Contributing appreciated NON-CASH ASSETS can help maximize charitable impact

Consider where most of your wealth is

90% of U.S. household wealth is held in non-cash assets.

Federal Reserve Q4 2020 Financial Accounts of the United States

Be more strategic

Contributions of appreciated non-cash assets held more than one year can be an important part of your charitable giving and wealth management plans.

60% of Schwab Charitable account contributions in fiscal year 2020 were non-cash assets per Schwab Charitable Giving Report.

Minimize taxes, maximize impact

Contributing appreciated non-cash assets held more than one year can unlock additional funds for charity in two ways.

• Potentially eliminate the capital gains tax you would incur if you sold the assets yourself and donated the proceeds, which may increase the amount available for charity by up to 20%.
• Claim a fair market value charitable deduction, if you itemize deductions, and pass on the savings in the form of more giving.

20%

Many donors find they're able to give up to 20% more to charity because of the potential to eliminate capital gains tax.

Review specific considerations with different types of non-cash assets

• Publicly traded securities
• IPO stock
• Restricted stock
• Fine art and collectibles
• Private business interests
• Real estate
• Private equity
• Equity compensation awards
• Cryptocurrency

Recognize times when contributing non-cash assets may be ideal

Individual

Concentrated position
Donate highly appreciated assets to reduce concentrations and rebalance investments.

Estate planning
Contribute part of taxable estate holdings to reduce tax liability for heirs.

Business owner

Business sale
Contribute a portion of a private business interest to offset tax liability on selling a portion of the interest.

Windfalls
Donate a portion of a business stake if there is a pending event in which ownership will increase.

Maximize your philanthropic impact with Schwab Charitable

Using a Schwab Charitable account for your giving is as easy as 1-2-3.

1 Contribute

• Open an account and contribute cash or non-cash assets held more than one year.
• Potentially eliminate the capital gains tax you would incur if you sold the assets and donated the proceeds.
• Claim a fair market value charitable deduction, if you itemize.

2 Invest

• Recommend investments for potential tax-free growth.
• Choose from investment pools or appoint an advisor to manage a custom portfolio.
• Rebalance investments at any time.

3 Grant

• Give to the charities of your choice by recommending grants of $50.00 or more.
• Grant at any time online or through the Schwab mobile app.
• Schedule one-time grants or set up recurring grants for ongoing support.

The result: tax-smart giving that's good for the donor and the cause

Donors

Realize tax benefits and achieve maximum charitable impact.

Account

Contribute appreciated assets and invest for potential growth.

Causes

Potentially give more substantial donations.

Donor-advised fund

We help turn your assets into impact.

For more than 20 years, Schwab Charitable has helped donors, advisors and charities understand the benefits and considerations with converting appreciated non-cash assets into tax-smart, high-impact charitable contributions.

Let Schwab Charitable make it easy for you.

Donors

Learn how to get started with a donor-advised fund account.

Advisors

Talk to a Schwab Charitable Relationship Manager for more information.

Charities

Learn more about how donor-advised funds help support giving by liquidating non-cash assets for charitable causes.

Visit schwabcharitable.org

A modern way to give.

*Schwab Charitable™ accepts illiquid assets for contribution on a case-by-case basis and some of these assets are liquidated by a third party. In fiscal year 2021, 1% of contributions were non-cash assets liquidated by a third party, received by Schwab Charitable as cash, and reported here as non-cash assets.

A donor’s ability to claim itemized deductions is subject to a variety of limitations depending on the donor’s specific tax situation. Consult your tax advisor for more information. Gifts of appreciated property can involve complicated tax analysis and advanced planning.

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. While donors may recommend an advisor, Schwab Charitable must approve the recommendation. Advisors must meet certain eligibility requirements and adhere to Schwab Charitable fee and investment guidelines. You may request a copy of the guidelines by calling us.

Schwab Charitable Fund™ is recognized as a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. Contribution made to Schwab Charitable Fund are considered an irrevocable gift and are not refundable. Please be aware that Schwab Charitable has exclusive legal control over the assets you have contributed. Although every effort has been made to ensure that the information provided is correct, Schwab Charitable cannot guarantee its accuracy. This information is not provided to the IRS.

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.

©2022 Schwab Charitable Fund. All rights reserved.

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