Charitable donations given through Schwab Charitable, a donor-advised fund, increased by 36 percent in 2013, the largest percentage increase in the past five years, Schwab Charitable announced Monday.
Donations totaled $742 million. Grants to charities ranged in size from $50 to $10 million and went to more than 41,000 charities spanning a wide range of causes. The largest charitable sectors supported include education, health and human services, and social benefit and religion.
More than 65 percent of assets contributed into Schwab Charitable accounts were appreciated assets, another five-year high, says Schwab. When appreciated assets are transferred to a donor-advised account, donors receive a tax deduction and do not pay capital gains tax on the sale of assets. As a result, donors have as much as 25 percent more to give to their favorite charities.
“A strong stock market provided a double boost to giving in 2013," said Kim Laughton, president of Schwab Charitable. "Many of our clients had more windfalls from appreciated assets in their portfolios to share with their favorite charities. In addition, the value of the investments in their donor-advised accounts also grew, making more funds available for granting."