Charitable Giving Remains Robust - Schwab Charitable Reports Strong Fiscal Year Results

  Charitable Giving Remains Robust - Schwab Charitable Reports Strong Fiscal
  Year Results

Independent registered investment advisors increasingly considering charitable
planning as part of strategic advice mix for clients

Business Wire

SAN FRANCISCO -- July 17, 2013

Schwab Charitable, one of the nation's leading donor-advised fund
organizations, reported strong results for Fiscal Year 2013, reflecting
growing interest by individuals, families and their independent registered
investment advisors (RIAs) in becoming more strategic about when and how they
give. As of June 30, 2013, Schwab Charitable assets under management were $4.8
billion and grants to charities for the fiscal year totaled more than $600
million, 55% and 12% growth from the previous year, respectively.The
organization also doubled its new accounts in fiscal year 2013, underscoring
the popularity of donor-advised funds as part of holistic financial and
charitable planning.

Kim Laughton, president of Schwab Charitable. (Photo: Business Wire)

Kim Laughton, president of Schwab Charitable. (Photo: Business Wire)

“There is a virtually limitless opportunity to help individuals and families
make a significant philanthropic impact in the world around them, and we are
committed to providing them and their RIAs with ways to make giving easy,
impactful and sustainable,” said Kim Laughton, president of Schwab Charitable.
“Our results this past fiscal year are heartening as they point to an upward
trajectory in charitable giving. As we look ahead we are confident this
trajectory will continue. A robust stock market, higher tax rates and
uncertainty around itemized deductions all encourage individuals and families
to consider using a donor-advised fund to support their favorite philanthropic
causes, while reducing their tax bills.”

A donor-advised fund allows investors to contribute cash and/or a variety of
appreciated assets^1 to a charitable account to realize the greatest possible
tax benefits and then support their favorite charities over time. Serving a
wide range of philanthropic investors, Schwab Charitable’s account sizes range
from $5,000 to more than $600 million.

Majority of RIAs offer charitable planning - deepening client relationships
and bolstering business growth

According to the 2013 RIA Benchmarking Study from Charles Schwab^2, released
last week, 54% of all firms with assets under management (AUM) of $25 million
or more currently offer charitable planning services and of those, 85%
indicated that at least some of their clients are using those services, and
34% are considering offering charitable planning in the future. For those
firms with an AUM between $50 million and $100 million, 50% are considering
offering charitable planning in the next 12 -18 months.

Sixty percent (60%) of the Best-Managed Firms^3 in the study are currently
already offering charitable planning and an additional 30% are considering
offering charitable planning.

“Charitable giving is a very personal and often emotionally-driven decision
process, and it’s wonderful to see so many RIA/client relationships that are
deep enough to discuss the charitable causes and organizations that matter to
an individual or family,” said Laughton. “RIAs who help clients think about
their philanthropic goals with the same level of purpose that they think about
retirement, college savings or even insurance goals are providing a
differentiated level of advice and client service that can translate into real
business results and a new standard of best practice.”

About Schwab Charitable

Created as a national donor-advised fund with a mission to increase charitable
giving nationwide, Schwab Charitable has received over $8 billion in
contributions and has facilitated over $3.6 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 $600 million. Schwab
Charitable has been a pioneer in enabling RIAs to manage the investments of
donor-advised accounts and remains a leading provider of such professionally
managed accounts.^4 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

A donor's ability to claim itemized deductions may be subject to further
limitations depending upon the donor's specific tax situation and donors
should consult their tax advisors. 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. The Fund has
entered into service agreements with certain affiliates of The Charles Schwab
Corporation. (0713-5027)

^1 Contributions of real estate, private equity or other non-cash assets are
accepted via a charitable intermediary, with proceeds of your donation
transferred to your donor-advised account upon liquidation. This intermediary
considers donations on a case-by-case basis, and assets typically must be
valued at $250,000 or more. Call the Fund for more information at

^2 About the RIA Benchmarking Study
Schwab designed this study to capture insights in the RIA industry, based on
survey responses from individual firms. The 2013 study provides information on
topics such as asset and revenue growth, sources of new clients, products and
pricing, staffing, marketing, technology, and financial performance.

Since the inception of the study in 2006, more than 2,500 firms have
participated, with many repeat participants. A total of 1,025 advisory firms
representing nearly half a trillion dollars in AUM that custody their assets
with Schwab participated this year, making this the leading study in the RIA

The RIA Benchmarking Study comprises self-reported data from advisory firms
that custody their assets with Schwab. Participant firms represent various
sizes and business models. They are categorized into 12 peer groups—6 wealth
manager groups and 6 money manager groups, by AUM size.

The study is part of Schwab's Business Consulting Services, a practice
management offering for RIAs. Grounded in the best practices of leading
independent advisory firms, Business Consulting Services provides insight,
guidance, tools, and resources to help you strategically manage and grow your

Independent investment advisors are not owned, affiliated with or supervised
by Schwab.

^3 Best-Managed Firms are advisors in Schwab’s RIA Benchmarking Study who are
in the top 20% of qualifying firms, ranked by productivity (2012 revenue per
professional), profitability (2012 standardized operating margin), revenue
growth (2009–2012 compound annual growth rate in revenue) and net asset growth
(2012 growth from net asset flows).

^4 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.

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The Neibart Group
Natalia Krepak, 718-875-7269
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