Schwab Charitable, one of the nation's leading donor-advised fund
organizations, reports continuing rapid growth in grants during its
fiscal year 2014. Between July 1, 2013 and June 30, 2014, individuals
granted out $822 million to more than 34,500 charities of their choice,
an increase of 38% from the prior fiscal year. This rapid growth comes
on the heels of a 10% increase in grants for fiscal year 2013.
“Our donors have absorbed the new tax policies that took effect in 2013
and they are encouraged by an improving economy and a strong stock
market. As a result, they are increasing their giving and supporting a
wide range of causes,” said Kim Laughton, president of Schwab
Charitable. “Their donor-advised accounts give them a great way to
unlock the value of their investments to give to their favorite
charities, reduce their taxes and manage their giving simply and easily
in one place.”
Schwab Charitable also reported assets under management of $6.4 billion
as of June 30, 2014. More than 45% of the funds contributed to Schwab
Charitable accounts have been granted out to charities since inception.
Investors have contributed cash or a variety of appreciated assets1
to their Schwab Charitable accounts in order to support their favorite
charities over time while realizing the greatest possible tax benefits.
Money in the account is invested and grows tax-free until it is granted
to charity.
Schwab Charitable Expands Investment Options
Schwab Charitable also announced that it will expand the investment
options available to donors by adding a new Income Index Pool in August.
This will bring the total number of investment pools to fourteen,
including four that are allocated across multiple asset classes and ten
dedicated to a single asset class. The underlying mutual fund for the
new Income Index Pool is the Dreyfus Bond Market Index Basic (DBIRX),
chosen for its strong historical performance and low operating expenses.
"Underlying our investment pools is one of the largest selections of
non-proprietary funds of any national donor-advised fund,” says Barbara
Benware, Vice President of Investment Oversight. “Our commitment to
choosing best-in-class investment options from a variety of fund
families gives our donors a wide range of investment choices to fulfill
their giving strategies.”
RIAs Support Interest in Giving
The number of Schwab Charitable accounts grew 17% in Fiscal Year 2014,
as investors showed increasing interest in simple, tax-efficient
charitable giving. Registered investment advisors (RIAs) have responded
by making charitable planning an important part of financial planning
and wealth management. According to the 2014 Independent Advisor Outlook
from Charles Schwab, charitable planning is one of the top three
services offered by RIAs to supplement their core investment advisory
business. Charitable planning now outranks estate planning in
popularity, and falls just behind long-term financial planning and
advice on employee-sponsored retirement accounts.2
“Charitable planning is becoming a natural part of the financial
planning and wealth management discussion between independent investment
advisors and their clients,” says Laughton. “Since many clients have
appreciated assets in their portfolios, donor-advised funds are a
natural solution to help investors simultaneously reduce their taxes and
maximize the amount they are able to give to charity. Advisors
strengthen their relationships with clients by taking part in such
decisions because charitable causes and organizations matter a great
deal to their clients.”
About Schwab Charitable
Created as a national donor-advised fund with a mission to increase
charitable giving nationwide, Schwab Charitable has received over $9.8
billion in contributions and has facilitated over $4.4 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 $800 million. Schwab Charitable has been a pioneer in enabling
RIAs to manage the investments of donor-advised accounts and remains a
leading provider of such professionally managed accounts.3
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.
Account holders should carefully consider information contained in
the prospectus for the registered underlying mutual funds, including
investment objectives, risks, charges and expenses. You can
request a prospectus by calling Schwab Charitable Fund at (800) 746-6216.
Please read the prospectus carefully before making contributions or
recommending investment of funds.
Past performance cannot guarantee future results. Market fluctuations
may cause the value of investment fund shares held in a donor-advised
account to be worth more or less than the value of the original
contribution to the funds.
A donor's ability to claim itemized deductions may be subject to further
limitations depending upon the donor's specific tax situation and donors
should consult their tax advisors. Schwab Charitable does not provide
specific individualized legal or tax advice. Please consult a qualified
legal or tax advisor where such advice is necessary or appropriate.
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.
©2014 Schwab Charitable Fund. All Rights Reserved. (0714-4599)
1 Contributions of real estate, private equity or other
non-cash assets are accepted via a charitable intermediary, with
proceeds of your donation transferred to your donor-advised account upon
liquidation. This intermediary considers donations on a case-by-case
basis, and assets typically must be valued at $250,000 or more. Call the
Fund for more information at 800-746-6216.
2 About the Independent Advisor Outlook Study: The
current Independent Advisor Outlook Study reflects the opinions of 720
independent advisors representing an estimated $180 billion in assets
under management. The current wave set out to better understand
advisors’ perspectives about the opportunities and challenges they see
with respect to the next generation of clients, including the ways in
which they are planning to augment their strategies for business growth
and their client service models. The Independent Advisor Outlook Study,
conducted for Schwab Advisor Services by Koski Research, has a 3.65%
margin of error. Koski Research is not affiliated with nor employed by
Charles Schwab & Co. Inc. All data are self-reported by study
participants and are not verified or validated. Independent investment
advisors participated in the study between April 15 and May 6, 2014.
3 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.
Copyright Business Wire 2014