Fidelity Charitable Says $1 Billion in Grants Distributed So Far This Year

Donations to nonprofits so far this year from accounts managed by Fidelity Charitable crossed the billion-dollar mark in record time, the donor-advised fund giant said on Wednesday.

The billion-dollar milestone represents a 42 percent increase in grant making from Fidelity accounts compared with the same period last year, Fidelity said. More than 62,000 charities received donations.

Fidelity topped last year’s Philanthropy 400 list of charities that raise the most money in private support. Unlike traditional charities that support research, provide services like operating soup kitchens, or advocate for policy, Fidelity and other commercial donor-advised funds serve as financial services firms for donors, who create giving accounts and take immediate tax deductions. Fidelity invests the money and takes a management fee. Technically, Fidelity controls the money in the accounts, but donors advise Fidelity on which charities they’d like to support, and those wishes are typically followed.

Last year, Fidelity made $4.5 billion in grants and collected $8.5 billion in contributions. The organization said it is on pace to exceed those totals in 2018.