Program Policies

Please read this Program Policies brochure carefully before making your final decision to open a Charitable Gift Account with us. While all of the information contained within these pages is important, the following facts are especially noteworthy:

• All contributions to Schwab Charitable Fund are irrevocable. Assets in Charitable Gift Accounts and income earned on those assets are the property of the Fund and must be used for charitable activities.

• Grants from Schwab Charitable Fund may not be used to satisfy a charitable pledge or obligation.

• Grants from Schwab Charitable Fund may not be used to pay for goods or services of value received by the Donor or any other person affiliated with the Donor. This restriction applies to payments for events sponsored by the recipient charity.

• Grant awards from Schwab Charitable Fund may not be delivered by the Donor to the charitable recipient.

• Charitable Gift Accounts incur both investment expenses, based on the
investment selections the Donor recommends, and an administrative fee.

• The minimum annual administrative fee is $100, regardless of balance.

• For donations of publicly-traded securities, Schwab Charitable Fund will seek to sell the securities promptly and obtain the price available at the time of the sale.

1. Schwab Charitable Fund

Schwab Charitable Fund (the “Fund”) is committed to increasing charitable giving in the United States by providing advantageous ways to give, useful information, and unbiased guidance. The Fund is recognized as a tax-exempt public charity as defined in Internal Revenue Code (IRC) Sections 501(c)(3), 509(a)(1) and 170(b)(1)(A)(vi), and is eligible to receive tax-deductible charitable contributions under IRC Section 170(c).

The majority of the members of the Fund's Board of Directors are independent of The Charles Schwab Corporation and its affiliates. The Board has full discretion over the Fund and its activities.

Donors to the Fund are subject to the terms and conditions of Schwab Charitable Fund’s Articles of Incorporation and Program Policies. The Fund reserves the right to modify the terms and conditions of its Articles of Incorporation and Program Policies at any time. (top)

2. Contributing to the Fund

You can contribute to the Fund through two different charitable giving vehicles:
a Charitable Gift Account or the Philanthropy Fund.

2.1. Charitable Gift Accounts. The Fund’s Charitable Gift Account, a donor- advised account, is a vehicle for contributing assets to charity that can maximize current tax benefits and flexibility for future contributions. With an initial minimum, irrevocable and unconditional contribution of $5,000 or more, the Fund allows a donor-advisor (“Donor”) to establish a Charitable Gift Account and make charitable contributions that are invested for tax-free potential growth. The investments available to Charitable Gift Accounts are fully described in the Investment Choices and Administrative Fees brochure. Donors may then recommend grants of $100 or more (or the balance of the account, if less) to qualified1 U.S. tax-exempt charities, or to U.S. state or local governmental organizations qualified to receive charitable contributions, such as state colleges or universities.

2.2. Opening a Charitable Gift Account. All new Donors who establish Charitable Gift Accounts must complete and submit the New Account Application at the time of their initial contribution. The form must have original signatures from all Donors. If the Donor chooses, a Charitable Gift Account may be named to honor an individual, a family, or a charitable purpose.

The Fund keeps records of contributions, investment allocations and grant requests fulfilled. Statements are mailed quarterly to Donors showing account activities. It is important to note, however, that the account and its assets are the property of Schwab Charitable Fund.

2.2.1. Notification Letters. All account correspondence, including acknowledgements of recommended grants, will be sent automatically to the Primary Donor. In addition, Donors may select up to two other Donors or Nominators to receive copies of account statements, grant request acknowledgements and annual contribution summaries.

2.2.2. Contribution Confirmation. The Fund will send a receipt of contribution to the account address as soon as possible, usually within ten business days. In addition to the confirmation, if the Fund is able to determine the fair market value of a contribution, an estimate of such fair market value will be provided. Schwab Charitable Fund encourages Donors to consult their tax advisors regarding the amount of a deduction for a contribution of property other than cash.

2.2.3. Email Communications and Opting Out. By opening a Charitable Gift Account with Schwab Charitable Fund, you are consenting to the receipt of email from the Fund. Schwab Charitable Fund may send you emails about services and products we believe may be of interest to you. You may opt out of future emails about products or services by following instructions contained in an email that you receive from the Fund. We reserve the right, however, to email important information to you relating to your Charitable Gift Account, including regulatory communications.

2.3. The Philanthropy Fund . This is Schwab Charitable Fund’s unrestricted giving fund, which is established to make charitable grants, to conduct grant research and to sponsor educational programs in accordance with the grant-making policies of the Philanthropy Fund. Donors may not recommend grants from this fund. Donors may contribute any amount directly to the Philanthropy Fund and may also recommend transfers of $100 or more to the Philanthropy Fund from a Charitable Gift Account. (top)

1 Qualified charities include charitable organizations recognized as tax-exempt under IRC Section 501(c)(3) and classified as public charities under IRC Sections 509(a)(1), (2), or (3). Schwab Charitable Fund performs its own due diligence process. (top)

3. Eligible Donors and Contributions

3.1. Eligible Donors. Schwab Charitable Fund will accept contributions from individuals, private foundations, corporations, other donor-advised funds, trusts and estates. Individuals may pool contributions into a single Charitable Gift Account, subject to Fund approval. Each individual Donor’s contribution must be separately identified on the appropriate account form, and a maximum of four Donors may be listed as donor-advisors to the joint Charitable Gift Account.

3.2. Contribution Requirements for Charitable Gift Accounts. To open a Charitable Gift Account, the minimum initial contribution is $5,000. The minimum amount for subsequent contributions is $500.

3.3. Eligible Contributions. Schwab Charitable Fund will accept contributions of cash or publicly-traded securities, including stocks, most mutual fund shares, and bonds. Cash contributions must be denominated in U.S. dollars and delivered by check or wire only. Restricted stock may be accepted by the Fund subject to the marketability of the securities and the approval of the issuer concerning the sale of such securities. Alternative contributions may be considered. For more information about contributing restricted stock, real estate or other non-cash assets, please call (800) 746-6216. The mailing address for U.S. Mail or overnight delivery is:
101 Montgomery Street, San Francisco, CA 94104.

3.4. Approval of Contributions. Schwab Charitable Fund will review all contributions prior to accepting them. Following acceptance of a contribution, the Fund will provide confirmation to the Donor that contains a description of the contributed assets.

3.5. Contributions Are Irrevocable and Unconditional. Any contribution accepted by Schwab Charitable Fund will be considered irrevocable and unconditional. Once contributions are accepted by the Fund, they are not refundable and are assets owned and held by the Fund.

3.6. Contribution Date. In general, a charitable contribution is deemed made for tax purposes when the property to be contributed is put beyond the Donor’s control, even if the property is not yet under the Fund's control. This can be an especially important issue when contributions are made close to year-end and a deduction is desired in the same calendar year.

3.6.1. Checks. Contributions made by check are deemed effective when there is an unconditional delivery of the check. In the case of a delivery by U.S. Mail or equivalent, the contribution will be effective when the check is deposited in the mail.

3.6.2. Wire Transfers. Contributions made by wire transfer are effective on the date the funds are received in the Fund's account.

3.6.3. Marketable Securities. The effective date of contributions of marketable securities depends on whether such securities are held in certificated or uncertificated form.

3.6.3.1. Certificated Securities. The contribution is effective when the Donor makes unconditional delivery of properly-endorsed certificates with a notarized signature. In the case of contributions by U.S. Mail or equivalent, the effective date is the date the securities are placed in the mail.

3.6.3.2. Uncertificated Securities. Contributions of securities held in “street name” are effective, for tax purposes, on the date the transfer is irrevocably credited to the account of Schwab Charitable Fund. A Donor’s instruction to his or her broker to make a transfer of uncertificated securities to the Fund does not make the contribution effective for tax purposes. For example, if a Donor gives instructions to his or her broker on December 20 to transfer uncertificated securities to the Fund, but the transfer is not executed until January 2, the contribution is not effective until the later date.

3.6.4. Restricted Stock. Contributions in the form of restricted stock may be subject to issuer approval which, during peak periods, may take several weeks or longer to complete. Contributions of restricted securities will be considered effective only when the issuer approval is received and the securities are accepted by the Schwab Charitable Fund, which may take eight weeks or longer. The timing of any tax deduction will be affected by the timing of such approval and acceptance. (top)

4. Investment of Contributions to Charitable Gift Accounts:
Investment Pools

Donors may recommend the allocation of account assets among a variety of
investment pools or, for those accounts of $250,000 or more, Donors may
nominate an Investment Advisor to manage the assets through the Charitable
Asset Management feature (detailed in Section 5). Sections 4.1-4.3 do not
apply to Charitable Asset Management.

4.1. Investment Pools. Schwab Charitable Fund invests contributions in investment pools selected as appropriate investment choices by the Fund’s Board of Directors. Complete information on the investment pools, including underlying investments and fees, are detailed in our Investment Choices and Administrative Fees brochure and at www.schwabcharitable.org. Schwab Charitable Fund has sole responsibility and authority for investing the Fund's assets and may change the investment choices at any time. No sales loads or commissions are charged against purchases or liquidations of pool shares in Charitable Gift Accounts. The investment pools are not registered funds themselves and are not available for investment separately from Schwab Charitable Fund. Prospectuses for the registered underlying mutual funds are available from the Fund upon request. Donors should read prospectuses carefully before making contributions or recommending investment of funds. Market fluctuations may cause the value of pool shares held in a Charitable Gift Account to be worth more or less than the value of the original contribution to the Fund. Past performance does not guarantee future performance.

4.1.1 Portfolio Allocation. At the time the account is opened, a Donor will recommend how contributions to the account will be allocated among the investment pools. With any subsequent recommended rebalancing of the account assets by the Donor (use the Fund’s secure online Donor Center on the website or Update a Charitable Gift Account form), all future contributions will be invested according to the most current Portfolio Allocation request. All grants will be funded according to the most current Portfolio Allocation selected. If a Donor chooses not to recommend a Portfolio Allocation, Schwab Charitable Fund will allocate the contribution 100% to the Money Market Pool.

4.2. Investment Pool Objectives. Underlying mutual funds for each investment pool have been selected by the Fund’s Board of Directors in accordance with varying investment objectives. These selections, as explained below, may change from time to time, as deemed appropriate by the Fund. For current investment pool information, including investment performance information, contact Schwab Charitable Fund by calling (800) 746-6216 or visiting our website at www.schwabcharitable.org. Each investment pool will be managed according to its stated investment objectives.

4.3. How Contributions Are Allocated to Investment Pools

4.3.1. Cash Contributions. The account will be credited with the number of shares in each selected investment pool in values equal to the amount of contributed cash allocated to each investment pool.

4.3.2. Contributions of Securities. The account will be credited with the number of shares in each selected investment pool equal in value to the net proceeds2 from the sale of the contributed securities that are actually realized by the Fund. Typically for publicly-traded securities, Schwab Charitable Fund will seek to sell the securities promptly and obtain the price available at the time of the sale. Any costs incurred in the sale of the securities, such as ordinary brokerage commissions, will be deducted from the proceeds of the sale.

4.3.3. Timing of Investments. When the proceeds from contributions to a Charitable Gift Account are available, the Fund will invest them in investment pool shares as soon as administratively possible. The share price of each purchased investment pool share will be determined at the end of each business day3 by dividing the net asset value of each investment pool by the number of outstanding shares in each investment pool. The date of the purchase may be delayed by such factors as market deadlines and trade settlements.

4.3.4. Account Value. The value of each account will be equal to the number of shares of each investment pool attributable to the account, multiplied by the share’s current net asset value, plus any cash or securities in the account which are pending investment into the investment pools. The net asset value for each pool will include realized and unrealized capital gains or losses on the pool’s portfolio of investments, as well as undistributed net income attributable to that pool.4

2 Net proceeds will equal gross proceeds minus any applicable brokerage commissions or fees, which could include fees paid to Charles Schwab & Co., Inc.

3 A business day is defined as any day when the New York Stock Exchange is open for business. A business day for purchasing investment pool units may end earlier than the close of the NYSE.

4 The Fund earns dividend interest, other investment income, and capital gains distributions from investments in excess of the operating expenses of the Fund. Each pool will be allocated its prorated share of daily net income realized by the Fund, which will be reflected in the net asset value of that pool.(top)

5. Investment of Contributions to Charitable Gift Accounts:
Charitable Asset Management

The Charitable Asset Management investment choice is available only for
Charitable Gift Accounts of $250,000 or more, and allows a Donor to recommend an advisor to customize an investment portfolio consisting of individual stocks, bonds, and mutual funds in any combination.

Charitable Asset Management is available only through independent Investment Advisors working with Schwab Institutional®, a division of Charles Schwab & Co., Inc. While Donors may recommend an advisor, Schwab Charitable Fund must approve the recommendation. Advisors must meet certain eligibility requirements and adhere to the Fund's fee and investment guidelines.

In addition, should the asset level in a Charitable Gift Account utilizing the
Charitable Asset Management feature fall below $200,000 and remain below
$200,000 for more than one year, the account will no longer be eligible for
the Charitable Asset Management feature, and must reinvest among the
investment pools selections detailed in the Investment Choices and
Administrative Fees brochure. (top)

6. Donors and Nominators

6.1. Role of the Donor. Each Donor of an account, acting individually, has the privilege to make contributions, recommend grants to charity, recommend the rebalancing of investment funds, select Nominators, and recommend Successors or charitable beneficiaries for the account as a whole. Each Donor, acting individually, also has the privilege to change the account name, add a new Donor or Nominator, remove Nominators, change Successors or charitable beneficiaries and, in the case of the Charitable Asset Management feature, recommend an advisor to actively manage the investment of the donated assets. The Primary Donor is the primary recipient for all account correspondence.

Please note that a Donor’s advisory privileges may be terminated and account
assets transferred to the Philanthropy Fund if the Donor fails to comply with Schwab Charitable Fund's policies, such as by making grant recommendations that are inconsistent with the Fund’s charitable purposes, or otherwise engaging in actions that reflect adversely on the reputation and philanthropic mission of the Fund.

A Donor must consent to removal from an account, except in cases of the
Donor’s death or disability, or if advisory privileges are terminated as discussed in the preceding paragraph.

6.2. Role of a Nominator. Donors may wish to select up to two individuals such as family members, Investment Advisors, CPAs or other professionals, or an investment management firm in an advisory role as nominators (“Nominator”). Each account Nominator has the privilege to recommend grants and the rebalancing of account assets in the investment pools. The Donor(s) can designate whether the Nominator(s) are to receive duplicates of acknowledgements for recommended grants they have made,account statements and annual contribution summaries when opening a Charitable Gift Account. Please note that accounts with Charitable Asset Management may not have the advisor serve as a Nominator in addition to providing the investment management for the account. (top)

7. Recommending Grants from Charitable Gift Accounts

Donors can recommend grants to charitable organizations through the secure online Donor Center at www.schwabcharitable.org or by completing and
mailing or faxing a Nominate a Grant to Charity form. If approved by the Fund, the appropriate number of shares of the specified pool(s) will be redeemed from the account and an amount equal to the recommended grant will be distributed to the grantee organization.

7.1. Restrictions on Grants. Grants will be made fromSchwab Charitable Fund only to U.S. charitable organizations that are tax-exempt public charities,5 U.S., state or local government organizations qualified to receive tax-deductible charitable contributions, such as state colleges or universities6, or private operating foundations.

The Fund will not approve grant recommendations that are for: foreign charitable organizations (except where the recommended grant is for a domestic affiliate, sometimes referred to as "Friends of..."); non-functionally-integrated Type III supporting organizations; supporting organizations that provide support to organizations controlled by the Donor, Nominator or related persons; lobbying, political campaigns or other political activities; or any purpose that is not entirely charitable. No grants may be used to discharge or satisfy a charitable pledge or obligation that is legally enforceable against the Donor or any other person, or to pay for goods or services of value received by the Donor, Nominator or persons realted to them. For example, grants may not be used to support any charitable event, including fundraising dinners, concerts, auctions, or other benefit functions when the Donor would receive a quid pro quo, such as the benefit of being able to attend a fundraising dinner or event. Schwab Charitable Fund will consider grant recommendations to other organizations that maintain donor-advised funds. The Fund has final authority over the distribution of all grants.

Donors will receive an electronic confirmation of all grants distributed unless they specifically request a written confirmation. Should Schwab Charitable Fund decide not to approve a recommended grant, the Fund will likewise notify the Donor.

Schwab Charitable Fund will take remedial action if it discovers that grants have been made for improper purposes. Remedial actions may include, but are not limited to,a requirement that the recipient charity return the grant and/or termination of the Donor’s advisory privileges and transfer of account assets to the Philanthropy Fund.

7.1.1 Anti-Terrorism Provisions. Schwab Charitable Fund is committed to ensuring that all grants are used exclusively for charitable purposes. As part of the Fund’s grant review process, the Fund checks all recommended grant recipients against the Treasury Department’s list of Specially-Designated Nationals, other U.S. and foreign government watch lists, and the IRS list of organizations whose tax exemption has been suspended under I.R.C. Section 501(p). The Fund does not approve grant recommendations to organizations that appear on such lists.

7.2. Grant Notification. Schwab Charitable Fund makes grants by check, and the checks bear the name of the Fund. A letter from the Fund, recognizing the Donor or the name of the Donor account, will accompany the grant check unless the Donor has instructed the Fund that he or she wishes to remain anonymous. Donors may not act as intermediaries in the delivery of grants.

7.3. Grants and Investment Pools. All grants will be funded according to the current Portfolio Allocation level selected by the Donor for the investment pools (see section 4.1).

7.4. Transfers to the Philanthropy Fund. Donors can make contributions to the Philanthropy Fund at any time through a transfer from a Charitable Gift Account or a direct contribution. (top)

5 As defined in Internal Revenue Code Section 501(c)(3) and Section 509(a)(1), (2), or (3).

6 As defined in Internal Revenue Code Section 170(c)(1).

8. Grant Minimums and Balance Minimums

8.1. Minimum Dollar Amount for Grants. Each recommended grant must be for $100 or more to any one charitable organization, or for the balance of the account, if less.

8.2. Minimum Account Activity. 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.

Similarly, Schwab Charitable Fund has a policy governing dormant accounts, which are defined as accounts with no grant recommendations during the last four and a half years. When an account becomes dormant, the Fund will send a letter asking the Primary Donor(s) to make a grant recommendation within 90 days. If the Donor does not take such action, Schwab Charitable Fund will make a grant of $100 from the account to the Philanthropy Fund or to a charity for which a prior grant recommendation was approved. If the account remains inactive for the next two years, Schwab Charitable Fund will again notify the Donor(s) in writing and request a grant recommendation. If there is no grant recommendation within a reasonable period thereafter, the account may be closed and the assets transferred to the Philanthropy Fund. The Board of Directors of Schwab Charitable Fund may approve an extension of time for an inactive account if the Donor makes a request in writing and documents a long-term charitable plan requiring accumulation of funds beyond the period specified above.(top)

9. Online Functionality

The following online functions are possible by logging into the secure online Donor Center at www.schwabcharitable.org:

• View your Charitable Gift Account balance and current portfolio allocation

• Contribute to an account from a Schwab brokerage account

• Research charities and recommend a grant to any public charity

• Recommend the rebalancing of current assets among the investment pools

• Update mail address, phone number, and email address

• View grant letters and grant history, including disbursements based on charitable sector

• Use interactive planning tools and fee calculators (top)

10. Fees and Expenses

For detailed information on specific fees and expenses, please review the
Investment Choices and Administrative Fees brochure.

10.1. Investment Expenses. There are no separate charges assessed for investment services, and Schwab Charitable Fund does not pay a load or sales charge on purchases of mutual fund shares in the pools. However, each investment pool invests in mutual funds, and each mutual fund carries management and operating expenses that are reflected in its net asset value. These operating and management expenses of the mutual funds contained in the investment pools are subject to variation.

10.1.1. For Accounts Using the Fund’s Investment Pools. Please review current investment pool expenses and their underlying mutual funds by visiting our website at www.schwabcharitable.org, by referring to our Investment Choices and Administrative Fees brochure or by calling Schwab Charitable Fund at (800) 746-6216.

10.1.2. For Accounts Using the Fund's Charitable Asset Management Feature. The fee paid to the Investment Advisor must be approved by Schwab Charitable Fund and may not exceed 1% of assets under management.

10.2. Administrative Fees. The Fund incurs administrative expenses associated with its operation as a charitable organization. To cover these costs, administrative fees, as outlined in the Investment Choices and Administrative Fees brochure, are charged against the account balances. Schwab Charitable Fund’s Board of Directors reviews and approves administrative fees annually.

10.3. Activity Charges. Typically, there are no charges to accounts for the processing of recommended grants to charitable organizations. However, Schwab Charitable Fund may charge accounts for extraordinary costs incurred during the review of certain grant recommendations. The Fund will attempt to notify the Donor in the event that such costs are incurred, to give the Donor the opportunity to recommend another qualified charity.

10.3.1. For Accounts Using the Fund’s Investment Pools. Securities contributed to the account are liquidated and then invested among the available investment pools. There is a commission charged to the account for the sale of contributed securities.

10.3.2. For Accounts Using the Fund's Charitable Asset Management Feature. Commissions for the trading of securities through Charitable Asset Management are charged to the account as they are accrued. Donors and their advisors must ensure that funds are available in the account to pay for commission charges.(top)

11. Naming Successors to a Charitable Gift Account

Donors may select individuals to succeed (“Successors”) to the privileges and duties associated with a Charitable Gift Account upon the death, incapacity, refusal to serve, or other disqualification of all the Donors of the account. The Successor must provide written notification and verification to the Fund of the death or incapacity of all Donors on the account, and will then succeed to all the privileges and duties of a donor-advisor, including the ability to recommend subsequent grants. Successor Donors may in turn assign new Successors in the event of the first Successor’s death, incapacity, refusal to serve, or other disqualification, and may override any prior instructions from the predecessor Donor. If the Successor is a minor, the Fund requires that the minor’s legal guardian approve any account activity.

11.1. Succession and Jointly Maintained Accounts. If the account is maintained jointly, upon the death of one Donor, the remaining Donor(s) maintain(s) the right to recommend grants and designate Successors. Successors are applicable only after the death, incapacity, or other disqualification of all Donors named on the account.

11.2. Naming Charities As Beneficiaries. A Donor may choose to recommend charitable organizations7 to receive the proceeds of any remaining assets in the account upon the notification to the Fund of the death, incapacity, or other disqualification of all Donors named on the account. The Donor may also recommend that the account balance be transferred to the Philanthropy Fund.

11.3. Failure to Designate a Successor or Charitable Beneficiary. If a Successor or charitable beneficiary has not been named, the Fund will transfer the account balance to the Philanthropy Fund upon notification of the death, incapacity, or other disqualification of all Donors on the account.

7 All such recommendations of charitable beneficiaries are subject to the approval of Schwab Charitable Fund, in its complete discretion, at the time the gift would otherwise take effect.(top)

12. Income Tax Consequences

Contributions to Schwab Charitable Fund generally qualify for an income tax deduction as a charitable contribution in the year the gift is made, subject to certain limitations. The Fund encourages Donors to consult with qualified tax advisors to review the specific tax consequences of donating to the Fund.

12.1. Limits on Deductions. Deductions for securities or mutual fund shares held for one year or less are limited to the lower of cost basis or the fair market value on the date of contribution. For securities and mutual fund shares held by the Donor for more than one year, the deduction is equal to the fair market value of the asset, calculated as the mean between the reported high and low price on the date of contribution.8 The deduction for mutual fund shares is calculated using the closing price of the fund on the date of contribution.

Individual Donors are eligible for an itemized tax deduction for charitable cash contributions in an amount up to 50% of adjusted gross income (“AGI”) in the
tax year when the contributions are made. Deductions for contributions of
securities or mutual fund shares held for more than one year by the Donor are
limited to 30% of AGI.9 Any excess contribution over the AGI limit may be
carried forward and deducted in the five-year period following the year of the
contribution. For contributions of securities or mutual fund shares held for one
year or less, the deduction is limited to 50% of AGI. A Donor’s ability to deduct itemized deductions may be subject to further limitations depending upon the Donor’s specific tax situation.

12.2. Fund Income. Income that accrues in a Charitable Gift Account belongs to Schwab Charitable Fund and is included in the value of investment pool shares. Such amounts do not constitute income to the Donor(s) and do not qualify for an additional charitable deduction by the Donor(s).

12.3. Estate Planning Considerations. Donor contributions toSchwab Charitable Fund, and any subsequent increase in the value of a Donor’s account, are not part of a Donor’s taxable estate and are not subject to estate taxes or probate. Balances in a Charitable Gift Account may not be appointed, willed or bequeathed to any person or organization.

8 Donors may elect to limit their charitable income tax deduction with respect to appreciated securities to the cost basis of the donated securities in order to be eligible to claim deductions up to 50% of AGI. However, this election requires that the Donor claim the lesser of the cost basis or the fair market value for all of his or her charitable contributions of appreciated property during the same tax year or carry-forward period. In some cases, such as when a security or mutual fund share is not publicly traded on the contribution date, the fair market value calculation may be more complex.

9 The 50% AGI limitation for deductions for contributions of cash and/or securities held for one year or less includes the 30% limitation for deductions for contributions of appreciated securities within it. That is, if a Donor makes contributions of securities held for more than one year equal to 30% of the Donor’s AGI, and makes additional cash contributions, the Donor can only deduct cash gifts equal to an additional 20% of AGI, so that the total contribution deduction equals 50% or less of the Donor’s AGI. (top)

Schwab Charitable Fund is registered in all states, and the District of Columbia, where such registration is required. The following state notices are required under state law. The address for the Fund is
101 Montgomery Street, San Francisco, CA 94104. If you have any questions or need additional information, you may call Schwab Charitable Fund at (800) 746-6216.

State Registration Information

FLORIDA: A COPY OF THE OFFICIAL FLORIDA REGISTRATION AND
FINANCIAL INFORMATION MAY BE OBTAINED FROM THE DIVISION OF
CONSUMER SERVICES BY CALLING THE TOLL-FREE NUMBER (800) 435-7352. OUR FLORIDA REGISTRATION NUMBER IS SC-09986. MARYLAND: A copy of the official registration and supporting documents may be obtained for the cost of copies and postage from the Maryland Secretary of State, State House, Annapolis, MD 21401. MISSISSIPPI: A copy of the official registration and annual report may be obtained from the Mississippi Secretary of State by calling toll-free (888) 236-6167. NEW JERSEY: INFORMATION
FILED WITH THE ATTORNEY GENERAL CONCERNING THIS CHARITABLE
SOLICITATION AND THE PERCENTAGE OF CONTRIBUTIONS RECEIVED BY THE CHARITY DURING THE LAST REPORTING PERIOD THAT WERE DEDICATED TO THE CHARITABLE PURPOSE MAY BE OBTAINED FROM THE ATTORNEY GENERAL OF THE STATE OF NEW JERSEY BY CALLING (973) 504-6215 AND IS AVAILABLE ON THE INTERNET AT http://www.njconsumeraffairs.gov/ocp.htm#charity. NEW YORK: A copy of the last financial report filed with the Office of the Attorney General may be obtained by writing to Schwab Charitable Fund or the Office of the Attorney General, Charities Bureau, 120 Broadway, New York, NY 10271. NORTH CAROLINA: Financial information about this organization and a copy of its license is available from the North Carolina Solicitation Licensing Branch at the toll-free number (888) 830-4989. PENNSYLVANIA: The official registration and financial information of Schwab Charitable Fund may be obtained from the Pennsylvania Department of State by calling the toll-free number (800) 732-0999. VIRGINIA: A copy of Schwab Charitable Fund’s financial statement may be obtained upon written request from the Office of Consumer Affairs,Virginia Dept. of Agriculture, P.O. Box 1163, Richmond, VA 23218. WASHINGTON: Schwab Charitable Fund is registered in the State of Washington. Financial disclosure information may be obtained by calling the Secretary of State’s number in Washington, (800) 332-GIVE. WEST VIRGINIA: West Virginia residents may obtain a summary of the registration and financial documents from the Secretary of State, State Capitol, Room 157-K, 1900 Kanawha Boulevard East, Charleston, West Virginia 25305. WISCONSIN: A copy of the last financial report filed with the Wisconsin Department of Regulation and Licensing may be obtained by writing to Schwab Charitable Fund. REGISTRATION DOES NOT IMPLY ENDORSEMENT, APPROVAL, OR RECOMMENDATION BY THE STATE.

Fund Structure and Service Agreements

Schwab Charitable Fund is an independent nonprofit organization, and is a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code of 1986, as amended. The majority of the members of the Fund’s Board of Directors are independent of The Charles Schwab Corporation and its affiliates. This Board has full discretion over the Fund and its activities. Should the Board determine that it is necessary to terminate Schwab Charitable Fund, the Board reserves the right to reassign units held in Charitable Gift Accounts to the Philanthropy Fund and distribute its net assets to qualified charitable organizations. Under this highly unlikely circumstance, the Board would attempt to notify account advisors sufficiently in advance so they could recommend grants to specific public charities. The Board will make final grant determinations. Schwab Charitable Fund will indemnify the Board of Directors against any liability to the fullest extent allowed by applicable law and may purchase insurance policies on behalf of the Fund and its Directors.

Schwab Charitable Fund has entered into service agreements
with certain affiliates of The Charles Schwab Corporation (Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc.) to perform administrative, record keeping, and investment management services. Investment management and administrative services are charged at the fair market value. Other services performed under these agreements are performed for consideration that is at or below fair market value. The Fund will also indemnify and hold harmless the Charles Schwab Corporation, its subsidiaries, their agents, and nominees from any claims, losses, liabilities, or expenses except as they may arise from negligence or willful misconduct in the performance of their duties on behalf of the Fund.

FOR MORE INFORMATION, PLEASE CALL A DONOR RELATIONS SPECIALIST AT 800.746.6216.