Fidelity Charitable Distributes Record-Setting $11.8 Billion to Nonprofits in 2023

Nonprofit organizations attorney Andrew Grumet was cited in an ABC News article highlighting the record-setting $11.8 billion distributed to nonprofits by Fidelity Charitable in 2023, despite a general decline in donations elsewhere. Mr. Grumet pointed out that increased awareness and a struggle for nonprofits to personally connect with donors have significantly contributed to the growth in donations through donor-advised funds (DAFs) like Fidelity Charitable. He noted the effectiveness of DAFs in attracting contributions from younger donors, which he said underscores their importance in a time when nonprofit organizations are keen to broaden their donor base. He also commented on the rising trend of corporations utilizing DAFs for philanthropy, showcasing DAFs as a versatile tool for individual and corporate donors in enhancing their philanthropic impact.

"Charities need to do a better job there," he said, adding that DAFs have attracted more gifts from millennials and Gen Z than many nonprofits. "It's a struggle to figure out how to get your message out there."

READ: Fidelity Charitable Distributes Record-Setting $11.8 Billion to Nonprofits in 2023