Schwab Charitable Reports Record New Accounts and Contribution Levels During
2012 Giving Season and Expects Subsequent Growth in Granting Activity as a
National Donor-Advised Fund provides guidelines on granting; encourages
advisors to talk to clients about a strategic approach to philanthropy
SAN FRANCISCO -- January 22, 2013
Schwab Charitable, one of the nation’s leading national donor-advised fund
organizations, closed its 2012 giving season with a record level of charitable
contributions and new accounts as individuals and their advisors embraced
Schwab Charitable’s tax-smart, simple and accessible approach to supporting
the non-profit causes about which individuals care most. Spurred by an
uncertain tax environment amidst the fiscal cliff debate, contributions more
than tripled and new accounts doubled over the same period last year.
Kim Laughton, president of Schwab Charitable. (Photo: Business Wire)
Kim Laughton, president of Schwab Charitable. (Photo: Business Wire)
“We are thrilled to witness such a robust giving season and to see the
significant jump in interest and activity. It speaks to the fact that more
individuals are recognizing that a Schwab Charitable account makes their
charitable giving easier and more strategic, and that these accounts are
within everyone’s reach,” said Kim Laughton, president, Schwab Charitable.
A donor-advised fund allows investors - either directly or with the help of an
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 over $500 million.
Guidelines for Granting
In addition to making year-end contribution decisions, many advisors and
individuals have been actively recommending grants to individual charities.
“We approved 70% more grants in the fourth quarter this year than we did last
year, and we expect to see this granting activity continue through the first
quarter because of the many new accounts recently established,” said Laughton.
Schwab Charitable has outlined five areas for individuals and their advisors
to consider when thinking about a granting strategy in 2013:
1.Develop a purposeful strategy for giving: Be proactive and purposeful
about your giving. Take a step back and think about what you want to
achieve with your charitable dollars, and consult a financial advisor to
help you determine priorities and the level of support you want to provide
throughout the year. In addition to reflecting your values, a purposeful
strategy can also help you to say no to solicitations that do not fit
within your strategy. Check your progress against the strategy throughout
the year. Your donor-advised fund account online summary can help by
displaying grant history by cause, so that your activity can be monitored
and you can ensure that it is consistent with your giving plans.
2.Choose the organizations to support: You can support one or many causes
from your donor-advised fund. Deciding what causes to support might be a
decision you make on your own, or it can be a wonderful thing to do
together as a family. Schwab Charitable provides clients with a number of
resources to help with this process.
3.Decide on grant timing and amounts: A donor-advised fund allows for giving
over time and you may recommend grants of $50 or more at any time to any
IRS-approved 501(c)(3) public charity. Consider whether the causes you are
supporting are likely to benefit most from a one-time grant at a certain
time of the year, or a series of gifts throughout the year.
4.Choose your desired level of recognition: Do you want to be recognized for
your charitable gift or would you prefer to give anonymously? With a
donor-advised fund, you may choose how to be recognized for each grant you
recommend. Those who want maximum recognition can have their gifts
accompanied by letters on stationery personalized with their account’s
special account name.
5.Consider the long-term: Donors are able to extend their charitable giving
beyond their lifetimes through the Charitable Legacy Program. Used in
conjunction with a holistic estate plan, this program gives qualified
donors the flexibility to provide charitable organizations with support
over time after their death.
Opportunity for advisors: Help clients with simpler but more strategic
As they incorporate charitable giving into their overall financial plans,
individuals are looking to advisors now more than ever for advice on giving
and granting strategies. Charitable planning and giving is an important
component of any tax planning or financial planning discussion, and
conversations about giving intentions and strategies are a good way for
advisors to build deeper relationships with clients.
“Tax-smart charitable giving will continue to be a welcomed discussion topic
between individuals and advisors, especially given that tax rates are now
higher at the upper-income levels and the value of a charitable deduction for
many has therefore increased,” said Laughton. “Advisors can build higher-value
relationships and improve client retention by including philanthropic goals in
their wealth management conversations.”
Schwab Charitable works with over 1,000 registered investment advisors (RIAs)
to meet the charitable giving needs of their clients. Advisors are able to use
the same technology platform (SchwabAdvisorCenter.com) to oversee charitable
accounts as they do for other accounts at Schwab.
About Schwab Charitable
Created as a national donor-advised fund with a mission to increase charitable
giving nationwide, Schwab Charitable has received over $7 billion in
contributions and has facilitated over $3 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. 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 schwabcharitable.org.
A donor’s ability to claim itemized deductions is subject to a variety of
limitations depending on the donor’s specific tax situation. The tax
information herein is general in nature and not intended as specific,
individualized advice. Where such advice is necessary and appropriate, donors
should consult with their tax and/or legal advisors.
Professionally‐managed accounts are available only through independent
investment advisors working with Schwab Advisor Services^TM, a business
segment of The Charles Schwab Corporation serving independent investment
advisors and includes the custody, trading and support services of Charles
Schwab & Co., Inc..
While donors may recommend an advisor, the 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 us at (800) 746‐6216.
Schwab Charitable is the name used for the combined programs and services of
Schwab Charitable Fund, an independent nonprofit organization. The Fund has
entered into service agreements with certain affiliates of The Charles Schwab
©2013 Schwab Charitable Fund. All Rights Reserved. (0113-0834)
Photos/Multimedia Gallery Available:
The Neibart Group
Natalia Krepak, 718-875-7269
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