Zelle® and Bank of America Partner to Accelerate Delivery of Charitable Donations to Nonprofits

Rhea-AI Summary

Zelle and Bank of America (NYSE: BAC) announced a pilot to deliver charitable grants from donor advised funds (DAFs) via Zelle, enabling near real-time payments that replace multi-week, paper-based disbursements.

The proof of concept runs through Bank of America's Charitable Gift Fund; in 2025 that fund distributed over 100,000 grants totaling $1.3 billion. Zelle said Americans now send more than $1.2 trillion annually on its network. The pilot is limited to participating institutions and any expansion is subject to platform readiness and network requirements.

Positive

• Enables near real-time charitable grant delivery from DAFs
• Pilot uses Bank of America Charitable Gift Fund which distributed 100,000+ grants in 2025
• Leverages Zelle network reaching 2,300+ financial institutions

Negative

• Current rollout is a limited pilot with participating institutions only
• Future expansion is subject to platform readiness and network requirements

News Market Reaction – BAC

-2.86%

-2.86% Session close to close

In the Mar 12 session, BAC declined 2.86%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement showcases Bank of America’s collaboration with Zelle to digitize donor‑advised fun...

Analysis

This announcement showcases Bank of America’s collaboration with Zelle to digitize donor‑advised fund grant disbursements, moving funds to nonprofits in near real time. It builds on Zelle’s scale of more than $1.2 trillion in annual payments and complements BAC’s large digital user base of about 59 million. Investors may watch for expansion beyond the initial pilot, adoption by additional institutions, and how such innovations tie into the bank’s broader digital engagement metrics and fee-generating activities.

Key Figures

Zelle annual volume: $1.2 trillion Zelle network volume: more than $1 trillion DAF grants count: more than 100,000 grants +5 more

8 metrics

Zelle annual volume $1.2 trillion Americans now send more than this annually using Zelle

Zelle network volume more than $1 trillion Amount moved between consumer and small business accounts

DAF grants count more than 100,000 grants Charitable Gift Fund distributions in 2025

DAF grants amount over $1.3 billion Charitable Gift Fund grants to nonprofits in 2025

BAC clients nearly 70 million Consumer and small business clients served in the U.S.

Retail financial centers approximately 3,600 BAC retail financial centers in the United States

ATMs approximately 15,000 BAC automated teller machines in the United States

Digital users approximately 59 million Verified digital banking users at Bank of America

Historical Context

5 past events · Latest: Mar 10 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 10	Digital engagement update	Positive	+1.4%	Record 2025 digital activity with 30 billion client interactions and strong Zelle usage.
Mar 09	Art market report	Positive	-1.5%	Report showing 23% rebound in U.S. auction sales and stronger high-end demand.
Mar 03	Debt redemption (USD)	Neutral	+0.7%	Redemption of $2.8B 1.658% senior notes due 2027 at 100% of principal.
Mar 03	Debt redemption (JPY)	Neutral	+0.3%	Redemption of JPY 27.8B 0.534% senior notes due 2027 at optional redemption terms.
Mar 02	Debt redemption (EUR)	Neutral	-0.0%	Redemption of €1.75B floating rate senior notes due 2027 and delisting after redemption.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent BAC headlines—digital engagement, capital structure actions, and thematic reports—have mostly seen modest, directionally aligned price moves, with occasional divergence even on upbeat data-heavy releases.

Recent Company History

Over the past weeks, Bank of America has highlighted digital growth and balance sheet actions. On Mar 10, an AI and digital interaction update featuring 30 billion client interactions coincided with a +1.38% move. Multiple senior note redemptions on Mar 2–3 produced small, mixed reactions. An upbeat U.S. art market report on Mar 9 saw a -1.52% move, showing that positive, non-core business narratives do not always align with near-term trading.

Key Terms

donor advised funds, zelle network, member fdic, broker-dealer, +4 more

8 terms

donor advised funds financial

"application of Zelle to enable charitable disbursements from Donor Advised Funds (DAFs)."

A donor advised fund (DAF) is a tax-advantaged account that lets an individual or organization give assets to charity, invest them, and recommend when and which charities receive grants. Think of it like a charitable savings pot: donors get immediate tax benefits and can time gifts later while the money can grow, which matters to investors because DAF activity affects when and how much money flows into nonprofits and can influence the timing of large charitable stock donations.

zelle network technical

"digital payments using the Zelle network. This new capability is part of Zelle® Forward,"

A digital bank-to-bank payment network that lets people send and receive money quickly between checking accounts, similar to an instant digital highway for cash. It matters to investors because its adoption changes how consumers move money, affects fee and service revenue for banks and payment processors, and shifts competitive dynamics and fraud risk in the financial-services and fintech sectors.

member fdic regulatory

"Bank, a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary"

A “Member FDIC” is a bank or savings institution that participates in the U.S. federal deposit insurance program, meaning customer deposits up to the insured limit are protected if the bank fails. For investors and savers this matters because it lowers the risk of losing cash held at that institution and signals that the bank is subject to federal oversight and safety rules—think of it like a backup guarantee on money kept in an account.

broker-dealer financial

"Merrill is a registered broker-dealer, a registered investment adviser and Member SIPC."

A broker-dealer is a licensed firm or individual that both executes trades on behalf of clients (acting as a broker) and buys or sells securities for its own account (acting as a dealer). Investors care because broker-dealers provide the plumbing of markets — they place orders, hold or move cash and securities, offer research or advice, and their stability and fees directly affect trade execution, costs, and the safety of client funds; think of them as a combined travel agent and taxi for your investments.

investment adviser financial

"Merrill is a registered broker-dealer, a registered investment adviser and Member SIPC."

An investment adviser is a person or firm that professionally manages money and gives recommendations about buying, selling, or holding investments. Like a financial coach or guide, they have a legal duty to act in a client's best financial interest, so their advice, fees and potential conflicts can directly affect returns and risk — making their role important for investors who want informed, accountable help with portfolios.

member sipc regulatory

"Merrill is a registered broker-dealer, a registered investment adviser and Member SIPC."

A "member SIPC" is a brokerage firm that participates in the Securities Investor Protection Corporation, a nonprofit that helps restore customers’ missing cash and securities if their broker fails. Think of it like deposit insurance for brokerage accounts: it does not protect against market losses, but it can help recover assets up to established limits (including a cash limit), which reassures investors that their holdings have a safety net if the firm becomes insolvent.

trust, fiduciary financial

"Trust, fiduciary, and investment management services are provided by wholly owned banking"

A trust is a legal arrangement where one person or institution (the trustee) holds and manages assets for the benefit of someone else, like a trusted friend holding keys and following written instructions about how to use them. A fiduciary is any person or organization legally bound to act in another’s best financial interest—this duty matters to investors because it reduces the chance of conflicts, mismanagement or self-dealing and provides legal recourse if their money is handled improperly.

donor-advised fund financial

"Donor-advised fund management is provided by Bank of America Private Bank, a division"

A donor-advised fund is a charitable giving account that lets an individual or family deposit cash, stock, or other assets now, get an immediate tax benefit, and then recommend grants to charities over time. Think of it like a private charitable bucket you control without running a charity yourself; investors care because it’s a tax-efficient way to give appreciated securities, can change when and how donated shares enter the market, and affects personal and corporate tax planning.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Zelle launches innovation agenda to work with financial institutions to expand the way the popular person-to-person payment tool can be used

NEW YORK and CHARLOTTE, N.C., March 12, 2026 /PRNewswire/ -- Today, Zelle® and Bank of America announce a first-of-its-kind application of Zelle to enable charitable disbursements from Donor Advised Funds (DAFs). The new capability allows nonprofits to receive charitable grant funding in near real time, replacing the traditional multi-week, paper-based process with fast and reliable digital payments using the Zelle network.

This new capability is part of Zelle® Forward, the network's innovation agenda. Zelle is working with financial institutions to explore ways to expand into new, practical use cases. Americans now send more than $1.2 trillion annually using Zelle and increasingly rely on it for everyday needs like rent and childcare.

The new DAF proof of concept is being introduced through Bank of America's Charitable Gift Fund, the bank's donor advised fund, allowing donors to send charitable grants to a select group of nonprofit organizations via Zelle.¹ The speed and security of this delivery could help transform how charitable dollars flow from routine, planned donations to urgent situations like natural disasters and community‑level crises, helping nonprofits access resources more quickly when they are needed most.

While the initial proof of concept is with Bank of America's Charitable Gift Fund, the goal is to support broader use by financial institutions that offer Zelle and have donor advised fund programs.

"Zelle is a staple of the American economy and Americans are ready for it to do more," said Denise Leonhard, general manager of Zelle. "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. By bringing the speed and reliability of Zelle to charitable grant delivery, we are helping funds reach nonprofits faster so organizations can stay focused on their missions."

Bank of America's Charitable Gift Fund provides clients with an organized, flexible, and tax-efficient way to support the causes they care about. Donors can contribute a variety of assets, invest for potential long-term impact, and involve family members. In 2025 alone, the Charitable Gift Fund distributed more than 100,000 grants, totaling over $1.3 billion to nonprofits.

"For nonprofits, deploying their resources quickly and effectively matters – whether responding to community needs or scaling vital services," said Donald Greene, Donor-advised Fund Executive, Bank of America Private Bank. "By partnering with Zelle to develop this innovation, we're giving both donors and nonprofits a more modern and responsive way to take in and make use of charitable contributions. This advancement strengthens our clients' ability to support the causes they care about and accelerates the impact of nonprofits."

Throughout 2026, Zelle will continue to explore additional innovations to help bring new capabilities to Zelle and deliver additional value across the American economy. Each program considers the evolving roadmap of the Zelle platform — ensuring innovation remains continuous, responsible, and aligned with real-world consumer needs.

Zelle®
Zelle® powers fast, reliable person-to-person digital payments, moving more than $1 trillion between millions of consumer and small business accounts at United States banks and credit unions. Available through a network of more than 2,300 financial institutions, Zelle® enables people to send and receive money directly – without cash, checks or third-party apps. Zelle® is owned and operated by Early Warning Services, LLC, which works with America's banks, credit unions and government agencies to drive prosperity, deliver bold innovation and improve how payments are made. Learn more at www.zelle.com.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million consumer and small business clients with approximately 3,600 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact

Eric Blankenbaker, Zelle
Phone: 929.745.0923
Eric.Blankenbaker@earlywarning.com

Julia Ehrenfeld, Bank of America
Phone: 646.855.3267
Julia.Ehrenfeld@bofa.com

Footnotes

¹ This is a limited pilot offered with participating institutions and is not currently available across the Zelle Network. Any future expansion would be informed by insights from this initial phase and is subject to platform readiness and network requirements.

Important Disclosures
Donor-advised fund management is provided by Bank of America Private Bank, a division of Bank of America, N.A., Member FDIC and a wholly owned subsidiary of Bank of America Corporation ("BofA Corp."). Trust, fiduciary, and investment management services are provided by wholly owned banking affiliates of BofA Corp., including Bank of America, N.A. and its agents. Brokerage services may be performed by wholly owned brokerage affiliates of BofA Corp., including Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as "MLPF&S" or "Merrill"). Merrill is a registered broker-dealer, a registered investment adviser and Member SIPC.

 

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SOURCE Bank of America Corporation

FAQ

What does the Zelle and Bank of America DAF pilot announced March 12, 2026 do?

It enables donor advised funds to send charitable grants via Zelle in near real time, replacing slower paper processes. According to Zelle, the capability aims to help nonprofits access funds faster for routine or urgent needs, starting as a limited pilot with participating institutions.

How will the Zelle DAF capability affect Bank of America (BAC) nonprofit disbursements?

The capability can accelerate grant delivery from Bank of America's Charitable Gift Fund to nonprofits, improving liquidity and response time. According to Bank of America, the Charitable Gift Fund distributed over 100,000 grants totaling $1.3 billion in 2025, making speed an operational lever.

Is the Zelle charitable payments feature available across the entire Zelle network now?

No, the feature is currently a limited pilot offered only with participating institutions and not across the whole Zelle network. According to the announcement, any broader rollout will depend on insights from the pilot and platform and network readiness conditions.

What scale does Zelle bring to charitable payments that could matter to investors?

Zelle offers a large payments footprint that could enable rapid nonprofit payouts, supporting adoption potential. According to Zelle, Americans now send more than $1.2 trillion annually on the network and it is available at over 2,300 financial institutions.

Could the Zelle-DAF pilot change Bank of America's philanthropic services for clients?

Yes, it could make charitable giving more flexible and timely for donors and recipients, improving client experience. According to Bank of America, the Charitable Gift Fund allows varied asset contributions and family involvement while distributing large annual grant volumes.

What are the main limits and next steps for the Zelle and Bank of America pilot?

The main limit is that the program is an initial proof of concept restricted to participating institutions; expansion is conditional. According to the companies, future phases will be guided by pilot insights and assessments of platform readiness and network requirements.