Low fees equal higher charitable impact

Vanguard Charitable believes that low-cost philanthropy can play a major role in creating high-impact philanthropy.

The less money our donors spend on fees, the more that can go to charity. These savings are amplified by the tax-free growth of charitable assets, meaning that donors can contribute even more to charities because they are using Vanguard Charitable, a donor-advised fund with one of the lowest all-in costs.


Low-cost account structures

Vanguard Charitable designates accounts as either Standard or Select, based on account balance and activity. Account status determines an account's administrative and investment fee schedule. Qualifying accounts with ongoing balances of more than $1 million are eligible for Select status and additional benefits, including reduced administrative and investment fees, enhanced service, and a dedicated representative.

 

 


Annual all-in fee

The cost structure for Vanguard Charitable accounts consists of only two parts: investment and administrative fees. Vanguard Charitable’s annual all-in fees—including investment and administrative fees—are among the lowest in the industry. For example, the annual all-in fee for a $2.5 million account can be as low as 0.33%; for a $750,000 account, the all-in fee can be as low as 0.59%.

An account’s all-in fee will vary depending on account balance, selected investment options, and granting patterns. Fees are assessed directly against your clients’ accounts and are shown on quarterly statements.



 


Investment fees

The expense ratios of the Vanguard mutual funds are passed directly to Vanguard Charitable donors without a wrap fee.

The average investment fee across all of our investment options is 0.09%, down from 0.10% in 2016. In an account with $750,000, this amounts to a total annual investment fee of $675. When Vanguard lowers its underlying expense ratios, Vanguard Charitable passes these savings along to our donors.
 


Administrative fees

The administrative fee supports Vanguard Charitable’s cost of delivering services.

Qualifying accounts with ongoing balances of more than $1 million are eligible for Select status and additional benefits, including reduced administrative and investment fees, enhanced service, and a dedicated representative.

A tiered administrative fee schedule is applied to all accounts. The end result is an annual administrative fee based on an account's daily balance and weighted averages of its applicable asset tiers.

Administrative fee schedule Standard account Select account1
First $500K 0.60% 0.60%
Next $500K 0.30% 0.30%
Next $29M 0.30% 0.13%
Next $70M - 0.05%
Additional assets over $100M - Contact us



 

Sample fee schedule for an account with $750,000*:

Average investment fee 2 + Account balance range Tiered administrative fee = All-in fee
0.09% = $675   First $500K 0.60% = $3,000   $4,425
    Next $250K 0.30% = $750    
    $750,000 0.50% = $3,750    


 

Sample fee schedule for an account with $2.5 million*:

Average investment fee 2 + Account balance range Tiered administrative fee = All-in fee
0.07% = $1,750   First $500K 0.60% = $3,000   $8,200
    Next $500K 0.30% = $1,500    
    Next $1.5M 0.13% = $1,950    
    $2,500,000 0.26% = $6,450    


*Percentages are rounded. 
Select account status is subject to Vanguard Charitable's approval and is based on account balance, activity, and patterns. Most accounts with balances of more than $1 million for at least three months are approved for Select status. Account status is reviewed and approved on a quarterly basis. 
2Vanguard Charitable does not itself charge investment fees. The expense ratios are assessed by the underlying funds of the Vanguard Charitable investment options and vary per donor based on investment allocation.