Schwab Charitable Reports Record Assets, Grants and Recontribution Rates

National Donor-Advised Fund Finishes Fiscal Year 2011 with Nearly 25% Growth in Charitable Assets and Grants

Tuesday, July 19, 2011 7:00 am PDT

Dateline:

SAN FRANCISCO

Public Company Information:

NYSE:
SCHW
"We have been pleased to work with Schwab Charitable to offer this service and benefit to our clients."

SAN FRANCISCO--(BUSINESS WIRE)--Schwab Charitable, one of the nation’s largest and fastest growing national donor-advised fund organizations, reported that Fiscal Year 2011 charitable assets, grants, and funds contributed to existing accounts reached the highest levels in its history. A donor-advised fund allows investors to contribute cash or appreciated assets to a charitable account to realize the greatest possible tax benefits while supporting their favorite charities. Serving a wide range of philanthropic investors, Schwab Charitable manages account sizes from $5,000 to over $400 million.

Schwab Charitable’s Fiscal Year 2011 highlights as of June 30th, 2011, include:

  • Assets of $3.1 billion, up 25% from the previous fiscal year
  • Grants to charities of $519 million, up 23% from the previous fiscal year, compared to an increase of less than 4% in overall charitable giving nationally for calendar year 20111
  • Record re-contribution rates and high levels of satisfaction by donors and investment advisors with the services provided2

“We routinely measure donor satisfaction and take our responsibility to facilitate philanthropy very seriously,” says Kim Laughton, Acting President of Schwab Charitable. “We are proud that our clients continue to lead by example and re-contribute and grant out of their accounts year after year. This shows tremendous confidence in Schwab Charitable and the service we provide.”

These results were also driven by an increase in demand for donor-advised funds by affluent investors and their investment advisors, who recognize their tax-advantages and simplicity. Schwab Charitable was first to provide investment advisors the ability to manage the investments in donor-advised accounts and continues to dominate in this arena, with substantially more assets than any other national donor-advised fund provider.

“Many of our high net worth clients value the ability to reduce their taxes while also supporting a philanthropic mission and see donor-advised funds as a great alternative or complement to a private foundation,” says Jeff Colin, Founder and Partner at Baker Street Advisors, a San Francisco-based wealth management firm. “We have been pleased to work with Schwab Charitable to offer this service and benefit to our clients.”

The customized approach to asset acceptance and investment choice combined with highly personalized service and strong client satisfaction scores have made Schwab Charitable a favorite among individual donors and investment advisors alike.

“I think a growing number of people are feeling a sense of responsibility to give back to their communities and the organizations that they care about, in good financial times and in bad. We’ve been providing that opportunity to our donors for more than a decade, and that’s something that we feel really good about,” says Charles Schwab, Director and Chairman of the Board of Schwab Charitable, and Chairman of the Board of The Charles Schwab Corporation.

Looking forward, Schwab Charitable expects continued success in 2011, as investors chose donor-advised funds as smart vehicles to donate appreciated securities following stock market gains over the past two years. In addition, Schwab Charitable expects to see continued interest in its customized and personalized approach to high net worth clients and their advisors, including these key offerings:

  • Complex Asset Acceptance: Enables donation of complex and unique assets, including privately held securities, partnership interests, real estate, and IPO stock.
  • Expanded Investment Choice: Allows donors to choose from best-in-class investment pools or have an investment advisor recommend investments for their accounts.
  • Private Foundation Conversion Service: Provides assistance to private foundations considering whether a donor-advised fund might be an appropriate vehicle to help to facilitate their philanthropy.
  • Personalized Grant Letterhead: Allows donors to have their recommended grants to charities accompanied by a letter personalized with their custom account name.
  • Legacy Giving Program: Supports those interested in creating a lasting legacy of support by granting to charities over time after their lifetime.
  • Double Give Program: Allows participants to set aside a portion of their donor-advised accounts to guarantee microfinance loans to the world's poorest entrepreneurs.

About Schwab Charitable

Created as a national donor-advised fund with a mission to increase charitable giving nationwide, Schwab Charitable has raised over $5.4 billion and has facilitated over $2.4 billion in grants to charities since inception. For more information, visit www.schwabcharitable.org.

1 Giving USA 2011: The Annual Report on Philanthropy for the year 2010

2 Based on 2010 year-end survey of all Schwab Charitable donors, using Net Promoter, a metric for measuring customer feedback used by leading companies worldwide

Contact:

Schwab Charitable
Kim Laughton, 415-667-9136

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