National Donor-Advised Fund provides guidelines on granting; encourages
advisors to talk to clients about a strategic approach to philanthropy
Schwab Charitable, one of the nation's leading national donor-advised
fund organizations, closed its 2012 giving season with a record level of
charitable contributions and new accounts as individuals and their
advisors embraced Schwab Charitable's tax-smart, simple and accessible
approach to supporting the non-profit causes about which individuals
care most. Spurred by an uncertain tax environment amidst the fiscal
cliff debate, contributions more than tripled and new accounts doubled
over the same period last year.
Kim Laughton, president of Schwab Charitable. (Photo: Business Wire)
"We are thrilled to witness such a robust giving season and to see the
significant jump in interest and activity. It speaks to the fact that
more individuals are recognizing that a Schwab Charitable account makes
their charitable giving easier and more strategic, and that these
accounts are within everyone's reach," said Kim Laughton, president,
A donor-advised fund allows investors - either directly or with the help
of an advisor - to contribute cash or appreciated assets to a charitable
account to realize the greatest possible tax benefits and to then
support charities of their choice over time. Serving a wide range of
philanthropic investors, Schwab Charitable's account sizes range from
$5,000 to over $500 million.
Guidelines for Granting
In addition to making year-end contribution decisions, many advisors and
individuals have been actively recommending grants to individual
"We approved 70% more grants in the fourth quarter this year than we did
last year, and we expect to see this granting activity continue through
the first quarter because of the many new accounts recently
established," said Laughton.
Schwab Charitable has outlined five areas for individuals and their
advisors to consider when thinking about a granting strategy in 2013:
Develop a purposeful strategy for giving: Be proactive and
purposeful about your giving. Take a step back and think about what
you want to achieve with your charitable dollars, and consult a
financial advisor to help you determine priorities and the level of
support you want to provide throughout the year. In addition to
reflecting your values, a purposeful strategy can also help you to say
no to solicitations that do not fit within your strategy. Check your
progress against the strategy throughout the year. Your donor-advised
fund account online summary can help by displaying grant history by
cause, so that your activity can be monitored and you can ensure that
it is consistent with your giving plans.
Choose the organizations to support: You can support one or
many causes from your donor-advised fund. Deciding what causes to
support might be a decision you make on your own, or it can be a
wonderful thing to do together as a family. Schwab Charitable provides
clients with a number of resources to help with this process.
Decide on grant timing and amounts: A donor-advised fund allows
for giving over time and you may recommend grants of $50 or more at
any time to any IRS-approved 501(c)(3) public charity. Consider
whether the causes you are supporting are likely to benefit most from
a one-time grant at a certain time of the year, or a series of gifts
throughout the year.
Choose your desired level of recognition: Do you want to be
recognized for your charitable gift or would you prefer to give
anonymously? With a donor-advised fund, you may choose how to be
recognized for each grant you recommend. Those who want maximum
recognition can have their gifts accompanied by letters on stationery
personalized with their account's special account name.
Consider the long-term: Donors are able to extend their
charitable giving beyond their lifetimes through the Charitable
Legacy Program. Used in conjunction with a holistic estate plan,
this program gives qualified donors the flexibility to provide
charitable organizations with support over time after their death.
Opportunity for advisors: Help clients with simpler but more
strategic charitable giving
As they incorporate charitable giving into their overall financial
plans, individuals are looking to advisors now more than ever for advice
on giving and granting strategies. Charitable planning and giving is an
important component of any tax planning or financial planning
discussion, and conversations about giving intentions and strategies are
a good way for advisors to build deeper relationships with clients.
"Tax-smart charitable giving will continue to be a welcomed discussion
topic between individuals and advisors, especially given that tax rates
are now higher at the upper-income levels and the value of a charitable
deduction for many has therefore increased," said Laughton. "Advisors
can build higher-value relationships and improve client retention by
including philanthropic goals in their wealth management conversations."
Schwab Charitable works with over 1,000 registered investment advisors
(RIAs) to meet the charitable giving needs of their clients. Advisors
are able to use the same technology platform (SchwabAdvisorCenter.com)
to oversee charitable accounts as they do for other accounts at Schwab.
About Schwab Charitable
Created as a national donor-advised fund with a mission to increase
charitable giving nationwide, Schwab Charitable has received over $7
billion in contributions and has facilitated over $3 billion in grants
to charities on behalf of its donors since inception. Serving a wide
range of philanthropic investors, account sizes range from $5,000 to
more than $500 million. Schwab Charitable has been a pioneer in enabling
investment advisors to manage the investments of donor-advised accounts
and remains a leading provider of such professionally managed accounts.
Schwab Charitable also offers a private
foundation conversion service for private foundations considering
donor-advised funds as a complementary or alternative charitable
vehicle. For more information, 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. The tax
information herein is general in nature and not intended as specific,
individualized advice. Where such advice is necessary and appropriate,
donors should consult with their tax and/or legal advisors.
Professionally?managed accounts are available only through independent
investment advisors working with Schwab Advisor ServicesTM, a
business segment of The Charles Schwab Corporation serving independent
investment advisors and includes the custody, trading and support
services of Charles Schwab & Co., Inc..
While donors may recommend an advisor, the 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 us at (800) 746?6216.
Schwab Charitable is the name used for the combined programs and
services of Schwab Charitable Fund, an independent nonprofit
organization. The Fund has entered into service agreements with certain
affiliates of The Charles Schwab Corporation.
©2013 Schwab Charitable Fund. All Rights Reserved. (0113-0834)
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130122005181/en/
The Neibart Group
Natalia Krepak, 718-875-7269