The Wall Street Takeover of Charity
Donor-advised funds run by huge money management firms are exploding.
Fidelity Charitable runs the second-ranked charity in the United States, according to the Chronicle of Philanthropy, behind United Way Worldwide. Charles Schwab's is fourth and Vanguard's is 10th.
People aren't literally giving to these companies. They are setting up accounts at these firms and then disbursing the money, advising on which charities get how much.
The idea of the funds was to make it easier for individuals to give to charity. People could drop money into the account during flush times, and donate as they see fit, not in a panicked rush to meet the Dec. 31 deadline for contributions.
So far, this has turned out to be a bad deal for society.
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http://www.propublica.org/thetrade/item/the-wall-street-takeover-of-charity