## Questions about Fidelity Charitable DAF

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Topic Author
Saving\$
Posts: 1786
Joined: Sat Nov 05, 2011 8:33 pm

### Questions about Fidelity Charitable DAF

For those that have a DAF, is Fidelity's the lowest cost at \$100/year for up to \$16.6k in assets?

For those that have a Fidelity DAF:
[EDITED TO INSERT ANSWERS]
1. Can you move assets from your taxable to the DAF online or do you have to call them or fax them?
Can do it online easily
2. Once you give the direction, how long does the transfer from a Fidelity taxable account take - is it immediate that day, or can it take days or up to a week? Does it matter if you are transferring stocks or mutual funds?
The deduction from the taxable account seems to happen that day if you make the donation to the DAF early in the day, or the next business day if on a weekend or after hours.
3. How easy is it to disburse from the DAF? Can you do this online, and if so does the check come to you or the organization?
You can do it online, and they send the check directly to the charity only

4. The cost of the Fidelity DAF is advertised as \$100 min annually or 0.6% of assets, whichever is higher. How is this calculated?
Per conversation with Fidelity, calculated on a daily basis as: Assets x (0.6%/365)
Can you keep the cost at \$100 if you keep the balance at or below \$16.6K at all times?
It appears so
Or do they calculate it based on the total value of the assets run through the DAF in any given year? ie
If a person gives a hypothetical \$10k year without a DAF, could they still keep the DAF cost at \$100/year doing the following?
- First year of DAF, put in \$16k, then give away \$10k for revised DAF balance of \$6k, then add \$4k, for revised balance of \$10k
- Second year of DAF, put in nothing, give away \$10k
- Third and subsequent years - repeat above cycle

5. Fidelity DAF requires a minimum \$5k donation to start. Do you have to keep the balance of the DAF at \$5k or can it fall below that?
Can fall below

Please advise if the following logic is sound:
A. If someone had no deductions other than SALT and charitable giving
i. Single person would be limited to \$10k SALT while standard deduction is \$12.2k. So first \$2.2k of charitable giving is essentially not deductible. If a person's marginal federal + state tax rate is 23%, the lack of deduction on the first \$2.2k has a value of \$550.
ii. Married persons also limited to \$10k SALT, while standard deduction for them is \$24.4k. So first \$14.2k of charitable giving is essentially not deductible. At 23% this has a value of \$3,312
This makes it attractive to lump giving into every other year and take advantage of the standard deduction in the off years. So, an annual cost of \$100 for a DAF (cost at Fidelity if the DAF has \$16.6k or less) works out to \$200 over 2 years. The standard deduction gives the taxpayer either \$2.2k more deduction in off years saving \$550 in taxes in off years, or more if married.

B. One could do this without a DAF by simply doing no giving at all in the off years. However sometimes there are causes/issues that come up that for social or other reasons can't be diverted to the next year. A single person who donates \$870 or more in an off year, and is taxed at 23% would break even paying \$100/ year for the DAF. (by making the \$870 donation to the DAF in the giving year, and realizing the entire \$2.2k benefit of the standard deduction in the off year)

C. If you make small donations that cannot reasonably be done by DTC transfer you can realize the added benefit of the 15% savings on capital gains by donating appreciated securities to the DAF, and using the DAF for small donations. That lowers the threshold of small donations in an off year to \$610 to break even...(another \$130/year in cap gains tax savings, which the DAF would provide in both on and off years)

D. If transfers to the DAF are effective immediately, there is the added benefit of trying to transfer when the value of a stock is high, instead of initiating a transfer when the value is high, but then losing the benefit because by the time Fidelity gets around to transferring 4 days later the value of the stock has declined...

E. Other than the \$100 year cost are there downsides to having a DAF?
You may not be able to make all your charitable donations via the DAF. I inserted more info into the thread below
Last edited by Saving\$ on Sun Nov 24, 2019 5:42 pm, edited 1 time in total.

WoodSpinner
Posts: 902
Joined: Mon Feb 27, 2017 1:15 pm

### Re: Questions about Fidelity Charitable DAF

OP,

We use and are happy with our Fidelity DAF. Not sure I have all the answers for your questions and suggest you contact Fidelity directly.

— Costs are not so important to us, seem reasonable for the value received.
— They cut checks or transfer directly to the charities.
— They track the incoming donations and distributions.
— You can choose from a reasonable choice of investments and allocations.
— When you donate you can decide which assets to sell.
— Transfer of stocks went quite fast (We did ours over the phone as part of a larger set of tasks) and received end of the day value for my donation.
— You can remain anonymous when donating.

Your logic about bunching donations and the standard deduction is correct, best to make this part of your tax plan.

WoodSpinner

GerryL
Posts: 2499
Joined: Fri Sep 20, 2013 11:40 pm

### Re: Questions about Fidelity Charitable DAF

In answer to #5
5. Fidelity DAF requires a minimum \$5k donation to start. Do you have to keep the balance of the DAF at \$5k or can it fall below that?
You do NOT have to keep a \$5k minimum in the DAF.
My DAF routinely has gone down to around \$1k before I make my next contribution to the fund.

I am doing the odd-year standard deduction / even-year itemized deduction technique. Next year I will pump up the DAF with a good two year's worth of \$\$\$. (I'm also playing around with property tax so that this year I only payed the minimum 1/3 payment and next year I will pay the remaining 2/3 plus the full year payment for the following year.)

I have had my Fidelity DAF since 2014 and have been very satisfied with the process. I do most everything online, but have gotten very good service when I have had to call them.

nordsteve
Posts: 727
Joined: Sun Oct 05, 2008 9:23 am

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
For those that have a DAF, is Fidelity's the lowest cost at \$100/year for up to \$16.6k in assets?

For those that have a Fidelity DAF:

1. Can you move assets from your taxable to the DAF online or do you have to call them or fax them?
yes, you can go through their UI and select assets out of your eligible accounts
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm

2. Once you give the direction, how long does the transfer from a Fidelity taxable account take - is it immediate that day, or can it take days or up to a week? Does it matter if you are transferring stocks or mutual funds?
it has been a while, but my recollection is that it is within a day or two.
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm

3. How easy is it to disburse from the DAF? Can you do this online, and if so does the check come to you or the organization?
online, goes to organization

4a - costs based on average annual balance
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm

E. Other than the \$100 year cost are there downsides to having a DAF?
It's not your money any more, you have to accept that you don't have control over it any more.

drzzzzz
Posts: 433
Joined: Sat Sep 22, 2012 9:56 pm

### Re: Questions about Fidelity Charitable DAF

Having Fidelity send checks is so easy - just put in the charity name and they do all the paperwork (minimum donation \$50 which is so much less than Vanguard). I have transferred both stocks and mutual funds to the account and it happens quickly especially if the mutual funds are at Fidelity since it is done electronically - haven't faxed anything. Also transferred appreciated mutual funds from Vanguard and it was a breeze with Fidelity initiating the transfer with their paperwork. We have been very happy with the Fidelity DAF and in particular,it is so nice to have an easy to find tracking of which donations we have made this year and past years (since I seem to get charity requests from the same charities almost monthly and don't always recall when I last donated). The expenses are well worth the paperwork and time that I previously needed to put into charitable giving since I also don't need to track for tax purposes except what I have put into the DAF each year. Fidelity will also suggest to you that you get this set up by mid to late November especially if transferring mutual funds or stock from other brokerages (Vanguard for example) so the assets get to Fidelity by the end of the year and are processed.

StealthRabbit
Posts: 434
Joined: Sat Jun 13, 2009 1:25 am

### Re: Questions about Fidelity Charitable DAF

It's not your money any more, you have to accept that you don't have control over it any more.
You have control, but not direct access to your DAF funds (for personal use)
...I do a DAF specifically to have control of investment choices and contributions. (Fidelity / Vanguard DAF is a breeze... compared to community foundation DAF was a WHOLE lot less control, and a lot of money (fees and investment losses, and failure of DAF to fund my designated charities (they prefer to keep contributions within THEIR community / through THEIR decisions!))

Know how to use DAF as a tool (tax and estate planning)
DAF is great for distributing appreciated assets. (employee stock options)

stlutz
Posts: 5463
Joined: Fri Jan 02, 2009 1:08 am

### Re: Questions about Fidelity Charitable DAF

One of the cool little things that FIdelity has is that when you are donating from shares held in our account, they will actually show you the holdings that have the lowest cost basis thus making it easy to maximize your tax benefit.

Stinky
Posts: 2432
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

### Re: Questions about Fidelity Charitable DAF

We have a Fidelity DAF, as do many other folks who post on this Board. It is great, and Fidelity is a very good operator. When we were setting it up, we looked only at Vanguard and Fidelity, and chose F because of the lower initial contribution and grant sizes.

The “bunching” of contributions that you mention works well. If you have the cash, bunch more than two years of charitable gifts into one tax year, and take standard deduction in other tax years.

Also, the 0.60% cost can be substantially offset by value of having tax-free growth of investments within the DAF. For example, our DAF is invested in the Total Stock Market fund, which grows tax free until grants are made.
It's a GREAT day to be alive - Travis Tritt

Wiggums
Posts: 1911
Joined: Thu Jan 31, 2019 8:02 am

### Re: Questions about Fidelity Charitable DAF

Stinky wrote:
Mon Nov 11, 2019 2:53 am
We have a Fidelity DAF, as do many other folks who post on this Board. It is great, and Fidelity is a very good operator. When we were setting it up, we looked only at Vanguard and Fidelity, and chose F because of the lower initial contribution and grant sizes.

The “bunching” of contributions that you mention works well. If you have the cash, bunch more than two years of charitable gifts into one tax year, and take standard deduction in other tax years.

Also, the 0.60% cost can be substantially offset by value of having tax-free growth of investments within the DAF. For example, our DAF is invested in the Total Stock Market fund, which grows tax free until grants are made.
+1

We use Fidelity as well. We love it.

pyld76
Posts: 272
Joined: Thu Feb 09, 2012 4:15 pm

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
For those that have a DAF, is Fidelity's the lowest cost at \$100/year for up to \$16.6k in assets?

For those that have a Fidelity DAF:

1. Can you move assets from your taxable to the DAF online or do you have to call them or fax them?
If you are moving assets from a Fidelity brokerage account, it can be done online. (I've done this)

If it is another institution (my experience is with Vanguard) you can fill out some paperwork, mail it to Fido, and they'll handle contacting the other institution and getting it done. Or, I've elected to let them do it because that's part of what I'm paying for with the expense ratio, and when asked they facilitated the process with very little friction.
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
2. Once you give the direction, how long does the transfer from a Fidelity taxable account take - is it immediate that day, or can it take days or up to a week? Does it matter if you are transferring stocks or mutual funds?
Day, maybe 2. I've only ever donated ETFs this way from a Fido brokerage account.
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
3. How easy is it to disburse from the DAF? Can you do this online, and if so does the check come to you or the organization?
It can be done online. It is quite literally easier than writing and mailing a check. They have a mobile app. The check always goes to the organization (it isn't technically your money, and you are the "grantmaker." Fidelity Charitable is the donor). Fido is explicit about this in their FAQs.
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
4. The cost of the Fidelity DAF is advertised as \$100 min annually or 0.6% of assets, whichever is higher. How is this calculated? Can you keep the cost at \$100 if you keep the balance at or below \$16.6K at all times? Or do they calculate it based on the total value of the assets run through the DAF in any given year? ie
If a person gives a hypothetical \$10k year without a DAF, could they still keep the DAF cost at \$100/year doing the following?
- First year of DAF, put in \$16k, then give away \$10k for revised DAF balance of \$6k, then add \$4k, for revised balance of \$10k
- Second year of DAF, put in nothing, give away \$10k
- Third and subsequent years - repeat above cycle
I believe it's the average annual balance, as has been reported upthread. However, I have to admit that while I believe religiously in the "cost matters" hypothesis, this isn't something I've ever even considered. The considerable tax and administrative advantages of the DAF save me at least 100 bucks in a year or whatever my AAV happens to be.
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
5. Fidelity DAF requires a minimum \$5k donation to start. Do you have to keep the balance of the DAF at \$5k or can it fall below that?
The 5k is to open it. The balance can fall below once the DAF is established.
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
Please advise if the following logic is sound:
A. If someone had no deductions other than SALT and charitable giving
i. Single person would be limited to \$10k SALT while standard deduction is \$12.2k. So first \$2.2k of charitable giving is essentially not deductible. If a person's marginal federal + state tax rate is 23%, the lack of deduction on the first \$2.2k has a value of \$550.
ii. Married persons also limited to \$10k SALT, while standard deduction for them is \$24.4k. So first \$14.2k of charitable giving is essentially not deductible. At 23% this has a value of \$3,312
This makes it attractive to lump giving into every other year and take advantage of the standard deduction in the off years. So, an annual cost of \$100 for a DAF (cost at Fidelity if the DAF has \$16.6k or less) works out to \$200 over 2 years. The standard deduction gives the taxpayer either \$2.2k more deduction in off years saving \$550 in taxes in off years, or more if married.

B. One could do this without a DAF by simply doing no giving at all in the off years. However sometimes there are causes/issues that come up that for social or other reasons can't be diverted to the next year. A single person who donates \$870 or more in an off year, and is taxed at 23% would break even paying \$100/ year for the DAF. (by making the \$870 donation to the DAF in the giving year, and realizing the entire \$2.2k benefit of the standard deduction in the off year)
Without double checking that math, it seems reasonable (if not correct--didn't double check it). I'd say to you that you can do "lumping" (of contributions for tax purposes) absent a DAF. The DAF will make that far easier for you, and your causes may like it better (some like to get donations yearly). There isn't a question you can save the fee of the DAF. The question will be (if you go this route), do you want to and do you fairly value your time?
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
C. If you make small donations that cannot reasonably be done by DTC transfer you can realize the added benefit of the 15% savings on capital gains by donating appreciated securities to the DAF, and using the DAF for small donations. That lowers the threshold of small donations in an off year to \$610 to break even...(another \$130/year in cap gains tax savings, which the DAF would provide in both on and off years)
Fido will happily have someone push a share of something if you filled in the paperwork, I'd bet. You should call them to confirm.
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
D. If transfers to the DAF are effective immediately, there is the added benefit of trying to transfer when the value of a stock is high, instead of initiating a transfer when the value is high, but then losing the benefit because by the time Fidelity gets around to transferring 4 days later the value of the stock has declined...
I'd say to you two things here:

1. You aren't going to be any more successful in market timing a DAF donations than the investments themselves. It's frowned upon for a reason around these parts.

2. Fido is being sued (IIRC), because some fellow with very large sums of money had an expectation on this score that wasn't met. If your charitable giving is predicated on these market movements, I'd say you are going to want to DIY with the end charity to assure execution in the window you need. I am typically gifting either broad market securities with age and significant gains on them and/or realizing various forms of stock compensation and immediately donating them to charity--in neither case is a day or two of execution one way or the other going to impact either my tax situation or, more saliently, how much I'd otherwise give.

That last point is salient. What a DAF allows me to do is significantly streamline the mechanics of some of this. It doesn't make for a tax utopia. I'd write the checks or donate the stock anyway--this just makes it easier.
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
E. Other than the \$100 year cost are there downsides to having a DAF?
It depends on your giving. If you are a "gala and silent auction" or "athletic tickets" type, it can--because you can't receive anything above an "incidental" threshold for your gifts. As mentioned--you aren't handing anyone a check--the DAF is, so if you want a grip/grin with the charity, you have to write them the check straightaway. You cannot support a legally binding pledge from a DAF.

I'd urge you to think of the cost in terms of the value of your own time, though. Having the DAF has allowed me to spend a lot more time thinking about how best to deploy charitable dollars rather than on the mechanics of doing so. It also (and I cannot understate this), allows you to give anonymously. After a period, this will cut down on the number of trees and electrons used to solicit you by a factor of magnitude if used judiciously.

MN-Investor
Posts: 377
Joined: Mon May 02, 2011 9:04 am
Location: Twin Cities

### Re: Questions about Fidelity Charitable DAF

Another very happy Fidelity DAF user.

The only minor issue I ran into was when I requested an amount for my church and in the description I wrote something about fulfilling a building fund promise. Fidelity contacted the church to find out if it was a pledge or just a non-binding promise. No, I had not pledged the money. I just put that amount on a form from the church saying it was my intention for the year. Therefore Fidelity had no problem donating that amount from my DAF account. I'm more careful with my wording now.

As others have said, it's easy to donate from your Fidelity taxable account. I have some highly appreciated stock which I've been using for that purpose for several years.

I also really, really love the ability to donate anonymously. I've been directing donations to various weather related disaster sites in the past few years and I appreciate not getting on additional mailing lists.
The key to success - Save early, save often, invest well.

Topic Author
Saving\$
Posts: 1786
Joined: Sat Nov 05, 2011 8:33 pm

### Re: Questions about Fidelity Charitable DAF

Stinky wrote:
Mon Nov 11, 2019 2:53 am
The “bunching” of contributions that you mention works well. If you have the cash, bunch more than two years of charitable gifts into one tax year, and take standard deduction in other tax years.
Good point. I was thinking in terms of bunching direct donations in a way the charity does not notice so much (Jan giving, December giving, then skip 13 months and repeat). With the DAF I guess I could do a 1 year giving to DAF / 3+ year off cycle, but still send annual gifts to charities. Probably only limited by what I can afford to put in the DAF and/or the limit on deductions for donating appreciated securities of 30% of adjusted gross income.
Stinky wrote:
Mon Nov 11, 2019 2:53 am
Also, the 0.60% cost can be substantially offset by value of having tax-free growth of investments within the DAF. For example, our DAF is invested in the Total Stock Market fund, which grows tax free until grants are made.
pyld76 wrote:
Mon Nov 11, 2019 11:09 am
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
E. Other than the \$100 year cost are there downsides to having a DAF?

It depends on your giving. If you are a "gala and silent auction" or "athletic tickets" type, it can--because you can't receive anything above an "incidental" threshold for your gifts. As mentioned--you aren't handing anyone a check--the DAF is, so if you want a grip/grin with the charity, you have to write them the check straightaway. You cannot support a legally binding pledge from a DAF.
This is a point I had not considered. Not much of a gala/silent auction type, however:
- Do the T-shirts for walks/runs count as more than incidentals?
- At what point does something count as more than incidental?
- If you buy a table for an event, if the charity will allow it, can you stay out of tax trouble by giving the charity a regular check for the portion that is the cost of the meals and money from the DAF for the donation portion of "buying the table" - ie the portion that would otherwise be tax deductible?

In addition to the above a few more considerations are:
1. If your state provides a tax credit for certain charitable donations, I would think those donations need to happen outside the DAF
2. It appears Fidelity does not allow you to continue to hold the same position in the DAF - so you can't just contribute x shares of y stock to the DAF and have that asset in the DAF - It seems Fidelity lets you transfer the appreciated shares to the DAF but then once in the DAF, they immediately sell the shares and require you to select from one of their investment tracks...

BuddyJet
Posts: 252
Joined: Mon Jun 24, 2019 8:56 pm

### Re: Questions about Fidelity Charitable DAF

On buying the table question, it depends on the charity but yes. If table is \$1k and value is \$100, my cpa said that if I give the \$100 Outside the DAF, I’m good. Some charity are ok with \$900 from daf and \$100 separately but others want \$1k from daf and \$100 separately to ease their internal accounting.

Just be sure not to claim the daf amount as a donation.

Also, you don't have to invest via tracks, they offer funds at lower fees.
People say nothing is impossible. I do nothing all day.

GerryL
Posts: 2499
Joined: Fri Sep 20, 2013 11:40 pm

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Tue Nov 12, 2019 10:15 pm

2. It appears Fidelity does not allow you to continue to hold the same position in the DAF - so you can't just contribute x shares of y stock to the DAF and have that asset in the DAF - It seems Fidelity lets you transfer the appreciated shares to the DAF but then once in the DAF, they immediately sell the shares and require you to select from one of their investment tracks...
You don't hold anything in a DAF. Fidelity Charitable holds it, and they sell the shares you contribute. You can select from a few investments and recommend where money is donated, but it is no longer yours. I have not heard of any DAF that leaves the contribution in the vehicle in which it was transferred. Anyone?

increment
Posts: 188
Joined: Tue May 15, 2018 2:20 pm

### Re: Questions about Fidelity Charitable DAF

GerryL wrote:
Wed Nov 13, 2019 12:26 am
it is no longer yours. I have not heard of any DAF that leaves the contribution in the vehicle in which it was transferred. Anyone?
There is a story in the news about a lawsuit alleging that Fidelity Charitable failed to honor a promise to unload a particular asset slowly (in order to prevent its price from tanking).

pyld76
Posts: 272
Joined: Thu Feb 09, 2012 4:15 pm

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Tue Nov 12, 2019 10:15 pm
This is a point I had not considered. Not much of a gala/silent auction type, however:
- Do the T-shirts for walks/runs count as more than incidentals?
- At what point does something count as more than incidental?
- If you buy a table for an event, if the charity will allow it, can you stay out of tax trouble by giving the charity a regular check for the portion that is the cost of the meals and money from the DAF for the donation portion of "buying the table" - ie the portion that would otherwise be tax deductible?
If you go to fidelity charitable’s website, they will tell you their language on “incidental” guidance. My practice is this: if you give X, and the charity issues you a tax letter that anything less than X is deductible? More than incidental.

I think you might be able to split the difference if you coordinate between you and the charity and Fido. My practice is to write a check for the charity 5k kind of thing. But you’d want to consult the charity and/or DAF provider to be sure.

Saving\$ wrote:
Tue Nov 12, 2019 10:15 pm
2. It appears Fidelity does not allow you to continue to hold the same position in the DAF - so you can't just contribute x shares of y stock to the DAF and have that asset in the DAF - It seems Fidelity lets you transfer the appreciated shares to the DAF but then once in the DAF, they immediately sell the shares and require you to select from one of their investment tracks...
There’s a point (5 million, maybe) where they let you buy whatever you want (or have an advisor do so) in the DAF. I’m not there yet. I hold the index products they make available in the DAF.

Now, there are DAFs who will let you hold almost anything you want (in terms of in-DAF holdings) at lesser asset amounts. . They are usually (in my experience) community foundations with ludicrous fees. YMMV.

stan1
Posts: 7687
Joined: Mon Oct 08, 2007 4:35 pm

### Re: Questions about Fidelity Charitable DAF

increment wrote:
Wed Nov 13, 2019 1:11 am
GerryL wrote:
Wed Nov 13, 2019 12:26 am
it is no longer yours. I have not heard of any DAF that leaves the contribution in the vehicle in which it was transferred. Anyone?
There is a story in the news about a lawsuit alleging that Fidelity Charitable failed to honor a promise to unload a particular asset slowly (in order to prevent its price from tanking).
RIght, if you are going to donate \$100M worth of a thinly traded asset to any charity get your accountant and lawyer engaged up front not after the fact, and don't make verbal agreements with low level people.

Topic Author
Saving\$
Posts: 1786
Joined: Sat Nov 05, 2011 8:33 pm

### Re: Questions about Fidelity Charitable DAF

Have some updated info based on opening the DAF and now that I've done that Fidelity is giving answers (?/)

1. If you donate from a Fidelity account to a Fidelity Charitable DAF the asset leaves your account that business day if before 3 pm or the next business day. I initiated the donation after close of market one evening. Assets left the next day and my donation for tax purposes will be the average share value of the first full trading day after I initiated the donation.

2. The timing of the asset leaving your account <> the timing of the asset hitting the DAF.
a. Fidelity will take 1-3 days to sell the asset. In my case, they sold the assets 2 business days after I initiated the donation. The amount credited to the DAF will be the amount they sold the shares for, which is <> the amount of my donation for tax purposes.
b. The DAF will not be credited until 2 days after the close of business of the day they sell the shares. Which is 5 days after I initiated the donation.
c. Once the DAF is credited, the funds are available for me to recommend grants.

3. The 0.6% DAF fee is calculated daily as: Daily account balance * (.06%/365). If this is less than \$100 at the end of the year, they bump it up to \$100.
So if the daily balance for the entire year were \$16.6k, the 0.6% would be close to \$100. Effectively, if the average daily balance is under \$16.6k, the DAF costs \$100, even if you cycle \$50k through it in a year, because you can quickly make the grants to keep the average daily balance down. Of course it may be worthwhile to keep a balance higher than \$16.6k depending upon how many years you want to bunch into the DAF and the amount of your annual grant recommendations.
What I still don't know is whether this fee comes out of the DAF or out of my taxable account...

4. So far all my regular charities except one are already in the Fidelity database which should make things quicker. It's also already made me more charitable - I had been hesitating on donating a medium amount in memory of a friends spouse to a charity I sporadically supported in the past but not regularly, because I was conflicted, thinking the amount was not quite enough to be worth it to transfer appreciated assets, but enough to make me hesitate in just sending a check, and I was wrestling with whether to donate more (via appreciated stock) or less (via check), resulting in no donation at all so far. I will no longer have that issue. It will be one of my first grant recommendations.

Stinky
Posts: 2432
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Fri Nov 15, 2019 3:12 pm
It's also already made me more charitable - I had been hesitating on donating a medium amount in memory of a friends spouse to a charity I sporadically supported in the past but not regularly, because I was conflicted, thinking the amount was not quite enough to be worth it to transfer appreciated assets, but enough to make me hesitate in just sending a check, and I was wrestling with whether to donate more (via appreciated stock) or less (via check), resulting in no donation at all so far. I will no longer have that issue. It will be one of my first grant recommendations.
That’s one of the best reasons to have a DAF. Donating appreciated securities in bulk, to fund smaller grants over time.

Good for you for being more charitable!
It's a GREAT day to be alive - Travis Tritt

inbox788
Posts: 6645
Joined: Thu Mar 15, 2012 5:24 pm

### Re: Questions about Fidelity Charitable DAF

stan1 wrote:
Thu Nov 14, 2019 8:58 pm
increment wrote:
Wed Nov 13, 2019 1:11 am
GerryL wrote:
Wed Nov 13, 2019 12:26 am
it is no longer yours. I have not heard of any DAF that leaves the contribution in the vehicle in which it was transferred. Anyone?
There is a story in the news about a lawsuit alleging that Fidelity Charitable failed to honor a promise to unload a particular asset slowly (in order to prevent its price from tanking).
RIght, if you are going to donate \$100M worth of a thinly traded asset to any charity get your accountant and lawyer engaged up front not after the fact, and don't make verbal agreements with low level people.
What's the complaint? I didn't see how much it actually sold for. Did they get upset because the dump a lot of stock and got a lower price? Or that the price doubled in 2018 and they or their charities didn't benefit? It's actually lower now, so you can argue they did alright.

It's not really an issue for normal folks, and I doubt they get many donations even close to that size.

HomeStretch
Posts: 2882
Joined: Thu Dec 27, 2018 3:06 pm

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Fri Nov 15, 2019 3:12 pm
What I still don't know is whether this fee comes out of the DAF or out of my taxable account...
The DAF fee does not come out of your Taxable account. It’s deducted from the DAF balance.

Topic Author
Saving\$
Posts: 1786
Joined: Sat Nov 05, 2011 8:33 pm

### Re: Questions about Fidelity Charitable DAF

inbox788 wrote:
Fri Nov 15, 2019 4:05 pm
stan1 wrote:
Thu Nov 14, 2019 8:58 pm
increment wrote:
Wed Nov 13, 2019 1:11 am
GerryL wrote:
Wed Nov 13, 2019 12:26 am
it is no longer yours. I have not heard of any DAF that leaves the contribution in the vehicle in which it was transferred. Anyone?
There is a story in the news about a lawsuit alleging that Fidelity Charitable failed to honor a promise to unload a particular asset slowly (in order to prevent its price from tanking).
RIght, if you are going to donate \$100M worth of a thinly traded asset to any charity get your accountant and lawyer engaged up front not after the fact, and don't make verbal agreements with low level people.
What's the complaint? I didn't see how much it actually sold for. Did they get upset because the dump a lot of stock and got a lower price? Or that the price doubled in 2018 and they or their charities didn't benefit? It's actually lower now, so you can argue they did alright.

It's not really an issue for normal folks, and I doubt they get many donations even close to that size.
The way I understood the article is they got the tax deduction of the value of the stock on the day they donated it, but because Fidelity then sold it all at once, the value dropped, so the DAF took a big hit. The amount in the DAF available to grant to charities could have been much higher if Fidelity had done as their rep promised. The family was upset that Fidelity's actions ultimately reduced the amount available to charities.

MathIsMyWayr
Posts: 1087
Joined: Mon Mar 27, 2017 10:47 pm
Location: CA

### Re: Questions about Fidelity Charitable DAF

Who actually writes a donation check from DAF? Does DAF give you a check book?
If DAF issues a donation check directly, how does it know the recipient is an eligible charitable organization?

Hockey10
Posts: 613
Joined: Wed Aug 24, 2016 12:20 pm

### Re: Questions about Fidelity Charitable DAF

MathIsMyWayr wrote:
Sat Nov 16, 2019 8:52 am
Who actually writes a donation check from DAF? Does DAF give you a check book?
If DAF issues a donation check directly, how does it know the recipient is an eligible charitable organization?
I can only speak for the Fidelity DAF. They do not give you a checkbook. You go into their website and find the charity you want to initiate a grant to from their database of approved charities. Once Fidelity approves your grant, they mail a check / letter to the charity.

MathIsMyWayr
Posts: 1087
Joined: Mon Mar 27, 2017 10:47 pm
Location: CA

### Re: Questions about Fidelity Charitable DAF

Hockey10 wrote:
Sat Nov 16, 2019 9:03 am
MathIsMyWayr wrote:
Sat Nov 16, 2019 8:52 am
Who actually writes a donation check from DAF? Does DAF give you a check book?
If DAF issues a donation check directly, how does it know the recipient is an eligible charitable organization?
I can only speak for the Fidelity DAF. They do not give you a checkbook. You go into their website and find the charity you want to initiate a grant to from their database of approved charities. Once Fidelity approves your grant, they mail a check / letter to the charity.
Is their database complete? In other words, is it synchronized with the IRS 403(a)?? database in real time? What happens if your donee is not in the Fidelity database?

Gill
Posts: 5767
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

### Re: Questions about Fidelity Charitable DAF

MathIsMyWayr wrote:
Sat Nov 16, 2019 9:09 am
Hockey10 wrote:
Sat Nov 16, 2019 9:03 am
MathIsMyWayr wrote:
Sat Nov 16, 2019 8:52 am
Who actually writes a donation check from DAF? Does DAF give you a check book?
If DAF issues a donation check directly, how does it know the recipient is an eligible charitable organization?
I can only speak for the Fidelity DAF. They do not give you a checkbook. You go into their website and find the charity you want to initiate a grant to from their database of approved charities. Once Fidelity approves your grant, they mail a check / letter to the charity.
Is their database complete? In other words, is it synchronized with the IRS 403(a)?? database in real time? What happens if your donee is not in the Fidelity database?
They will research the charity if not in their database, even to the point of contacting the charity for evidence of their tax exempt status.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

InvestingGeek
Posts: 59
Joined: Tue Aug 28, 2018 6:31 am

### Re: Questions about Fidelity Charitable DAF

MathIsMyWayr wrote:
Sat Nov 16, 2019 9:09 am
Hockey10 wrote:
Sat Nov 16, 2019 9:03 am
MathIsMyWayr wrote:
Sat Nov 16, 2019 8:52 am
Who actually writes a donation check from DAF? Does DAF give you a check book?
If DAF issues a donation check directly, how does it know the recipient is an eligible charitable organization?
I can only speak for the Fidelity DAF. They do not give you a checkbook. You go into their website and find the charity you want to initiate a grant to from their database of approved charities. Once Fidelity approves your grant, they mail a check / letter to the charity.
Is their database complete? In other words, is it synchronized with the IRS 403(a)?? database in real time? What happens if your donee is not in the Fidelity database?
As long as they are 503c or whatever the qualification is, you can add them to their list. I added a couple of charities that weren't on there. They verify the charity before enabling it for grants.

Stinky
Posts: 2432
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

### Re: Questions about Fidelity Charitable DAF

MathIsMyWayr wrote:
Sat Nov 16, 2019 9:09 am
Hockey10 wrote:
Sat Nov 16, 2019 9:03 am
MathIsMyWayr wrote:
Sat Nov 16, 2019 8:52 am
Who actually writes a donation check from DAF? Does DAF give you a check book?
If DAF issues a donation check directly, how does it know the recipient is an eligible charitable organization?
I can only speak for the Fidelity DAF. They do not give you a checkbook. You go into their website and find the charity you want to initiate a grant to from their database of approved charities. Once Fidelity approves your grant, they mail a check / letter to the charity.
Is their database complete? In other words, is it synchronized with the IRS 403(a)?? database in real time? What happens if your donee is not in the Fidelity database?
Fidelity has been very responsive in reaching out to some of my charities to get them added to their list of approved charities.

When there's been any material slow-down, it's been because the charity wasn't as responsive to Fidelity's outreach as they could have been.
It's a GREAT day to be alive - Travis Tritt

CardinalRule
Posts: 226
Joined: Sun Jan 15, 2017 11:01 am
Location: United States

### Re: Questions about Fidelity Charitable DAF

Like others in this thread, I have been happy overall with my Fidelity DAF.

One other thing I like is the integration with my other Fidelity accounts. By that I mean that when I log on to Fidelity.com, I can see my individual brokerage account, my rollover IRA, my Roth IRA, and my DAF on the navigation bar to the left. It helps keep the DAF balance top of mind, in addition to making it even easier to fund.

pyld76
Posts: 272
Joined: Thu Feb 09, 2012 4:15 pm

### Re: Questions about Fidelity Charitable DAF

MathIsMyWayr wrote:
Sat Nov 16, 2019 8:52 am
Who actually writes a donation check from DAF? Does DAF give you a check book?
If DAF issues a donation check directly, how does it know the recipient is an eligible charitable organization?
The DAF (fidelity charitable) cuts a check the the charity. They don’t give you a checkbook because once you donate the money/security/asset to the DAF, it is owned by the DAF. It is fidelity charitable’s money, not yours. You then recommend grants to a particular charity.

Fido charitable cuts the checks (or, in some cases, initiates EFTs) to the actual charity.

Fido has a database of eligible organizations. If an organization is not in their database and you recommend a charity, they will do the diligence to entire the organization qualifies and if it does, they add it to their database. This is part of what the expense ratio is funding.

CardinalRule
Posts: 226
Joined: Sun Jan 15, 2017 11:01 am
Location: United States

### Re: Questions about Fidelity Charitable DAF

pyld76 wrote:
Sat Nov 16, 2019 9:53 am

The DAF (fidelity charitable) cuts a check the the charity. They don’t give you a checkbook because once you donate the money/security/asset to the DAF, it is owned by the DAF. It is fidelity charitable’s money, not yours. You then recommend grants to a particular charity.

Fido charitable cuts the checks (or, in some cases, initiates EFTs) to the actual charity.
Last year, we made a small "grant" to a 503(c) charity in the small town that my wife grew up in. Fidelity's check was cut but never cashed and so it was eventually voided by Fidelity. We'll try again this year after giving the charity a heads up. This is the only situation we have ever had like this.

We get notices from other charities acknowledging our grants (with no tax deduction language) quite timely.

MN-Investor
Posts: 377
Joined: Mon May 02, 2011 9:04 am
Location: Twin Cities

### Re: Questions about Fidelity Charitable DAF

CardinalRule wrote:
Sat Nov 16, 2019 10:31 am
pyld76 wrote:
Sat Nov 16, 2019 9:53 am

The DAF (fidelity charitable) cuts a check the the charity. They don’t give you a checkbook because once you donate the money/security/asset to the DAF, it is owned by the DAF. It is fidelity charitable’s money, not yours. You then recommend grants to a particular charity.

Fido charitable cuts the checks (or, in some cases, initiates EFTs) to the actual charity.
Last year, we made a small "grant" to a 503(c) charity in the small town that my wife grew up in. Fidelity's check was cut but never cashed and so it was eventually voided by Fidelity. We'll try again this year after giving the charity a heads up. This is the only situation we have ever had like this.

We get notices from other charities acknowledging our grants (with no tax deduction language) quite timely.
The exact same thing happened to me when I requested a check to my niece's small rural church in Iowa. The check was also eventually voided. I'll just write a personal check the next time I attend her church.
The key to success - Save early, save often, invest well.

wander
Posts: 2788
Joined: Sat Oct 04, 2008 9:10 am

### Re: Questions about Fidelity Charitable DAF

CardinalRule wrote:
Sat Nov 16, 2019 10:31 am
pyld76 wrote:
Sat Nov 16, 2019 9:53 am

The DAF (fidelity charitable) cuts a check the the charity. They don’t give you a checkbook because once you donate the money/security/asset to the DAF, it is owned by the DAF. It is fidelity charitable’s money, not yours. You then recommend grants to a particular charity.

Fido charitable cuts the checks (or, in some cases, initiates EFTs) to the actual charity.
Last year, we made a small "grant" to a 503(c) charity in the small town that my wife grew up in. Fidelity's check was cut but never cashed and so it was eventually voided by Fidelity. We'll try again this year after giving the charity a heads up. This is the only situation we have ever had like this.

We get notices from other charities acknowledging our grants (with no tax deduction language) quite timely.
In my experience, for the charity that is not on the Fidelity database, you need to contact the charity directly and ask for its tax ID. With the Tax ID information in hand, you can add new charity. It's best to include the name of the secretary or book keeper of the organization and phone number. Fidelity will call the charity to verify the address, Tax ID and add the charity in the database. When that happens, you can call the charity office to let them know and ask them to call Fidelity directly to correct the information. Don't waste your time talking to Fidelity representatives because they only make the correction if the charity call them (Even if they know the address does not exist on the US Map, it's not their concern). If you can do that, you also do a favor for that charity to get their name and address on Fidelity database so later on future donors can give easily.
Another case is when I granted fund for another small charity. I gave the address and phone number of the charity, however, I did not know the tax ID of the charity so I left the box open. Next day, Fidelity approved the request; but when I checked, they changed to a a different recipient with similar name, but in a different city. They didn't call the number I entered to verify. So, I removed the grant request and will give a different way.
With the charities that names have made to Fidelity database, I give thumbs up to Fidelity. With the ones that are not on its database yet, I give thumbs down for the quality of Fidelity's work.

inbox788
Posts: 6645
Joined: Thu Mar 15, 2012 5:24 pm

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Sat Nov 16, 2019 8:39 am
The way I understood the article is they got the tax deduction of the value of the stock on the day they donated it, but because Fidelity then sold it all at once, the value dropped, so the DAF took a big hit. The amount in the DAF available to grant to charities could have been much higher if Fidelity had done as their rep promised. The family was upset that Fidelity's actions ultimately reduced the amount available to charities.
Interesting case. I didn't know donors could advise on the investments to such degree. I'm still unclear about the tax deduction amount if Fidelity holds the shares and the donor still has say in how it's liquidated, since that seems to be part of the argument. After the precipitous drop in 2018, I don't see what they're suing over and why they just don't settle and give them back the shares if they want. I think Fidelity got good prices (\$20-24/share; now \$2) Anyway, not a likely scenario for OP, and we can assume whatever donations are made that Fidelity will liquidate it ASAP or on their own time. That has always been my assumption and use.

pyld76
Posts: 272
Joined: Thu Feb 09, 2012 4:15 pm

### Re: Questions about Fidelity Charitable DAF

CardinalRule wrote:
Sat Nov 16, 2019 10:31 am
pyld76 wrote:
Sat Nov 16, 2019 9:53 am

The DAF (fidelity charitable) cuts a check the the charity. They don’t give you a checkbook because once you donate the money/security/asset to the DAF, it is owned by the DAF. It is fidelity charitable’s money, not yours. You then recommend grants to a particular charity.

Fido charitable cuts the checks (or, in some cases, initiates EFTs) to the actual charity.
Last year, we made a small "grant" to a 503(c) charity in the small town that my wife grew up in. Fidelity's check was cut but never cashed and so it was eventually voided by Fidelity. We'll try again this year after giving the charity a heads up. This is the only situation we have ever had like this.

We get notices from other charities acknowledging our grants (with no tax deduction language) quite timely.
I had this happen on a single occasion. It was because the charity had relocated and the Fido database had not been updated. Called Fido. They fixed the address and cut the check.

Topic Author
Saving\$
Posts: 1786
Joined: Sat Nov 05, 2011 8:33 pm

### Re: Questions about Fidelity Charitable DAF

Stinky wrote:
Sat Nov 16, 2019 9:19 am
MathIsMyWayr wrote:
Sat Nov 16, 2019 9:09 am
Hockey10 wrote:
Sat Nov 16, 2019 9:03 am
MathIsMyWayr wrote:
Sat Nov 16, 2019 8:52 am
Who actually writes a donation check from DAF? Does DAF give you a check book?
If DAF issues a donation check directly, how does it know the recipient is an eligible charitable organization?
I can only speak for the Fidelity DAF. They do not give you a checkbook. You go into their website and find the charity you want to initiate a grant to from their database of approved charities. Once Fidelity approves your grant, they mail a check / letter to the charity.
Is their database complete? In other words, is it synchronized with the IRS 403(a)?? database in real time? What happens if your donee is not in the Fidelity database?
Fidelity has been very responsive in reaching out to some of my charities to get them added to their list of approved charities.

When there's been any material slow-down, it's been because the charity wasn't as responsive to Fidelity's outreach as they could have been.
Discovered an unintended benefit of the DAF. Recommended a grant to a small all volunteer run charity and Fidelity Charitable site returned a "Not Approved." I called Fidelity to find out why and was told the charity had not filed an IRS form 990 at least once every three years as required. I contacted the charity, who agreed they had failed to do this on time, but had already addressed it a few months ago and they sent me their re-instatement letter from the IRS. Fidelity will wait to add the charity to the list until the IRS database is updated. In this case I think it will all work out ok, but the nice benefit is Fidelity does the legwork to make sure the charity is a 501(c)3 in good standing...
Last edited by Saving\$ on Sun Nov 24, 2019 6:08 pm, edited 1 time in total.

Topic Author
Saving\$
Posts: 1786
Joined: Sat Nov 05, 2011 8:33 pm

### Re: Questions about Fidelity Charitable DAF

pyld76 wrote:
Thu Nov 14, 2019 8:52 pm
Saving\$ wrote:
Tue Nov 12, 2019 10:15 pm
This is a point I had not considered. Not much of a gala/silent auction type, however:
- Do the T-shirts for walks/runs count as more than incidentals?
- At what point does something count as more than incidental?
- If you buy a table for an event, if the charity will allow it, can you stay out of tax trouble by giving the charity a regular check for the portion that is the cost of the meals and money from the DAF for the donation portion of "buying the table" - ie the portion that would otherwise be tax deductible?
If you go to fidelity charitable’s website, they will tell you their language on “incidental” guidance. My practice is this: if you give X, and the charity issues you a tax letter that anything less than X is deductible? More than incidental.

I think you might be able to split the difference if you coordinate between you and the charity and Fido. My practice is to write a check for the charity 5k kind of thing. But you’d want to consult the charity and/or DAF provider to be sure.
Wanted to follow up on this. YOU ARE NOT ALLOWED TO SPLIT THE DIFFERENCE / COORDINATE WITH THE CHARITY.
This is from Fidelity's website:
Can I recommend a grant from my Giving Account for the tax deductible part of a ticket to a charitable event?

No. Bifurcated or “split” gifts cannot be made with your donor-advised fund. For example, grants intended to pay all or a portion of the cost of tickets to attend a charitable event will not be made. This includes grants for the charitable, or tax-deductible, portion of the ticket price. The FULL ticket price (the tax deductible AND non-tax deductible portions) must be paid out of pocket and separate from any Fidelity Charitable grants.

Here’s an example to explain:

Rebecca would like to attend the Annual Gala at her favorite charity. The charity offers individual tickets priced at \$500 (\$250 tax-deductible) or a Patron Sponsorship for \$10,000 that comes with 10 tickets for seats at a premium table (\$7,500 tax-deductible). Rebecca would like to use all 10 seats so her friends and family can attend the gala with her. For Rebecca to be within Fidelity Charitable policy, she would have to pay the full minimum ticket price of \$500 for each attendee, totaling \$5,000.

She can recommend a grant for the remaining \$5,000 from her Giving Account at Fidelity Charitable as long as this amount is considered fully tax-deductible with no goods or services being provided in connection to the grant.

Fidelity Charitable’s policies are in compliance with the Pension Protection Act of 2006 (PPA) which enacted certain laws applicable to donor-advised funds, including excise taxes on prohibited benefits under IRC section 4967.

In December 2017, the IRS released Notice 2017-73 that requested comments on potential regulations the IRS is considering with respect to donor-advised funds. The rules proposed in the Notice are largely consistent with Fidelity Charitable’s policies and procedures.

It is also worth noting you CANNOT use the DAF to pay any minimum charitable contribution amount that may be required to participate in a walk/ run. Again from Fidelity Charitable Website:
Please note: an Account Holder cannot support the Account Holder’s own fundraising commitment, such as a walk, bike ride, or run, unless the full financial obligation has been satisfied first.
This is sort of disappointing as I participate in a few of these every year (something like the Alzheimer's Walk). These are not timed competitive events - they are only to raise awareness of their cause. The "entry fee" is 100% deductible. I had hoped the DAF would cut down on the recordkeeping of all the donations being to the DAF and all the outflow to charities from the DAF. I hope they figure out a way to resolve this - seems to go beyond what the intent of the limitations would seem to be.

MathIsMyWayr
Posts: 1087
Joined: Mon Mar 27, 2017 10:47 pm
Location: CA

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Sun Nov 24, 2019 6:05 pm
pyld76 wrote:
Thu Nov 14, 2019 8:52 pm
Saving\$ wrote:
Tue Nov 12, 2019 10:15 pm
This is a point I had not considered. Not much of a gala/silent auction type, however:
- Do the T-shirts for walks/runs count as more than incidentals?
- At what point does something count as more than incidental?
- If you buy a table for an event, if the charity will allow it, can you stay out of tax trouble by giving the charity a regular check for the portion that is the cost of the meals and money from the DAF for the donation portion of "buying the table" - ie the portion that would otherwise be tax deductible?
If you go to fidelity charitable’s website, they will tell you their language on “incidental” guidance. My practice is this: if you give X, and the charity issues you a tax letter that anything less than X is deductible? More than incidental.

I think you might be able to split the difference if you coordinate between you and the charity and Fido. My practice is to write a check for the charity 5k kind of thing. But you’d want to consult the charity and/or DAF provider to be sure.
Wanted to follow up on this. YOU ARE NOT ALLOWED TO SPLIT THE DIFFERENCE / COORDINATE WITH THE CHARITY.
This is from Fidelity's website:
Can I recommend a grant from my Giving Account for the tax deductible part of a ticket to a charitable event?

No. Bifurcated or “split” gifts cannot be made with your donor-advised fund. For example, grants intended to pay all or a portion of the cost of tickets to attend a charitable event will not be made. This includes grants for the charitable, or tax-deductible, portion of the ticket price. The FULL ticket price (the tax deductible AND non-tax deductible portions) must be paid out of pocket and separate from any Fidelity Charitable grants.

Here’s an example to explain:

Rebecca would like to attend the Annual Gala at her favorite charity. The charity offers individual tickets priced at \$500 (\$250 tax-deductible) or a Patron Sponsorship for \$10,000 that comes with 10 tickets for seats at a premium table (\$7,500 tax-deductible). Rebecca would like to use all 10 seats so her friends and family can attend the gala with her. For Rebecca to be within Fidelity Charitable policy, she would have to pay the full minimum ticket price of \$500 for each attendee, totaling \$5,000.

She can recommend a grant for the remaining \$5,000 from her Giving Account at Fidelity Charitable as long as this amount is considered fully tax-deductible with no goods or services being provided in connection to the grant.

Fidelity Charitable’s policies are in compliance with the Pension Protection Act of 2006 (PPA) which enacted certain laws applicable to donor-advised funds, including excise taxes on prohibited benefits under IRC section 4967.

In December 2017, the IRS released Notice 2017-73 that requested comments on potential regulations the IRS is considering with respect to donor-advised funds. The rules proposed in the Notice are largely consistent with Fidelity Charitable’s policies and procedures.

It is also worth noting you CANNOT use the DAF to pay any minimum charitable contribution amount that may be required to participate in a walk/ run. Again from Fidelity Charitable Website:
Please note: an Account Holder cannot support the Account Holder’s own fundraising commitment, such as a walk, bike ride, or run, unless the full financial obligation has been satisfied first.
This is sort of disappointing as I participate in a few of these every year (something like the Alzheimer's Walk). These are not timed competitive events - they are only to raise awareness of their cause. The "entry fee" is 100% deductible. I had hoped the DAF would cut down on the recordkeeping of all the donations being to the DAF and all the outflow to charities from the DAF. I hope they figure out a way to resolve this - seems to go beyond what the intent of the limitations would seem to be.
This restriction of DAF is very similar to the one applicable to QCD.

misterjohnny
Posts: 30
Joined: Thu Aug 08, 2019 3:21 pm

### Re: Questions about Fidelity Charitable DAF

For the charitable "walks", depending on who is running the event:
Donate to the cause via DAF.
Participate in the walk as an unregistered participant (guilt free, knowing you supported them through DAF).
You don't get a t-shirt, but for me they end up in goodwill anyhow.
The walks/runs I have participated in have not been militant about registration. Exception: Mud Run on Camp Pendleton marine base (security reasons)

inbox788
Posts: 6645
Joined: Thu Mar 15, 2012 5:24 pm

### Re: Questions about Fidelity Charitable DAF

Saving\$ wrote:
Sun Nov 24, 2019 6:05 pm
It is also worth noting you CANNOT use the DAF to pay any minimum charitable contribution amount that may be required to participate in a walk/ run. Again from Fidelity Charitable Website:
Please note: an Account Holder cannot support the Account Holder’s own fundraising commitment, such as a walk, bike ride, or run, unless the full financial obligation has been satisfied first.
This is sort of disappointing as I participate in a few of these every year (something like the Alzheimer's Walk). These are not timed competitive events - they are only to raise awareness of their cause. The "entry fee" is 100% deductible. I had hoped the DAF would cut down on the recordkeeping of all the donations being to the DAF and all the outflow to charities from the DAF. I hope they figure out a way to resolve this - seems to go beyond what the intent of the limitations would seem to be.
I would be surprised if a donation to Walk to End Alzheimer's wouldn't qualify. It's run by the "Alzheimer's Association is a not-for-profit 501(c)(3) organization". It might take a little work to make sure you get the donation to the right fundraising event, but I've supported some similar ones. In my case it was easier because someone else had already done it before or the charity was familiar with DAFs and had instructions. I searched Fidelity Charitable and found over 1000 entries for "walk" that other donors had already donated to, but couldn't find this specific one.

If it's a large enough donation or a recurring donation, it's worth the extra work involved. For a small one time event, it may be more trouble than it's worth.

How/where do I turn in cash and check donations?
https://act.alz.org/site/SPageServer?pa ... bsite_help

The only issue I see is the question of the "free t-shirt", and whether it's technically incidental or not, but I assume it's got advertisement value, so it will likely help overall fundraising efforts. If you're not sure, and want to totally be on the side of caution, you could just refuse it or buy it.

Grogs
Posts: 510
Joined: Tue Mar 24, 2015 4:55 pm

### Re: Questions about Fidelity Charitable DAF

pyld76 wrote:
Mon Nov 11, 2019 11:09 am
Saving\$ wrote:
Sun Nov 10, 2019 12:20 pm
For those that have a DAF, is Fidelity's the lowest cost at \$100/year for up to \$16.6k in assets?

For those that have a Fidelity DAF:

1. Can you move assets from your taxable to the DAF online or do you have to call them or fax them?
If you are moving assets from a Fidelity brokerage account, it can be done online. (I've done this)

If it is another institution (my experience is with Vanguard) you can fill out some paperwork, mail it to Fido, and they'll handle contacting the other institution and getting it done. Or, I've elected to let them do it because that's part of what I'm paying for with the expense ratio, and when asked they facilitated the process with very little friction.
I'm curious how long that process takes. I just opened a Fido DAF and I'd like to transfer appreciated mutual fund shares from my Vanguard brokerage account. On the form it says it can take 4-6 weeks to transfer mutual funds from another brokerage. Does this mean that I'm in danger of not getting the tax deduction this year or is that just how long it can take to get everything set up and ready to make grants? If I can't get the deduction this year, that would make the whole thing pointless because I won't have enough other deductions next year to really get much of a break beyond the standard deduction.

BuddyJet
Posts: 252
Joined: Mon Jun 24, 2019 8:56 pm

### Re: Questions about Fidelity Charitable DAF

In my experience, transfer to Fido DAF takes about a week. My guess is that the 4-6 week estimate in case all forms are not properly filled out or the brokerage being transferred from is slow or obstinate.

I also did a Vanguard to Fido in a week with no issues.
People say nothing is impossible. I do nothing all day.

Grogs
Posts: 510
Joined: Tue Mar 24, 2015 4:55 pm

### Re: Questions about Fidelity Charitable DAF

BuddyJet wrote:
Mon Dec 02, 2019 11:07 pm
In my experience, transfer to Fido DAF takes about a week. My guess is that the 4-6 week estimate in case all forms are not properly filled out or the brokerage being transferred from is slow or obstinate.

I also did a Vanguard to Fido in a week with no issues.
Great, thanks. That's what I was hoping to hear. I'll fax in the forms this morning and hopefully it will be done soon enough to change my withholding for my last paycheck. I'd much rather have a big paycheck in December than have to wait and get several thousand dollars refunded.

BuddyJet
Posts: 252
Joined: Mon Jun 24, 2019 8:56 pm

### Re: Questions about Fidelity Charitable DAF

You might also check with Fidelity that All your Vanguard holdings can be transferred in kind.

Some things Fido can’t receive, particularly partial shares. Having things sold at Vanguard diminishes the benefits.
People say nothing is impossible. I do nothing all day.