Donors are generally eligible to take an itemized deduction once the charitable contribution to Fidelity Charitable is made. The value of the deduction will likely depend on the type of asset contributed. While this guide only addresses federal taxes, please consult a tax advisor as there may be additional rules and regulations at the state level or depending on your specific circumstances.
Cash equivalents (by check, EFT, or wire)
The amount of the contribution
Publicly traded securities
Publicly traded securities held for more than a year: Fair market value of the securities on the date the contribution is made
Mutual fund shares held for more than a year: Fair market value of the shares contributed, determined as of the closing price on the date the contribution is made
Securities or mutual fund shares held for one year or less: Limited to the lesser of the donor’s cost basis or the fair market value
Non-publicly traded securities
Non-publicly traded securities held for more than one year: Fair market value of the securities on the date the contribution is made
The IRS may require donors to obtain a qualified independent appraisal. Please consult your tax advisor, as the appraisal value may be higher or lower than the proceeds from the sale of the asset.
Any income accrued to a Giving Account related to a contribution is Fidelity Charitable income, not of the Account Holder’s taxable estate. Therefore, the Account Holder is not subject to tax on that income and cannot take further charitable contribution deductions on that income. Income or loss to Fidelity Charitable will be reflected in the value of each Giving Account.
When Fidelity Charitable disburses grants to charities, Fidelity Charitable is granting its own assets. Account Holders who make grant recommendations are not eligible for additional charitable deductions for these grants. If an Account Holder receives a tax receipt from the grant recipient in connection with a grant from Fidelity Charitable, it may not be used for tax purposes.
Under the Internal Revenue Code, charitable contribution deductions are subject to certain percentage limitations. This regulates the deductions taken to a stated percentage of adjusted gross income (AGI) in the year the contribution is made. Contributions in excess of this limit may be carried forward up to five subsequent years.
Deductions for contributions of long-term capital gain property (such as appreciated securities held for more than one year) may be taken up to 30% of AGI. Deductions for cash contributions may be taken up to 60% of AGI. Please consult your tax advisor to determine your tax deductibility limit.