Schwab Charitable Distributes $1.2 Billion in Grants in Fiscal Year 2016

Donor-Advised Fund Reports a 12% Rise in Grants to More Than 56,000 Charities

Wednesday, July 13, 2016 6:00 am PDT

Dateline:

SAN FRANCISCO
"Despite a tumultuous year for stock markets and investments, donor-advised funds are proving to be a steady force in philanthropy, and we remain committed to providing our donors with simple, tax-smart and efficient solutions that help them give most effectively."

SAN FRANCISCO--(BUSINESS WIRE)--Schwab Charitable™, one of the largest national providers of donor-advised funds and other philanthropic services, reported $1.2 billion in grants by its donors to more than 56,000 charities in fiscal year 20161. The largest number of individual grants went to organizations focused on health and human services, religion and education. This is the second year in a row that grants have topped $1 billion and represents a 12% increase over the prior fiscal year.

More than $6.9 million also went to organizations such as Doctors Without Borders, International Rescue Committee and Save the Children Foundation whose work included assisting refugees from the war in Syria with medical care, temporary shelter, food, clothing and other much needed resources. To make it easier for donors to support global crises and other international causes, in fiscal year 2016, Schwab Charitable began offering personalized guidance from professionals with experience in international granting. More information about Schwab Charitable’s comprehensive Global Giving Program is available online.

“With another record year of granting, our donors once again demonstrated their extraordinary generosity,” says Kim Laughton, President of Schwab Charitable. “Despite a tumultuous year for stock markets and investments, donor-advised funds are proving to be a steady force in philanthropy, and we remain committed to providing our donors with simple, tax-smart and efficient solutions that help them give most effectively.”

One way Schwab Charitable helps donors maximize the impact of their giving is by making it easy to contribute appreciated, non-cash assets. In fiscal year 2016, 59% of contributions into Schwab Charitable donor-advised fund accounts were non-cash investments or assets. These included publicly-traded stock as well as more complex assets such as restricted stock, interests in private businesses (C-Corp and S-Corp), real estate, private equity, venture capital funds, and hedge funds. When appreciated assets held for a year or more are contributed to a donor-advised fund or other public charity, they are typically not subject to capital gains tax when they are sold. This means that donors may realize up to 20% in tax savings, allowing them to potentially give even more than they otherwise would to their favorite charities. Schwab Charitable handles the liquidation of non-cash investments and assets, relieving donors and the receiving charities of the associated administrative burden. In fact, in fiscal year 2016, Schwab Charitable also eliminated basic consulting and processing fees for the most common types of complex assets donated to charity2. Comprehensive information about the benefits of donating various forms of appreciated investments and assets to a Schwab Charitable donor-advised fund account is available online.

Schwab Charitable also helps donors achieve greater impact by enabling them to invest their account balances with the goal of increasing the amount available for grants to charity over time. Standard Schwab Charitable accounts offer 14 diversified investment pools, and larger accounts may recommend registered investment advisors to manage their portfolios3. Since Schwab Charitable’s inception, investment growth has generated close to $1 billion in additional funds to support our clients’ philanthropy.

By increasing the convenience and tax efficiency of charitable giving, Schwab Charitable helps individuals maximize the impact of their philanthropy. 65% of Schwab Charitable donors say they give more than they otherwise would because they have a donor-advised fund account4, and more than 90% of contributions into Schwab Charitable accounts are fully distributed to charity within 10 years. More on how donor-advised funds help increase giving is available online.

Charities may now also accept donor-advised fund gifts directly from their websites by downloading the DAF Direct widget 5.

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. Schwab Charitable’s fiscal year 2016 ran from July 1, 2015 through June 31, 2016.

2. Additional fees may apply for escrow for unrelated business income tax and for direct expenses, such as legal fees, inspections, environmental assessments, and insurance. Donor may need to obtain a qualified appraisal of donated assets in accordance with IRS requirements.

3. 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 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 (800) 746-6216.

4. According to a 2015 survey of donors

5. DAF Direct is a web application that allows donors to make a grant from their donor-advised fund account while on a nonprofit’s website. For more information, visit www.dafdirect.org.

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 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. Contributions 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.

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.

Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund, an independent nonprofit organization, which has entered into service agreements with certain affiliates of The Charles Schwab Corporation.

©2016 Schwab Charitable Fund. All Rights Reserved. (0716-2638)

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