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The Giving Account, a donor-advised fund at Fidelity Charitable is a simple and tax-efficient way to set money aside just for charity. Like writing a check, you’re eligible to take a tax deduction, but a Giving Account also includes many more advantages:
Electronic Funds Transfer
from a bank
Cash position from
Make additional charitable contributions of cash to Fidelity Charitable at any time, or consider contributing other assets, such as stocks, real estate, and more.
Instead of writing checks to separate causes as they come up, Phil and Susan established a Giving Account. They contributed $25,000 through a wire transfer, which was immediately available for a tax deduction of up to 60% of their adjusted gross income. That contribution was invested in one of Fidelity Charitable’s Investment Pools, where it has the potential to grow tax-free—possibly increasing the amount of money they’ll ultimately be able to use for grant recommendations to qualified charities.
In the meantime, they’ve set up an automatic grant recommendation from their Giving Account to their church for tithing every month. When their university’s annual fundraiser comes up, or a friend or neighbor asks for support, they simply recommend another grant.
Instead of mailing checks, contribute to a Giving Account at Fidelity Charitable, where the money is dedicated to charitable use and has the potential to grow tax-free, making it possible for greater charitable support. Even better, contribute long-term appreciated stocks to Fidelity Charitable. Capital gains taxes are eliminated so your contribution (and your deduction) may be larger.
Phil and Susan’s new approach to supporting Parkinson’s research improved in the same ways: better than writing checks here and there, they’ve set up a recurring wire transfer from their checking account to Fidelity Charitable. They’re actively making a series of automated charitable contributions, then recommending how they would like their donation to be invested, giving their Giving Account the potential to grow tax-free. Their goal is to support Parkinson’s research for as long as possible, in the smartest way possible, and the Giving Account from Fidelity Charitable is helping them do just that.
This hypothetical case study is provided for illustrative purposes only. It does not represent an actual donor, but is meant to provide an example of how a donor-advised fund can help individuals give significantly more for the causes they care about.