Fidelity launches charitable-planning service

Fidelity Investments has introduced a priority services group for high-net-worth investors in its Charitable Gift Fund.
Often financial advisers don’t feel comfortable providing charitable-planning advice so the firm wants to ensure that advisers and their wealthy clients get top service and the answers to their questions promptly, said Sarah C. Libbey, president of the Fidelity Charitable Gift Fund, which has $4.4 billion in assets.
Advisers are hesitant to offer charitable-giving advice, despite the fact most think that their clients’ taxes will increase and think that their clients would welcome advice in this area, according to an online survey from May released today by Fidelity.
The majority of the 500 advisers surveyed (87%) said that they think that income taxes for most of their clients will increase in the next 12 to 18 months. But though 63% of those surveyed said that they think that clients would be interested in charitable-planning advice, only half of those surveyed said that they offer it.
Forty-four percent of those advisers who don’t proactively offer charitable-giving advice said that it is because they think that it is clients’ personal decision. Fifty-two percent said that they don’t offer such advice because clients haven’t asked for help in that area, and 31% said they don’t feel qualified or knowledgeable in this area.
“This is an area where we at Fidelity think we can really help advisers,” Ms. Libbey said. “Advisers don’t have to be an expert in charitable planning.”
Fidelity’s new Private Donor Group is for investors with $1 million or more in the gift fund. With the service, these clients will have access to relationship managers who can help them choose which charities to give donations to, Ms. Libbey said.
Clients also can receive customized support. For example, if they want a customized letter written to a charity or need something express mailed to an organization, Fidelity’s relationship managers will facilitate that.
These clients also have access to making donations to international charities through the fund and can receive philanthropic advice, Ms. Libbey said.
“This service gives advisers some peace of mind that their clients are being helped,” she said.