Jan 30, 2014
For fundraising efforts, many organizations have turned to major gifts in an effort improve the diversity of their donor bases. One resource that contributors have sought out to increase the reach of their financial resources is charitable gift funds, according to Nonprofit Quarterly.
These are a type of donor-advised fund in which clients of the financial institution that provides the service put their money. With this resource, donors can contribute into the account without having to give the grant immediately, but they still enjoy the tax subsidies the government provides.
According to the Boston Globe, the banking firm Fidelity Investments saw requests from clients paying into its charitable gift fund reach $2.1 billion in 2013. This is a 29 percent increase over 2012 and the funds were disbursed to a large number of charities - 80,000 throughout the nation. Fidelity told The Globe that the average size of grants increased by 6 percent last year. This figure was also boosted by the fact that there were more $1 million grants, as well. The major winners from this trend have been human services, religious and educational charitable groups.