The rise of a new, fast-growing class of charities known as donor-advised funds represents a momentous shakeup in charitable giving in the U.S. ILLUSTRATION BY MARCUS BUTT / GETTY

Thanks to the contributors to the New Yorker’s website, we get frequent updates on topics we are interested in that might not make it into the long form reportage of the print magazine; case in point:

THE WEALTH GAP IN PHILANTHROPY

By Vauhini Vara

Each year, Stacy Palmer, the editor of the Chronicle of Philanthropy, compiles a list of the U.S. charities that have raised the most money from private sources. In the twenty-six years that the Philanthropy 400 ranking has been published, one thing has stayed constant: United Way Worldwide is at the top. (The one exception was in 1996, when the Salvation Army briefly displaced it.) But when the results started coming in for this year’s list, which was published on Thursday morning, it became clear that a new No. 1 had emerged—an organization affiliated with Fidelity Investments, called Fidelity Charitable, which has grown to become one of the most influential charities in the world. “I was stunned,” Palmer recalled. The details were especially striking. Fidelity Charitable collected 4.6 billion dollars, a twenty-per-cent increase from the previous year. United Way ranked a distant second, with donations dropping by four per cent, to 3.7 billion dollars. “Not only were they”—Fidelity—“going to be No. 1, but they were going to be No. 1 by a lot,” Palmer remembered realizing. Continue reading →