DAF Sponsor Not Liable For Damages in Liquidating Stock

Court finds Fidelity Gift Fund did not breach contract and was not liable for negligence in sale of gift stock

In a long-anticipated ruling, Fidelity Investments Charitable Gift Fund has been found not liable to the donors to a donor advised fund who claimed that they were damaged significantly when Fidelity sold all 1.9 million donated shares of a thinly-traded company in the last 2.5 hours of trading of the last day of trading in December 2017. A magistrate judge in a Federal District Court in California has dismissed all of the donors’ claims. Malcolm and Emily Fairbairn founded a hedge fund where they managed over $3 billion. In 2017, because of a change in the tax law, they recognized about $250 million of off-shore income and decided to make a large charitable contribution to offset some of...

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Fiscal sponsorship is a time-honored method to spawn new charitable activity when the people with the vision and the energy to do the work do not have recognition of federal tax-exempt status.

It can function smoothly as an incubator of important new projects. Or it can function badly as a serious trap for the unwary.

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SAY THAT AGAIN?

October 29, 2024

Marketers love to make their prospects feel special. But they sometimes don’t seem to want you to think about what they say to do it.

I received two items recently that made me wonder what they were thinking.

I got a package of discount coupons in the mail that touted a “specially curated” set of offers. I thought they might have my personal interests at heart until I saw it was addressed to “Resident.”

I also got a text message saying that “Kellyanne Conway wants YOU and only YOU to know what the latest polling shows” about the Presidential election. I could click the link to read the “exclusive” memo.

And I will be the only one to know? Really? Do they really think the recipients are that stupid?

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DAF Sponsor Not Liable For Damages in Liquidating Stock

DAF Sponsor Not Liable For Damages in Liquidating Stock