Fidelity Loses Early Bid to Toss Philanthropy Tax Lawsuit (1)

Fidelity Investments Charitable Gift Fund will continue to face a lawsuit involving a $100 million stock-based donation after a federal district court in California denied its motion for a ruling ahead of trial.

At the center of the case are questions surrounding donor-advised funds, a type of charitable-giving vehicle to which donors contribute money or assets with a fund sponsor who distributes the donations to charitable causes.

Fidelity argued that Emily and Malcolm Fairbairn admitted they gave up legal control over their donated stock both in their discovery responses and in their 2017 federal tax returns—where they claimed ...