The Goldman Sachs Group has announced the establishment of Goldman Sachs Gives, a donor advised fund.

The firm's partners have agreed to commit a part of their overall compensation to charitable organisations, through Goldman Sachs Gives.

Individual accounts will be established within Goldman Sachs Gives for participating partners, who will recommend charitable organisations around the world as recipients, thereby diversifying the firm's overall philanthropy.

The initiative builds on the the company's long tradition of philanthropy and will draw on the generosity of partners, providing a way for them to increase their support of non-profit organisations around the world.

The firm will be make a separate contribution to Goldman Sachs Gives, which will be in addition to its existing charitable giving, and will not be a substitute for other giving by their partners.

The company plans to invite other members of the Goldman Sachs community, including alumni, to contribute to the fund over time. They predict that Goldman Sachs Gives will grow to more than $1bn over the next few years and hope it will become a significant source of dedicated charitable funds.

The firm will pay the costs associated with running the new fund.