Who We Serve
"Schwab Charitable has seen a substantial increase in transfers and conversions from private foundations and supporting organizations, which see donor-advised funds a simpler, lower cost and more private alternative."
A donor-advised fund can serve as a complement or alternative to a private foundation and offers a number of distinct advantages including:
- With no start-up costs, low operating expenses, and a $5,000 account minimum, a donor-advised fund offers a tax-advantaged way to give for a fraction of the cost of a private foundation.
Preferential Tax Treatment:
- A donor-advised fund allows for a higher cap on deductibility limitations than a private foundation, which can lead to larger tax deductions. In addition, gifts of real property made to donor-advised funds are deductible at fair market value while gifts made to private foundations are only deductible at cost basis. Some foundations also maintain a donor-advised fund solely for the proceeds of donations of real property1
Ease of Administration:
- The donor-advised fund provider handles the account administration and record-keeping for the account, which allows you to focus on your charitable giving goals. Unlike private foundations, no additional tax forms must be filed for the individual donor-advised account.
- A donor-advised fund enables a foundation to recommend grants to organizations for dollar amounts or to causes that might not fit perfectly within the foundation guidelines. We offer a streamlined grant-recommendation process with a minimum of $50 per grant.
- Decide whether to recommend each grant anonymously or with acknowledgment
- Unlike private foundations, personal information, charitable recipients, costs and investments are kept private and are not attributed to individual accounts in publicly available IRS returns
Compare Your Planned Giving Alternatives for more details. Our Private Foundation versus Donor-Advised Fund Self-Assessment Survey can also help you to determine which charitable vehicle, or combination of vehicles, makes most sense given your needs.
1. Contributions of real estate, private equity or tangible personal property are accepted via a third-party charitable intermediary, with donated assets transferred to the charitable gift fund upon liquidation. Such contributions are considered on a case-by-case basis, and typically must be valued at $250,000 or more. Call us for more information at (800) 746-6216.