Demystifying National Donor Advised Funds

Transcription

1 Demystifying National Donor Advised Funds A deeper look at Fidelity Charitable donors and how they give Amy Pirozzolo, Fidelity Charitable

2 What is Fidelity Charitable? Since our inception as a public charity in 1991, our mission has remained the same to further the American tradition of philanthropy by providing programs that make charitable giving simple, accessible and effective. 2

3 There is a vast array of donor-advised fund sponsors There are more than 1,000 charities with donor-advised fund (DAF) programs, including national DAF sponsors Today NY Community Trust 1,000 charitable organizations sponsoring DAFs Academic institutions Religious charities Issue-specific funds Community foundations 3

4 The number of DAF accounts is growing rapidly 162K 174K 180K 184K 192K 206K 219K 238K DAFs outnumber foundations 3: Number of donor-advised fund accounts in the U.S. Source: National Philanthropic Trust 2015 Donor-Advised Fund Report 4

5 The impact from DAF giving is also growing fast Total charitable giving in 2014 Total giving from DAFs in 2014 $ Billion $12.49 Billion 7.1% growth from previous year 27% growth from previous year $ billion Source: Giving USA 2015 $12.49 billion - National Philanthropic Trust, 2015 Donor-Advised Fund Report 5

6 Fidelity Charitable is now the country s 2 nd -largest grantmaker 132,468 NUMBER OF DONORS $1.0 BILLION $3.1 BILLION 106,250 53,067 80,152 NUMBER OF GIVING ACCOUNTS Total dollars granted to charities Grant dollars have tripled, supporting 2x the nonprofits as 10 years ago. 6

7 Introducing a typical Fidelity Charitable donor Video: 7

8 DAF donors are strategic and committed Planning for future, focusing on philanthropy 55 yrs AVERAGE DONOR AGE AT OPENING 85% 79% GIVE TO 6+ VOLUNTEERED IN CHARITIES THE LAST YEAR New York City Los Angeles Chicago Houston Philadelphia Washington, D.C. San Francisco Miami Atlanta Boston $15,000 61% 5,999 Median Giving Account balance Percentage of Giving Accounts with balances under $25,000 Number of Giving Accounts with balances of more than $250,000 91% Grants in 2015 that included names and addresses for nonprofit acknowledgement 8

9 Donors seek to maximize the benefits of giving Financial reasons 90% 76% 76% TO REALIZE AN IMMEDIATE TAX DEDUCTION FOR CHARITABLE GIVING TO DONATE APPRECIATED ASSETS, SUCH AS PUBLICLY TRADED STOCK, PRIVATELY HELD ASSETS FOR INVESTMENT GROWTH OF CHARITABLE ASSETS Strategic planning reasons To better organize and 69% 68% keep a record of my giving To give me time to decide where to give 9

10 Donors take a forward-looking approach to philanthropy Financial and life events influence donors choice to use a giving vehicle and approach to giving. 62% TO SUSTAIN MY GIVING THROUGH RETIREMENT 27% 24% 26% Because of a financial windfall, such as an inheritance or sale of a business To fund my giving from a year-end bonus or other variable income TO BRING MY FAMILY TOGETHER AROUND GIVING 10

11 Donors support charities using numerous methods Vehicles or methods used in the past 12 months, in addition to DAFs 91% CASH OR EQUIVALENTS 15% COMMUNITY FOUNDATIONS, PRIVATE FOUNDATIONS, OTHER TYPES OF VEHICLES AVERAGE PERCENTAGE OF TOTAL CHARITABLE GIVING DOLLARS MADE WITH A DAF 65% Most donors direct a majority of their giving with their DAFs. Cash gifts tend to be more casual. 11

12 Donors give actively to the causes they care about The average number of grants per Giving Account doubled in the past 10 years. $4,179 AVERAGE GRANT SIZE Average number of grants per Giving Account Grants 9.2 Grants 329 Grants OF MORE THAN $1 MILLION 12

13 In fact, most dollars are granted out to charity within 10 years Since inception: MORE THAN GRANTED TO CHARITIES $23 billion 61% OF ALL CONTRIBUTIONS RECEIVED Percentage of contributions granted out to charities, Annual distribution rate: MORE THAN 25 % per year 13

14 The giving patterns of donors mirror national trends Donors support both local and national charities Education and religion are top charitable sectors EDUCATION RELIGION Fidelity Charitable Donors 26% 16% Overall U.S. Giving 15% 32% 14

15 Summing it all up: How Fidelity Charitable donors give Give strategically Give actively Give using numerous methods Give in their communities, but also more broadly 15

16 Reaching DAF Donors: Strategies for Nonprofits 16

17 Flag and follow up Recognize commitment to giving Target for a closer relationship Make sure to flag DAF donors in database. Recognize them in stewardship, not the DAF sponsor. Seek to engage, even if initial gift is small. 17

18 DEMYSTIFYING NATIONAL DONOR- ADVISED FUNDS Target with planned giving appeals Giving USA 2016: Fidelity Charitable Donors 9% 42% Have set up a bequest or legacy giving vehicle OF ALL GIVING IN 2015 WAS BY BEQUEST 19% Plan to establish a legacy giving vehicle in the future 18

19 Market DAF giving 19

20 Thank you! Don t forget to visit the Solutions Showcase! Many of the ideas discussed today are on display at the Solutions Showcase! Fidelity Charitable is the brand name for Fidelity Charitable Gift Fund, an independent public charity with a donor-advised fund program. Various Fidelity companies provide services to Fidelity Charitable. The Fidelity Charitable name and logo are registered service marks of FMR LLC, used by Fidelity Charitable under license. Giving Account is a registered service mark of the Trustees of Fidelity Charitable