SAN FRANCISCO--(BUSINESS WIRE)--Schwab Charitable™, one of the largest national providers of donor-advised funds and other philanthropic services, reports that its donors supported more than 113,000 charities in fiscal year 2021 through 855,000 grants totaling $3.7 billion. This represents a 13% increase in dollars granted to charities, and a 24% increase in the number of grants to charities compared to the previous all-time highs set in fiscal year 2020.
“Schwab Charitable donors demonstrated extraordinary generosity during a particularly difficult 12 months,” said Sam Kang, President of Schwab Charitable. “I am proud of our efforts to help increase their giving power at a time when charitable giving has never been more important. We are committed to providing donors and their financial advisors with the most efficient, tax smart charitable giving solution while helping them explore new and impactful ways to achieve their philanthropic goals.”
Three years of giving highlight trends, changes
Donors have demonstrated a commitment to increasing their charitable impact by supporting additional charities over the last three fiscal years while maintaining support for their favorite causes.
Schwab Charitable donors recommended grants to 12% more charities than the previous fiscal year and nearly 30% more organizations than in fiscal year 2019. One Schwab Charitable donor said, “…I tended to send money to [charities] on an ongoing basis rather than just once a year. I doubled the amount of my normal grants [in 2020].”
There was a 48% increase from the previous fiscal year in the number of grants recommended by Schwab Charitable donors which were not designated for a specific purpose in fiscal year 2021. Unrestricted grants afford nonprofits greater flexibility to deliver critical services, which has been essential during this time of extraordinary need.
Technology drives increase in granting
Over the last three years, Schwab Charitable donors have taken advantage of technology enhancements that have encouraged giving and helped them achieve maximum philanthropic impact. Schwab Charitable has made its digital client center simpler and more intuitive, launching a new user experience for grant recommendations in 2020 and a new account overview page.
Since fiscal year 2019, the numbers of recurring grants and grants made on mobile devices have more than doubled, and in fiscal year 2021, 79% of grant volume was handled through an automated review and approval process that helps speed funds to charities.
“Constantly enhancing our capabilities and offering innovative tools and resources serves our donors and aligns with our mission to increase giving in the United States,” added Kang.
Financial advisors help donors give wisely
Financial advisors increasingly offer charitable planning as a way to enhance their value to clients by helping them incorporate philanthropy into their overall financial planning. In 2020, 85% of independent advisors offered charitable planning to their clients, higher than the percent of firms offering tax planning and strategy (80%) and estate planning (68%).1
Financial advisors are well positioned to help clients utilize charitable planning to minimize taxes and maximize charitable impact. One tax-smart strategy is donating appreciated non-cash assets to charity. Donors who use this strategy can generally eliminate the capital gains tax they would otherwise incur if they sold the assets first and donated the proceeds, potentially increasing the amount available for charity by up to 20%. In fiscal year 2021, approximately 60% of contributions to Schwab Charitable were in the form of non-cash assets, including publicly traded securities, restricted stock, and private business interests.2
To help donors and advisors work together to maximize the impact of giving, Schwab Charitable developed the Schwab Charitable Giving Guide. The comprehensive tool includes exercises and information that advisors can work through with their clients to create a thoughtful giving plan, involve family members, identify organizations to support, and plan a legacy. The guide is a mechanism for advisors to broaden discussions with clients and support overall charitable objectives, giving motivations and goals.
“Schwab Charitable donors have provided critical support to charities in the past year,” said Fred Kaynor, Managing Director of Business Development, Marketing and Strategic Partnerships at Schwab Charitable. “As our donors continue to show exceptional generosity during these uncertain times, we are dedicated to providing them with best-in-class tools and resources to help them achieve their charitable giving goals.”
About Schwab Charitable
Schwab Charitable’s mission is to increase giving in the U.S. with donor-advised funds and philanthropic services that make charitable giving tax-smart, simple and efficient. We offer tools, guidance and relationships that empower donors to incorporate charitable planning into their everyday lives and make a bigger difference in the world. Since our founding in 1999 as an independent 501(c)(3) public charity, Schwab Charitable donors have granted more than $19 billion to more than 193,000 charities. Visit SchwabCharitable.org for more information.
Schwab Charitable’s fiscal year runs from July 1 to June 30 of the following year. Fiscal year 2021 refers to the period from July 1, 2020 to June 30, 2021.
Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund™, an independent nonprofit organization, which has entered into service agreements with certain affiliates of The Charles Schwab Corporation. Schwab Charitable Fund is recognized as a tax-exempt public charity as described in Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code.
©2021 Schwab Charitable Fund. All rights reserved.
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1 2021 RIA Benchmarking Study from Charles Schwab. Results for all firms with $250 million or more in AUM. Study contains self-reported data.
2 Schwab Charitable accepts illiquid assets for contribution on a case-by-case basis and in some cases, liquidation is facilitated by a third party. In fiscal year 2021, less than 1% of contributions were non-cash assets liquidated by a third party, received by Schwab Charitable as cash, and reported here as non-cash assets.
