Fund Fidelity DAF from Vanguard taxable

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Topic Author
DinkinFlicka
Posts: 10
Joined: Mon Apr 17, 2017 11:10 pm

Fund Fidelity DAF from Vanguard taxable

Post by DinkinFlicka » Mon May 13, 2019 10:31 pm

Hello,

I'm looking to start a Fidelity DAF account for charitable contributions this year.

After going through the demo application on Fidelity Charitable's website, I had a couple questions about funding from mutual funds in my Vanguard taxable account:
  1. Funding the Fidelity DAF online doesn't let you specify lot information. You can only specify symbol and number of shares. Is it safe to assume they'll pull shares FIFO?
  2. If not, I think I'll have to fill out and fax this form and specify the lot. If that's the case, am I supposed to get Medallion Guarantees in the signature section? I don't understand what AUTHORIZED FOR FIDELITY USE ONLY means in this case.

stan1
Posts: 7103
Joined: Mon Oct 08, 2007 4:35 pm

Re: Fund Fidelity DAF from Vanguard taxable

Post by stan1 » Mon May 13, 2019 10:42 pm

I have always initiated at Vanguard and pushed to Fidelity. That way Vanguard is on the hook to get the cost basis right especially if they are covered shares. To be honest if you want to contribute covered and non-covered shares I'd do it as two contributions so hopefully there will be less chance it will get messed up (unless you are contributing your entire holding then it doesn't matter. Did not need medallion guarantees when I did that.

The first time contribution I made got messed up by Vanguard (they lost the request form) and it took several weeks and multiple phone calls to process before the securities showed up at Fidelity and were liquidated with the funds in my DAF. Around 2015 they did not have a good process for handling cost basis. The second contribution (in 2017) was flawless after I called Flagship desk and they walked me though a completely different process that had been automated. That one took less than a week until the funds showed up in my Fidelity DAF.

Gleevec
Posts: 299
Joined: Sun Mar 03, 2013 11:25 am

Re: Fund Fidelity DAF from Vanguard taxable

Post by Gleevec » Mon May 13, 2019 11:29 pm

stan1 wrote:
Mon May 13, 2019 10:42 pm
I have always initiated at Vanguard and pushed to Fidelity. That way Vanguard is on the hook to get the cost basis right especially if they are covered shares. To be honest if you want to contribute covered and non-covered shares I'd do it as two contributions so hopefully there will be less chance it will get messed up (unless you are contributing your entire holding then it doesn't matter. Did not need medallion guarantees when I did that.

The first time contribution I made got messed up by Vanguard (they lost the request form) and it took several weeks and multiple phone calls to process before the securities showed up at Fidelity and were liquidated with the funds in my DAF. Around 2015 they did not have a good process for handling cost basis. The second contribution (in 2017) was flawless after I called Flagship desk and they walked me though a completely different process that had been automated. That one took less than a week until the funds showed up in my Fidelity DAF.
Are you able to reliably get appreciated shares from Vanguard into Fidelity DAF?

motorcyclesarecool
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Joined: Sun Dec 14, 2014 7:39 am

Re: Fund Fidelity DAF from Vanguard taxable

Post by motorcyclesarecool » Tue May 14, 2019 2:07 am

The medallion signature guarantee on the form is misleading and needlessly scary. Fidelity themselves will attach the medallion signature guarantee after you submit it to them, prior to them submitting it to Vanguard in turn. I’ve successfully used the form to gift covered and non-covered Vanguard mutual fund shares to my Fidelity DAF. It is a bit slow, but it has also been reliable.

stan1
Posts: 7103
Joined: Mon Oct 08, 2007 4:35 pm

Re: Fund Fidelity DAF from Vanguard taxable

Post by stan1 » Tue May 14, 2019 7:52 am

Gleevec wrote:
Mon May 13, 2019 11:29 pm
Are you able to reliably get appreciated shares from Vanguard into Fidelity DAF?
Yes, you can contribute appreciated shares from Vanguard to any charity. A Fidelity DAF is just a specific charity. Vanguard has improved the automation of their process in recent years and I'd say that has made it more reliable.

Topic Author
DinkinFlicka
Posts: 10
Joined: Mon Apr 17, 2017 11:10 pm

Re: Fund Fidelity DAF from Vanguard taxable

Post by DinkinFlicka » Tue May 14, 2019 11:37 am

stan1 wrote:
Mon May 13, 2019 10:42 pm
I have always initiated at Vanguard and pushed to Fidelity.
Interesting, I feel like most advice I've read on BH about transferring between Vanguard and Fidelity Charitable has said to initiate a pull from the Fidelity side.
motorcyclesarecool wrote:
Tue May 14, 2019 2:07 am
The medallion signature guarantee on the form is misleading and needlessly scary. Fidelity themselves will attach the medallion signature guarantee after you submit it to them, prior to them submitting it to Vanguard in turn.
Thanks for clarifying.

Looks like I will fill out the form as soon as I can find somewhere to fax it from. I was hoping the online process will be FIFO because those would be my most appreciated shares.

Pigeye Brewster
Posts: 365
Joined: Thu Oct 05, 2017 7:33 pm

Re: Fund Fidelity DAF from Vanguard taxable

Post by Pigeye Brewster » Tue May 14, 2019 3:24 pm

DinkinFlicka wrote:
Tue May 14, 2019 11:37 am
stan1 wrote:
Mon May 13, 2019 10:42 pm
I have always initiated at Vanguard and pushed to Fidelity.
Interesting, I feel like most advice I've read on BH about transferring between Vanguard and Fidelity Charitable has said to initiate a pull from the Fidelity side.
motorcyclesarecool wrote:
Tue May 14, 2019 2:07 am
The medallion signature guarantee on the form is misleading and needlessly scary. Fidelity themselves will attach the medallion signature guarantee after you submit it to them, prior to them submitting it to Vanguard in turn.
Thanks for clarifying.

Looks like I will fill out the form as soon as I can find somewhere to fax it from. I was hoping the online process will be FIFO because those would be my most appreciated shares.
I have done 3 Vanguard to Fidelity DAF transfers. All three were initiated at Fidelity Charitable. I designated my lowest basis shares (which also happened to be FIFO) on the Fidelity form and marked them on the copy my Vanguard statement that I attached.

The process worked very well for me. It was much easier and quicker than I originally expected. Simply fill out the Fidelity form and fax it to them. They take it from there.

drzzzzz
Posts: 384
Joined: Sat Sep 22, 2012 9:56 pm

Re: Fund Fidelity DAF from Vanguard taxable

Post by drzzzzz » Wed May 15, 2019 10:35 pm

Also initiated at Fidelity and they pulled the shares that I wanted from my Vanguard account I think using FIFO since were non-covered shares

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