National donor-advised fund surpasses $10 billion in grants since inception
Schwab CharitableTM, one of the largest national providers of
donor-advised funds and other philanthropic services, reports a record
fiscal year 20181 in which donors recommended over 420,000
grants representing nearly $2 billion in charitable gifts. The dollar
total was 20% higher than the prior fiscal year and helped donors reach
$10 billion in recommended grants to over 130,000 charities since Schwab
Charitable’s inception almost 20 years ago.
“Our exceptional donors distributed more money to charity this fiscal
year than ever before. Year after year, we are proud to honor our
mission of increasing charitable giving in the United States by offering
donors simple, tax-efficient tools and expert guidance that help them
reach their philanthropic goals,” said Kim Laughton, president of Schwab
Charitable. “We are energized by our donors’ desire to make a positive
impact on the world and proud they have reached a remarkable $10 billion
in recommended grants since our founding.”
Schwab Charitable Donors Provide Active Support in Fiscal Year 2018
In fiscal year 2018, Schwab Charitable donors recommended 36% more
grants than in the prior fiscal year and supported 78,000 charities. The
most widely supported charities were: Feeding America, The Red Cross,
Planned Parenthood, The Salvation Army and Doctors Without Borders.
“Strong market performance, disaster relief and uncertainty about tax
reform drove giving in the second half of 2017,” continued Laughton.
“Despite the volatile start to 2018, donors continue to rely on the
convenience and tax efficiency of their donor-advised fund accounts to
give highly appreciated assets to charity. And while time will tell how
the new tax law affects charitable giving, the strong start to 2018
suggests that our philanthropically-minded donors will continue giving
generously even in this new tax and market environment.”
Throughout the fiscal year, half (50%) of existing account holders
re-contributed to their donor-advised fund, and robust giving continued
in the first half of the calendar year. From January through June 2018,
Schwab Charitable donors recommended over $925 million in grants, 40%
more than the same period last year.
Tax reform creates new opportunities for donors
Giving appreciated investments to charity continues to have significant
potential benefits under the new tax code. By contributing non-cash
assets that have been held for more than one year to a donor-advised
fund, individuals can potentially increase the amount available for
charity by up to 20% compared to selling the assets and donating the
proceeds. Awareness of these benefits continues to grow: in fiscal year
2018, three quarters (74%) of contributions to Schwab Charitable were
non-cash assets.
The new tax law may also present an opportunity for the increasing
number of donors who otherwise might take the standard deduction to
concentrate their charitable giving every few years so that they can
itemize and get the full tax benefit from their charitable gifts. A
donor-advised fund makes it simple to apply this strategy and maintain
support for donors’ favorite causes.
By increasing the convenience and tax efficiency of charitable giving,
Schwab Charitable helps individuals maximize their philanthropic impact.
Over two-thirds (68%) of Schwab Charitable donors say they give more
than they otherwise would have because they have a donor-advised fund
account2. Schwab Charitable also enables donors to invest
assets in their donor-advised fund account for tax-free growth ahead of
future granting, with the goal of increasing the amount available for
grants to charity over time. Since Schwab Charitable’s inception,
investment growth has generated almost $3 billion in additional funds to
support philanthropy.
About Schwab Charitable
Schwab Charitable is a donor-advised fund established as a service for
individual investors to help increase their charitable giving. Since its
inception in 1999, Schwab Charitable has facilitated over $10 billion in
grants to approximately 131,000 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 accounts. 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, including a short video
describing the benefits of donor-advised funds, 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. Consult
your tax advisor for more information.
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.
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.
©2018 Schwab Charitable Fund. All rights reserved. (0718-8LG6)
1 Fiscal Year 2018 refers to July 1, 2017 – June 30, 2018.
2 2017 survey of Schwab Charitable donors
