Review of Fidelity Charitable Giving Report 2022

What is this Report?

The report is an annual report of Fidelity Charitable donor advised giving for the prior year. It explores both giving to Fidelity Charitable donor advised accounts as well as giving from donor advised funds to charities.

What are key findings from the article?

• Fidelity Charitable donors gave $10.3 billion in 2021, a 41 percent increase from pre-pandemic levels. It’s a 13 percent increase from 2020. Grants went to over 187,000 organizations.
• People gave $331 million in cryptocurrency to their donor advised funds in 2021. That’s up from $28 million in 2020! Sixty-six percent of all donations to DAFs were not-cash, including non-publicly traded assets and publicly traded securities.
• Fifty-one percent of DAFs have balances under $25K. Thirty-eight percent have balances between $25K and $250K. Eleven percent have more than $250K on their balance sheets.
• Ninety-one percent of DAFs made at least one grant in 2021. Sixty-four percent gave the grant to charities to be used “where needed most.” Forty-eight percent were re-grants; 27 percent were scheduled grants to the same organization; and 25 percent were grants to new organizations, suggesting stability in giving.
• Four percent of donors were anonymous. Fourteen percent only included the Giving Account name while 82 percent included donor name and address.
• Religion remains number one for distribution of grant dollars, followed by human services and education. Human services decreased slightly from 2020 giving. However, the organization that has received the most DAF grants was Doctors without Borders, again number 1, followed by St. Jude Children’s Research Hospital and then the American National Red Cross. Some grant levels are returning to pre-pandemic levels.
• Three billion dollars was allocated to impact investments, up from $1.8 billion in 2020.
• Donors also made $11.7M of recoverable grants to charities. It’s like a loan where charities had to achieve certain milestones “before returning the funds to Fidelity Charitable for future recommendations.”

What can I do as a result?

• Make sure you advertise that your organization accepts gifts from DAFs. A campaign to target donor advised funds might be another option. There’s a lot of money flowing in and out of donor advised funds. Plus, we know that recurring donations are a real boon to nonprofits. With 75 percent of donations from DAFs going to charities that had already received prior gifts, there’s a real opportunity of turning a one-time gift into a recurring one!
• Thank your donor advised fund donors. The report confirms that only 4 percent are completely anonymous. Send thank you’s and make phone calls to this segment, provided they have not asked you not to contact them. Just because they give through a gift vehicle, that doesn’t mean they wouldn’t appreciate that special touch. It might make the difference between that one-time gift and a yearly one.
• Advertise if your organization can convert non-cash assets. With 66 percent of all donations to DAFs as non-cash assets, people are looking for a way to donate these hard-to-convert items. If your organization can deal with these assets, you should let people know. That way, they could come to you instead of creating a DAF.
• While DAFs have their controversies, they are here to stay. The time to get ready to accept donor advised funds is now.

Additional Resources

• Fidelity Charitable 2022 Giving Report l Fidelity Charitable 2022
• The Cryptocurrency Merry-Go-Round: Are you on? l Aspire Research 2021
• Donor Advised Funds: Research and the Big Picture| iWave Webinar with Jen Filla | 2020 | 1 hour
• Donor Advised Funds: Two Surprising Global Facts | Jennifer Filla Blog | 2021