Set Up a Giving Account®
Contributions to the Gift Fund Giving Account
- Does the Gift Fund require specific contribution amounts?
- What happens when the Gift Fund receives my contribution?
- Will the Gift Fund send me a receipt for my contribution?
- How often may I contribute to the Gift Fund?
- Are additional contributions to the Gift Fund tax-deductible?
- What types of assets can I contribute to the Gift Fund?
- Can I contribute privately held company stock to the Gift Fund?
- Can I contribute real estate to the Gift Fund?
- Would it be a good estate planning idea to leave my IRA, 401(k), or other retirement account to the Gift Fund?
- What about contributing from my retirement account now?
- Can I give a variable annuity to the Gift Fund?
Tax Deductions
Grant Recommendations
- Can I make grant recommendations to foreign charities?
- Is there a minimum grant amount? Are there other guidelines for grant recommendations?
Investment Options
- How do the Gift Fund Trustees choose the funds included in the Gift Fund pools?
- Do you offer any pools that draw exclusively on "socially responsible" investments?
Miscellaneous
- Where can I find an overview of Gift Fund policies and procedures?
- Are you a nonprofit organization? Where do staff salaries come from?
- Do you have any statistics that show whether the Gift Fund is increasing the level of philanthropy in the U.S.?
- What are the top reasons donors tell you they choose to contribute to the Gift Fund over other giving vehicles?
- Will my company match my gift that I recommend out of a Giving Account?
- Why do nonprofits continue to solicit me, even though I've already recommended a grant to them from the Gift Fund?
Set Up a Giving Account®
How do I set up a Giving Account?
To set up a Giving Account, simply complete a Donor Application and submit it along with your contribution to the Gift Fund (minimum initial contribution of $5,000 for individual Giving Accounts and $100,000 for corporate Giving Accounts) in cash equivalents, securities, or select real estate. You can get started right now:
- Set up a Giving Account online, or
- Download and complete a Donor Application (PDF) and fax or mail it to us using the fax number or address on the form.
- Contact us for more information or to request a kit.
What should I read before setting up a Giving Account and making a charitable contribution?
Read the Gift Fund Policy Guidelines (PDF). You will be required to agree to these policies upon signing the Donor Application.
Contributions to the Gift Fund Giving Account
Does the Gift Fund require specific contribution amounts?
Individuals may set up a Giving Account with a minimum initial contribution to the Gift Fund of $5,000, and corporations may set up a Giving Account with a minimum initial contribution to the Gift Fund of $100,000. The minimum additional contribution to the Gift Fund for individual Giving Accounts is $1,000, and for corporate Giving Accounts is $5,000.
What happens when the Gift Fund receives my contribution?
When a contribution is received and accepted, the Gift Fund will allocate the proceeds of the contribution to your Giving Account, and will purchase units of each investment pool recommended for the Giving Account. Units will be purchased on the business day (each day that the New York Stock Exchange is open for business) the Gift Fund receives cash or the proceeds from the sale of the contributed assets.
Will the Gift Fund send me a receipt for my contribution?
Yes, the Gift Fund will provide written confirmation of your contribution. This confirmation will serve as your receipt for tax purposes. If you make your contribution online, you will receive an email notice immediately confirming the Gift Fund's receipt of your request and a second email notice once the transaction (sale of the contributed asset) has settled. Please note since you become eligible for a tax deduction at the time you make your contribution to the Gift Fund, any other receipts or acknowledgements you may receive (e.g., from a public charity to which you recommended a grant) are duplicative and cannot be used for tax purposes.
How often may I contribute to the Gift Fund?
As often as you would like. Some donors like to make additional contributions to the Gift Fund immediately after recommending grants. Others make regular contributions to build up the Giving Account for future grantmaking. The flexibility of the Gift Fund lets you determine your giving timetable.
Are additional contributions to the Gift Fund tax-deductible?
Yes. You will be eligible to take an itemized income tax deduction for a charitable contribution on the date the contribution is made to the Gift Fund. This is subject to the deductibility limitations set by law. Please consult your legal or tax advisor to review your personal situation. You will receive a consolidated statement of your annual contributions and granting activity at the end of each calendar year. Please note that since you become eligible for a tax deduction at the time you make your contribution to the Gift Fund, any other receipts or acknowledgements you may receive (e.g., from a public charity to which you recommended a grant) are duplicative and cannot be used for tax purposes. Grant recommendations made to individual charities, though they may be acknowledged by the charity, are not eligible for additional tax deductions by you.
What types of assets can I contribute to the Gift Fund?
Cash equivalents, publicly traded stock, mutual fund shares, bonds, certain private or restricted stock and select real estate are eligible for contribution to the Gift Fund. We will be glad to discuss proposed contributions with you. To contribute assets held outside of Fidelity, you can begin online by logging in through the
Giving Account log in page or by downloading a Contribution Form (PDF). You can also request these forms by calling the Gift Fund at 1-800-952-4438 for assistance. You can contribute assets held at Fidelity online by logging in through the Giving Account log in.
Can I contribute privately held company stock to the Gift Fund?
Contributions of privately held company stock are reviewed and accepted on a case-by-case basis. Please contact us at 1-800-952-4438 for assistance.
Can I contribute real estate to the Gift Fund?
Contributions of appreciated real estate are reviewed and accepted on a case-by-case basis. Please contact us at 1-800-952-4438 for assistance.
Would it be a good estate planning idea to leave my IRA, 401(k), or other retirement account to the Gift Fund?
You should always check with your own tax advisor or trusts and estates attorney because individual situations vary substantially. It is permissible to leave your IRA or other tax-deferred account to charity. At your death, the full value of the account will be included in your estate, but since it is being transferred to a charity, it will qualify for the unlimited charitable deduction.
With any employer-sponsored retirement plan (e.g., a 401(k)), there must be spousal consent to leave the balance of your retirement account to a charity. You also must bear in mind the minimum required distribution rules, the needs of your beneficiary, and your financial needs during your lifetime.
What about contributing from my retirement account now?
Again, it is important to speak with your tax advisor or attorney about your personal situation. In general, during your lifetime, whenever you take money out of your tax-deferred account (IRA, 401(k), 403(b), etc.), the distribution is considered income to you and is a taxable event. Therefore, you would have to pay the taxes due upon the value of the distributed assets and the remaining money would go to the charitable organization. However, there may be certain exceptions for "employer securities" (shares of an employer's stock, or "company stock") held in a 401(k) account. If you are interested in contributing this type of security, contact one of our representatives at 1-800-952-4438.
Can I give a variable annuity to the Gift Fund?
We can accept variable annuities that are nonqualified. However, most variable annuities ARE qualified, which means they are equal to pre-tax dollars. Therefore, the owner must create a taxable event (i.e., sell the variable annuity) before donating the money. At death, annuities bring up the same considerations as retirement plans, although there are no minimum required distribution rules to consider. (See previous two questions for more on contributing from a retirement account.) This is another instance in which it is important to consult with a tax advisor to evaluate your individual situation. This answer should not be construed as tax advice.
Tax Deductions
The Gift Fund Policy Guidelines (PDF) are a good reference for detailed tax questions. This section addresses only federal taxes. Rules and regulations regarding tax deductions for charitable giving vary at the state level. In addition, certain additional rules or limitations may apply with respect to your tax treatment depending on your specific circumstances. Please consult with your tax advisor.
What does "immediate tax deductions" mean?
Gift Fund donors may be eligible to take an itemized deduction valued on the date their charitable contribution to the Gift Fund is made, subject to the general limitations described in "What are the limitations on charitable deductions?", below. Your deduction will depend, in part, on the type of asset that you contribute. Please check with your tax advisor. Deduction amounts follow:
- Check/wire: Your deduction is generally for the amount of your cash contribution.
- Publicly traded securities: For publicly traded securities held for more than one year, your deduction generally will be the fair market value of the securities on the day of the contribution.
- Securities that are not publicly traded: For securities not publicly traded that have been held for more than one year, your deduction will be the fair market value determined by you in a reasonable manner on the date the contribution is made. The IRS will require you to obtain a qualified independent appraisal in certain circumstances.
- Real Estate: For contributions of real estate, your deduction will be the fair market value determined by you in a reasonable manner on the date the contribution is made. The IRS will require you to obtain a qualified independent appraisal in certain circumstances.
What are the limitations on charitable deductions?
Under the Internal Revenue Code, deductions for charitable contributions are subject to certain "percentage limitations" that limit the deductions that can be taken to a stated percentage of adjusted gross income ("AGI") in the year the deduction is taken. (Contributions in excess of these percentage limitations may be carried forward up to five subsequent years.) Because the Gift Fund is a public charity, the percentage limitations that apply are generally the most favorable charitable deductions available under IRS regulations.
- Deductions for contributions of long-term capital gain property (such as appreciated securities held for more than one year) are limited to 30% of AGI.
- Deductions for all other contributions (including contributions of cash) may be taken up to 50% of AGI.
Your ability to take itemized deductions may be subject to certain other limitations. Please contact your tax advisor to determine your tax deductibility limits.
Grant Recommendations
Can I make grant recommendations to foreign charities?
The Gift Fund does not grant directly to foreign charities. However, many foreign charities receive funding from U.S. public charities that support international causes. In certain circumstances, Gift Fund donors may make grant recommendations to benefit foreign charities through these existing U.S. public charities. Certain conditions, grant minimums, and fees may apply. If you are interested in supporting a particular foreign organization, we suggest you ask a representative of that organization to recommend a U.S.-based nonprofit that sends funds to the foreign group. In addition, there are many U.S. nonprofits that provide services in foreign countries. You can research your options in our online Charitable Planning area. All grants are subject to the Gift Fund's standard due diligence policies and procedures.
Is there a minimum grant amount? Are there other guidelines for grant recommendations?
The Trustees have set minimums on grant distributions to maintain cost-effectiveness and to encourage charitable giving. The minimum grant is $100. Grants must be made in $50 increments. For information on other grantmaking guidelines, please refer to the Gift Fund Policy Guidelines (PDF).
Investment Options
How do the Gift Fund Trustees choose the funds included in the Gift Fund pools?
The Gift Fund Trustees have engaged Strategic Advisers, Inc. a Fidelity Investments company, to be the non-discretionary investment manager for the Gift Fund. The Trustees meet regularly with Strategic Advisors, Inc. to review our investment pools, and the underlying investment options, as well as the investment performance.
Do you offer any pools that draw exclusively on "socially responsible" investments?
No, at this point the Gift Fund does not offer such pools.
Miscellaneous
Are you a nonprofit organization? Where do staff salaries come from?
The Fidelity Charitable Gift Fund is a tax-exempt nonprofit organization and public charity under Internal Revenue Code Section 501(c)(3). The administrative fee charged to all Giving Accounts goes toward the Gift Fund's operating expenses, which include staff salaries.
Do you have any statistics that show whether the Gift Fund is increasing the level of philanthropy in the U.S.?
While there is no way for us to track the amount that would have gone somewhere else had circumstances been different, we do know that as of Sepetember 30, 2006, the Fidelity Charitable Gift Fund has helped donors grant more than $6.0 billion to charitable organizations.
Will my company match my gift that I recommend out of a Giving Account?
Check with your employer to ascertain its policy on making matching gifts to recommendations out of donor-advised funds.
Why do nonprofits continue to solicit me even though I've already recommended a grant to them from the Gift Fund?
When you recommend grants to a nonprofit organization, your name may appear on the letter sent by the Gift Fund to accompany the grant check. Some charities will take your name from this letter and add you to their mailing lists. One way to avoid this is to recommend grants anonymously. Anonymity options are available whether you recommend grants online, by phone, or on paper.
The Fidelity® Charitable Gift FundSM ("Gift Fund") is an independent public charity with a donor-advised fund program. Various Fidelity companies provide non-discretionary investment management and administrative services to the Gift Fund.