How the Program Works
Compare Your Planned Giving Alternatives
A donor advised fund is a flexible and tax-efficient way to give, whether you use it as your primary giving vehicle or as a complement to a private foundation, charitable trust, or supporting organization.
The chart below compares the key benefits of a charitable gift fund with a private foundation. Our Private Foundation versus Donor-Advised Fund Self-Assessment Survey can help you to determine which charitable vehicles make the most sense given your needs.
| Private Foundation | Donor-advised fund | |
| Asset minimums | Generally recommended only for those with millions of dollars in charitable assets | $5,000 |
| Startup costs | May be substantial - legal documentation, tax filings, other |
None |
| Ongoing Annual Expenses | May be substantial | Comparatively low |
| Privacy | Public disclosure of contributions and grants in annual tax filings | Transactions can be private |
| Tax deduction limits for cash contributions | 30% of adjusted gross income (AGI) | 50% of AGI |
| Tax deduction limits for securities contributions | 20% of AGI | 30% of AGI |
| Administration | Required record-keeping, asset management | Managed by Schwab Charitable |
| Reporting | Required annual state and federal tax returns | None |
| Taxes | Excise taxes, up to 2% of annual investment income | None |
| Annual distribution requirements | 5% distribution required annually | None1 |
| Professional asset management options | Yes | Yes |
1. Schwab Charitable Fund requires that its total annual grants must be at least 5% of the Fund's average net assets on a fiscal five-year rolling basis. If this requirement is not met, the Fund may contact the current Primary Donor on each Account that has grants equal to or less than 5% of the Account balance on an annual basis. Schwab Charitable Fund will then offer the Donor the opportunity to recommend the requisite amount in grants. If Schwab Charitable Fund does not receive sufficient grant recommendations within 90 days, the Fund may transfer the requisite amounts from these Accounts to the Philanthropy Fund and may make corresponding grants from that fund. Since the inception of the Fund, annual grant distributions have always far exceeded the stated 5% minimum. Hence, the process described above has not happened to date.
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