Grants given by Fidelity Charitable donors skyrocketed to $7.3 billion in 2019, surpassing the 2018 grant total of $5.2 billion, which was also a record-setting amount compared to earlier years, Fidelity Charitable announced Tuesday.
The grants were made from Fidelity Charitable’s donor-advised funds. Pamela Norley, president of Fidelity Charitable, predicted the record-setting increases would continue into future years.
The 2019 amount underscores “the supercharged impact driven by use of donor-advised funds, the fastest-growing vehicle for giving in the U.S.,” the Fidelity report said. “Organizations working in veterans’ support, disaster relief, environmental protection and civil discourse saw increased support as these issue areas gained media prominence.”
According to the report, “Donors are consistent and committed to their favorite charities. Seventy-four percent of grants in 2019 went to a charity the donor had previously supported, demonstrating that strong relationships are often built between nonprofits and donor-advised fund donors.”
The most popular nonprofits in 2019 were Doctors Without Borders USA, St. Jude Children’s Research Hospital, the Salvation Army, American National Red Cross and Planned Parenthood Federation of America.
Millennial donors account for 13% of new giving accounts opened in 2019, which is more than double what it was five years ago. A focus on social justice issues and civil liberties appears to be stronger among millennial donors, the report said.
Profits from investments for all accounts generated $10.8 billion in charitable dollars in addition to the original donor contributions.
Instead of cash, checks or credit cards, 60% of Fidelity Charitable donor-advised fund contributions were made in the form publicly traded securities of stocks, bonds and mutual funds; non-publicly traded assets of private stock, restricted stock and limited partnership interests; and cryptocurrency.
The report also noted that impact investing continues to rise in popularity, with $1 billion in grants going to impact investment funds.