CHARITABLE GIVING EASIER, MORE GENEROUS FOR THOSE WHO USE TAX-SMART CHARITABLE GIFT ACCOUNTSurvey Results From The Schwab Fund for Charitable Giving™
SAN FRANCISCO, Nov. 26, 2001
— The Schwab Fund for Charitable Giving&trade, a leading national donor-advised fund, today announced the results of a survey indicating that most of those who use its Charitable Gift Account expect to give more to charities as result of having the Account as a resource.
"The findings are consistent with what our donors have told us -that setting up a Charitable Gift Account has enhanced their giving and is providing them with a ready resource for charitable grants in times of special need,"says Kim Wright-Violich, President of The Schwab Fund for Charitable Giving.
The Fund surveyed 10 percent of its donors this year to determine how their overall giving behavior was affected by their Charitable Gift Account.
Some key findings of the survey:
- 78% of those surveyed expect their Charitable Gift Account to have a positive impact on their giving.
- 57% expect to give more to charity overall.
- 64% expect to recommend larger individual grants to charities.
- 31% expect to support charities they have not supported before.
- Donors under age 55 are the most likely to increase the amount they give as a result of their Charitable Gift Account.
"Our Charitable Gift Account allows a wide range of people to have a personal and strategic philanthropic vehicle," says Violich. "Donors can leverage the tax benefits of charitable giving when it's best for them, and make grant decisions when the needs arise."
Violich noted that many of the Fund's donors requested grants following the disasters of Sept. 11, 2001. Grants from the Fund related to the disaster now total more than $1 million.
Here's how the Account works:
Donors contribute cash, securities, or mutual fund shares to the Account and receive an income tax deduction for the current year. The Fund then invests donor contributions in special tax-free investment pools. Donors are allowed to request grants from their Account at any time to charitable organizations of their choosing and can make subsequent contributions to their Account whenever they wish. They can also recommend how Account assets are invested.
Those who contribute appreciated stock to their Account can typically avoid capital gains taxes. Donors may also carry forward deductions for several years if their annual contributions exceed Adjusted Gross Income limitations set forth in the federal tax code
The survey also revealed the key reasons for opening an Account:
- 77% of donors surveyed said a very important reason for opening an Account was that it enables them to easily donate appreciated securities to charities.
- 73% cited the immediate tax deduction as an important reason for opening the Account.
- 53% said the low maintenance cost was a key reason for opening their Account with The Schwab Fund for Charitable Giving.
- 46% cited low Account minimums as a factor.
"Whether a donor has $10,000 as an initial contribution or $10 million, a Charitable Gift Account is a flexible, tax-smart way to give to charities and provide donors with substantial benefits," says Violich.
About The Schwab Fund for Charitable Giving
The Schwab Fund for Charitable Giving is an independent, nonprofit organization established in 1999 to offer donor-advised funds and other philanthropic services. Net Assets held in its donor-advised Charitable Gift Accounts totaled $134,121,238 as of October 31, 2001. Grants to charities in 2001 through Nov. 1, 2001 totaled $31,523,753. For more information about the Fund and the Charitable Gift Account, please visit www.schwabcharitable.org
The Schwab Fund for Charitable Giving, an independent non-profit organization, has entered into service agreements with certain affiliates of the Charles Schwab Corporation. (Charles Schwab & Co., Inc. and Charles Schwab Investment Management, Inc.).