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Fidelity DAF fee structure with low/zero balance

Posted: Mon May 03, 2021 9:25 pm
by MrJedi
Hello Bogleheads,

I couldn't find an answer to this in Fidelity's materials. Before I try to reach out to Fidelity directly, I'm curious if anybody is familiar with the Fidelity DAF fee structure with a zero balance and could share first hand experience. I mostly intend to give shares to the DAF and grant the money out immediately rather than invest it inside the DAF (some of the charities I support are not equipped to accept shares directly). I understand there is typically a $100 minimum administrative fee each year. What happens when I keep the balance at zero most of the time? How does that fee get assessed if there is no balance?

Re: Fidelity DAF fee structure with low/zero balance

Posted: Mon May 03, 2021 10:36 pm
by 123
MrJedi wrote: Mon May 03, 2021 9:25 pm ...What happens when I keep the balance at zero most of the time? How does that fee get assessed if there is no balance?
While you would have to ask Fidelity for a definitive answer I would suspect that they would assess their fee once per year based on the account balance (which might be zero). If there are no assets in the account it could get a negative balance from the assessment of the fee and when any assets are further contributed to the account the fee would be immediately collected and the negative balance removed. I would suspect they have procedures to close accounts if negative balances endure for too long a period of time.

Re: Fidelity DAF fee structure with low/zero balance

Posted: Mon May 03, 2021 10:51 pm
by Startled Cat
MrJedi wrote: Mon May 03, 2021 9:25 pm Hello Bogleheads,

I couldn't find an answer to this in Fidelity's materials. Before I try to reach out to Fidelity directly, I'm curious if anybody is familiar with the Fidelity DAF fee structure with a zero balance and could share first hand experience. I mostly intend to give shares to the DAF and grant the money out immediately rather than invest it inside the DAF (some of the charities I support are not equipped to accept shares directly). I understand there is typically a $100 minimum administrative fee each year. What happens when I keep the balance at zero most of the time? How does that fee get assessed if there is no balance?
In my experience, it doesn't get assessed.