December 1, 2016 BestCompaniesAZ

Record Grants in 2015 for Charles Schwab

charles schwabSAN FRANCISCO — Schwab Charitable, one of the nation’s largest donor-advised fund providers, distributed over $1 billion in charitable grants on behalf of its donors in 2015. This represents a 15% increase over the prior calendar year. Over 58,000 charities received grants, and Feeding America, Doctors without Borders, Red Cross and The Salvation Army were among those most widely supported.

“We are so thankful that our donors continued to give generously in 2015 even as stock markets became more volatile,” said Kim Laughton, president of Schwab Charitable. “For charities across the spectrum of causes, donor-advised funds encourage philanthropy and help people donate more. At Schwab Charitable, we continue to look for ways to increase charitable giving, as we did last year by making it even more simple and cost-effective to contribute complex assets and grant internationally.”

Although Americans are among the most generous people in the world, total charitable giving has hovered around 2% of household disposable income for forty years.1 Working together with donors, advisors and charities, Schwab Charitable aims to help giving rise beyond 2% of disposable income in the future. In a recent survey, over 65% of Schwab Charitable donors said that they give more than they otherwise would because they have a donor-advised fund account. (Read more about our perspective on increasing charitable giving here.)

Contributing appreciated assets to a public charity (including to a donor-advised fund account) allows donors to potentially eliminate capital gains tax on the sale of those assets and thereby increase their giving by as much as 20%.2 Almost two thirds (63%) of contributions to Schwab Charitable accounts in 2015 were appreciated assets, including publicly traded stock and more complex assets, such as restricted stock, privately held shares (C-Corp, S-Corp, and limited partnership interests), initial public offerings, real estate, private equity and hedge fund interests.

Schwab Charitable’s mission is to increase charitable giving by making it convenient and tax-smart. In 2015, Schwab Charitable expanded its support for international granting and eliminated basic consulting and processing fees for the most common types of complex assets donated to charity3.

More information about the benefits of donating various forms of appreciated assets to a Schwab Charitable donor-advised fund account is available online, and information about Schwab Charitable’s Global Giving Program is available here.

About Schwab Charitable
Schwab Charitable is a donor-advised fund established as a service for individual investors to help increase their charitable giving. Since inception, Schwab Charitable has facilitated over $6 billion in grants to more than 104,000 charities on behalf of its donors. Schwab Charitable serves a wide range of investors and has been a pioneer in enabling registered investment advisors to manage the investments of donor-advised fund accounts4. Schwab Charitable also offers a private foundation conversion service for private foundations considering a donor-advised fund as a complementary or alternative charitable vehicle. For more information, visit schwabcharitable.org.

1. Giving USA

2. Appreciated asset must have been held for a year or more. Assumes that all realized gains are subject to the 20% federal long-term capital gains tax rate. A donor’s ability to claim itemized deductions may be subject to further limitations depending upon the donor’s specific tax situation. 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.

3. Schwab Charitable accepts illiquid assets for contribution on a case by case basis. Additional fees may apply for direct expenses, such as legal fees, inspections, environmental assessments, unrelated business income tax and insurance. Donor may need to commission a qualified appraisal of donated assets in accordance with IRS requirements. Additional fees and expenses may apply.

4. 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. Although 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 investment guidelines by calling (800) 746-6216.

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.

Contributions of some non-publicly traded assets are sometimes accepted via a charitable intermediary, with proceeds of the donation transferred to the donor-advised account upon liquidation.

About Charles Schwab
At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

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