Welcome to Maximize Your Giving Impact

Fall is here and it’s often a time we think about new beginnings as many families kick off a new school year. Fall is also an important time at Schwab Charitable, as we recently closed our fiscal year and are entering what many consider to be the most popular time for giving. It gives Schwab Charitable the opportunity to reflect on the incredible impact our donors have had on the causes and charities that matter most to them and energizes us to continue to partner with advisors and donors in the final months of the year to help make a lasting difference.

What makes the generosity of Schwab Charitable donors especially remarkable this year is that despite volatile market conditions, persistent inflation, high interest rates, and concerns about a potential recession, Schwab Charitable donors still achieved record levels of granting.

I am excited to launch this newsletter as a resource for our financial advisors, donors, and those seeking to increase their giving power at a time when supporting charities is more important than ever. In each newsletter, you can expect to find timely insights, data, news, and valuable information to help you give – or support clients interested in giving – with maximum impact.

Schwab Charitable Donor-Advised Fund Accounts Reach New Milestones

In July, we announced that Schwab Charitable donors increased giving in fiscal year 2023, reaching a record $5 billion in grants to charity for the first time in the history of our organization. Our fiscal year 2023 results also demonstrated that donors exceeded 1 million individual grants to charities for the first time ever, supporting more than 120,000 charities throughout the year. This is nearly $350 million more for charities compared to the previous fiscal year.

I am inspired by our donors for achieving these monumental results. Giving USA’s recent annual report on philanthropy noted that total giving in the United States declined in 2022. This is only the fourth time in four decades that donations did not increase year over year. While charitable giving is typically correlated with the stock market, and the challenging economic environment likely impacted giving in some capacity, Schwab Charitable donors did not let that stand in the way of their generosity and demonstrates that donor-advised funds can be a resilient tool for donors.

In fact, total granting outpaced contributions to accounts, according to our fiscal year 2023 results. Because donors had previously contributed assets to their Schwab Charitable accounts during more economically stable times and invested those funds for potential growth, they were able to continue granting and supporting the causes important to them with dollars already earmarked for charity. By having a philanthropic giving plan in place, and leveraging low cost, tax-smart, and efficient solutions such as donor-advised funds, donors are still in a position to maintain a steady stream of support to charity, despite unpredictable and challenging market conditions.

Additional Highlights from the 2023 Fiscal Year Results Include:

• Schwab Charitable is now working with nearly 3,500 advisors, a 9% increase in advisor relationships compared to the previous year.
• 56% of account contributions were non-cash assets.
• Schwab Charitable donors granted 12 times on average throughout the fiscal year.
• 35% of grants were set up as recurring gifts to charities, a 20% increase from the prior year.
• Donors recommended over $108 million in incremental grants to organizations highlighted by the Center for Disaster Philanthropy to support relief and recovery efforts for national and global crises.

Donors have now cumulatively granted nearly $29.2 billion to more than 235,000 charities since Schwab Charitable's inception in 1999. I am humbled by the extraordinary generosity of our donors and look forward to continuing to partner with advisors supporting their clients with charitable planning. Together we’re helping donors make a huge impact in our local communities and around the world.

Have a question about Schwab Charitable or donor-advised funds? Leave it in the comments.?

Disclosures:

A donors ability to claim itemized deductions is subject to a variety of limitations depending on the donors specific tax situation.

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. Although every effort has been made to ensure that the information provided is correct, Schwab Charitable cannot guarantee its accuracy. This information is not provided to the IRS.

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.

?2023 Schwab Charitable. All rights reserved.