Morningstar - Q3 2021 - 59

EXHIBIT 1
agriculture, and forestry. The fourth pool,
TIAA-CREF Social Choice Equity TISCX, provides
exposure to the broad U.S. stock market at a
relatively cheap price but emphasizes companies
with a socially responsible bent.
Other Investment Options
Fidelity also offers a Charitable Legacy Pool
for donors who want to generate returns that can
support grants and preserve principal to sustain
charitable giving over a long period. The portfolio
is composed of about 48 funds from both
Fidelity and third-party asset managers. The pool
offers broad exposure to equity securities (46%
of the portfolio) and fixed income (27% of assets).
The pool also has a weighting in real assets,
as well as a stake in absolute return funds. The
expense ratio is 0.76%, which is in addition
to the fees on the underlying funds.
Finally, donors with account values of at least
$250,000 can nominate their investment
advisors to manage donated assets, while those
with at least $5 million can participate in
the DonorFlex program, which allows them to
recommend investments in other vehicles,
including mutual funds, ETFs, hedge funds, private
equity funds, and Treasuries.
Overall, Fidelity Charitable ranks as a solid choice
among donor-advised funds. Vanguard offers
the most compelling fee breaks for donors who
plan to maintain an account balance of $1
million or more, but Fidelity offers a decent lineup
of investment options as well as slightly
more generous fee breakpoints for high account
balances compared with Schwab.
Schwab Charitable Fund
With $17.1 billion in assets as of June 30, 2020,
Schwab Charitable Fund ranks as the secondlargest
donor-advised fund affiliated with
an asset-management firm in the United States.
Like Fidelity Investments Charitable Gift Fund,
Schwab Charitable doesn't require a minimum
contribution amount to set up a new account
or to make additional contributions. Donors can
recommend grants in any amount of at least
$50. Schwab Charitable, like most donor-advised
funds, also comes with an additional layer
The Big Three Fidelity and Schwab offer low minimums, but Vanguard has lower
fees for higher-balance accounts.
Fidelity Investments
Charitable Gift Fund
Minimum Contribution Amount
Minimum Additional Contribution
Minimum Grant
Total Assets (bil)
Annual Administrative Fee (%)
First $500,000
Next $500,000
$1 mil to $2.5 mil
$2.5 mil to $5 mil
$5 mil to $10 mil
$10 mil to $15 mil
$15 mil to $20 mil
$20 mil to $30 mil
$30 mil to $35 mil
$35 mil to $50 mil
$50 mil to $75 mil
$75 mil to $100 mil
Additional Assets >$100 million
None
None
$50
$34.5
0.600
0.300
0.200
0.150
0.190
0.170
0.170
0.155
0.155
0.135
0.120
0.115
Contact Fund
Schwab
Charitable Fund
None
None
$50
$17.1
*
*
*
*
*
*
*
*
0.60
0.30
0.20
0.15
0.13
0.12
0.10
0.10
0.10
0.10
0.10
0.10
0.10
Vanguard Charitable
Endowment Program
$25,000
$5,000
$500
$10.8
0.60
0.30
0.13
0.13
0.13
0.13
0.10
0.10
0.05
0.05
0.05
0.05
Contact Fund
*Fees shown for account balances greater than $5 million are flat fees that apply to the entire account balance.
Note: Fee breakpoints are rounded; check program documents for details.
Sources: Fidelity Investments Charitable Gift Fund, Schwab Charitable Fund, Vanguard Charitable Endowment Program. Asset totals are as of 06/30/2020.
of administrative costs. The fund charges a
0.6% annual administrative fee (or a flat fee of
$100, whichever is greater) for accounts with
balances up to $500,000. Accounts with balances
greater than $500,000 are subject to lower
fees in percentage terms. For accounts with assets
of $1 million or less, Schwab Charitable's fee
structure is identical to those of the Fidelity and
Vanguard donor-advised funds, but Schwab's
fee breakpoints are less generous for higher asset
levels. These charges are in addition to the
fees on the underlying investments. All of these
fees come out of the amount donated.
Schwab Charitable offers two main investment
types: diversified asset-allocation pools
with a range of risk levels and single-asset-class
pools for a variety of asset classes. Both
include sustainable investment options for
investors who want to consider social and
environmental factors.
Asset-Allocation Pools
The asset-allocation pools offer a diversified
mix of equities and fixed-income securities, with
risk levels ranging from conservative to more
aggressive. The lineup contains fewer funds than
those offered by Fidelity and Vanguard, with
target equity allocations ranging from 30%
to 80% of assets. As a result, investors looking for
a lower equity allocation will likely have
to supplement one of these offerings with a
single-asset pool, such as the money market pool
or the short-term bond pool. On the assetallocation
side, all four underlying funds are
actively managed. Three of the four offerings earn
Morningstar Analyst Ratings of Neutral,
but T. Rowe Price Spectrum Moderate Growth
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