This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Kim Laughton, President Of Schwab Charitable. (Photo: Business Wire)

Schwab Charitable, one of the nation’s leading national donor-advised fund organizations, closed its 2012 giving season with a record level of charitable contributions and new accounts as individuals and their advisors embraced Schwab Charitable’s tax-smart, simple and accessible approach to supporting the non-profit causes about which individuals care most. Spurred by an uncertain tax environment amidst the fiscal cliff debate, contributions more than tripled and new accounts doubled over the same period last year.

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

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

“We are thrilled to witness such a robust giving season and to see the significant jump in interest and activity. It speaks to the fact that more individuals are recognizing that a Schwab Charitable account makes their charitable giving easier and more strategic, and that these accounts are within everyone’s reach,” said Kim Laughton, president, Schwab Charitable.

A donor-advised fund allows investors - either directly or with the help of an advisor - to contribute cash or appreciated assets to a charitable account to realize the greatest possible tax benefits and to then support charities of their choice over time. Serving a wide range of philanthropic investors, Schwab Charitable’s account sizes range from $5,000 to over $500 million.

Guidelines for Granting

In addition to making year-end contribution decisions, many advisors and individuals have been actively recommending grants to individual charities.

“We approved 70% more grants in the fourth quarter this year than we did last year, and we expect to see this granting activity continue through the first quarter because of the many new accounts recently established,” said Laughton.

Schwab Charitable has outlined five areas for individuals and their advisors to consider when thinking about a granting strategy in 2013:

  1. Develop a purposeful strategy for giving: Be proactive and purposeful about your giving. Take a step back and think about what you want to achieve with your charitable dollars, and consult a financial advisor to help you determine priorities and the level of support you want to provide throughout the year. In addition to reflecting your values, a purposeful strategy can also help you to say no to solicitations that do not fit within your strategy. Check your progress against the strategy throughout the year. Your donor-advised fund account online summary can help by displaying grant history by cause, so that your activity can be monitored and you can ensure that it is consistent with your giving plans.
  2. Choose the organizations to support: You can support one or many causes from your donor-advised fund. Deciding what causes to support might be a decision you make on your own, or it can be a wonderful thing to do together as a family. Schwab Charitable provides clients with a number of resources to help with this process.
  3. Decide on grant timing and amounts: A donor-advised fund allows for giving over time and you may recommend grants of $50 or more at any time to any IRS-approved 501(c)(3) public charity. Consider whether the causes you are supporting are likely to benefit most from a one-time grant at a certain time of the year, or a series of gifts throughout the year.
  4. Choose your desired level of recognition: Do you want to be recognized for your charitable gift or would you prefer to give anonymously? With a donor-advised fund, you may choose how to be recognized for each grant you recommend. Those who want maximum recognition can have their gifts accompanied by letters on stationery personalized with their account’s special account name.
  5. Consider the long-term: Donors are able to extend their charitable giving beyond their lifetimes through the Charitable Legacy Program. Used in conjunction with a holistic estate plan, this program gives qualified donors the flexibility to provide charitable organizations with support over time after their death.

Opportunity for advisors: Help clients with simpler but more strategic charitable giving

As they incorporate charitable giving into their overall financial plans, individuals are looking to advisors now more than ever for advice on giving and granting strategies. Charitable planning and giving is an important component of any tax planning or financial planning discussion, and conversations about giving intentions and strategies are a good way for advisors to build deeper relationships with clients.

Stock quotes in this article: SCHW 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,262.56 +89.32 0.55%
S&P 500 1,842.98 +12.37 0.68%
NASDAQ 4,034.1610 +11.4670 0.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs