HSBC Introduces Donor Advised Fund for Efficient and Flexible Charitable Giving

Strategic Insights -

HSBC Bank USA, in collaboration with National Philanthropic Trust (NPT), has launched the HSBC Donor Advised Fund (HSBC DAF), a program designed to simplify and maximize charitable contributions for HSBC clients. This new initiative allows clients to strategically support causes and qualified charities of their choice, receiving an immediate tax deduction for their contributions. The HSBC DAF leverages the growing popularity of donor-advised funds, which saw a 27% increase in grantmaking to qualified charities in 2020, totaling over $34 billion.

Key Takeaways:

  • The HSBC Donor Advised Fund offers a simple, efficient, and flexible way for HSBC clients to make charitable contributions, receiving an immediate tax deduction.
  • The fund allows clients to contribute a wide range of assets, both liquid and illiquid, to the fund, with potential investment returns increasing the amounts available for charitable donations.
  • According to National Philanthropic Trust's 2021 DAF Report, grantmaking from DAFs to qualified charities totaled more than $34 billion in 2020, a 27% increase from 2019.
  • In 2020, DAF donors contributed an estimated $47.8 billion to their accounts, with charitable assets in DAFs totaling $159.8 billion, a 9.9% increase from 2019.
  • The fund provides solutions that will help HSBC clients ensure their philanthropic decisions have a positive impact on the world and are aligned with their family's values.
  • DAFs offer the maximum tax benefits allowed by law and provide a legacy plan for the HSBC DAF.
  • National Philanthropic Trust issues gift receipts to donors for their contributions, which can be used for personal income tax filing purposes.

Statistics:

  • Grantmaking from DAFs to qualified charities totaled more than $34 billion in 2020 (National Philanthropic Trust's 2021 DAF Report).
  • Grantmaking from DAFs increased by 27% in 2020 compared to 2019 (National Philanthropic Trust's 2021 DAF Report).
  • Charitable assets in DAFs totaled $159.8 billion in 2020, an increase of 9.9% from 2019 (National Philanthropic Trust's 2021 DAF Report).
  • DAF donors contributed an estimated $47.8 billion to their accounts in 2020 (National Philanthropic Trust's 2021 DAF Report).

Sources:

  • Business Wire, HSBC Introduces Donor Advised Fund for Efficient and Flexible Charitable Giving (November 30, 2021)
  • National Philanthropic Trust, 2021 DAF Report (published by National Philanthropic Trust)
  • National Philanthropic Trust, About National Philanthropic Trust (nptrust.org)