Grants From Fidelity Donor-Advised Funds Top $5 Billion This Year

Donor-advised-fund accounts managed by Fidelity Charitable made more than $5.25 billion in grants so far in 2019 to 125,000 charities, Fidelity announced Wednesday.

That amount exceeds the $5.2 billion disbursed in all of 2018.

With more than two months still to come in 2019, the total for this year appears likely to exceed $6 billion.

Fidelity stated in a news release that grant making from donor-advised funds tends to hold up even when financial markets or the economy are struggling. “For example, despite market fluctuations and tax reform uncertainty that caused a 1.1 percent drop in individual giving in 2018, grants recommended by Fidelity Charitable donors increased by 17 percent that year,” Fidelity Charitable stated in a news release.

One recent study supports the idea that grant making from donor-advised funds tends to be resilient during economic recessions, making those accounts important “rainy-day” sources of funding for charities during tough times.

Fidelity Charitable reported $27 billion in total assets for fiscal 2018.

Dan Parks is the managing editor of the Chronicle of Philanthropy.