NEW YORK and CHARLOTTE, N.C. — Zelle and Bank of America said they are launching a new capability that would allow charitable grants from donor-advised funds to be distributed to nonprofits through the Zelle payment network.
According to a joint statement from Zelle and Bank of America, the initiative is designed to allow nonprofit organizations to receive charitable grant funding in near real time, replacing what the companies described as a traditional multi-week, paper-based process with digital payments.
The effort is being introduced as part of Zelle Forward, an innovation initiative aimed at expanding the payment network into new use cases. The companies said Americans send more than $1.2 trillion annually using Zelle, which is widely used for everyday payments such as rent and childcare.
The proof-of-concept program will initially operate through the Bank of America Charitable Gift Fund, Bank of America’s donor-advised fund platform. Under the pilot, donors will be able to send charitable grants to a select group of nonprofit organizations using Zelle.
Zelle and Bank of America said the capability could speed the delivery of charitable funds, particularly in urgent situations such as natural disasters or community crises, by enabling nonprofits to access resources more quickly.
‘Staple of Economy’
“Zelle is a staple of the American economy and Americans are ready for it to do more,” Denise Leonhard, general manager of Zelle, said in the statement. “Through Zelle Forward, we are advancing practical new applications of the Zelle network, and this charitable grant delivery capability represents the first of many ways Zelle will continue to innovate and grow.”
Leonhard added that using Zelle for charitable grants could help funds reach nonprofit organizations faster so they can focus on their missions.
Bank of America said its Charitable Gift Fund offers clients a tax-efficient way to support charitable causes by contributing assets, investing for potential long-term impact and involving family members in philanthropic decisions. The bank said the fund distributed more than 100,000 grants totaling more than $1.3 billion to nonprofits in 2025.
‘Proof of Concept’
The companies said the initial program with Bank of America’s donor-advised fund is intended as a proof of concept, with the longer-term goal of enabling broader use among financial institutions that offer Zelle and operate donor-advised fund programs.
Zelle said it plans to continue exploring additional innovations throughout 2026 aimed at expanding the platform’s capabilities and delivering new uses for digital payments across the U.S. economy.
