Give, Grow, Grant:
An Overview of Giving Account Activity

Donors fund their Giving Accounts in a variety of ways—including the tax–smart strategy of
donating appreciated assets—and then use them actively to support causes across the spec–
trum. This section of the report provides insight into the way Fidelity Charitable donors funded
their Giving Accounts last year, as well as into their grant activity, both in 2013 and over time.

HOW GIVING ACCOUNTS ARE FUNDED

Donors can establish a Giving Account with a minimum charitable contribution
of $5,000. Current Giving Accounts range in size from less than a thousand
dollars to millions of dollars, with a median balance of $16,133.

Donors can also make their contributions with a wide range of assets. While
giving with cash, check, or credit card remains very popular in the U.S.,6 it is
generally the least strategic way to give because the potential capital gains tax
advantages—which can benefit both donors and their recipient charities—are
not maximized. Donating long–term appreciated securities (both publicly and
non–publicly traded) directly to charity may allow donors to eliminate capital
gains taxes on the appreciation of the securities—with those tax savings going
directly to the charitable cause.

Donors fund their Giving Accounts with many different types of assets, including:

  • Stocks
  • Bonds
  • Mutual
  • Private stock
  • Restricted stock7
  • Limited partnership interests
  • Real estate

DONORS MADE CONTRIBUTIONS WITH A WIDE RANGE OF ASSETS

Non–publicly traded assets
represent a growing,
significant––and until
recently—largely untapped
source of philanthropic
funding.8 Charitable gifts of
these types of assets can
be complicated and costly
for individuals to give and
for some nonprofits to
accept.

The expertise and efficien–
cy of Fidelity Charitable in
the liquidation and conver–
sion of nonpublicly traded
assets into charitable
dollars has played a
substantial role in the
growth of these types of
contributions.

6 http://www.irs.gov/uac/SOI-Tax_Stats_Individual-Statistical-Tables-by-Size-of-Adjusted-Gross-Income.

7 Restricted stocks may be publicly traded securities, but they contain restrictions pertaining to their transfer and/or sale. As such,
   they have been classified as non-publicly traded assets for the purpose of this report.

8 Deloitte Consulting, LLP, published a report in May 2011 entitled "The Next Decade in Global Giving Among millionaire
   Households," which stated that the top 1% of U.S. households hold 35% of their wealth in privately held businesses.

CREATING IMPACT THROUGH
GROWTH AND GRANTING

Once assets have been contributed to a Giving Account, they have been irre–
vocably committed to be used for charitable purposes. Fidelity Charitable
offers a variety of investment options that allow those dedicated charitable
dollars to continue to grow tax-free as donors implement their granting strategies.

Most donors focus on "giving while living," consistently recommending grants
to their favorite charities. Others view it more as a longer–term, endowment-
like charitable vehicle to benefit a specific charity or establish a family legacy.
Donors can take advantage of the flexibility of having a "ready reserve" to
recommend grants to the causes they care about, whether it's a spontaneous,
one–time grant or an annual donation to a favorite charity. However, regardless
of the many individual ways that donors approach their Giving Accounts, a
common thread is that they are active philanthopists.

CHARITABLE DOLLARS HAVE INCREASED BY BILLIONS THROUGH INVESTMENT GROWTH

Donors are able to recom–
mend how assets are
allocated among several
investment options—mutu–
al fund pools or investment
advisor–managed
accounts–—for tax–free
growth. Since Fidelity
Charitable's inception,
investment growth has
increased the amount of
charitable dollars available
for granting by nearly $2.9
billion over the total
amounts contributed.

DONORS FREQUENTLY AND ACTIVELY RECOMMEND GRANTS

Granting was prevalent last
year regardless of account
level. However, a higher
percentage of Giving
Accounts of $250,000 or
more had granting activity
than smaller accounts.
Data from previous years
shows similar patterns.
Granting activity remains
consistent over time, with
an overall average of 76
percent of donors with
more than $1,000 in their
account recommending a
grant in any given year.10

MOST CONTRIBUTIONS ARE GRANTED TO CHARITIES WITHIN 10 YEARS

Many donors continue to
add funds to their Giving
Accounts after making
their initial contribution.
However, an analysis using
a first–in–first–out
methodology reveals that the majority of funds are distributed as grants within a decade of their receipt.

In concrete terms, this
means that for every
$10,000 contributed
between 1996 and 2000,
for instance, only $700
remained to be granted
by 2013.

Overall, Fidelity Charitable
has distributed 64 percent
of all contributions
received since inception.

9 As of December 31, 2013.

10 Excludes accounts open less than a year.