SAN FRANCISCO--(BUSINESS WIRE)--Schwab Charitable™, one of the largest national providers of donor-advised funds and other philanthropic services, reports that its donors granted $6.1 billion to charity in 2023, an increase of 31% compared to 2022. Donors supported over 127,000 charities through more than one million grants, an 11% increase in the number of grants to charities compared to 2022.
In Schwab Charitable’s fiscal year ending June 30, 2023, donors surpassed a record-breaking $5 billion in grants for the first time. Now, six months later and following an active year-end giving season, donors granted more than $6 billion to charities for the first time in a 12-month period in the organization’s history. Between Giving Tuesday on November 28 and December 31 – a period many consider to be the heart of giving season – donors recommended approximately 250,000 grants to charity totaling $1.5 billion. These milestones demonstrate the extraordinary generosity of Schwab Charitable donors and their unwavering commitment to supporting their favorite causes.
“The generosity of our donors continues to inspire us year after year,” said Sam Kang, President of Schwab Charitable. “And despite recent economic uncertainty, political turmoil and market volatility, our donors demonstrated their commitment to giving back with yet another historic year of granting. As we enter Schwab Charitable’s 25th year, we are proud to see donors continuing to give at record levels and are eager to see the impact they will accomplish this year.”
The resilience and flexibility of donor-advised funds amidst uncertainty
Donor-advised funds provide a consistent source of funding for charitable needs, as contributions have already been set aside for charity and can be used for granting even in volatile conditions when there is often a heightened need for charitable support. Donor-advised funds not only enable donors to achieve and often exceed their ongoing philanthropic goals, but they can also help support intentions to meet episodic needs as they arise.
Donors were quick to support disaster relief and recovery needs both locally and globally in times of crisis in 2023. Schwab Charitable connects with The Center for Disaster Philanthropy (CDP) to share a list of vetted charities supporting immediate relief and recovery efforts for communities impacted by disasters as they occur. In 2023, Schwab Charitable donors granted over $124 million to charities recommended by the CDP to support those affected by natural and humanitarian crises. When a disaster or crisis occurs, donors can quickly grant from their donor-advised fund accounts with resources that have already been set aside for charity.
“We did not realize how easy a donor-advised fund makes it to distribute grants and, as a result, probably results in us making more frequent grants,” said Schwab Charitable donor Gary F.
Schwab Charitable donors also recognize that charities have varying needs, and recommending unrestricted grants empowers organizations to deploy resources in the most efficient way possible to help them achieve their mission. 71% of donors’ grant recommendations did not specify a purpose so organizations could use the grants where needed most. Additionally, in 2023, 69% of existing donors granted to a new organization that they had not previously supported, and 87% of donors granted within their home state which further reinforces donor commitment to supporting local causes within their communities.
“I am so grateful for our donors’ generosity, especially during these recent periods of uncertainty and an ever-changing economic environment,” said Fred Kaynor, Managing Director of Marketing, Relationship Management, and Strategic Partnerships at Schwab Charitable. “Our donors reinforce the value of charitable giving and demonstrate that donor-advised funds are an easy-to-use and tax-efficient giving vehicle that help maximize charitable impact when it matters most.”
The important role of advisors in charitable planning
Awareness of donor-advised funds has significantly grown in the last several years, and financial advisors are key to educating clients on how this tool can help maximize charitable giving while providing a tax-smart giving solution. Schwab Charitable works with more than 3,700 advisors who play an important role in helping clients create a charitable giving plan that is incorporated into their broader approach to wealth planning, helping donors to navigate charitable legacy planning and involve family members in giving. 76% of account assets at Schwab Charitable in 2023 were associated with a professional investment advisor.
Advisors can help clients evaluate their assets to determine what to give to charity. In 2023, 64% of contributions to Schwab Charitable were non-cash assets, such as appreciated stock or private business interests. Contributing appreciated non-cash assets that have been held more than one year to a donor-advised fund can increase the amount available for charities as much as 20% by potentially eliminating a donor’s capital gains tax liability on the assets.
An important feature of a Schwab Charitable account is the option to invest account assets for potential tax-free growth so that donors may have more available to grant to charity in the future. Schwab Charitable offers two account types: a core account, in which donors can select from 15 investment pools with underlying funds managed by leading fund companies, and a professionally managed account, in which an advisor can customize and manage the investment portfolio. In 2023, Schwab Charitable reduced the minimum account balance for professionally managed accounts from $250,000 to $100,000, allowing more donors to access the investment expertise of their advisors in pursuing their charitable goals.
Innovative resources help donors maximize their charitable impact
Schwab Charitable is committed to making donors’ giving as easy and efficient as possible through the continued enhancement of platform capabilities and educational offerings. Schwab Charitable provides an array of granting tools and resources for donors and advisors on its platform. One tool that allows donors to maximize their granting efficiency and impact on their favorite causes is automated recurring grants, which provide ongoing support to charities. In 2023, 35% of grants were scheduled as recurring grants.
Additionally, Schwab Charitable offers thought leadership articles, tutorials, calculators, award-winning charitable planning resources, and stories of impact that feature advisors and their clients. Schwab Charitable also collaborated with the National Center for Family Philanthropy to develop a series of guide books, road maps, and videos to help donors involve their family members in their charitable giving plan, allowing them to extend their legacy and maximize their long-term impact.
“The spark was an inheritance that I received. I knew I wanted to dedicate a portion to charity, but I wasn't sure exactly which charities I would like to support with the windfall…I opted to put the funds into a donor-advised fund which afforded me the opportunity to better plan out my charitable giving. I do like the extra flexibility the donor-advised fund provides to better plan for my giving from a tax perspective while giving me the ability to grant to different charities on a one-time basis as the requests arise,” added Alexander H., a donor with Schwab Charitable.
About Schwab Charitable
Schwab Charitable’s mission is to increase giving in the U.S. with donor-advised funds and philanthropic tools and resources 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 $33 billion to more than 246,000 charities. Visit SchwabCharitable.org for more information.
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.
Contributions made to Schwab Charitable Fund are considered an irrevocable gift and are not refundable. Please be aware that Schwab Charitable has exclusive legal control over the assets you have contributed.
A donor opening a professionally managed account must recommend an independent investment advisor, who, if approved by Schwab Charitable, will manage the assets contributed to the account. Advisors must meet certain eligibility requirements, including working with Schwab Advisor Services™, a business segment of The Charles Schwab Corporation, and agree to the Investment Advisory Agreement, which is available on schwabcharitable.org.
These testimonials, statements, and opinions may not be representative of the experiences of other advisors or donors. The testimonials are voluntarily provided and no compensation, free products or services, or any benefits were given in exchange for the testimonials. They are not indicative of future programs, services, performance, or success. Independent investment advisors and their firms are not affiliated with Schwab Charitable Fund. Some statements have been edited.
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.
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