Fidelity Charitable Agency Agreement

Fidelity Charitable was founded in 1991 as a public charity as part of the financial services company Fidelity Investments. [1] In recent years, the Fund has experienced considerable growth and reported just over $3 billion in grants in 2015 and 2016. [2] The Fund continued to grow, distributing $5.2 billion in grants in 2018 and $7.3 billion in 2019. [3] In 2016, Fidelity Charitable surpassed one of the Way as the largest charity in the country. [4] Three years later, Fidelity Charitable surpassed the Gates Foundation and became the largest non-profit advocacy organization in the United States. [5] Since 1991, Fidelity Charitable has distributed more than $40 billion in grants to more than 300,000 different charities. [6] Fidelity Investments Charitable Gift Fund (Fidelity Charitable) is the largest public charitable organization in the United States and manages more than $30 billion in wealth as of 2019. Fidelity Charitable was the first commercial donor-managed fund provider (CFO) to manage non-profit accounts through which donors can, over time, distribute gifts to charities of their choice while enjoying immediate tax benefits. As of 2020, Fidelity Charitable manages fund accounts for nearly 250,000 donors. Tax effects: If there really were such restrictions on the control of the charity, as claimed by the donor(s), were they entitled to a non-profit income tax deduction? See IRC ยง 170 (f) (18) (B). If the terms of their donation were similar to other funds recommended by donors, they should be, but the complainant/donors seem to assert a level of control that goes beyond what is normally granted in DAF agreements. In the absence of sufficient control, the entire tax deduction may be compromised.

Fidelity asserted that the applicants` tax position distinguishes them even from other claims in this regard, which appears to be a coloriable argument. But the District Court did not see it that way and found that there was a state, because: in general, donations of securities traded to the public do not have to meet the same requirements of justification and compliance as gifts of assets that are difficult to value, but it is not because this is fulfilled that the fair market value cannot be different, and more importantly: The treasury rules applicable to non-profit income tax deductions create an exception when shares “are not considered to be publicly traded securities, if – 1) The securities are subject to restrictions that significantly affect the value of the securities to the giver or prevent the free movement of securities”. Fidelity claims that there were no such restrictions for its ability to sell the shares, but ironically, it is the plaintiffs/donors who are. Failure to comply with the requirements for reasons may result in the loss of the entire deduction. . . .