Fidelity Charitable® Donors Recommended $4.8 Billion in Grants in H1 2022, Up 11% Despite Inflation and Market Slowdown | New
BOSTON–(BUSINESS WIRE)–July 20, 2022–
The first half of 2022 has seen record support for nonprofits from donors to Fidelity Charitable®, an independent public charity and the nation’s largest funder. They recommended nearly one million charitable grants for a record $4.8 billion, an 11% increase in grants from $4.3 billion the previous year. Donations are increasing even as current economic pressures are causing many people to tighten their budgets. The increase in the first half of 2022 follows a record $10.3 billion granted in 2021.
“The continued grant growth we have seen in the first half of the year shows the value of donor-driven funds as a supporting force for the sector, even when times get tough,” the president said. of Fidelity Charitable, Jacob Pruitt. “Despite rising inflation and market volatility, Fidelity Charitable donors have continued to generously lead the way and provide record support to nonprofits.”
Grantmaking continues to grow despite economic pressures
Economic worries intensified in the first half of 2022, with the S&P 500 ending June down more than 20% year-to-date, marking its worst first half since 1970.
In times of uncertainty, charitable donations can often be one of the first budget items to be cut, as daily necessities take priority. For example, charitable giving in the United States fell 12% between 2007 and 2009 during the country’s last prolonged recession. 1
But donor-advised funds can offer some protection against market pressures, which could help Fidelity Charitable’s continued grantmaking growth despite the current market downturn.
Donor Advised Funds allow donors to receive an immediate tax deduction for an irrevocable donation to their dedicated charitable account. They can then recommend grants immediately or over time. Many donors have made tax-savvy contributions of popular securities in recent years as markets hit record highs or experienced tax-free growth in their accounts. These donors now have a pool of funds exclusively for charitable giving, which they can tap into to meet urgent needs in difficult times.
Donors respond to war in Ukraine
The response to the humanitarian crisis in Ukraine was a key driver of grantmaking in the first half of 2022. In total, donors recommended more than $128 million in grants specifically for relief efforts to Ukraine. Organizations providing assistance to refugees, such as food, medical care and temporary housing, also saw major spikes in support. For example, International Medical Corps increased the number of donor-advised funds that recommended a grant more than tenfold compared to the first half of 2021. Similarly, the number of accounts supporting World Central Kitchen increased more than fivefold.
“It’s encouraging to see so much support for nonprofits working on the ground, especially in areas facing crises,” Pruitt said. “Nonprofits also face the pressures of inflation and a bear market, so it’s encouraging to see that Fidelity Charitable donors remain committed to consistently supporting the causes they care about.”
About Fidelity Charity
Fidelity Charitable is an independent public charity that has helped donors support more than 357,000 nonprofit organizations with more than $61 billion in grants. Founded in 1991, Fidelity Charitable launched the first national donor-driven fund program. The organization’s mission is to expand the American tradition of philanthropy by providing programs that make charitable giving accessible, simple and effective. For more information about Fidelity Charitable, visit www.fidelitycharitable.org.
1 Give USA 2022.
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CONTACT: External Corporate Communications
KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS
KEYWORD INDUSTRY: PROFESSIONAL SERVICES PHILANTHROPY TRADE OTHER TRADE FUNDRAISING FINANCE FOUNDATION
SOURCE: Fidelity Charitable
Copyright BusinessWire 2022.
PUBLISHED: 07/20/2022 08:27 / DISK: 07/20/2022 08:28
Copyright BusinessWire 2022.