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Highlights Range of Assets That Can Be Considered for Tax-Advantaged Charitable Giving

SAN FRANCISCO—December 18, 2012—(BUSINESS WIRE)—Schwab Charitable, one of the nation's leading national donor-advised fund organizations, is reminding advisors and investors that year-end deadlines for charitable giving are fast approaching and that there are multiple ways, from cash contributions to the donation of appreciated assets, that individuals can realize tax benefits from charitable giving this year.

"Donor-advised funds allow easy conversion of appreciated assets in an investment portfolio into tax-effective charitable gifts."

The traditional giving season is well underway and Schwab Charitable is already seeing a strong uptick in activity. Contribution levels have increased 40 percent and new accounts are up 48 percent over the same period last year.

"Individuals and their advisors increasingly understand the value and ease of use of donor-advised funds to empower their charitable giving and reduce their tax liabilities," said Kim Laughton, president, Schwab Charitable. "We have seen a 54% jump in calls this season from both existing and potentially new clients who want to know more about the ways in which they can use a donor-advised fund in their financial planning, especially given the uncertain tax landscape ahead."

A donor-advised fund allows investors—either directly or with the help of an investment advisor—to contribute cash or appreciated assets to a charitable account to realize the greatest possible tax benefits and to then support charities of their choice over time. Serving a wide range of philanthropic investors, Schwab Charitable's account sizes range from $5,000 to more than $500 million.

Appreciated Assets Can Be Among the Most Tax-Advantaged Items

With only a few weeks left in the year, investors and advisors are finalizing their year-end tax strategies. As a part of this planning, they are taking a look at appreciated stocks, mutual funds and other assets in their portfolios. Appreciated assets can be the most tax-advantaged items to contribute to charity because they give investors a current year tax deduction and also allow them to avoid payment of capital gains taxes on their sale. Giving appreciated assets to a donor-advised fund is often much easier than distributing directly to a variety of charities, who can find these gifts administratively costly and burdensome and would prefer to receive a simple check from the donor-advised fund account.

"Donor-advised funds allow easy conversion of appreciated assets in an investment portfolio into tax-effective charitable gifts," said Laughton. "Because of expected tax changes, many clients who are making adjustments to their portfolios are also transferring some shares directly to their charitable accounts to offset some of the tax burden."

Year-End Contribution Deadlines

As 2012 comes to a close, Schwab Charitable reminds individuals who are still looking to make contributions to its donor-advised fund and realize a 2012 charitable tax deduction of some important contribution deadlines:
Donor deadline Contribution type
December 21, 2012 Wire transfers from a non-Schwab financial institution
December 31, 2012 Transfers from a Schwab brokerage account
December 31, 2012 Checks
December 31, 2012 Security certificates which are in good order
About Schwab Charitable

Created as a national donor-advised fund with a mission to increase charitable giving nationwide, Schwab Charitable has received $6.5 billion in contributions and has facilitated $3.2 billion in grants to charities on behalf of its donors since inception. Serving a wide range of philanthropic investors, account sizes range from $5,000 to more than $500 million. Schwab Charitable has been a pioneer in enabling investment advisors to manage the investments of donor-advised accounts and remains a leading provider of such professionally managed accounts. It currently has relationships with 964 registered investment advisory firms. Schwab Charitable also offers a private foundation conversion service for private foundations considering donor-advised funds as a complementary or alternative charitable vehicle. For more information, visit