Are you seeking a way to maximize your charitable giving and receive significant tax benefits? Consider a Fidelity Charitable Gift Fund. This donor-advised fund allows you to contribute various assets and receive immediate tax deductions while granting you the flexibility to recommend grants to qualified charities at your convenience.
Established in 1991, Fidelity Charitable is one of the leading charitable gift funds in the United States. It offers a wide range of services and resources to help donors achieve their philanthropic goals. Whether you want to simplify your charitable planning or make a meaningful impact on the causes you care about, a Fidelity Charitable Gift Fund can be an ideal solution.
Before exploring the details of a Fidelity Charitable Gift Fund, it’s essential to understand the fundamental concept of donor-advised funds and their role in charitable giving.
Fidelity Charitable Gift Fund
Fidelity Charitable Gift Fund is a donor-advised fund that offers numerous advantages for charitable giving.
- Tax-deductible contributions
- Flexible grantmaking
- Investment growth potential
- Personalized donor services
- Online account management
- Donor anonymity option
- Charitable estate planning
- Wide range of giving options
With a Fidelity Charitable Gift Fund, you can maximize your charitable impact while enjoying significant tax benefits and the convenience of a single, consolidated giving vehicle.
Tax-deductible contributions
One of the primary advantages of a Fidelity Charitable Gift Fund is the ability to make tax-deductible contributions. When you contribute cash, securities, or other eligible assets to your fund, you can claim an immediate income tax deduction for the full amount of your contribution, up to the applicable limits.
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Qualified assets
You can contribute a wide range of assets to your Fidelity Charitable Gift Fund, including cash, stocks, bonds, mutual funds, and real estate. All contributions must be made in the name of the fund and must be irrevocable.
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Contribution limits
The amount you can deduct for charitable contributions each year is limited by a percentage of your adjusted gross income (AGI). For cash contributions, the limit is generally 60% of your AGI. For contributions of appreciated long-term capital gain property, the limit is generally 30% of your AGI. However, there are certain exceptions and carryover provisions that may allow you to deduct more in certain situations.
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Timing of deduction
Your tax deduction is claimed in the year you make the contribution to your Fidelity Charitable Gift Fund, regardless of when you recommend grants to charities. This can provide you with immediate tax savings, even if you plan to distribute the funds over several years.
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Recordkeeping
It is important to keep careful records of your contributions to your Fidelity Charitable Gift Fund. Fidelity Charitable will provide you with an annual statement that summarizes your contributions and distributions. You should also keep copies of any receipts or other documentation related to your contributions.
By taking advantage of the tax deductibility of contributions to a Fidelity Charitable Gift Fund, you can maximize your charitable impact while reducing your tax liability.
Flexible grantmaking
Another key benefit of a Fidelity Charitable Gift Fund is the flexibility it offers in making grants to charities. Once you have contributed assets to your fund, you can recommend grants to any qualified public charity at any time and in any amount.
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Donor-advised grants
The most common type of grant made from a Fidelity Charitable Gift Fund is a donor-advised grant. With a donor-advised grant, you recommend the charity you want to support and the amount of the grant. Fidelity Charitable will then send the grant to the charity on your behalf.
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Direct grants
In addition to donor-advised grants, you can also make direct grants from your Fidelity Charitable Gift Fund. With a direct grant, you instruct Fidelity Charitable to send the grant to a specific charity without your recommendation. This option may be useful if you want to make a grant to a private foundation or other non-qualified charity.
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Multi-year grants
You can also choose to make multi-year grants from your Fidelity Charitable Gift Fund. This option allows you to spread your giving over multiple years, which can be helpful for budgeting purposes or for supporting long-term projects.
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Donor-advised fund-to-fund grants
Fidelity Charitable also allows you to make grants from your fund to other donor-advised funds, including those at other institutions. This can be useful if you want to consolidate your charitable giving or support a specific project or initiative.
The flexibility of grantmaking offered by a Fidelity Charitable Gift Fund gives you the freedom to support the charities you care about in the way that best meets your philanthropic goals.
Investment growth potential
One of the key benefits of a Fidelity Charitable gift fund is its investment growth potential. Once you have contributed assets to your fund, Fidelity Charitable will invest those assets in a diversified portfolio of stocks, bonds, and other investments. The goal of this portfolio is to generate long-term growth for your fund, which can help you to support your charitable goals over time.
Fidelity Charitable offers a range of investment options to meet the needs of different donors. You can choose from a variety of pre-defined portfolios or you can work with a Fidelity Charitable investment advisor to create a customized portfolio that meets your specific risk tolerance and investment goals.
The investment growth potential of a Fidelity Charitable gift fund can be a significant advantage, especially if you are planning to support your charitable goals over a long period of time. By allowing your assets to grow tax-free within the fund, you can potentially increase the amount of money you have available to give to charity.
It is important to note that all investments carry some degree of risk. However, Fidelity Charitable has a long history of prudent investment management and has consistently generated strong returns for its donors. As a result, you can be confident that your assets are in good hands and that you are maximizing the potential for growth.
If you are considering making a charitable gift, a Fidelity Charitable gift fund can be an ideal way to maximize your impact. The investment growth potential of these funds can help you to support your charitable goals over the long term.
Personalized donor services
Fidelity Charitable Gift Fund offers a wide range of personalized donor services to help you achieve your philanthropic goals. These services include:
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Dedicated account management
You will be assigned a dedicated account manager who can provide you with personalized guidance and support. Your account manager can help you with everything from opening your fund to recommending grants to charities.
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Investment advice
Fidelity Charitable offers a range of investment options to meet the needs of different donors. Your account manager can work with you to create a customized investment portfolio that meets your specific risk tolerance and investment goals.
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Grantmaking support
Fidelity Charitable can help you identify qualified charities and provide you with information about their programs and services. Your account manager can also assist you with the grantmaking process, including recommending grant amounts and drafting grant letters.
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Donor education
Fidelity Charitable offers a variety of educational resources to help you learn more about charitable giving and donor-advised funds. These resources include webinars, articles, and online tools.
The personalized donor services offered by Fidelity Charitable Gift Fund can help you to make the most of your charitable giving. With the help of a dedicated account manager, you can develop a personalized giving plan that meets your specific needs and goals.
Online account management
Fidelity Charitable Gift Fund offers a secure online platform that allows you to manage your account and make grants to charities at your convenience. With online account management, you can:
- View your account balance and transaction history
- Recommend grants to charities
- Track the status of your grants
- Update your personal information
- Access educational resources and tools
The Fidelity Charitable online platform is easy to use and navigate. You can access your account from any computer or mobile device with an internet connection. Fidelity Charitable also offers a mobile app that allows you to manage your account on the go.
Online account management gives you the flexibility to manage your charitable giving on your own time and schedule. You can make grants to charities whenever you want, from wherever you are.
If you are considering opening a donor-advised fund, the online account management features offered by Fidelity Charitable Gift Fund are an important consideration. With online account management, you can easily and conveniently manage your giving and track your impact.
Donor anonymity option
Fidelity Charitable Gift Fund offers a donor anonymity option that allows you to make grants to charities without disclosing your identity. This option may be beneficial if you wish to support controversial causes or if you simply prefer to keep your charitable giving private.
To maintain your anonymity, you can choose to make grants through a “donor-advised fund anonymity account.” When you make a grant from this account, Fidelity Charitable will not disclose your name to the charity. The charity will only receive a notice that a grant has been made in its name, along with any instructions or restrictions that you have specified.
It is important to note that donor anonymity does not extend to Fidelity Charitable. Fidelity Charitable will maintain a record of your grants for tax purposes and to comply with applicable laws and regulations.
The donor anonymity option offered by Fidelity Charitable Gift Fund can provide you with the privacy and discretion you need to support the causes you care about. Whether you wish to make a one-time grant or establish a long-term giving plan, you can do so with confidence that your identity will remain confidential.
If you are considering making charitable gifts anonymously, Fidelity Charitable Gift Fund is an excellent option. With its donor anonymity option, you can support your favorite causes without compromising your privacy.
Charitable estate planning
A Fidelity Charitable Gift Fund can be a valuable tool for charitable estate planning. By making a bequest to your fund in your will or trust, you can ensure that your charitable wishes are carried out after your lifetime.
There are several benefits to using a Fidelity Charitable Gift Fund for charitable estate planning:
- Tax savings: Bequests to a Fidelity Charitable Gift Fund are eligible for an estate tax deduction, which can reduce the overall tax burden on your estate.
- Flexibility: You can specify how you want your bequest to be used. You can recommend grants to specific charities, or you can give your fund’s advisors the flexibility to distribute the funds to the charities that they believe are most in need.
- Simplicity: Making a bequest to a Fidelity Charitable Gift Fund is a simple and straightforward process. You can work with your estate planning attorney to include a bequest provision in your will or trust.
If you are interested in using a Fidelity Charitable Gift Fund for charitable estate planning, there are several steps you can take:
- Open a Fidelity Charitable Gift Fund: If you do not already have a Fidelity Charitable Gift Fund, you can open one online or by contacting a Fidelity Charitable representative.
- Create a will or trust: If you do not already have a will or trust, you should create one with the help of an estate planning attorney.
- Include a bequest provision: In your will or trust, include a bequest provision that specifies the amount of money or assets you want to leave to your Fidelity Charitable Gift Fund.
By following these steps, you can ensure that your charitable wishes are carried out after your lifetime and that you are maximizing the tax benefits of your charitable giving.
Wide range of giving options
Fidelity Charitable Gift Fund offers a wide range of giving options to meet the needs of different donors. In addition to traditional grants to qualified charities, you can also make the following types of gifts:
- Multi-year grants: With a multi-year grant, you can spread your giving over multiple years. This can be a helpful way to support long-term projects or to budget your charitable giving.
- Donor-advised fund-to-fund grants: You can make grants from your Fidelity Charitable Gift Fund to other donor-advised funds, including those at other institutions. This can be useful if you want to consolidate your charitable giving or support a specific project or initiative.
- Gifts of appreciated stock: You can donate appreciated stock to your Fidelity Charitable Gift Fund and receive an immediate tax deduction for the full fair market value of the stock. This can be a tax-efficient way to support charities and avoid capital gains taxes.
- Gifts of real estate: You can donate real estate to your Fidelity Charitable Gift Fund and receive a tax deduction for the fair market value of the property. This can be a good way to dispose of unwanted property and support charities at the same time.
- Gifts of other assets: In addition to cash, securities, and real estate, you can also donate a variety of other assets to your Fidelity Charitable Gift Fund, including closely held stock, artwork, and intellectual property.
The wide range of giving options offered by Fidelity Charitable Gift Fund gives you the flexibility to support your favorite charities in the way that best meets your needs and goals.
FAQ
Here are answers to some frequently asked questions about Fidelity Charitable Gift Fund:
Question 1: What is a Fidelity Charitable Gift Fund?
Answer: A Fidelity Charitable Gift Fund is a donor-advised fund that allows you to make tax-deductible contributions and recommend grants to qualified charities.
Question 2: How do I open a Fidelity Charitable Gift Fund?
Answer: You can open a Fidelity Charitable Gift Fund online or by contacting a Fidelity Charitable representative.
Question 3: What are the tax benefits of a Fidelity Charitable Gift Fund?
Answer: Contributions to a Fidelity Charitable Gift Fund are tax-deductible, and you can avoid capital gains taxes on appreciated assets that you donate.
Question 4: How do I recommend grants from my Fidelity Charitable Gift Fund?
Answer: You can recommend grants online, by phone, or by mail. Fidelity Charitable will send the grants to the charities on your behalf.
Question 5: Can I make anonymous grants from my Fidelity Charitable Gift Fund?
Answer: Yes, you can choose to make grants anonymously through a “donor-advised fund anonymity account.”
Question 6: What happens to my Fidelity Charitable Gift Fund after I die?
Answer: You can specify in your will or trust how you want your Fidelity Charitable Gift Fund to be used after your death.
These are just a few of the frequently asked questions about Fidelity Charitable Gift Fund. For more information, please visit the Fidelity Charitable website or contact a Fidelity Charitable representative.
In addition to the information provided in the FAQ, here are a few tips to help you get the most out of your Fidelity Charitable Gift Fund:
Tips
Here are a few tips to help you get the most out of your Fidelity Charitable Gift Fund:
Tip 1: Consider your charitable goals. What are your philanthropic interests? What causes are you passionate about? Once you have a clear understanding of your charitable goals, you can start to develop a giving plan.
Tip 2: Fund your account strategically. There are a variety of ways to fund your Fidelity Charitable Gift Fund, including cash, securities, and real estate. Consider your tax situation and your investment goals when making decisions about how to fund your account.
Tip 3: Take advantage of investment growth. Fidelity Charitable offers a range of investment options to meet the needs of different donors. By investing your assets within your fund, you can potentially grow your giving power over time.
Tip 4: Make grants wisely. When making grants from your Fidelity Charitable Gift Fund, consider the impact you want to make. Research different charities and their programs to find those that align with your charitable goals.
By following these tips, you can maximize the impact of your charitable giving through a Fidelity Charitable Gift Fund.
A Fidelity Charitable Gift Fund can be a powerful tool for achieving your philanthropic goals. With careful planning and thoughtful giving, you can make a lasting difference in the world.
Conclusion
A Fidelity Charitable Gift Fund can be a powerful tool for achieving your philanthropic goals. It offers a wide range of benefits, including tax deductibility, flexible grantmaking, investment growth potential, personalized donor services, online account management, donor anonymity options, charitable estate planning, and a wide range of giving options.
Whether you are looking to make a one-time gift or establish a long-term giving plan, a Fidelity Charitable Gift Fund can help you maximize your impact. With careful planning and thoughtful giving, you can make a lasting difference in the world through the causes you care about most.
