New fund provides HSBC clients with a simple, efficient and flexible way to make charitable contributions

HSBC Bank USA today introduced the HSBC Donor Advised Fund (HSBC DAF) in collaboration with National Philanthropic Trust (NPT), the largest national and independent charitable sponsor of DAFs. This new program allows HSBC clients to strategically support causes and qualified charities of their choice and receive an immediate tax deduction for their contributions. The HSBC DAF offers a simple, efficient and flexible way to make a charitable contribution.

DAFs are the fastest-growing segment of charitable giving vehicles, ahead of private foundations, trusts, annuities and pooled-income funds. This is largely due to flexibility and simplicity of use. DAF donors are able to contribute a wide range of assets, both liquid and illiquid, to the fund, and any potential investment returns will increase 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
• Charitable assets in DAFs totaled $159.8 billion, a 9.9% increase from 2019

“For clients that are philanthropically inclined, donor-advised funds are a great way for individuals and families to give back to charitable organizations or causes that they value and support,” said Carly Doshi, Head of Wealth Planning and Advisory, Americas. “It’s important to recognize the crucial role individuals and family philanthropists play in tackling today’s biggest social issues. With the addition of this DAF program, we’re providing solutions that will help our 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. HSBC clients who choose to open a DAF can:

• Select an investment strategy for contributions to the DAF
• Designate who has access to the account, including family members and advisors
• Recommend charitable grants to both domestic (US) and international charities
• Define a legacy plan for the HSBC DAF

“NPT is proud to be a part of HSBC Bank's solutions to help clients support what means most to them, strategically and efficiently, with donor-advised funds,” said René Paradis, Chief Operating Officer, National Philanthropic Trust. “The number of DAF accounts has increased almost 400% in the past decade and HSBC Bank's new donor-advised fund program will continue to help advance charitable giving around the world.”

As a public charity, NPT issues gift receipts to donors for their contributions, which can be used for personal income tax filing purposes. To make a gift that will reduce 2021 income taxes, the gift must be received by NPT on or before December 31, 2021.

“The launch of the HSBC Donor Advised Fund provides our clients with distinct and tailored wealth management and philanthropic investing options,” Doshi said.

Note to editors

HSBC Donor Advised Fund

HSBC Donor Advised Fund (“HSBC DAF”) is the brand name for the donor advised fund program offered by HSBC Bank, USA, N.A. in partnership with National Philanthropic Trust, an independent public charity and a sponsoring organization of donor-advised funds. Various HSBC entities provide services to HSBC DAF. HSBC DAF and NPT are registered service marks, and the HSBC DAF logo is a service mark, of NPT, used by HSBC DAF under license. HSBC and the Hexagon are registered trademarks of HSBC.

HSBC USA

HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through retail banking and wealth management, commercial banking, private banking, and global banking and markets segments. It operates bank branches in: California; Washington, D.C.; Florida; Maryland; New Jersey; New York; Pennsylvania; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc. In the United States, deposit products are offered by HSBC Bank USA, N.A., Member FDIC, investment and brokerage services are provided through HSBC Securities (USA) Inc., (Member NYSE/FINRA/SIPC) and insurance products are provided through HSBC Insurance Agency (USA) Inc.

HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, the Middle East and North Africa. With assets of US$2,969 billion at 30 September 2021, HSBC is one of the world’s largest banking and financial services organizations.

About National Philanthropic Trust

Founded in 1996, National Philanthropic Trust (NPT) marks its 25th Anniversary in 2021 as the largest national, independent public charity that manages donor-advised funds and one of the leading grantmaking institutions in the U.S. Since its founding, NPT has raised more than $27.0 billion in charitable funding and has made more than 430,000 grants exceeding $15.5 billion to nonprofits around the world. NPT annually publishes the Donor-Advised Fund Report, the sector’s authority on the state of DAF philanthropy. In early 2021, NPT published the first sector-wide survey of DAF response to COVID-19, the DAF COVID Grantmaking Survey. Visit NPT’s resource library to learn what you can do with a DAF and NPT impact investing solutions. More at NPTrust.org.

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