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
Instead of donating directly, people are donating to a Wall Street firm, which 'manages' the donated funds:
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.
Meanwhile, the wall street firms are collecting fees from the donated funds management services: and holding onto those funds instead of passing them on to charities.
Yup, Wall Street will not be content until they have figured out a way to collect fees from every little bit of our lives.