October 07, 2015, SAN FRANCISCO – Schwab Charitable, one of the nation’s largest donor-advised fund providers, released its first Annual Giving Report on client experiences and donor activity today. In fiscal year 2015, over $1 billion in grants were made to more than 42,000 charities, reflecting a 29% increase in the value of grants compared to the prior fiscal year1. The most widely supported charities included local food banks in the Feeding America network, Doctors Without Borders, the Salvation Army and the Red Cross.
“It is inspiring to see that Schwab Charitable account holders are both active in their local communities and engaged global citizens,” said Kim Laughton, president of Schwab Charitable. “With the U.S. poverty rate near its 20-year peak, Schwab Charitable donors are helping local food banks to fight hunger. At the same time, they are supporting relief efforts in response to recent international disasters, such as the Nepal earthquake and the refugee crisis in Europe, that provide critical services such as medical care, shelter, food, and clothing to those in need. Since the organization’s inception 15 years ago, Schwab Charitable has helped donors unlock investment assets for charitable good by making it easier and more convenient for people to give in a tax-smart, efficient way.”
Schwab Charitable’s mission is to increase charitable giving and make it easier and more cost effective for charities to receive gifts of appreciated investments and assets. More than two thirds (68%) of contributions to Schwab Charitable accounts in fiscal year 2015 were appreciated investments and assets, including publically-traded stock, restricted stock, real estate, interests in private businesses, private equity, venture capital and hedge funds. Schwab Charitable helps streamline the contribution process through a convenient online experience that makes it easy for donors to give and charities to receive the proceeds from appreciated investments and assets.
When donors contribute appreciated assets to a donor-advised fund account, they may eliminate capital gains tax and have up to 20% more in proceeds, which can be granted to charity immediately or help maintain their desired level of giving for longer.2 Comprehensive information about the benefits of donating appreciated and complex assets to a Schwab Charitable donor-advised fund account are available online.
For clients who wish to contribute appreciated assets that are not publicly traded, Schwab Charitable provides a seasoned complex gift acceptance team that coordinates the sale of the assets, deposits the cash proceeds in the donor-advised fund account, and provides contribution receipts for tax filings. Accounts with complex needs may also receive a dedicated relationship manager to assist with their contributions, investing and granting3.
Before contributions are granted to charities, they can be invested for charitable good. Schwab Charitable offers donors a choice of 14 diversified investment pools from a wide variety of leading fund providers and, for larger accounts, the ability to have a registered investment advisor actively manage the account4. Since Schwab Charitable’s inception in September 1999 through the fiscal year 2015, cumulative investment growth has generated $1 billion in additional funds to support clients’ philanthropy5.
Schwab Charitable’s 2015 Annual Giving Report is available for download and is designed to serve as an additional resource for donors, advisors, and charities interested in the benefits of giving through a Schwab Charitable donor-advised fund account.
1. Schwab Charitable’s fiscal year runs from July 1 through June 30.
2. Assumes that all realized gains are subject to the 20% federal long-term capital gains tax rate.
3. Donor may need to obtain a qualified appraisal of donated assets in accordance with IRS requirements. Additional fees and expenses may apply.
4. Professionally-managed accounts are available only through independent investment advisors working with Schwab Advisor Services™, a business segment of The Charles Schwab Corporation serving independent investment advisors and including the custody, trading and support services of Charles Schwab & Co., Inc. Although donors may recommend an advisor, Schwab Charitable Fund must approve the recommendation. Advisors must meet certain eligibility requirements and adhere to Fund fee and investment guidelines. You may request a copy of the investment guidelines by calling (800) 746-6216.
5. Past performance is no guarantee of future results.
A donor's ability to claim itemized deductions may be subject to further limitations depending upon the donor's specific tax situation and donors should consult their tax advisors. Schwab Charitable does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.
Contributions of certain real estate, private equity or other illiquid assets may be accepted via a charitable intermediary, with proceeds of your donation transferred to your donor-advised account upon liquidation. This intermediary considers donations on a case-by-case basis, and assets typically must be valued at $250,000 or more.
Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund, an independent nonprofit organization, which has entered into service agreements with certain affiliates of The Charles Schwab Corporation.