Financial Advisor FAQ

1. What Types Of Assets Can Be Contributed?

Contributions can be made of cash, publicly traded securities, including stocks, most mutual fund shares and bonds. Some restricted or privately held stock may be accepted. Cash contributions must be made in U.S. dollars and delivered by check or wire only.

Schwab Charitable Fund is also able to accept proceeds from tax-deductible contributions of real estate, private equity investments, or tangible personal property.1 Call us for more information at 800-746-6216. (top)

2. Can Assets Be Contributed From An IRA?

The Pension Protection Act of 2006 includes a provision allowing individuals to contribute directly to charity from an IRA, but not an account with a donor-advised fund. One may, however, designate a Charitable Gift Account as the beneficiary to a portion or all of an IRA. We encourage consultation with a qualified tax attorney to assess the tax consequences of utilizing an IRA for charitable giving. (top)

3. Can A Charitable Gift Account be Linked to My Master Account?

Yes. With written permission from the Donor, an investment advisor may link the client’s Charitable Gift Account to a master account and receive daily downloads. If the Fund approves your client’s recommendation to appoint you as a Nominator on the account or as an investment advisor through Charitable Asset Management, the link to your master account will be done automatically. (top)

4. Can Contributed Assets Be Managed By Outside Financial Professionals?

Yes. Charitable Gift Accounts of $250,000 or more are eligible for the Charitable Asset Management feature, wherein a qualified investment advisor is able to actively manage the assets in the account. (top)

5. How Do You Determine the Fair Market Value of a Contribution?

Fair Market Value (for purposes of the charitable contribution deduction) is determined on the date that contributions are received by the Fund. In the case of contributions of stock, Fair Market Value is the average of the high and the low for the day that the assets were received by the Fund. In the case of contributions of mutual funds, Fair Market Value is the closing price on the date of receipt. Securities are typically liquidated the following business day after receipt, so the Fair Market Value for tax purposes may be different from the amount of sales proceeds credits to your Charitable Gift Account. (top)

6. What Types of Statements are Generated?

We mail quarterly statements to Donors and Nominators which itemize all activity on the account including contributions, grants, and any changes in account value. If a grant to charity is recommended the Donor and/or Nominators will also receive a copy of the letter we mail to the charity along with the check. (top)

7. Is there a Minimum Grant Amount?

$100 is the minimum grant amount. (top)

8. When Will the Charity Receive The Contribution?

If we have worked with the charity before, the check ordinarily will be issued within five business days. If we have not worked with the charity before, we conduct a due diligence on the client’s behalf. In this case the check is typically issued within 10 business days. (top)

9. Will The Grant Check Have The Client’s Name On It?

The check will bear the name of Schwab Charitable Fund; however, the accompanying letter will recognize the client or account name (per the client instructions) who recommended the particular grant. Clients may also choose to remain anonymous. (top)

10. Will The Client Receive Confirmation When A Grant is Made?

Clients will receive a copy of the letter sent to the charity along with the grant check. If for any reason we are unable to issue the grant, we will contact you by phone as quickly as possible. (top)

11. Why Would A Grant Be Declined?

The Fund takes great care to comply with all laws governing charitable gift giving and I.R.S. guidelines affecting donor-advised funds. The Fund will not approve any grant that:

• Is directed to a charity not based in the United States;2
• Fulfills a client’s pre-existing pledge to an organization;
• Provides benefit to the client or individual
• Supports lobbying, political campaigns or other political activities; or
• Supports a charitable event that would constitute a quid pro quo arrangement (e.g., tickets for a fundraising dinner). (top)

12. How Do Clients Access Their Account Online?

• The client (donor) goes to http://www.schwabcharitable.org/
• The client enters their Social Security Number or user ID, as well as their password, in the Donor Log-in box in the upper right corner.
• If the client does not have a password, they should call us at (800) 746-6216. (top)

13. What Can Be Done Online?

• View your Charitable Gift Account balance.
• Contribute to an account with a request to transfer assets from a Schwab brokerage account.
• Research a charity and request a grant to any charity.
• Receive an email confirmation of a grant recommendation.
• View current Portfolio Allocation.
• Recommend the rebalance of the current assets among the investment pools. (top)

14. How Can A Client’s Children Get Involved?

If the children are of legal age (18) they can become involved immediately by listing them as donor-advisors on the account. In that capacity they can make contributions to receive tax benefits, recommend grants to charity and will receive copies of all statements and newsletters. Clients can name their children to succeed them as donor-advisors to the account after their death by naming them as successors of the account. (top)