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.

Grantmaking (Question 5 of 10)
Is it important to you to be able to make grants to individuals (i.e., for scholarships or research)?

Yes, and I want to be able to name individual grant recipients.1

Yes, but I am fine with supporting a general scholarship fund and not naming the individual recipients.

No.

considerations

For most donors, the ability to select grant recipients is a critical part of their motivation to give. There are key differences in how grantmaking works for private foundations versus donor-advised fund accounts.

Private Foundations:
Private foundations offer the ability to make grants directly to U.S.-based public charities and other organizations. In addition, they may make grants directly to specific individuals for scholarships, research, missionary work and other charitable purposes. They may also make grants directly to support international organizations that do not have U.S. affiliates, as long as they take on the responsibility of expenditure oversight reporting.
Donor-Advised Funds:
Donors can generally recommend grants to U.S.-based public charities, to international organizations that have U.S. affiliates, or to a domestic charity which will take on the responsibility of following the regulations regarding expenditure oversight reporting for the international charitable activity (generally for a fee). In some rare circumstances, the donor-advised fund sponsor may take on that responsibility. Grants from donor-advised fund accounts may not be made to individuals, but can be given to scholarship funds at schools, who can then name individual recipients.
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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.

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