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Charitable gift fund growing?

Submitted by Administrator on August 12, 2010 – 1:50 pm61 Comments

I had an article come into my inbox today from www.financial-planning.com that I found a little surprising at first glance.  It talks about the fact that the Fidelity Charitable Gift Fund (http://www.charitablegift.org/), which is the 3rd largest public charity has seen significant growth over the past year.

The Fidelity® Charitable Gift Fund (“Gift Fund”), the nation’s largest donor-advised fund program and third largest public charity1, today reported that its donors made more than 152,000 grants totaling $531 million to nonprofits nationwide during the first six months of 2010, up 27 percent and 16 percent, respectively, from the same period last year. Both of these totals represent the strongest first half for outgoing grants in the Gift Fund’s 19-year history2.The Gift Fund also experienced strong growth in incoming contributions and new accounts. Charitable contributions were up 67 percent and new Giving Account® openings increased 19 percent from the same period last year.

Again, this might sound odd due to the fact that many people are struggling financially and the economy isn’t showing amazing signs of strength.

There are several reasons why the fund is growing and people are giving more.

  1. Many people who do have excess funds have recognized their good fortune over the past couple of years and are more compelled to give to the organizations they believe in.
  2. Specific events, such as the Haiti disaster have received an incredible amount of media, which has led to substantial giving from U.S. citizens.
  3. RISING TAXES! Donating money is a great way to offset this rising taxes that will take place next year for the high-income earners.

A major part of ones financial life and thus Financial Planning is recognizing the desire to donate to charity and using the best vehicle to do so.  The Fidelity Charitable Gift Fund is a great one that should be considered.

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