Schwab Charitable Donors Surpass $4.7B in Grants to Charities
Schwab Charitable, one of the largest national providers of donor-advised funds and other philanthropic resources, reports that its donors increased grants to charity in 2022 to more than $4.7 billion with a record 995,000 grants to more than 117,000 charities. The dollars granted to charities represent a 7% increase, or nearly $300 million more for charities compared to 2021.
“I’m so grateful to see how our donors continue to increase their giving, despite a tough year with economic uncertainty, natural disasters and global crises,” said Sam Kang, President of Schwab Charitable. “Our donors combine consistent support for their favorite causes with a willingness to open their hearts and wallets to new charitable organizations as unforeseen needs arise. Their generosity fuels our mission to increase the giving power of donors and accelerate the flow of dollars to charities and local communities.”
Donor-advised funds prove resilient in an unsteady year
2022 was the worst year for U.S. stock markets since 2008, as the outbreak of war, devastating hurricanes, and global humanitarian crises fueled recession fears.
In response, Schwab Charitable donors maintained a steady uptick in generosity. In each month of 2022, donors recommended more grants to charity than in the same month in 2021, and about one in four grants went to an organization not previously supported by the donor.
Schwab Charitable works with The Center for Disaster Philanthropy (CDP) to provide donors with lists of pre-vetted charities supporting relief and recovery efforts for crises across the world as they occur. In 2022, donors increased the number of grants to organizations recommended by the CDP by 33% compared to 2021.
Schwab Charitable donor Gary told us that, “this is probably the time to grant more since certain charities are likely struggling as some [donors] may have cut back on their donations.”
Another Schwab Charitable donor Lester agreed, stating that “Granting is not affected [by the market environment], as organizations’ needs are ever present and may even be exaggerated when market conditions are in turmoil.”
To create even greater impact, Schwab Charitable donors also increased the proportion of grants not designated for a specific purpose. In 2022, these unrestricted grants reached 71% of the total, affording even more nonprofits greater flexibility to put donations toward immediate needs.
According to Schwab Charitable donor Jack, “We’re giving more because it’s needed. The whole value proposition for a DAF giving account was to be able to send help when needed most. No matter what’s important to you, a LOT of worthy causes need help now.”
“Last year showcased the resilience of donor-advised funds at a time when charitable giving has never been more important,” said Fred Kaynor, Managing Director of Relationship Management, Marketing and Strategic Partnerships at Schwab Charitable. “Many donors remained in a strong position to grant to charities because of previous contributions of both cash equivalents and non-cash assets to their donor-advised fund accounts. As a result, they were able to meet their philanthropic goals despite the market volatility and economic uncertainty in 2022.”
Advisors offer timely support for clients
Almost two thirds of dollars granted to charity in 2022 were recommended by Schwab Charitable donors who are supported by a financial advisor. One way advisors help increase donors’ giving power is by facilitating donations of non-cash assets, such as publicly-traded stock or private business interests. Throughout 2022, 60% of contributions to Schwab Charitable were non-cash assets. Donating non-cash assets directly to charity can increase the amount available for charity by up to 20% by allowing donors to eliminate capital gains tax liability on the assets.
Schwab Charitable works with over 3,500 advisors to provide tools, resources, and consultative support to help clients incorporate philanthropy into their overall wealth management plan. This allows advisors to offer comprehensive support for clients, while clients keep their focus on what really matters: their philanthropy.
“In recent years, advisors have made charitable planning an integral part of their practice and a key component of wealth management conversations,” said Julia Reed, National Director of Charitable Consulting at Schwab Charitable. “Their value has never been more apparent than today. They continue to help clients navigate a challenging financial landscape to maximize their impact on charities.”
Education and efficiency empower impact
In addition to supporting advisors, Schwab Charitable provides education and tools to help donors give more strategically and help nonprofits attract donors.
- The award winning Schwab Charitable Giving Guide
- The Nonprofit Fundraising Toolkit and other resources for charities
- A series of materials developed with the National Center for Family Philanthropy
- Bunching and tax savings calculator and charitable donation calculator
- Inspiring donor stories
Schwab Charitable also invests in innovation to increase the efficiency and convenience of its donor-advised fund solution, which helps increase giving. A new, simpler and more intuitive online experience makes it easier and faster to grant to charity, make account contributions, and invest charitable assets. Preliminary data shows that this enhanced flow for donors has made it easier to set up recurring donations to their favorite organizations. Schwab Charitable donors recommended an average of 10 grants each throughout the year, and 69% of donors said they give more because of their Schwab Charitable account in 2022.
“Schwab Charitable is committed to nurturing a vibrant giving ecosystem of donors, charities and financial advisors,” said Sam Kang. “By working together, we increase the impact of charitable giving and give ourselves the best chance of meeting the significant challenges in our communities this year and in the years to come.”
The preceding press release was provided by a company unaffiliated with NonProfit PRO. The views expressed within do not directly reflect the thoughts or opinions of the staff of NonProfit PRO.