Fidelity Charitable Gift Fund SM Fact Sheet

Transcription

1 Fidelity Charitable Gift Fund SM Fact Sheet OVERVIEW The Fidelity Charitable Gift Fund ( Gift Fund ) is the nation s #1 grantmaker among donor-advised fund programs 1 and is the sixth largest public charity 2. When you establish a Giving Account with the Gift Fund, you are establishing a donor-advised fund. The Gift Fund's donor-advised fund program allows a donor to combine the most favorable tax benefits with the flexibility to support his or her favorite charities at any time. 3 HOW IT WORKS Because the Gift Fund is a public charity, donors may be eligible for an immediate tax deduction 4 for their charitable contributions. In addition, donors can maintain the flexibility to make grant recommendations from the Giving Account immediately, or in the future, to any IRS-qualified public charity 3. Donors recommend how their contributions are allocated among one or a combination of eleven investment pools, offering a range of objectives for the donor's charitable contributions, from preservation of principal to long-term capital growth. FEATURES The Gift Fund provides: Potential for an immediate tax deduction 4 for your irrevocable contribution of $5,000 or more in cash equivalents or securities Flexibility to recommend grants on your own timetable to any IRS-qualified public charity, subject to minimum grant activity guidelines Consolidated recordkeeping and tax reporting including quarterly and annual statements, confirmations of contributions and grants, and IRS Form 8283 preparation for contributions of publicly traded securities Choice of professional investment management for Giving Accounts providing the opportunity to benefit from the investment management expertise of Strategic Advisers, Inc., a Fidelity Investments company 5, or, to nominate an independent investment advisor 6 to provide discretionary management for Giving Account balances Expansive investment pool options providing Strategic Advisers access to approximately 2,000 Fidelity and non-fidelity mutual funds for Gift Fund pool composition A cost-effective alternative to a private foundation with no start-up costs, no compliance responsibilities, more beneficial tax treatment, and ease of administration Multiple Giving Account successor options including Individuals, Charitable Organizations, and the Gift Fund s Endowed Giving Program 1 The Chronicle of Philanthropy, April 28, The Chronicle of Philanthropy, The Philanthropy 400, November 15, Subject to the Gift Fund's minimum grant activity guidelines. 4 Availability of certain federal income tax deductions may depend on whether you itemize deductions. Rules and regulations regarding tax deductions for charitable giving vary at the state level. Please check with your tax advisor. Tax deductions discussed herein refer specifically to federal taxes. 5 Strategic Advisers, Inc. is the non-discretionary investment advisor of the Gift Fund s investment pools. 6 Available through the Gift Fund s Charitable Investment Advisor Program. Subject to certain eligibility requirements and advisor qualification process. For more information call and request the Charitable Investment Advisor Program Guidelines.

2 Fidelity Charitable Gift Fund Fact Sheet / 2 Expertise in facilitating contributions of complex securities such as certain privately held 7 and restricted stock, including securities held by control persons and stock subject to a lock-up agreement Online Giving Account access for donors including the ability to view Giving Account history, make contributions to the Gift Fund, and recommend grants and investment pool exchanges Years of experience meeting the needs of donors through up and down markets. DONOR CONTRIBUTIONS (from Gift Fund inception in 1991 through June 30, 2007) Total contributions More than $9.8 billion Number of donors More than 45,000 CHARITABLE GRANTS (from Gift Fund inception in 1991 through June 30, 2007) Total grants More than $7.0 billion Number of charities receiving grants More than 111,000 Grants may be recommended to any public charity in the United States recognized under Internal Revenue Code Section 501(c)(3). ASSETS AS OF June 30, 2007 Total Gift Fund assets More than $4.5 billion CONTRIBUTION INFORMATION Minimum 8 initial contribution: For individuals $5,000 For companies $100,000 Minimum additional contribution: For individuals $1,000 For companies $5,000 Minimum grant: $100 7 Subject to enhanced due diligence review. Please see the Gift Fund s Special Asset Contribution guide, available at 8 Alternate minimum initial contribution requirements may be available for group charitable giving plans. -more-

3 Fidelity Charitable Gift Fund Fact Sheet / 3 TAX BENEFITS 9 Donors may be eligible for a tax deduction in the year in which their contributions to the Gift Fund are made. Donations of cash equivalents may be deductible up to 50% of adjusted gross income Donors who contribute long-term appreciated securities may be eligible to take an immediate tax deduction for the fair market value of the securities, up to 30% of adjusted gross income with no capital gains taxes on the unrealized appreciation Donors who contribute short-term appreciated securities may be eligible to take a tax deduction usually equal to the lesser of cost basis or fair market value Deductions for gifts in excess of the adjusted gross income limitations may be carried forward and deducted in later years (subject to limitations) No estate taxes are levied, as contributions are irrevocable, and, once contributed, are no longer part of the donor s estate GIVING ACCOUNT MANAGEMENT Online Giving Account management for individual donors, including grant recommendations, investment pool exchange recommendations, Giving Account establishment and contributions Donor education tools and information Links to nonprofit resources on the Web Step-by-step guidelines for developing a customized giving plan INVESTMENT POOLS Asset Allocation Pools Legacy Giving Pool 10 Lifetime Giving Pool 10 Preservation Giving Pool 10 Individual Investment Pools International Pool 10 Growth Pool All-Cap Equity Pool 10 Equity-Income Pool Interest-Income II Pool 10 Interest-Income Pool Total Market Index Pool Money Market Pool 9 Information provided is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice. The Fidelity Charitable Gift Fund SM does not provide legal or tax advice. Content provided relates to taxation at the federal level only. Availability of certain federal income tax deductions may depend on whether the taxpayer itemizes deductions. Rules and regulations regarding tax deductions for charitable giving vary at the state level, and laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy or completeness of the information provided. Charitable contributions of capital gain property held for more than one year are usually deductible at fair market value. Deductions for capital gain property held for one year or less are usually limited to cost basis. Consult an attorney or tax advisor regarding your specific legal or tax situation. 10 These Gift Fund investment pools currently contain a blended mix of Fidelity and non-fidelity mutual funds. - more -

4 Fidelity Charitable Gift Fund Fact Sheet / 4 FEES Each individual Giving Account is assessed a minimum annual administrative fee of 0.60% of Giving Account assets or $100, whichever is greater. 11 Each corporate Giving Account is assessed an annual administrative fee of 0.60% of Giving Account assets or $1,000, whichever is greater. Giving Accounts with assets exceeding $500,000 are eligible for further administrative fee reductions. Investment management fees are the average weighted expense ratios of the underlying mutual funds held in the pools. No sales loads are charged to the Gift Fund. Below, we ve provided a chart that illustrates the Gift Fund s Tiered Fee Schedule. A separate Flat Fee Schedule which provides for further fee reductions is available for Giving Account balances which exceed $5 million. Call the Gift Fund for more information. Administrative Fee for Individual Giving Account Balances Below $5 million Average Giving Account Balance First $500,000 Next $500,000 Next $1,500,000 Next $2,500,000 Fee (Basis Points) 60 basis points 30 basis points 20 basis points 15 basis points ADDITIONAL CHARITABLE GIVING PROGRAMS Pooled Income Fund: A flexible charitable giving program that can result in favorable tax benefits to the donor and generates a lifetime stream of income for as many as two beneficiaries. Working with an Advisor: The Advisor Charitable Gift Fund SM works with tax and estate planning professionals as well as broker-dealers and their clients to provide charitable giving solutions and resources. Information is available at ORGANIZATION The Gift Fund is governed by an independent Board of Trustees. The officers of the Gift Fund include David L. Giunta, president, Fidelity Charitable Gift Fund. FOR MORE INFORMATION Call the Fidelity Charitable Gift Fund at , or visit our web site at 11 A separate schedule applies to those Giving Account balances managed under the Charitable Investment Advisor Program. The Fidelity Charitable Gift Fund TM ( 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. Advisor Charitable Gift Fund, Charitable Gift Fund and the Charitable Gift Fund logo are service marks, and Giving Account, Legacy Giving, Lifetime Giving, and Preservation Giving are registered service marks of the Trustees of the Fidelity Investments Charitable Gift Fund. Fidelity and Fidelity Investments are registered service marks of FMR Corp., used under license by the Gift Fund Information as of 6/30/07

5