Saturday, February 9, 2008
At least one donor advised fund is doing well - extremely well. The Boston Globe reports that the Fidelity Charitable Gift Fund, the largest donor advised fund in the country, donated more than $1 billion to charities in 2007. This amount represents an increase of 24% over the amount contributed in 2006. Part of the increase may be due to changes in the way the fund operates. Fidelity now allows donors to create a "giving account" with as little as $5,000, down from a $10,000 minimum. Donors created 6,700 new accounts in 2007, a 44% increase. Fidelity also changed the rules on the minimum amount distributable from an account, reducing the amount from $500 to $100. This change allows donors to make smaller donations to more charities. The news is good for the charities receiving the contributions, and it's also good for Fidelity which takes a 0.6% fee (lower for accounts larger than $500,000).