Schwab Charitable Approaches $5 Billion in Grants to Charity Since Inception
(Press release, Oct. 30, 2014) — Schwab Charitable, one of the nation's leading donor-advised fund organizations, announced that it has made more than $4.6 billion in grants on behalf of its donors to more than 86,000 charities since its inception 15 years ago. Thus far this fiscal year, the organization has seen grants increase 55 percent over the same period last year and expects this robust growth will result in more than $1 billion in grants for the full year ending June 30, 2015.
Grant from a mobile device
Schwab Charitable also announced new mobile and online features that will further encourage philanthropy this giving season by making tax-smart giving simple and even more accessible. Clients may now recommend grants from their charitable accounts on their iPads, iPhones and Android devices using the Schwab Mobile App. This mobile platform makes it easy to manage charitable giving and request grants to charities from virtually anywhere, including at fundraising events. The new mobile app supplements enhanced Web tools that make it much easier to transfer appreciated stock from investment accounts to charitable accounts; track and visualize contribution and grant history; schedule recurring grants to preferred charities; and customize grant acknowledgment letters.
"We can't imagine a better way to celebrate our 15th anniversary than with a strong start to the giving season," said Kim Laughton, president of Schwab Charitable. "Our donors are increasing their level of support at a much greater pace than those who do not use a donor-advised fund. They have the flexibility to recommend grants from virtually anywhere with their mobile devices, and they can more easily donate appreciated assets. Asset appreciation has made it possible for many donors to be even more generous this year than in the past."
Contribute appreciated assets
Because many markets have fared well over the last five years, appreciated assets could make particularly tax-advantaged gifts this year. These assets may include publicly traded securities such as stocks, ETFs and mutual fund shares, along with less liquid assets such as IPO shares, real estate, restricted stock, seasoned private equity funds and privately held business interests.
When donors hold appreciated assets for more than one year and then give them directly to public charities (including donor-advised funds), they generally owe no capital gains tax and this can increase the value of their gift by as much as 20 percent. More details on these transactions are contained in a new series of whitepapers and case studies about unlocking the potential of appreciated assets to reduce taxes and achieve philanthropic goals.
"With the help of their investment advisors, more donors are discovering that appreciated assets are particularly well-suited gifts for charity," added Barbara Benware, vice president of investment oversight. "Schwab Charitable relieves charities of the complexity and cost of accepting these types of assets and makes it easy for donors to grant the cash proceeds to the charities of their choice at their convenience. Our goal is to make it as straightforward as possible for charities to receive tax-smart donations of all types."
