- 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.
- 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.
- 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.
- 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.
- 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.
“Tax-smart charitable giving will continue to be a welcomed discussion topic between individuals and advisors, especially given that tax rates are now higher at the upper-income levels and the value of a charitable deduction for many has therefore increased,” said Laughton. “Advisors can build higher-value relationships and improve client retention by including philanthropic goals in their wealth management conversations.”Schwab Charitable works with over 1,000 registered investment advisors (RIAs) to meet the charitable giving needs of their clients. Advisors are able to use the same technology platform (SchwabAdvisorCenter.com) to oversee charitable accounts as they do for other accounts at Schwab. About Schwab Charitable Created as a national donor-advised fund with a mission to increase charitable giving nationwide, Schwab Charitable has received over $7 billion in contributions and has facilitated over $3 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 $500 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. Professionally‐managed accounts are available only through independent investment advisors working with Schwab Advisor Services TM, 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. The Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.©2013 Schwab Charitable Fund. All Rights Reserved. (0113-0834)