The Fidelity Charitable Gift Fund is adding an expanded consultation service for donors and advisors, and offering a series of seminars for advisors on how to help their clients donate closely held, illiquid assets efficiently and for the maximum benefit of both donors and the receiving charities, the company announced on Friday.
These types of complex assets include private C- and S-Corp stock, restricted stock, limited partnership interests, real estate and other privately held assets. As Fidelity noted in its press release, complex assets are generally highly appreciated, and donating them to charity before they're sold helps donors minimize the capital gains tax bite. Furthermore, individuals can deduct the current market value of an asset by donating it to public charities such as a donor-advised fund.
"Complex assets are often the most powerful assets to give in a client's portfolio," said Sarah Libbey, president of the Fidelity Charitable Gift Fund.
"Merger and acquisition activity is now reaching pre-recession levels, and capital gains taxes are expected to rise," Libbey added. "Given all these factors, advisors have a key opportunity to help their charitably inclined clients who own these non-publicly traded assets give more by minimizing taxes and passing the savings directly to the charities."
Fidelity's seminars will be held in New York City on June 16; Philadelphia on Sept. 27; Chicago on Oct. 12 and Boston on Oct. 20.
Fidelity's Charitable Gift Fund is an independent public charity that's billed as the nation's largest donor-advised fund. Created 20 years ago, the fund has helped donors support more than 140,000 nonprofit organizations with more than $11 billion in grants.
Advisors wishing to attend a seminar or inquire about donating a complex asset should contact the Gift Fund at: 800-952-4438.