity Charitable?
Contributions of appreciated real estate are reviewed and accepted on a case-by-case basis. Please contact us at 800-262-6039 for assistance.
Does Fidelity Charitable accept bitcoin as a contribution?
Yes. For all bitcoin inquiries, please contact us at 800-262-6039.
Would it be a wise estate planning idea to leave my IRA, 401(k), or other retirement account to Fidelity Charitable?
You should always check with your own tax advisor or trusts and estates attorney because
individual situations vary substantially. It is generally permissible to leave your IRA or
other tax-deferred account to charity. At your death, the full value of the account would be
included in your estate, but since it is being donated to a charity, it would generally
qualify for the unlimited charitable deduction.
With any employer-sponsored retirement plan (e.g., a 401(k)), there must be spousal consent
to leave the balance of your retirement account to a charity. You also must bear in mind the
minimum required distribution rules, the needs of your beneficiary, and your financial needs
during your lifetime.
What about contributing from my retirement account now?
Again, it is important to speak with your tax advisor or attorney about your personal
situation. In general, during your lifetime, whenever you take money out of your
tax-deferred account (IRA, 401(k), 403(b), etc.), the distribution is considered income to
you and is a taxable event. Therefore, you would have to pay the taxes due upon the value of
the distributed assets and the remaining money would go to the charitable organization.
However, there may be certain exceptions for "employer securities" (shares of an employer's
stock, or "company stock") held in a 401(k) account. If you are interested in contributing
this type of security, contact us at 800-262-6039 for assistance.
Can I give a variable annuity to Fidelity Charitable?
We can accept variable annuities that are nonqualified. However, most variable annuities are
qualified, which means they are equal to pre-tax dollars. Therefore, the owner must create a
taxable event (that is, sell the variable annuity) before donating the money.
At death, annuities bring up the same considerations as retirement plans, although there are
no minimum required distribution rules to consider. (See previous two questions for more on
contributing from a retirement account.) This is another instance in which it is important
to consult with a tax advisor to evaluate your individual situation. This answer should not
be construed as tax advice.
Where should I send my forms to be processed?
We have a processing center for general mail and overnight mail.
Fidelity Charitable Gift Fund 100 Crosby Parkway Covington, KY 41015-9325.
General Mailing Address:
Fidelity Charitable Gift Fund & PIF PO Box 770001 Cincinnati, OH 45277-0053.
What is the difference between the Fair Market Value (FMV) and the proceeds?
The FMV for publicly-traded securities is determined by multiplying the number of shares
contributed by the average of the high and low prices for the day on which the shares are
received. It is the figure that is used for tax deduction purposes. The proceeds are what the securities are sold for,
multiplied by the number of shares contributed, then subtracted by any commission (usually
1.2 cents per share). This is the amount that is deposited into the investment pools and is
available for distribution. This is the procedure followed per IRS standard.
What are the stock delivery instructions?
For credit to: National Financial Services LLC
Account Number: Z97–000442
For benefit of: Fidelity Charitable Giving Account [number]
What are the year-end contribution date guidelines?