Fidelity Investments Charitable Gift Fund: A Guide To Giving Back

2023 has been a year of many changes, including the way we approach giving back to our communities. One of the most popular ways to give back is through a charitable gift fund, and Fidelity Investments offers one of the most well-known and respected options on the market. In this article, we’ll explore what the Fidelity Investments Charitable Gift Fund is, how it works, and why it might be the right choice for you.

What is the Fidelity Investments Charitable Gift Fund?

The Fidelity Investments Charitable Gift Fund is a donor-advised fund that allows you to make a tax-deductible donation to a charitable organization of your choice. Unlike traditional charitable donations, which are made directly to the charity, donations to the Fidelity Charitable Gift Fund are invested and grow tax-free until you’re ready to make a grant to a charity.

When you make a donation to the Fidelity Charitable Gift Fund, you can choose from a variety of investment options, including mutual funds and exchange-traded funds (ETFs). Your donation is invested based on the options you choose, and you can recommend grants to any IRS-qualified public charity, including religious organizations, schools, and hospitals.

How does the Fidelity Investments Charitable Gift Fund work?

The Fidelity Charitable Gift Fund is designed to be easy to use and flexible. Here’s how it works:

1. You make a tax-deductible donation to the Fidelity Charitable Gift Fund.
2. Your donation is invested in one or more investment options of your choice.
3. Your donation grows tax-free until you’re ready to make a grant to a charity.
4. You can recommend grants to any IRS-qualified public charity, including religious organizations, schools, and hospitals.
5. The charity receives the grant and uses it to support their mission.
6. You can track your donation, investment, and grant history online through the Fidelity Charitable Gift Fund dashboard.

Why choose the Fidelity Investments Charitable Gift Fund?

There are many reasons why the Fidelity Charitable Gift Fund might be the right choice for you:

• Tax benefits: Because your donation is tax-deductible, you can potentially reduce your taxable income and save money on taxes.
• Investment options: With a wide variety of investment options to choose from, you can tailor your donation to your financial goals.
• Flexibility: You can recommend grants to any IRS-qualified public charity, including religious organizations, schools, and hospitals.
• Convenience: The Fidelity Charitable Gift Fund is designed to be easy to use, with online access to your donation, investment, and grant history.
• Legacy: You can involve your family in your charitable giving and create a legacy of giving back.

Other Charitable Gift Fund Providers

While the Fidelity Charitable Gift Fund is one of the most well-known charitable gift funds, there are other providers that offer similar services:

• Schwab Charitable
• Vanguard Charitable
• TIAA Charitable
• Goldman Sachs Philanthropy Fund

Conclusion

The Fidelity Investments Charitable Gift Fund is a flexible and convenient way to give back to your community while potentially reducing your taxable income. With a wide variety of investment options and the ability to recommend grants to any IRS-qualified public charity, the Fidelity Charitable Gift Fund is a popular choice for donors who want to make a lasting impact. Consider speaking with a financial advisor to determine if a charitable gift fund is the right choice for you.

People Also Ask:

What is a donor-advised fund?

A donor-advised fund is a charitable giving vehicle that allows you to make a tax-deductible donation to a public charity, such as the Fidelity Charitable Gift Fund, and recommend grants to any IRS-qualified public charity.

How do I open a Fidelity Charitable Gift Fund account?

You can open a Fidelity Charitable Gift Fund account online or by calling Fidelity directly. You’ll need to provide some basic information, such as your name, address, and social security number.

How much can I donate to the Fidelity Charitable Gift Fund?

There is no minimum donation required to open a Fidelity Charitable Gift Fund account, but there is a $5,000 minimum recommended donation to start investing. There is also no maximum donation limit.

How do I recommend a grant from the Fidelity Charitable Gift Fund?

You can recommend a grant from the Fidelity Charitable Gift Fund online or by phone. You’ll need to provide the name and address of the charity you want to support, as well as the amount of the grant.

What are the tax benefits of donating to the Fidelity Charitable Gift Fund?

Donations to the Fidelity Charitable Gift Fund are tax-deductible, which means you can potentially reduce your taxable income and save money on taxes. Additionally, because your donation is invested and grows tax-free until you’re ready to make a grant, you may be able to give more to charity over time.