As Individual Philanthropy Grows, Donor-Advised Fund Grants Rise

Giving Facilitated By Schwab Charitable Increases 36%

SAN FRANCISCO--()--Top researchers associated with Giving USA 2014 shared highlights of the newly released report on American philanthropy at an event hosted by Schwab Charitable in San Francisco. The annual report by Giving USA Foundation shows gifts to charity from American individuals rose again in 2013 over 2012 levels.

Amid this growth, national donor-advised funds continued to play a growing role in facilitating simple, tax-smart charitable giving. According to Schwab Charitable, grants from the nation’s largest donor-advised funds increased substantially more in 2013 over the prior year. Schwab Charitable experienced a 36% increase in granting, helping donors give $742 million to more than 41,000 charities. The sectors that received the most charitable support included education, health and human services, social benefit and religion, and substantial increases were seen across all sectors.

“Donor-advised funds helped make giving easy, impactful, and sustainable for many Americans last year,” said Kim Laughton, president, Schwab Charitable. “Strong appreciation in assets and changes to the tax code made 2013 a great year to give. This year, as the economy continues to improve, donors feel they have even more breathing room. They are taking the time to create philanthropic strategies both individually and in cooperation with their financial advisors. We increasingly see charitable giving incorporated into regular discussions about financial planning and wealth management. Donor-advised funds are also becoming more popular vehicles to facilitate giving while living and to establish a legacy effectively.”

In 2013, more than 65% of assets contributed into Schwab Charitable accounts were appreciated assets, another five-year high. “With the stock markets remaining strong in 2014, we expect continued interest in donating appreciated stock and more complex assets, including shares in public and private companies and seasoned private equity and hedge fund interests.”

Donor‐advised funds allow investors - either directly or with the help of an advisor - to contribute cash or appreciated assets to a charitable account in order to realize the greatest possible tax benefits and to then support charities of their choice over time.

Giving USA Foundation and its research partner, the Indiana University Lilly Family School of Philanthropy, produce the annual estimates of U.S. charitable giving contained in the Giving USA report. This year’s results were explored today at an event in San Francisco hosted by Schwab Charitable and followed by a panel discussion. Giving Institute member firms CCS and Benefactor Group were presenting sponsors for the event.

About Schwab Charitable

Created as a national donor‐advised fund with a mission to increase charitable giving nationwide, Schwab Charitable has received over $9 billion in contributions and has facilitated over $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 $700 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.

Contributions of certain real estate, private equity or other illiquid 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 Schwab Charitable Fund for more information at 800-746-6216.

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. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.

©2014 Schwab Charitable Fund. All Rights Reserved. (0614-3884)

Contacts

The Neibart Group
Cailin Sullivan, 718-801-8864
csullivan@neibartgroup.com

Kim Laughton, president of Schwab Charitable. (Photo: Business Wire)

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Release Summary

Giving USA Foundation and the Indiana University Lilly Family School of Philanthropy, produce the Giving USA report and results were explored at an event in San Francisco hosted by Schwab Charitable.

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Contacts

The Neibart Group
Cailin Sullivan, 718-801-8864
csullivan@neibartgroup.com