Schwab Charitable

Private foundation conversion

Is Converting Your Foundation to a Donor-Advised Fund Right For You?

This survey can help you determine if a donor-advised fund account makes sense for you. Whether you want to convert your private foundation to a donor-advised fund account or are considering one as a complement to your foundation, Schwab Charitable can help.

Administration & Compliance (Question 1 of 10)
How would you describe your overall interest in managing the administrative and regulatory responsibilities of your philanthropy?

I am fine with spending my time on the administrative and regulatory responsibilities of my philanthropy, and feel that I have the expertise to do so.

Don't Know/No Opinion

I would rather not spend time on the administrative and regulatory responsibilities of my philanthropy, and/or may not have the specific expertise to do so.


Since charitable giving is rewarded and encouraged through tax benefits to the donor, the IRS has established specific requirements for charitable activities that must be followed carefully. These include recordkeeping, grant due diligence and annual reporting.

Private Foundations:

Private foundations are subject to fairly complex rules and regulations which are outlined in IRS Publication 578. Many foundations hire paid staff, consultants, attorneys and/or accountants to help manage their foundations to ensure compliance with these IRS requirements. It is the responsibility of the board of directors of the foundation to comply. Risks of non-compliance include revocation of the foundation's tax-exempt status, fines and negative publicity.

Donor-Advised Funds:

Individual donor-advised fund accounts are not responsible for IRS filings or regulatory compliance. Instead, the donor-advised fund sponsor (such as Schwab Charitable Fund) files an aggregated return and assumes administrative, recordkeeping and oversight responsibilities for its donor-advised accounts. For example, the donor-advised fund sponsor takes on the responsibility to evaluate charitable grant recipients against certain IRS and government agency databases to confirm they are in good standing.
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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.

Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation. (0813-5646)

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