A virtual bench trial that began on October 19 may soon further define the contours of control issues surrounding donor-advised funds. The case, Fairbairn et al. v. Fidelity Investments Charitable Gift Fund, centers on a feud between donors Emily and Malcolm Fairbairn and Fidelity Investment’s Charitable Branch.
Donor Advised Fund
The Pension Protection Act of 2006 (“Act”) offered the first definition of a donor-advised fund. According to the Act, a fund must have the following three characteristics to be a donor-advised fund, and if any of these characteristics is missing, the fund is not a donor-advised fund.