Donor-advised fund marks 20 th anniversary with more than $11 billion granted to charity since inception
SAN FRANCISCO--(BUSINESS WIRE)--Schwab Charitable™, one of the largest national providers of
donor-advised funds and other philanthropic services, reported a record
$2.2 billion in grants to 86,500 charities in 2018, representing a 35%
increase from the previous year. Schwab Charitable donors recommended
more than 487,000 grants, up 32% from 2017. Feeding America, Planned
Parenthood, Doctors Without Borders, Salvation Army, and Campus Crusade
for Christ were the most widely supported grant recipients last year.
Through the end of 2018, Schwab Charitable donors continued to
contribute to their donor-advised fund accounts, invest those dollars to
increase their charitable impact, and recommend grants to their favorite
charities. Despite concerns over the potential impact of tax reform and
the year-end market correction, donors gave at historic levels. Just in
the last three months of the year, donors recommended more than 210,600
grants totaling $807 million, up from 163,600 grants totaling $655
million in Q4 2017.
“Our extraordinary donors demonstrated that giving can flourish in a
range of tax and market environments,” said Kim Laughton, President of
Schwab Charitable. “Under the new tax law, charitable giving is a
relative bright spot for donors who itemize because the charitable
deduction was preserved while several other popular deductions were
capped or eliminated.”
Donors maximize their charitable impact with tax efficient non-cash
donations
Individuals who own appreciated investments held for a year or more have
an opportunity to potentially unlock significant tax benefits by
donating them to charity. More than two-thirds (67%) of contributions to
Schwab Charitable accounts were in the form of non-cash assets last
year. By contributing appreciated assets held for a year or more to a
donor-advised fund, individuals can also potentially increase the amount
available for charity by up to 20% compared to selling the assets and
donating the proceeds. The most popular assets contributed in 2018
included publicly-traded securities, restricted stock, real estate and
privately held business interests.
Some donors also opted to concentrate, or “bunch”, their charitable
contributions in 2018 by donating a few years of gifts to their
donor-advised funds. Concentrating charitable contributions can allow
donors to maximize their tax benefits by giving enough to make it
advantageous to itemize deductions every few years and then benefit from
taking the new higher standard deduction in other years. Donor-advised
funds make it easy to contribute various amounts each year but maintain
a consistent level of granting to charities of their choice at their
convenience.
Schwab Charitable celebrates giving milestones on 20
th
anniversary
Thanks to the remarkable, sustained generosity of its donors, Schwab
Charitable reached a new milestone in 2018. Since inception, over $11
billion in grants have been made to over 142,000 worthy causes and
charities.
Schwab Charitable helps individuals maximize their philanthropic impact
over the long term. In addition to making it simpler and easier to
contribute tax-advantaged appreciated assets, donors can invest
contributed funds for potential tax-free growth, with the goal of
increasing the amount available for grants to charity over time.
“Schwab Charitable was founded 20 years ago to make charitable giving
more simple and tax-efficient for donors. From the start, our mission
has been to increase charitable giving in the United States,” said
Laughton. “Our donors are fulfilling this mission through their
incredible commitment to improving the world by using a donor-advised
fund to help them maximize their charitable impact. I am humbled by the
immense difference they have made both within communities and around the
globe in just twenty years.”
About Schwab Charitable
Schwab Charitable is a donor-advised fund established as a service for
individual investors to help increase their charitable giving. 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. (0119-9LCJ)
